What time to trade what pairs and scalping vs day trading

Beginner Questions
1

hi rookie here been on a live account about a week now
with a low deposit just want to understand overnite fees and what can you trade after 5 pm eastern

2

if you love doing scalping should choose the pair which is more appropriate to scalp including lowest trading spreads. but with a low deposit its difficult to scalp successfully.

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3

you can trade aud or yen session in the evenings/early morning,but there’s more volatility during London and US session,

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4

GBP/JPY has the highest volatility, exciting scalping during the London and NY session

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5

For scalping; M30 & daily trading- H4 & daily time frame!

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6

thank you thats what i wanted to know

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7

I hope I’m not too late to the party here, but since all I do is scalp, I thought I might throw my two cents in.

I use the 1- hour charts only for scalping. You may think that is odd, but really, what is a scalp anyway? It in essence is a type of profit target that is flipped upside down from a swing trade. In a swing trade set up, you are trying for at least a 1:2 risk/reward ratio. You can swing any timeframe chart, even the 5-minute!

In scalping, you are taking very quick profits. Although you want profits to be as high as possible just like in swing trading, you are more interested in accumulating wins (a higher hit rate). You really need a 70% hit rate. As a consequence, the average risk/reward ratio is often less than 1:1. You are trading in your higher profits for a higher probability.

Although you can scalp any timeframe, I have found the one hour chart to be ideal for me. Any lower and I get eaten up in spreads and commissions. Any higher and I may may be forced to hold over the weekend, which is too dangerous for my liking.

I know everyone is telling you to swing trade as a beginner. The problem is, the FOREX markets, like all markets. spend most of their time in tight trading ranges, which are not good for a swing trader. The sooner you learn how to do both, the sooner you can start making money on a consistent basis.

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8

thanks alot thats exactly what i am doing i usually stick to the one hr chart but go to daily and 4 hr to check wich direction its heading been doing good so far but i really dont understand swing how long do you leave a position open for

9

For day trading you need support/resistance indicator and ADR and you will be fine.

10

In swing trading, the position is held for as long as it takes to get your minimum R/R of 1:2. That is why the probability is so low.

11

Leave a position open as long as the TA suggests there is at least as good a probability of profit as when you first entered.

For example, suppose your TA suggested enter long at 106.5 and that the move would meet strong resistance at 107.5. At every price through 106.5, 106.6, 106.7, 106.8 etc. the probability of profit is the same. However, as price approaches 107.3 you see its upward movement is slowing: that could be a good reason to exit early.

Or suppose you have a TA set-up that has 3 important features and 3 weak features suggesting you should buy at 106.5. By the time price has reached 107.0 one of your important features has disappeared off the chart and so have two of the weak ones. Could be a good time to exit.

Of course, instead of exiting immediately, you could move your stop-loss tighter. Or you could close part of the position.

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12

i use that for the scalping also

13

interesting so pretty much you open positions on sun- mon and try to close out before the weekend i do this on a. daily basis and close out in a couple hrs

14

Positions can open on orders any day of the week. They stay open until one of the following conditions intervenes - (these rules are for uptrends: reverse for downtrends)

  1. price hits the stop-loss
  2. price closes the day below the 3EMA
  3. price makes a fifth consecutive bar with higher highs and higher lows
  4. price makes a third consecutive higher close
  5. the 20 or 50EMA slope turns downwards
  6. the 20EMA drops below the 50EMA
  7. the total unrealised gain across all open positions makes 10% of the account capital - then I close all open positions and take a day off

If the market conditions were more favourable towards trends I would run the winners longer and hopefully pyramid them also. I never close positions for the weekend.

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15

wow very insightful so these are your order conditions i set a stop loss and profit and in and out everyday maybe 2 or 3 times

16

but what a week for the eur/usd i hope most people crushed it

17

wow will it ever go back up

18

No.2, the 3EMA rule, is problematic if price is ranging so that is the one I most often have to ignore.

19

Pip, by my opinion, situation with EURUSD is tricky as there is a lot of issues on political side. Germany announced that they are expecting economical slowdown, this is why there is negative move on Euro. But, as they are planning to bring stimulus to economy, hope that Euro will go back up again.