Is scalping the best way to trade?

jimmy1

Active member
109 0
scalping is it the best way to trade

So we hear many people saying alot of the arcades are full of scalpers who make nice amounts of money... should this be the way forward i here myself think or do you think it is better to try to build systems to do lower volumes and get more ticks profit or loss
 

jimmy1

Active member
109 0
i could not agree more......,
just trying to get an idea of peoples ways of trading (daytrading) seeing if it is predominantly scalping or larger ranges
 

chump

Senior member
2,212 274
I don't agree about the money thing.The money follows only if you find a pace and comfort trading style that suits you and let's face it we are not all the same so one size doesn't fit all...
 

rglenn

Well-known member
379 4
I tried scapling once and it didn't do my heart much good.

Definitely not for the faint at heart!

I prefer something less stressful.
 

Trader333

Moderator
8,601 931
I see that Vadym Graifer is the author of this and he is also an expert on trading by Price and Volume. Personally I put a lot of credability on his work and have found his approach to trading useful.


Paul
 

jimmy1

Active member
109 0
which books of his do you think are best for one to try to get to grips with scalping?
 

bigtimetrader

Junior member
47 2
jimmy1 said:
So we hear many people saying alot of the arcades are full of scalpers who make nice amounts of money... should this be the way forward i here myself think or do you think it is better to try to build systems to do lower volumes and get more ticks profit or loss


I do what I would call modified scalping technique and have been successful at it. Although, it took some time to find a strategy that worked for me and to get consistently profitable. If you want to see how I trade, check out my thread on the "DMI Indicator" in the General Chat forum.

You can be successful as either a day trader or swing trader, just a different mindset. I personally can't stand the uncertainty of overnight positions, I prefer to always go home flat each day.
 
F

ford

0 0
'Best' is subjective, just as the word 'scalp' is.

It depends entirely upon the markets characteristics and your circumstances; liquidity and volatility, your capital and prefered style.

Best in terms of return on capital:

It's simple mathematics that given the E-Mini S&P's volume and volatility that there is greater profit opportunity trading on a shorter term basis with 1 contract, because the market is so liquid that you can get in and out many times over with no problem. As you become larger 'money velocity' becomes a problem.

I imagine that for most traders though, getting in and out of a market like the S&P will never really be a problem. So the only thing that really matters and is the 'best' method is one that you feel comfortable with, which I imagine is the hardest thing about trading. I know I had/have a hard time finding a place and style.
 

900xs

Junior member
42 0
Mmm!.........Scalping

I live for: "instant Gratification"...............For a few months I have been doing 200+ (daily) RT's in the DAX.

My average hold time is probably less than 1 min.........my longest - probably 12-14 mins............and you know what? - I think it is a mugs game, here are a few reasons:

1. you will compete with arcades doing mega volume with very low commisions, they have fast feeds, fast execution and fast news.

2. you will compete with computers with ARB programs which buy and sell the spreads (for example: in the dax) between Bunds, Eurostox, Dax "cash", Ftse etc. markets are all related (not something that the "retail" trader is always aware of!)

3.I have tested quite a few "electronic front ends" i.e. X-Trader, J-Trader, Ffastrade etc, etc. you can, If you look hard enough, find very low commisions (for a reasonable number of monthly trades)........................but these deals may lead you into a trap!! the "upfront" platform fee makes you (me) feel like you must trade and because of low (per side) fees, you want to trade and so you do lots of trades!! I listened to a talk given by Mark Fisher (MBT Trading) he said: These platforms are "like crack cocaine for the middle classes."

4. You will need VERY secure communication lines and a professional back-up (broker) team to "offset" your position when, through no fault of your own...........phone lines fail.

5. If you are paying the asking price (for a buy) then it's going to be difficult to profit. If you are joining the (best) bid.........then a lot of times you may not get filled!! a frustrating event.

In defense of this approach, I would say the following:

1. If you have fear of "pulling the trigger"......this may mostly remove it. When I trade once or twice a week , I get scared but because you are doing so many trades then the next trade result means less. (for a start you don't have time to think soo much) Like a casino, you have a very small edge but have a lot of customers. (trades)

2. I once read a line that said that: until you have done 5 - 6000 trades, you cannot call yourself a trader, you will not have experienced every type of trade (including unexpected news items!!)

3. If you want to trade with a minimum account size, you can i.e. margin. You could trade a 1 lot a lot of times for small returns (positive) a la: costco, walmart model etc.

There are more things to say and could be said better by others with more experience. Those who trade this way and who average 1 tick per completed trade are probably very few........and deserve their medals.

I will pull the plug on this method (soon I hope) It is addictive and if profitable your heart will want to keep doing it but in my head I know it will do me little good. The sensible thing is to have the market make the money (trade for longer term where you don't need to screen watch) rather than me make the money.

On thursday the sweat was running down the inside of my right arm, I had clicked the bid column instead of the ask!! and sometimes I sleep poorly.

xs
 

900xs

Junior member
42 0
Many are called........few are chosen

Yes Jimmy1..........depends on the individual!

many profitable days can pass (if you are good at it)..............but in one day, you can experience: "game over." Look at today on dax - news announcement made the market V. Jumpy (15.00 - BST) ............when looking on bar chart (1 min) after the event, you may have an idea how to play it, but when "live" you may see it differentely!!

It will help you as a trader (masses of experience gained in one session) you will have "more lives than one."

Me? - I'm 36.........have been trading as a "hobby" for 15 years (non-market related job) and was made redundant at the end of last year............so lets see what can be done in the markets!

The trading world is not how they tell you it is!!

But in the end............you are a long time dead! and if you want to play (and have that thing which I call: "The need to know") then play.

Stress? yes plenty........................I am coming to the notion that successful trading is about: managing it, it's what you do away from the screen that may determine your long term future.

xs
 
 
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