When does scalping end and swing trading begin?

KenClarke

Newbie
1 0
Hi Everyone

Long time lurker first time poster.

I've been a member for almost two years now and i've really enjoyed reading the forums. I've picked up quite a bit of useful information around money management, position size etc. I used all the demo accounts I could get my hands on to practise. While demo accounts will never be the same as live accounts, they have helped me refine my strategy and focus on what I want to trade. I am going to focus on the Dow daily index, during US hours and hope to be picking up 20-40 point moves. I can do this profitably on the demo accounts but don't have issues with re-quotes, failed to fill orders, referred to dealing desk etc.

Is anyone betting/trading the dow experiencing issues when targeting this size point moves with low stakes per point, 1-5 quid range. I will be using one of the bIG uk firms. I have no idea where scalping ends and swing trading begins, I don't want to incur the wrath of the SB co's.

Ken
 

Rhody Trader

Senior member
2,620 265
Scalping is play very short-term (potentially even seconds) and general quite small moves. Swing trading is positions generally held over a couple of days, maybe out to a couple weeks. In between is day trading where you end each session flat, but might hold for a couple hours along the way.
 

random12345

Established member
793 280
Hi Everyone

Long time lurker first time poster.

I've been a member for almost two years now and i've really enjoyed reading the forums. I've picked up quite a bit of useful information around money management, position size etc. I used all the demo accounts I could get my hands on to practise. While demo accounts will never be the same as live accounts, they have helped me refine my strategy and focus on what I want to trade. I am going to focus on the Dow daily index, during US hours and hope to be picking up 20-40 point moves. I can do this profitably on the demo accounts but don't have issues with re-quotes, failed to fill orders, referred to dealing desk etc.

Is anyone betting/trading the dow experiencing issues when targeting this size point moves with low stakes per point, 1-5 quid range. I will be using one of the bIG uk firms. I have no idea where scalping ends and swing trading begins, I don't want to incur the wrath of the SB co's.

Ken
It's a good question and some people would refer to what you're doing as swing trading even if it isn't, due to the points per move you are targeting and the fewer entries that implies.

20-40 point moves on the dow would not be classed as scalping by any firm I know of - it's rare such a move would be completed within 20 minutes. Plus no-one is ever ever going to re-quote you at £5 a point. Up to the day I left, I had instant execution up to £300 on IG - I don't know about the rest, but I think most have an instant execution range.

IG had quite a wide spread on the dow I think.. 2 pts.. though I understand it's now 1.8. Note that if you find a firm offering a 1 pt spread, this is an excellent deal. The emini market spread is normally 1 pt so you're getting tax free trading at the same price. Though you suffer in terms of DOM ladder and better feed etc etc. But whatever. I think it's a good deal if you can find it.
 
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