Scalping is good

UweMoench posted:
Scalping is good. But new traders should not do scalping. Scalping tends people to do over trade. Scalping is done in lower timeframe where there is too much noise in chats. It's a barrier to develop good trading psychology. Once you are expert with controlling your emotions in trading, you can do scalping also.

I think this is a good point

How do people deal with scalping? Most brokers do not allow scalping so what can you do. Are there good brokers that do allow it?

scalping feels like guess work at the beginning. thats where newbies go wrong. sometimes forgetting the bigger picture and getting stuck in the m5 chart. 5 pips and out usually for me.

Can be risky but it can be very profitable if you stick to a set criteria and rules. I love scalping but it also suits my personality as i like some action lol

Scalping is good but I don't like scalping. Because my loss is more when scalping. The reason is emotion. It is impossible to gain profit from that trade if there is emotion.

It does take some time to control emotions but it is not impossible to do so, in my experience.

'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. '

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.

There is an opinion that scalping is mostly suitable for beginners, but not everything is as easy as it seems at first glance.

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.

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

Scalping isn't suitable for beginners at all. I feel only experienced players should scalp in the forex trading since they understand the movements and nature of the market.

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.

@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 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.

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.

Scalping requires discipline and skills to analyse the market on very short timeframes.

@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.

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.