Scalping

[Faris]

Hello all traders!

Does anyone scalp the £v$ Forex market using SBs?
Forex seems very volatile and the spread with deal for free is 4 so it seems it can be done?

Would appreciate it if anyone can pass any info and if there basing the stratergy on momentum

Thanks
Happy trading

Faris!

 

[smullaney]

I tried intra-day (hourly chart) trading on €/$ with finspreads but found I was losing more than I was winning. Went back to paper trading and found the same thing.

Now trying trading off the day charts with more success. I have also seen on other sites people say intra-day is a mug's game...

Finally, SB qoutes can spread and even become biased during heavy moves. Some people deny it, but I have watched it happen on finspreads. Not an issue for daily trades but scalping could be problematic.

 

[adrianallen99]

It depends on your definition of scalping.

I always class scalping as buying on the bid, selling on the ask. Taking 1/16 profits throughout the day even when the share hardly moves.

 

[jamus]

I think he meant making small pips profits here and there...I could be wrong ofcourse

 

[jamus]

If thats the case, then yes it can be done but I would mostly go with the general trend as the spreads will make it hard to break even if you go against trend.

 

[BBB]

Scalping - taking a few pips per trade isn't the way to trade FX for Mr Retail.

FX markets have 2 'levels'. The first is the Interbank market. This is where the banks operate with no commissions or fees (other than access). The second tier is the retail market. Most brokers who provide access to the tier 1 market, obviously add to the spread and call it commission free trading. Thus the 2nd tier of 'spread'. How can you expect to make money scalping a market, when you're quote is already a few pips on the outside of the true tier 1 spread?

I think that FX markets are better traded for the longer term moves unless you are paying less than 0.5 pip in spread/commission. Even then, you are heavily behind the true spread and better going for trends.