Do any of you do this?

Forexmospherian

Legendary member
39,928 3,301
I generally put a stop loss 10 to 15% under where I open. But im more of a scalper aiming for a few pips then out within a minute or so. Its early days I realise I could loose all my profit on one trade.... not really sure where to progress from here guys :confused:

I am pleased you are aware you could lose all your profit on one bad trade - and so really your good fortune over 5 days is more luck than any trading ability etc

For scalping you ideally want win ratios of over 70% - not just on 10 or 20 trades - but based on 100's of trades - showing you have a method that will work consistently. This should be undertaken on a demo account - not with live money

Then you need a positive Risk / Reward ratio - ie in your lingo if your stop is 10% below your entry point - you need a result with a gain of above 10% of where you entered - ie if stop is 30 pips you target should be 30 pips + - ideally 60+ pip to give a RR of 2+

I scalp as well as intraday swing. My stops on FX trading are 3-7 pips and targets are 7 -25+ pips - but if i have to exit with only 3 pip profit - I will rather than take a loss.

All scalps should be under 30 mins some might only last 1 or 2 mins even if you are just after a few pips or points.

If you are having trades lasting 1 hr or even 4 hrs or more than a day - you are not scalping - you are just gambling and hoping etc etc.

Even with a successful 70% + win ratio - you can still have 5 or 7 more losses in a row - and yes you could also have 15 -20+ wins in row - so that's why you employ money management - ideally stay under 2% or lower stake size of capital and realise that if you lose 33% of your capital - you need a 50% gain / increase to just get it back to where it was prior your loss.

Loads to learn - but check out Timsk's links on starting out and learning all about trading etc etc.

Unfortunately - you will not remain in the game etc - unless you study and gain as much knowledge as possible on trading the particular markets you are interested in

GL

Regards


F
 

king156

Junior member
41 1
I am pleased you are aware you could lose all your profit on one bad trade - and so really your good fortune over 5 days is more luck than any trading ability etc

For scalping you ideally want win ratios of over 70% - not just on 10 or 20 trades - but based on 100's of trades - showing you have a method that will work consistently. This should be undertaken on a demo account - not with live money

Then you need a positive Risk / Reward ratio - ie in your lingo if your stop is 10% below your entry point - you need a result with a gain of above 10% of where you entered - ie if stop is 30 pips you target should be 30 pips + - ideally 60+ pip to give a RR of 2+

I scalp as well as intraday swing. My stops on FX trading are 3-7 pips and targets are 7 -25+ pips - but if i have to exit with only 3 pip profit - I will rather than take a loss.

All scalps should be under 30 mins some might only last 1 or 2 mins even if you are just after a few pips or points.

If you are having trades lasting 1 hr or even 4 hrs or more than a day - you are not scalping - you are just gambling and hoping etc etc.

Even with a successful 70% + win ratio - you can still have 5 or 7 more losses in a row - and yes you could also have 15 -20+ wins in row - so that's why you employ money management - ideally stay under 2% or lower stake size of capital and realise that if you lose 33% of your capital - you need a 50% gain / increase to just get it back to where it was prior your loss.

Loads to learn - but check out Timsk's links on starting out and learning all about trading etc etc.

Unfortunately - you will not remain in the game etc - unless you study and gain as much knowledge as possible on trading the particular markets you are interested in

GL

Regards


F

Many thanks for your great feedback here. Nice to see someone who is well informed and knows what their doing!

I will say for now im going to take a break and stop while im ahead. And go back to the demo and practice, practice, practice. Im only doing the euro/usd so will study that intensely for now. Ordered some books on the way too.

Thanks for your help appreciate it. :)
 

Xylitol

Junior member
35 6
I don't know if this is classed as a strategy or not? But I use a 1 min chart on eur/usd then just trend the trend. So when I see a downward / upward trend I only enter when the trend is clearly in place and will usually exit with 1 to 3 pip profit.

Is this any good of an idea? Sorry for noob question.
Just want to ask a few questions. Sorry if they sound really stupid, I'm a complete newbie.

1. What's a 1 min chart on eur/usd? Is that a just a chart that updates every 1 minute with exchange rate values?

2. What do you do when you 'trend the trend'? Is that betting on it going up/down if it looks like it's on an upward/downward trend?

3. How do you know it's on a trend and that the trend is 'clearly in place'?

4. What is 1 to 3 pip profit?
 

alexaherself

Established member
560 149
1. What's a 1 min chart on eur/usd? Is that a just a chart that updates every 1 minute with exchange rate values?

No - all charts update continuously. A 1-minute chart (on EUR/USD or on anything else you can trade) is a chart on which the information is presented in units/bars/candles/whatever each representating units of 1 minute of time. In this example, the information's typically presented in such a way that the "open", "high", "low" and "close" of every 1-minute elapsed can be seen at a glance. The mechanism by which this is done varies. For example "bar charts" and "candle charts" present the same information in different ways. Bar charts visually emphasise the high and low, while candle charts visually emphasise the open and close. In either case, the movements up and down within the minute are not displayed after the end of the minute/"period", once the bar/candle has been "printed".

2. What do you do when you 'trend the trend'? Is that betting on it going up/down if it looks like it's on an upward/downward trend?

Yes.

3. How do you know it's on a trend and that the trend is 'clearly in place'?

There are very many different ways of deciding this. The overall slope of the pattern of lines/candles can tell you. Many people also use some kind of "indicator" (sometimes a "moving average") to tell them, but this isn't really necessary.

"Trend" is even defined in different ways, according to different criteria, for different trading purposes.

4. What is 1 to 3 pip profit?

A "pip" is the smallest unit of price-change (actually this isn't quite true. There are micro-pips or "pipettes" these days, too). Example: if you look at GBP/USD and the rate is 1.4956 and goes up to 1.4957, that's a one-pip difference. Or if you buy GBP/USD at 1.4956 and sell it at 1.4959, that's a 3-pip profit.

This link will help you (and keep you busy!), and answer all of the above and countless related questions in all the detail you can need for a general overview: http://www.babypips.com/school

NB (with specific regard to the context of this thread): most people/sources - myself included - would generally advise any beginners against trying to trade from 1-minute charts, in the interests of concentrating on the "bigger/slower-moving picture", and for other reasons, too.

.
 
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