Hi,
Thought I would try to start a disscussion about scalping, and the pro's of Cons. I used to work at Marex and was taught how to scalp the usual bund, bobl, schatz, eurostoxx etc etc from the order book. I used tight stops, get stopped out only to see the market end up where you thought it would and eventually got into the bad habbit of having a three, four tick stop and only was taking one or two ticks profit out a trade. I know this is not good risk reward ratios before anyone says anything. We were actively encouraged volume was key, thereofore the more trades I placed more volume, reduced RT costs, rebates etc. Dont get me wrong there were traders doing extremely well out of this method, across all markets. I knew people that traded the schatz, and would be long or short at every price level trying to take a tick or scratch the trade. One person who traded the bund had a playstation joystick to trade and was in and out all the time. After desk fees, personally, I was not making any real money so had to look at other things and now trade part time in the FX market. I am more of tech trader which helps in these markets. My trading style has changed, but I feel it is more in tune with the teachings at the likes of Marex, the usual follow the trend, let the trade breath run winners etc etc... The shortest term chart I use is the 5 min chart, compared to when I was at marex using 1 mins, my stops are larger, sometimes 10 - 20 pips but there are times where I can take 60 - 80 pips out of trade. It also gives me the possibilty of letting the market breath and do its thing, if I am right I will make a larger profit than my stop value and am able to follow trends. I can make 5 - 10 trades a day depending on market conditions and have a higher percentage of win ratios using Fibs, Pivots, Candle Formation, MA's, Stochastics and ADX indicators.
I would like to know if people regard this as scalping, use shorter term charts succesfully, use smaller or larger stops. I would also like to here from people who aim to trade for a tick profit or scratch the trade, and how successful they are at this. I take it most people who use this techinque trade the bond markets, especially the short end. Although enjoying the FX markets I liked the excitment of tick or scratch trading and personaly see that more like scalping than the method I am currently using, but find it hard to see how you have a decent risk reward ratio using this method as there are a number of times the markets goes through your price and you can not get out for scratch.
Like to here from people and have people discuss.
Thought I would try to start a disscussion about scalping, and the pro's of Cons. I used to work at Marex and was taught how to scalp the usual bund, bobl, schatz, eurostoxx etc etc from the order book. I used tight stops, get stopped out only to see the market end up where you thought it would and eventually got into the bad habbit of having a three, four tick stop and only was taking one or two ticks profit out a trade. I know this is not good risk reward ratios before anyone says anything. We were actively encouraged volume was key, thereofore the more trades I placed more volume, reduced RT costs, rebates etc. Dont get me wrong there were traders doing extremely well out of this method, across all markets. I knew people that traded the schatz, and would be long or short at every price level trying to take a tick or scratch the trade. One person who traded the bund had a playstation joystick to trade and was in and out all the time. After desk fees, personally, I was not making any real money so had to look at other things and now trade part time in the FX market. I am more of tech trader which helps in these markets. My trading style has changed, but I feel it is more in tune with the teachings at the likes of Marex, the usual follow the trend, let the trade breath run winners etc etc... The shortest term chart I use is the 5 min chart, compared to when I was at marex using 1 mins, my stops are larger, sometimes 10 - 20 pips but there are times where I can take 60 - 80 pips out of trade. It also gives me the possibilty of letting the market breath and do its thing, if I am right I will make a larger profit than my stop value and am able to follow trends. I can make 5 - 10 trades a day depending on market conditions and have a higher percentage of win ratios using Fibs, Pivots, Candle Formation, MA's, Stochastics and ADX indicators.
I would like to know if people regard this as scalping, use shorter term charts succesfully, use smaller or larger stops. I would also like to here from people who aim to trade for a tick profit or scratch the trade, and how successful they are at this. I take it most people who use this techinque trade the bond markets, especially the short end. Although enjoying the FX markets I liked the excitment of tick or scratch trading and personaly see that more like scalping than the method I am currently using, but find it hard to see how you have a decent risk reward ratio using this method as there are a number of times the markets goes through your price and you can not get out for scratch.
Like to here from people and have people discuss.
