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Scalping is good
Apr 16, 2021 at 16:21
"Scalping is good only if you know the risks and have suitable strategy and skills to control the loss and profits in a trade.
Since scalping is tricky, it's better to trade with reliable brokers like FP Markets or CMC Markets with good trading conditions. "
Since scalping is tricky, it's better to trade with reliable brokers like FP Markets or CMC Markets with good trading conditions. "
Member Since Jun 26, 2020
323 posts
Apr 17, 2021 at 07:26
right now i am doing scalping but the main problem is most of the time this short time trading approach contains huge risk , so i fall great trouble sometimes.
Sep 17, 2021 at 07:39
FredJones posted:
Is scalping suitable for beginner traders because most traders say it is risky and earning consistent profit is impossible?
Scalping involves quick decision making and continuous monitoring of positions and that's why it is not recommended for rookie traders.
Member Since Oct 29, 2020
2 posts
Sep 17, 2021 at 08:23
jakes90 posted:FredJones posted:
Is scalping suitable for beginner traders because most traders say it is risky and earning consistent profit is impossible?
Scalping involves quick decision making and continuous monitoring of positions and that's why it is not recommended for rookie traders.
People made Algo's for this ya know
In the 1940s, economics started getting highly mathematical. It was basically because economists weren't smart enough to write down models of real behavior that they started writing down models of highly rational behavior - and they kind of forgot
Member Since Jun 09, 2021
42 posts
Sep 17, 2021 at 12:18
Every trading strategy has its own weakness and strength. When it comes to scalping, it is good only if you are quick at your feet in terms of making trading decisions.
Sep 17, 2021 at 12:36
@marcusobrien Yes every strategy has its weakness and strength. But to me, new traders should not go for scalping as it leads them to overtrading habit.
Sep 17, 2021 at 14:54
I tried scalping when I was a newbie in 2008. It looked easy and I could get into some pairs like the Eur/USD with a low spread. Brokers love traders who scalp because most of us give them a lot of money until we give all of our account to them by slow attrition. How can this be? Do some math? Remember that you have spread costs going in and out of a trade (although the spread going out is hidden by the broker by showing you the net) So if you scalp for a few pips you have to figure in the spread costs. (5 pips minus 2 pips +3 pips gain.) It doesn't matter if you are trading minis, micros, or standard lots, the math is the same, right?
It looks good---until you figure in some losing trades. How far behind your trade is your stop loss? It seems to me that any trade you enter is subject to what I call the "market wobble", eg the natural movement of the price at a short time frame within a small range. I know I used to watch my trades on a 10 second time frame and could see the "wobble" occur on most trades. Is that "wobble" two or three pips? How do you account for the "wobble"? If your goal is 5 pips and the spread is 2 pips in and out, you have to take it into account by placing a stop loss at 5 pips or more to keep from getting stopped out almost immediately. So now you are faced with a decision as to what ratio of potential loss to potential gain you want to put into place. Do you place your stop loss at 10 pips? 20? 30?
Perhaps you can see what the math is telling you. You have to be right on your scalp entry at a high rate of accuracy or the "wobble" and the spread, plus your bad trades are going to eat your account up. If you have one loss that is stopped out at 30 pips, it takes a lot of 5 pip trades which net out 3 pips to make up for it. And it is even more difficult to make the math work if you shorten the stop loss to give yourself a 1 to 1 ratio. It took me a while of watching the slow attrition of my account before I realized that I would have to trade at a success rate of 80-90% winning trades to be profitable over the long term by scalping. You have to learn what professional traders know: They trade price action and have learned the "secrets" of reading the agenda of the Big Boys. It takes work to educate yourself, but if you want to succeed in any business, you have to learn the rules. Find a good mentor on price action trading and go to work.
It looks good---until you figure in some losing trades. How far behind your trade is your stop loss? It seems to me that any trade you enter is subject to what I call the "market wobble", eg the natural movement of the price at a short time frame within a small range. I know I used to watch my trades on a 10 second time frame and could see the "wobble" occur on most trades. Is that "wobble" two or three pips? How do you account for the "wobble"? If your goal is 5 pips and the spread is 2 pips in and out, you have to take it into account by placing a stop loss at 5 pips or more to keep from getting stopped out almost immediately. So now you are faced with a decision as to what ratio of potential loss to potential gain you want to put into place. Do you place your stop loss at 10 pips? 20? 30?
