Can scalping make you rich?

[leerees]

I'm a swing trader (UK equities), my averaged earnings at present is 11.4% a week. Some weeks I do get multibaggers however I don't count these in my calculations as a lot of multibaggers are being in the right place at the right time rather than being a good trader.

My stoploss is 10% and lowers to 5% once I've broken even. I trade on a magined CFD, margin rates are variable but my contribution to the trade is always £1k.

I usually place my swing trades on Wednesday as a lot of my fundemental news info comes in around that time, all of my stocks have stop losses and alarms and I am VERY tight with my stops, I only get in shares that are trending up narrowly.

I do use EA's but so far they are no where near as acurate or profitable as my manual trading, I did plan to enter into forex with EA's but was quickly put off by all the spam. Haven't the MM's now stopped EA's from working in forex now anyway?

 

[howorb]

I have found over time that the only reliable way to scalp, or even day-trade, is using order flow and market depth on the futures market. I'm afraid I just don't think scalping forex is possible (except maybe trading economic news releases).

By studying the order book you have access to information that will shape price action- you're not relying on over-optimised indicators that only work when back testing.

See what you think.

 

[FractalFreak]

The Snowman,

where did you get this quote from?

"and Wayne McDonell, quote - "Fortunately, for Forex traders, one part of Chaos Theory is Fractal Geometry. Basically this means that the patterns you see on a 15-minute chart generally hold true on the hourly, daily and weekly charts—effectively all charts in all time frames. In other words, the strategy you would apply to a head & shoulders pattern on a 15-minute chart is—roughly speaking—equally applicable on a head & shoulders pattern on a daily chart." "

Having done a lot of work with regard to fractal geometry, I have to say that I could not agree more to this statement. Well, you cannot easily predict anything, however, the scaling aspect is absolutely true.....financial prices scale, not to infinity, but far enough to realize that a pattern you may see on a daily chart may as well be intra-day...........

 

[raef]

when trading shorter timeframes a technical analist should be 1.more accurate 2. trading larger or at least compounding--unless very knowledgable the short timeframe trader may have to put in long hours--its all relative but money can be made in many ways,timeframes and areas

 

[Bint_Crusher]

Scalping will make you rich, IF:
You are a Broker (Bitch) and you are slicing commissions
You are a scalp massage lady that offers "Extras"
Other than that swing is the best way to make money, (either trading or other types of swinging)

 

[raef]

the trouble with trading is that there are often no set perameters on what is what -interview 50 traders and youre likely to get 50 definitions of ;-what is swing trading-what is scalping,guerilla trading;day trading'hit and run trading;technical analysis etc-in the market wizards books some wealthy fundamentalists didnt believe in technical analysis-and some technical analysts didnt believe in using fundamentals-day trading can be intraday or days depending on who u talk to---there are people making fortunes in every timeframe and more losing in same timeframe-and all of the opinions of such will be colored by such experences

 

[raef]

The Snowman,

where did you get this quote from?

"and Wayne McDonell, quote - "Fortunately, for Forex traders, one part of Chaos Theory is Fractal Geometry. Basically this means that the patterns you see on a 15-minute chart generally hold true on the hourly, daily and weekly charts—effectively all charts in all time frames. In other words, the strategy you would apply to a head & shoulders pattern on a 15-minute chart is—roughly speaking—equally applicable on a head & shoulders pattern on a daily chart." "

Having done a lot of work with regard to fractal geometry, I have to say that I could not agree more to this statement. Well, you cannot easily predict anything, however, the scaling aspect is absolutely true.....financial prices scale, not to infinity, but far enough to realize that a pattern you may see on a daily chart may as well be intra-day...........

i like quotes like such- and references in everything from gann to jea yu talking about the interlocking tmeframes even though in the end trading '' should ' i think be simple

 

[Bint_Crusher]

Another thing I would say about scalping is this: If you are trading risking more than you stand to gain then you will lose over time. Period.

 

[Pferd]

Another thing I would say about scalping is this: If you are trading risking more than you stand to gain then you will lose over time. Period.

For a period I have traded as you mention. Can confirm what you say, it is a road to nowhere, you will be lucky with break even.

I have great admirations for scalpers, but it does not suit me, neither I understand how/if they make money at it. I know a guy though who make constant money scalping, but he is a retired banker with 30 years plus experience. He sees a candle and can tell you with at least 80% chance probability what is going to happen next. But I think this is the exception and not the rule. And I think it is due to his great experience in the market.

One thing I learned from him: Once you have hit your goals for the day, stop trading. Most days he is finished by 9 or 10 in the morning. Another thing: only enter in trades with a reward:risk ratio at the very least of 2:1. Better 3:1.

Those were my two cents......

 

[Bint_Crusher]

For a period I have traded as you mention. Can confirm what you say, it is a road to nowhere, you will be lucky with break even.

