hello :) couple of Qs if i may...

[hybrid]

hi all,

i have a couple of n00b questions if ok good people.

first a little background; i recently got to ask a succesful trader 300 questions 1on1, then read a few books, and then did some paper money stuff, utube vids, etc etc.

I am suited to being a scalper in a spread betting platform.....using 15 min charts, also looking at 30min, 2hour, 1day charts.... to get a goodview....from 5 second updates to 10 min updates.

i am suited candlesticks, MACD, RSI, Stochastics.

Do i need an indicator for volume?
Do i need an indicator for Speed (quantity/rush of orders)?
Do i need a super speed platform for scalping? e.g low latency on the market.

I am more tech than fundamentals, but is there a simple feed from some URL somewhere that just gives me one sentence of something important every now and then?

My spread bet platform company told me it hedges some clients position - this means there is a conflict of interests surely? e.g. it takes four clicks thro 2 windows (1.5 seconds) to close a position - is this done by them to gain more cash or am i being cynical?

what is the best market for scalping? obviously one that I know the personality of i think? and one quite volatile? FTSE100? The S&P is too risky as one trades on the tick, and forex is too sideways?

thanks for any tips before i put real money in and hopefully don't blow myself up.

peace
m

 

[timsk]

Hi hybrid,
Welcome to T2W.

As a general rule of thumb, all markets and timeframes are equal. That is to say, there isn't one market and one time frame that is easier to trade than another. However, if there is an exception, it would be 'scalping' using a spread betting (SB) broker. Generally, this isn't a great combination and, indeed, some brokers are quite open about not supporting it. Depending upon the market you trade, you're likely to have a wider spread than you'd enjoy via a direct market access (DMA) broker. On top of that, SB brokers provide their own prices, they are not obliged to mirror the underlying market price. That means that their prices are often slightly skewed - usually not in your favour.

Having said all the above - feel free to give it a go - but be aware that you're jumping in the deep end from the get go and the probability of you drowning is very high indeed. If you do decide to pursue this idea, be sure to test your ideas first, using a demo account trading paper money. With regard to your questions . . .

Do i need an indicator for volume?
'Need' is subjective. Some traders need volume and others don't. As a rule of thumb, the shorter the time frame - the greater the reliance / use of volume. However, this only applies to exchange traded markets like equities and futures - not spot Forex.

Do i need an indicator for Speed (quantity/rush of orders)?
Same as above. There are zillions of indicators out there. All of them will be being used by someone, somewhere. Only you can decide which ones (if any) are the right ones for you.

Do i need a super speed platform for scalping? e.g low latency on the market.
This rather depends on what you mean by 'scalping'. If you're attempting to go head to head with a 'scalper' at prop shops or IB, then yes - you need every possible advantage you can get. You're not going to achieve that via a SB platform - for the reasons stated above.

. . .but is there a simple feed from some URL somewhere that just gives me one sentence of something important every now and then?
If you mean key news releases, then there are various sites that do that - depending on which market you trade. MarketWatch provide a useful economic calendar for equities and index futures traders.

My spread bet platform company told me it hedges some clients position - this means there is a conflict of interests surely?
There are dozens of threads arguing both sides of the coin. The bottom line is: if you don't trust your SB company and think they are treating you unfairly - then don't trade with them.

what is the best market for scalping?
It needs to be extremely liquid - that's for sure. Traditionally, scalpers trade for a few cents or a tick or two at a time, so extreme volatility is not what they want. If by 'scalping' you really mean momentum trading - with the intention of catching intra-day swings, then volatility can be your best friend. It can be your worst enemy too, especially if you get your position size and stop placement wrong. If you're not sure why, check out this article: Position Sizing as an Approach to Risk Management by Trader333. Also, take a gander at the Articles in the Day Trading & Scalping category.

Hope that helps!
Tim.

 

[hybrid]

thanks...this helps me alot in this learning / info gathering phase.