Am I scalping?

S

Splitlink

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Yesterday, I lost money on the first two trades and I decided to have another re-think about what I am doing. By lunch I had recouped my losses, with two trades and had completely changed my tactic to a kind of guerilla warfare approach, taking what I can and getting out. Will this work for me in the future? I don't know but, since it is profitable, I am going to continue for a while.

This morning's trades are 4 mins= 14 points; 2 mins=15.5 points;5 mins = 9.5 points; 5 mins= 13,3 points. Total 43 points. Done in 50 mins.

I used no prior planning, just an opinion on what the probabiliites were and entered. I used a 5 min bar chart, with Bollingers and averages.

It's difficult to explain what I am doing because what rule was good for one trade, was not for another. A lot of "feel". I suppose that comes with experience.

What I would say, though, is that I use a spreadbetting account because I believe that a lot of failing traders complain, bitterly, against their company. IMO, it is unwarranted in may cases although, no doubt, there are exceptions.
 
You need to keep doing it and see how you get on. I was doing this last week and it did pay off (see my recent thread) but have been busy this week so not been able to sit and stare all day.

Someone recommended the Bill Williams Alligator indicator for 5 minute charts. It does look interesting.
 
ichi said:
Yes, you are scalping, as well as gambling. Don't gamble away your $$ like that. :)
Click to expand...

All trading is gambling, whether one likes to accept it, or not. The only thing over which you have control is the amount that you are prepared to risk. This is done with the use of stops. Once in the trade, all your perceptions of what direction it is going to take becomes valueless. You are on your own and no books or teachers or mentors are going to help.
 
shadowninja said:
You need to keep doing it and see how you get on. I was doing this last week and it did pay off (see my recent thread) but have been busy this week so not been able to sit and stare all day.

Someone recommended the Bill Williams Alligator indicator for 5 minute charts. It does look interesting.
Click to expand...

I think that it is a question of staring all day, or getting out when a certain level has been reached.
 
My 2 ¢

Splitlink said:
Yesterday, I lost money on the first two trades and I decided to have another re-think about what I am doing. By lunch I had recouped my losses, with two trades and had completely changed my tactic to a kind of guerilla warfare approach, taking what I can and getting out. Will this work for me in the future? I don't know but, since it is profitable, I am going to continue for a while..
Click to expand...

I would say 99/100 traders who become "scalpers" do so because they get frustrated with having trades move a few points into profit then reversing and hitting their stop and then reversing again and continuing in the anticipated direction. They are convinced it’s easier to try and snatch a quick profit than figure out why they are going wrong.

I consider myself a scalper (On the ES), but it has taken me many years and hundreds of trades to figure out how to do it “right”. Will this work for you in the future? I can’t honestly answer but don’t be lulled into a false sense of security on just a few successful trades. :!:
 
Re: My 2 ¢

new_trader said:
I would say 99/100 traders who become "scalpers" do so because they get frustrated with having trades move a few points into profit then reversing and hitting their stop and then reversing again and continuing in the anticipated direction. They are convinced it’s easier to try and snatch a quick profit than figure out why they are going wrong.

I consider myself a scalper (On the ES), but it has taken me many years and hundreds of trades to figure out how to do it “right”. Will this work for you in the future? I can’t honestly answer but don’t be lulled into a false sense of security on just a few successful trades. :!:
Click to expand...

Yes, you are right. We'll have to see, but I don't think that I am scalping in the true sense of the word. Scalping involves dozens, if not hundreds of trades per day. My real aim is, as you say, to be on the right side of these reversals, even if it's only a few points.
 
Splitlink said:
I think that it is a question of staring all day, or getting out when a certain level has been reached.
Click to expand...

Well, I mean staring all day as in sitting here watching for opps when I have other obligations.

For further thoughts, please see the thread I started last week or so.
 
it is not scalping. it called scared money.

what u have done is suddenly dropped something what u know and now u r at the mercy of fate.. isnt sensible approach.

never ever trade scared money. it is one of the fastest ways out of your money. end of story.

take few days off.
 
maxima said:
it is not scalping. it called scared money.

what u have done is suddenly dropped something what u know and now u r at the mercy of fate.. isnt sensible approach.

never ever trade scared money. it is one of the fastest ways out of your money. end of story.

take few days off.
Click to expand...

Not on your nelly! :) I'm having a great time, here. Makes me feel young again!
 
yes you are scalpling and what you will find if you became constantly profitable the spread companies cotton on to this and you will be handed to a human who will monitor wht you do i no it happened to me the other day

i was 3800 pound up in 2 hrs but that was spread over 2 days an hr at a time at the open of the ftse buy wednesady the 3 rd day things started to go wrong frozen screens late orders spiking stops etc etc anyway my nice little profit soon dissapeared in front of my eyes

my advice to you would be to be very carefull spread companies are not daft at all and they will play you if you make a few quid get it out of there stick to a loss that you are prepared to accept gracefully and a daily basis and walk away and have a go tomorrow againyou can trade nicely at £5 point make a couple of hundred a day and not draw to much attention to yourself as they will have their own way back on you one way or another and always remember greedy people lose clever people TAKE THEIR PROFIT even if it is only £20 - 30+ per trade

and remember TAKE THE PROFIT can reiterate this enough DONT BE GREEDY AND TAKE THE PROFIT
 
Splitlink said:
All trading is gambling, whether one likes to accept it, or not. The only thing over which you have control is the amount that you are prepared to risk. This is done with the use of stops. Once in the trade, all your perceptions of what direction it is going to take becomes valueless. You are on your own and no books or teachers or mentors are going to help.
Click to expand...

Excelent!:clap:
 
welshguy121 said:
yes you are scalpling and what you will find if you became constantly profitable the spread companies cotton on to this and you will be handed to a human who will monitor wht you do i no it happened to me the other day

i was 3800 pound up in 2 hrs but that was spread over 2 days an hr at a time at the open of the ftse buy wednesady the 3 rd day things started to go wrong frozen screens late orders spiking stops etc etc anyway my nice little profit soon dissapeared in front of my eyes

my advice to you would be to be very carefull spread companies are not daft at all and they will play you if you make a few quid get it out of there stick to a loss that you are prepared to accept gracefully and a daily basis and walk away and have a go tomorrow againyou can trade nicely at £5 point make a couple of hundred a day and not draw to much attention to yourself as they will have their own way back on you one way or another and always remember greedy people lose clever people TAKE THEIR PROFIT even if it is only £20 - 30+ per trade

and remember TAKE THE PROFIT can reiterate this enough DONT BE GREEDY AND TAKE THE PROFIT
Click to expand...

Sonetimes its SO hard to get out when you need to and ignore the greed, but this is great advice
 
You are definitely scalping. Without a comprehensive strategy, you will likely lose over time.
 
To maximize your probabilities, make sure to trade around the london and us opens where you have lots of price action and volume
 
I must tell you that the subsequent two days after my successfull Wednesday morning, have been ****!

But...............I have a plan for Monday! :devilish: It entails a higher TF, but still low...15M

To answer my question. What I am doing is not scalping and should have been "Am I being scalped?" :D

In any case, don't worry about me, I'm not going to go broke doing this. Wasting some time, perhaps, but experimenting is, always, interesting if done with low stakes..
 
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