Am I scalping?

[trillionaire]

I Have an account with Finspreads, and started trading only at 0.10pp the FTSE and Dow due to their 1 point spread.
I trade simply the price action, and so far I have been successful this week in converting 10p to £12, trading 3/4 times a day, and holding a trade from 30 seconds to 6 minutes, holding for 2 to whatever the price action says.

For some reason I have found this type of trading more suited to my profile, rather than researching and buying shares, though it does involve sitting and watching the ticks for a lot longer.

I recognize beginners luck, and I recognize scalping is a big no-no for spreadbetting firms, unless it's Prospreads (Can't use them as my money pot is too small), and I am a touch concerned that If I am good at this form of trading, I may end up getting "frozen out".

Any opinion sought.

 

[advfntrader]

yes its scalping but at those small stakes I'm sure they are not worried. keep it going and see if it was luck or not....

 

[anley]

Give it a few years then get worried

But realise the problem you've got and it's a big one - you don't have the ability to buy on the bid or sell the offer and when taking such small profits (or losses) out of the market that's one hell of a handicap.

That 1 tick can make ALL the difference over many trades. Good luck anyway.

PS. Of course, being able to buy the bid and sell the offer (if trading futures) doesn't always mean you'll get a fill at those levels.

 

[x4x]

From my understanding scalping is defined by trades being shorter in duration than 2 minutes - so I would say generally yes you are scalping. CMC don't mind scalpers (as said so by Mr CMC himself) so if you ever have a problem with Finspreads (and you probably will based on my experience with them ) you'll know where to go.

 

[trillionaire]

Thanks Chaps.

In regard to CMC and scalping,
The poster "PC at CMC Markets" does state in post 1212 on 10/3/11 at 11:55AM:
"
Hi Si55amg. are you a motor car by chance.

So to answer your questions.
All prices are generated electronically and executed electronically without dealer intervention. When you enter trade you enter it as market order or limit order. The orders that get entered as market orders are executed at the market price, the price we are quoting. remember it is all done electronically and there is no reading of clients positions.

dont know really what a scalper is, there are many definitions but if you are talking about high frequency traders yes they are welcome.

we dont have next gen cfds yet but when we do the same pricing and execution will apply. we are only days away now from next gen cfds. also watch out soon for spread bet upgrades. looking very sexy...


cheers pc "

Taking a look via a redundant account have with them, so far the website has logged me out and crashed twice in 20 minutes.

 

[tomorton]

It's what is commonly known as scalping, though you're after more than the single positive tick that would define pure scalping. However, it's difficult for this to be a scalable business model, as increased profit at this method demands -
continuous screen-time
large capital, to make the time involved worthwhile
huge number of trades per session
a compliant SB firm who will see what you're doing but not object.

The profit relies simply on attrition, i.e. more trades with the trend being winners than losers, so the job never gets easier, you can't become more knowledgable so the effort never diminishes, TA is not applicable over such micro-situations so there is no way to imopriove your win rate or become more at ease with the analysis and management required.

It might be a bit of fun on a rainy afternoon.

 

[trillionaire]

I must say, the CMC platform is trying to be too fancy for it's own good for its charts, it appears difficult to read the candlesticks in comparison to other platforms.

Also in regards to scalping, and it appears I am scalping, I suspect it suits my personality, I'm punctual yet impatient and find holding and checking shares tedious at best.

 

[x4x]

I must say, the CMC platform is trying to be too fancy for it's own good for its charts, it appears difficult to read the candlesticks in comparison to other platforms.

Also in regards to scalping, and it appears I am scalping, I suspect it suits my personality, I'm punctual yet impatient and find holding and checking shares tedious at best.

I would suggest you use 3rd party charts, even perhaps Finspreads charts. I do however know they are making an upgrade to their charting package and trading platform, much of which is in response to feedback from the CMC thread - why not add your opinions too.

A lot of people will go on about how scalping doesn't work blah, blah. blah - this is usually because they couldn't make it work themselves so can't believe someone else can. If you prefer that method and it proves to be profitable in the long term - stick with it.

 

[trillionaire]

x4x,
There is more than a grain of truth regarding your comments about different strategies and belief by the masses when they don't succeed.
By definition, if everyone was successful (I'm not, just treading carefully picking up a point or more), there wouldn't be any spreadbetting firms left.
From standing here, there appears to be many ways to profit, though all that matters, regardless of which your favourite paperback, is consistency of your plan for entry and exit within your own money management rules which fit your personality, that is your own rules which your are comfortable with.
There again, I can understand if someone thinks I'm talking gibberish.

 

[x4x]

I think that is the key to successful scalping - biding your time and waiting for the right set-up / entry. Me, I wait for a fast move and then get in on any pull-back - nice and simple and profitable!