Amina El Mehdi
Sergeant
- Messages
- 143
And you`re saying back testing and etc is suitable for newbies?
scalping
- Thread starter richardmarcus1509
- Start date
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- Tags
- scalping
perryjohn765
Private
- Messages
- 213
before using that, the newbies should be aware of the market and trading conditions
FriendlyFX
Master Sergeant
- Messages
- 282
Not all brokers permit scalping and hedging so watchout for that
FriendlyFX
Master Sergeant
- Messages
- 282
Among other things it's high risk I doubt scalpers do bigger RR than 1:1
Scalping can be done easily during the high volatile markets and most brokers allow trading during news as well but most prohibit arbitrage trading. New traders being unaware of the market conditions should try to trade on longer time frames rather than scalping in my opinion.
Kelemeena
Private
- Messages
- 21
Basically scalping is all about trading on very short timeframes. Scalpers usually hold position for just a couple of minutes. Consequently, a scalper usually makes 10-20 deals within a single trading session. There are certain pros and cons of this approach to trading.
As for pros, sclapers don't take huge risks during their deals. I mean that they trade with small lots, they set tight stop losses and take profits which helps them secure their risks. Another advantage of scaling, from my perspective is that they are always engaged in trading. So, they don't have the periods of doing nothing as they always follow the charts which gives them the total control over their opened deals.
However, I guess that scalping has more cons than pros. First of all, as I have mentioned the fact that scalpers don't take big risks within a single deal, they don't hope to get high profits. So, they can make 10-15 deals a day but they will earn no more than 100-200 pips a day. That looks depressing for me because you work a lot but don't get good profits. Another disadvantage of scalping is the fact that psychological aspect takes place in making decisions. Your psychology is affected by the market when you follow the charts all the time without any breaks. As they say, a trade starts to experience greed or fear and this affects the logic of the decisions. In addition to that, it is impossible to make a good analysis of the market for such a short time period. All the decisions are made in the fuss, that is why the probability of mistakes arises.
Surely, it is possible to earn good returns using scalping methods and some of the traders find such ultrashort trading to be the most preferrable way to make money out of trading. However, I find this tactics to be very exhausting and intimidating, but the tastes differ.
As for pros, sclapers don't take huge risks during their deals. I mean that they trade with small lots, they set tight stop losses and take profits which helps them secure their risks. Another advantage of scaling, from my perspective is that they are always engaged in trading. So, they don't have the periods of doing nothing as they always follow the charts which gives them the total control over their opened deals.
However, I guess that scalping has more cons than pros. First of all, as I have mentioned the fact that scalpers don't take big risks within a single deal, they don't hope to get high profits. So, they can make 10-15 deals a day but they will earn no more than 100-200 pips a day. That looks depressing for me because you work a lot but don't get good profits. Another disadvantage of scalping is the fact that psychological aspect takes place in making decisions. Your psychology is affected by the market when you follow the charts all the time without any breaks. As they say, a trade starts to experience greed or fear and this affects the logic of the decisions. In addition to that, it is impossible to make a good analysis of the market for such a short time period. All the decisions are made in the fuss, that is why the probability of mistakes arises.
Surely, it is possible to earn good returns using scalping methods and some of the traders find such ultrashort trading to be the most preferrable way to make money out of trading. However, I find this tactics to be very exhausting and intimidating, but the tastes differ.
Mnefyn
Private, 1st Class
- Messages
- 58
Scalping is just trading ultrashort timeframes.
Not all of the people are fans of this kind of trading and what is more, I don't really understand those traders who think that it is the best way to earn money in trading. Surely, this trading style has some perks like the ultimate control over the opened deals. However, it takes too much time to follow the charts and have the feeling of safety. I think that such trading doesn't really differ from working in the office from nine to five. In most of the cases traders have only the feeling of control, but they don't control their decisions. I mean that when you stare at the charts for so long, your psychology plays huge role in your trading results. Many traders get carried away by their emotions and forget to listen to the common sense which makes them lose lots of money, unfortunately.
I prefer to trade longer terms in order to find some time for myself instead of spending all day long in front of the computer. I prefer to spend much time on planning before opening the deals, setting the pending orders, so that the deals can be closed without my participation in that. I constantly remind myself of the fact that I earn the money to live but I don't live to earn the money.
Not all of the people are fans of this kind of trading and what is more, I don't really understand those traders who think that it is the best way to earn money in trading. Surely, this trading style has some perks like the ultimate control over the opened deals. However, it takes too much time to follow the charts and have the feeling of safety. I think that such trading doesn't really differ from working in the office from nine to five. In most of the cases traders have only the feeling of control, but they don't control their decisions. I mean that when you stare at the charts for so long, your psychology plays huge role in your trading results. Many traders get carried away by their emotions and forget to listen to the common sense which makes them lose lots of money, unfortunately.
I prefer to trade longer terms in order to find some time for myself instead of spending all day long in front of the computer. I prefer to spend much time on planning before opening the deals, setting the pending orders, so that the deals can be closed without my participation in that. I constantly remind myself of the fact that I earn the money to live but I don't live to earn the money.
Really appreciate it mate!
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