I have great admirations for scalpers, but it does not suit me, neither I understand how/if they make money at it. I know a guy though who make constant money scalping, but he is a retired banker with 30 years plus experience. He sees a candle and can tell you with at least 80% chance probability what is going to happen next. But I think this is the exception and not the rule. And I think it is due to his great experience in the market.

One thing I learned from him: Once you have hit your goals for the day, stop trading. Most days he is finished by 9 or 10 in the morning. Another thing: only enter in trades with a reward:risk ratio at the very least of 2:1. Better 3:1.

Those were my two cents......

My first point exactly. If you are trading whereby you risk losing more than you stand to gain then that is less than 1:1 reward to risk.:smart::smart:

 

[Pferd]

Or otherwise mathematically explain....

Reward:Risk (1:2) - Let's say 5 pts reward:10 pts risk
10 trades
70% Success
End result: 35 pts minus 30 pts (5 pts profit)
So you need to hit 70% success rate to just achieve a bit more than break even. I don't think many of us achieve that rate of success constantly.....


Reward:Risk (2:1) - Let's say 10 pts reward:5 pts risk
10 trades
50% Success
End result: 50 pts minus 25 pts (25 pts profit)
At least there we have a bit of a chance....:clap:

Patience is a very powerful gun in trading. Unfortunately not everybody knows/wants to use it.

 

[Bint_Crusher]

Or otherwise mathematically explain....

Reward:Risk (1:2) - Let's say 5 pts reward:10 pts risk
10 trades
70% Success
End result: 35 pts minus 30 pts (5 pts profit)
So you need to hit 70% success rate to just achieve a bit more than break even. I don't think many of us achieve that rate of success constantly.....


Reward:Risk (2:1) - Let's say 10 pts reward:5 pts risk
10 trades
50% Success
End result: 50 pts minus 25 pts (25 pts profit)
At least there we have a bit of a chance....:clap:

Patience is a very powerful gun in trading. Unfortunately not everybody knows/wants to use it.

Your Primary school mathematica are correct, I wish I could congratulate you on having the reasoning of a 6 year old. However do you or anybody else see what is that is so pathetic about your Statements. You wristjob :smart::smart::smart:

 

[Splitlink]

Another one of those sprint versus marathon running discussion. So boring.

Different people are built differently! Some are good at 100 meter sprint. Some are good at 26 mile marathon. Some can do both. Some can't do either!

Try them both. Try them all! See what fits you. If you can do both, that's great!

I think that your post sums it up. Horses for courses, but if I was working for a living I would be more inclined towards long term so that I could make a daily decision and, if I was a full time trader I would trade interday. How much time does OP have? I'm a pensioner. Long term trading involves a SL of quite a lot of pòints. I do not like that, so I trade for a few hours.

 

[Pferd]

Your Primary school mathematica are correct, I wish I could congratulate you on having the reasoning of a 6 year old. However do you or anybody else see what is that is so pathetic about your Statements. You wristjob :smart::smart::smart:

No, but surely you can iluminate me.......

 

[Bint_Crusher]

OK, What is your strategy to hve 70% of trades in profit, then What is your strategy to have 50% trades in profit. Both of these are ludicrous claims of posssibility. Totally farkin ludicrous.
Brain dead wonkbag claims
Braindead pillockile aspirations
Braindead BOLLOX
If scalping was the way forward, with your 6 yaer old's calculations then we would all have to the 3 above attributes which I grant you many traders probably have.:idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea:
If you are not now suitably illuminated follow this link:
braille - Google Search

 

[Pferd]

OK, What is your strategy to hve 70% of trades in profit, then What is your strategy to have 50% trades in profit. Both of these are ludicrous claims of posssibility. Totally farkin ludicrous.
Brain dead wonkbag claims
Braindead pillockile aspirations
Braindead BOLLOX
If scalping was the way forward, with your 6 yaer old's calculations then we would all have to the 3 above attributes which I grant you many traders probably have.:idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea:
If you are not now suitably illuminated follow this link:
braille - Google Search

1.- Where did I say that Scalping was the way forward?

2.- Did I say that having 70% (or 50%) success was my strategy? Or was this just a mathematical example?

I suggest before you start opening your big patronising mouth you read and think a little bit. Otherwise YOU look like a 6 year old child. Arshole.

 

[Bint_Crusher]

1.- Where did I say that Scalping was the way forward?

2.- Did I say that having 70% (or 50%) success was my strategy? Or was this just a mathematical example?

I suggest before you start opening your big patronising mouth you read and think a little bit. Otherwise YOU look like a 6 year old child. Arshole.

whistling:whistling bojtsirw:smart::smart:whistling

 

[raef]

bint has just upset the countless scammers claiming fantastic gains whilst promoting negative risk to reward scenarios that no-one in their right mind would use after a little training

 

[Pferd]

bint has just upset the countless scammers claiming fantastic gains whilst promoting negative risk to reward scenarios that no-one in their right mind would use after a little training

Jesus, in this forum nobody seems to be able to read, even you ignore the own bint posts.

 

[raef]

i must learn how to use this forum as the text i was replying to has dissapeared