scalping...

goose4

Active member
Aug 11, 2009
205
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28
#1
Hi fellow traders,

I dont scalp and dont plan too,but I am a day trader.

Just wondering what you guys use for stop losses?

Proper pure scalping is going for 1-3 pips,so lets say you got a one pip spread.

What are the stop losses using this type of scalping?

Many thanks:)
 

wackypete2

Well-known member
Sep 24, 2008
10,134
2,012
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New Jersey
#2
Scalping this way is very intense and you need to be extremely nimble. Using a stop loss as a reliable exit is not recommended. Try a 10 pip stop only as a safety net in case price spikes against you. Your entry assumes price will move in your direction immediately. If it doesn't but rather stalls or moves even 4-5 pips against you, then exit manually. Theoretically your 10 pip stop loss would never get hit, but your average loss trade should be no more than 5 or 6 pips loss.

Peter
 

wackypete2

Well-known member
Sep 24, 2008
10,134
2,012
323
New Jersey
#4

goose4

Active member
Aug 11, 2009
205
6
28
#5
I saw that document several years ago. Patterns 1 & 5 should work well on most days. Use this on E-mini trading though. I'm not sure how well it apples to forex.

Good Luck!

Peter
Yes not forex.According to the stats trading them first 3 set-ups should net you an average of 2 points per day-not bad.

I want to do it on the dow index as my broker has a better spread than S,P.

You think that will be ok? I dont see a problem here.
 

goose4

Active member
Aug 11, 2009
205
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28
#7
Pattern five could work with forex looks very good.

Thanks peter you have been Fantastic and many pips to you.
 
Oct 3, 2007
24
0
11
#8
Hi fellow traders,

I dont scalp and dont plan too,but I am a day trader.

Just wondering what you guys use for stop losses?

Proper pure scalping is going for 1-3 pips,so lets say you got a one pip spread.

What are the stop losses using this type of scalping?

Many thanks:)
My stoploss level depends on broker but is often set as close as permitted :)
I use stoploss as safety net for system failure, eg, network-, software-, computer failure. I don't use it primarily as a way to exit my trades. I have better strategies for that.
 
Feb 11, 2011
10
0
11
#9
HomeEducationEducational ArticlesForex Scalping 101: Top 7 Factors To Consider
FOREX SCALPING 101: TOP 7 FACTORS TO CONSIDEREducation Educational Articles May 10, 2016 No Comments Vladimir
Forex Scalping – the wildest animal of all!

I remember when i was starting to get involved with trading. It was quite an experience. The thrill, the adrenaline. It was all about being in a trade. It felt like if i blink the market will be gone for good. I had to be involved as frequently as possible. Of course all the dreams and hopes of making 1k into 10k for a week vanished very quickly when I lost it all for about 2 days. Don’t worry that was a small defeat compared to what was about to hit me some years later.

The point is being good in scalping is extremely tempting. In fact great percentage of the new traders start from there. Maybe this is one of the reasons why it is so hard, maybe… In this article I will discuss some of the factors that you should consider when it comes to scalping. I strongly encourage you NOT to blindly take my words for a rule or law.

When it comes to trading there is a lot of subjectivity, so i want you to think about the things i’m going to discuss and make the conclusions for yourself. We are all different, in size, shape, frontal lobe capacity etc… So saying that scalping is good or bad could be both true and false, depending on who we are talking about.