Scalping is Risky?

Discussion in 'Forex' started by Coner1980, Jul 22, 2020.

  1. Scalping is based on tech. analysis and short term price fluctuations. Due to the extensive use of leverage, scalping is considered a high risk style of trading.
     
    #11     Jul 23, 2020
  2. AbbotAle

    AbbotAle

    Leverage always translate to the risk, not the timeframe.

    Plenty of scalpers use little or no leverage, plenty use high leverage.

    Plenty of longer term traders use little or no leverage, plenty use high leverage.
     
    #12     Jul 23, 2020
  3. The best way to know is to backtest your strategy
    The funny thing is that people don't take trading as serious as other professions. It you are going to be a brain surgeon you won't pick up a book on brain surgery
    , Read a few pages and immediately think you can operate on someone. It takes years of study and practice as a medical student to reach that level.

    Yet on the other hand, everyone who picks a trading book thinks there are going to be millionaire in a year and that they are going to beat the hedge funds who hire the smartest people in their field and the algos etc..
     
    #13     Jul 23, 2020
    SimpleMeLike and DevBru like this.
  4. DevBru

    DevBru

    What is happening to this forum :confused:.

    Noobs are taking over.
     
    #14     Jul 23, 2020
  5. KCalhoun

    KCalhoun

    Smart post, agree..

    Scalping is the riskiest type of trading because it requires large size and very accurate entries and exits. Usually less than a few minutes roundtrips.

    I prefer intraday trades of anywhere from 20 minutes to several hours.
     
    #15     Jul 23, 2020
    Sweet Bobby likes this.
  6. Scalping is very risky when you do not consider the factor of learning and under impression on how it works. Scalping is a very quick technique of getting profit in short time frame.
     
    #16     Jul 23, 2020
  7. IF YOU KNOW WHAT YOU ARE DOING, it is low risk, low profit. A few bucks here, a few bucks there, holding positions for minutes or even seconds... seems like such a grind, to me. But it's all about picking your entry so you start out in the green, and not giving up anything. Stop loss set high and tight when you place your order. Walk it up quickly so it is above your break-even point as the stock goes up. Set a limit sell order for exiting and taking profit, don't be greedy. A trailing stop is another way to exit. Hotkeys are VERY useful when scalping. No time for fiddling with a mouse or typing a bunch of crap and confirming the order. You need good data flow, quick order execution, zero or extremely low commissions.

    The habits you develop scalping can make you a more effective day trader in general. Just sayin.
     
    #17     Jul 23, 2020
  8. i think any trading system can be difficult to bring profit with certainly , if you dont have real risk management policy.
     
    #18     Jul 23, 2020
  9. I had been taught that true scalping is for the smallest price increment, which in forex is 1 pipette, 1/10th of a pip. Most people think of scalping as intraday, but there is a difference. Scalping for the most part is impossible, because of the spread which puts one at an immediate disadvantage. Intraday is theoretically possible, but runs into the similar R/R problems. Totally possible though, you just have to be razor sharp.
     
    #19     Jul 23, 2020
  10. What does scalping mean in terms of Risk and Reward?

    Does it mean reward to risk range between 0.5 to 1? Or more.
     
    #20     Jul 23, 2020