Scalping is Risky?

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

  1. easymon1


    With fast charts results, one way or the other, come quickly. So can improvement come quickly too, imho.
    if limited time and or money are available, with focused diligent effort, scalping just might be the step that forces and at the same time enables a trader to quickly formulate and benchmark a solid scalping plan and offer enough opportunities to prevent getting bored and 'making up trades', the death spiral imho. Winging it with a scalping effort just might not be the best idea. Same as with any trading method imho. Not a fan of helter skelter trading.
    Regardless, whatever is learned will translate to other methods just fine. The stops are not gonna break the bank, nobody loses em all.
    If you try it, do ok, but move on - at least you have it in your tool box, in case now and then you get the urge to simply "scalp the crap out of it"... you can drop her down in low put some rpm on and proceed.

    Preparation and Practice might help.

    'Tis a far better thing to have scalped and lost, than never to have scalped at all.

    How 'bout some scalpers give some links of worth or a couple of tried and true ways of the scalper?

    Until then...
    Heck, there might be something in here that'll stick.
    You sure do see a lot of hammers on a 1m and a 30 sec chart, a fast vol or tick chart might be fun, put a little SnR behind 'em, and ... nah, too easy.

    Candlestick Patterns Hammer, Hanging Man, Inverted Hammer

    Engulfing Candle at Support & Resistance

    10 Ways For Traders to Take Profit

    What would you say belongs in a solid trading plan?
    Last edited: Jul 27, 2020
    #31     Jul 27, 2020
  2. kroxobor


    Manual trading is tough I would recommend to try to automate your approach to eliminate effect of human factor on your performance. It is especially in scalping where manual trading has more drawbacks than advantages.
    #32     Jul 28, 2020
    KCalhoun likes this.
  3. DevBru


    You should always aim for a positive risk:reward.

    There was a perfect example why recently.

    A journal of a guy grinding solid profits as a scalper, however he was over leveraged and lost over 30% of the account in 1 day. Losing almost 10 times his biggest profitable day.

    Risk management is everything.
    Last edited: Jul 28, 2020
    #33     Jul 28, 2020
    SimpleMeLike likes this.
  4. easymon1


    Have you done this automating for scalping?
    #34     Jul 28, 2020
  5. easymon1


    Dynamic Position Sizing is under appreciated as well.
    #35     Jul 28, 2020
  6. Good Morning DevBru,

    I experienced similar in my trading aiming for profit target rewards less than my reward (RR<1), got about 4 losses in a roll, very hard to recover after that. Now I keep my RR = 1, trying to improve it.

    Thank you so much for the response. Great to read another trader stating aim at positive risk:reward. In the heat of trading it hard to sit tight and let the odds play out. I set my stop loss and profit target, price comes within 3 ticks of my profit target, I want to pull the trigger. But I know. it's about overall outcome (xxx to x,xxx amount of trades) and not short term outcome (x to xx amount of trades).

    good conversation.
    #36     Jul 28, 2020
  7. KCalhoun


    Great point, I automate with OTO conditional orders with trailing stops.

    Big tip: I've found scalping works best on out days, eg s&p above pd high
    #37     Jul 28, 2020
  8. easymon1


    thank you sir, tips like that give a stats tracker another angle to explore.
    #38     Jul 28, 2020
    KCalhoun likes this.
  9. Kalanim


    Scalping is one of the safest forms of trading, but at the same time, one of the most difficult. The basic concept of scalping is that a trader often closes his market order with little or no profit, and this order is usually not more than an hour in the market, and sometimes even less than that. It should be understood that scalping requires a trader not only deep knowledge and outstanding professional skills, but also serious psychological preparation. Scalping can be dangerous only among new and inexperienced traders, who very quickly drop their accounts to zero - all due to lack of discipline and experience.
    #39     Jul 29, 2020
  10. kroxobor


    Yes I use momentum strategy for news it works fine but requires careful choice of suitable broker.
    #40     Aug 2, 2020