UweMoench posted: New traders love scalping as it gives quick profit. And this makes them addicted to trading. But I think starting with scalping is a bad idea. Everyone should start with higher timeframe. After some experience scalping can be done.
It`s even the worst idea. It can look simple but it`s absolutely not. The scalping must be the last think to do for newbies.
Finally a sound answer. ... its exactly true... scalping and newbies is a perfect example of trading disaster.
Bradley88 posted: I prefer scalping because it's profitable for all kind of traders and requires only a well-executed strategy. Currently, I'm looking for a suitable broker that offers spread averaging at 0.0pips and faster execution.
Be careful with brokers that offer zero pip spreads. They are in business to make money. If they cannot make it in the spread then you can guarantee they are making it somewhere else. Unfortunately, the way they usually do this is by taking the other side of your trades. They know that statistically 80% to 90% of new traders lose most or all their trading capital within the first 90 days. If you could run a business where you knew that you could take most or all of someones capital within 3 months simply by winning when they are losing (that's what happens when you lose on a trade and the broker is on the other side of that trade), would that not be a no-brainer? The fact that it is unethical and unfair does not even register with most of these brokers. Therefore, I would recommend that you stay away from brokers that offer zero pip spreads due to the conflict of interest this situation entails. They will try to hide the fact that they so this by various means (setting up an intermediary company, for example) or simply mislead you with a claim of offering STP (Straight Through Processing) without clarifying that they also have a 'Dealing Desk' (which they use to 'facilitate liquidity' - broker speak for winning when you lose). There's a lot of sharks out there, be careful that you don't get eaten. Happy Trading!
For any HFT strategy or scalping you need really good STP account, with raw spreads and smallest possible commission. We know how to find such accounts and negotiate with brokers. That's why our scalping strategies bring stable profits.
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