Perhaps you can see what the math is telling you. You have to be right on your scalp entry at a high rate of accuracy or the "wobble" and the spread, plus your bad trades are going to eat your account up. If you have one loss that is stopped out at 30 pips, it takes a lot of 5 pip trades which net out 3 pips to make up for it. And it is even more difficult to make the math work if you shorten the stop loss to give yourself a 1 to 1 ratio. It took me a while of watching the slow attrition of my account before I realized that I would have to trade at a success rate of 80-90% winning trades to be profitable over the long term by scalping. You have to learn what professional traders know: They trade price action and have learned the "secrets" of reading the agenda of the Big Boys. It takes work to educate yourself, but if you want to succeed in any business, you have to learn the rules. Find a good mentor on price action trading and go to work.
Member Since Jun 09, 2021
42 posts
Sep 20, 2021 at 10:00
Akasuki posted:
@marcusobrien Yes every strategy has its weakness and strength. But to me, new traders should not go for scalping as it leads them to overtrading habit.
I am with you on this , I have always felt that scalping should be left with experienced traders (who can make better predictions) and new traders should always begin with a swing trading strategy , which would teach them patience.
Member Since Jun 09, 2021
42 posts
Sep 20, 2021 at 10:19
@SteveHanks indeed, without discipline and commitment traders can never execute successful trades. Many young traders lose their path in forex trading because they are in a rush to make quick bucks all the time.
Member Since Aug 05, 2021
394 posts
Sep 20, 2021 at 14:21
I think that scalping can be a good Avenue for traders to profit, however, it can also cause losses if one does make the mistake of overtrading. Fortunately, there are many other strategies to choose from if one doesn’t do well as a scalper.
Sep 21, 2021 at 20:45
I wouldn't call scalping neither good nor bad. It is ust a certain type of trading which is suitable for some traders and brings them profits. It is up to everyone to decide whether they can do scalping or not. I prefer long-term trading because I don't like sitting before the computer screen all day long and follow the charts attentively.
Sep 21, 2021 at 20:55
Scalping is great I think, because despite the fact that scalping increases your risks, you potentially can earn much more money than in another trading type. I believe that it's pretty hard to learn how to scalp properly, because often, traders dump their deposits even if they comply with risk management and money management practices. There is another technique in scalping, hence I wouldn't advice novices to try to scalp. It's just a waste of time and money for them. However, if you're skilled enough in trading activity and want to try something new which has much more risks, then you can try to scalp.
Member Since Mar 16, 2021
447 posts
Sep 22, 2021 at 01:39
Kerokkel posted:
Scalping is great I think, because despite the fact that scalping increases your risks, you potentially can earn much more money than in another trading type. I believe that it's pretty hard to learn how to scalp properly, because often, traders dump their deposits even if they comply with risk management and money management practices. There is another technique in scalping, hence I wouldn't advice novices to try to scalp. It's just a waste of time and money for them. However, if you're skilled enough in trading activity and want to try something new which has much more risks, then you can try to scalp.
Yes, scalping is good for making quick money but this strategy is very risky. This requires money management and risk management.
Sep 22, 2021 at 16:18
There shouldn't be any financial concepts which can be described as good or bad, because these words reflect our attitiude to this or that thing which include emotions. As we all know, emotions should be excluded from our perception of the markets. Can you make money with the help of scalping on the forex market? Yes, of course, you can. However, there are other strategies which may be more suitable for you.
Member Since Jun 07, 2021
70 posts
Sep 24, 2021 at 07:26
Yes, If you know what you're doing. Scalping is one of the most common trading styles. Many people are confused by scalping because they don't understand it fully. The main thing to understand is that, unlike day trading, scalping is about the minute movements in the market. It's more of a momentum play than anything else.
Member Since Jun 14, 2021
27 posts
Sep 25, 2021 at 04:53
If a strategy suits the trader’s personality then it’s good for him. We can’t say that one strategy is good and everyone can profit from it. Scalping requires attentiveness to spot opportunities, quick decisions, constantly monitoring the screens and a stamina to execute a number of small trades. If done properly a trader can make many small gains.
