Best place..book...resource... to learn the art of the SCALP!
New member here... HI.
So the thread title is pretty self explanatory.. I like to get to the point!
I'm going to start my forex trading life as a scalper and hopefully it will be gloriously painful and fulfilling! I like to work hard but I just need some direction.
So all the scalpers out there... where did you begin!
Welcome to Forex Factory!
Newbie here but I have been told myself that I should look into the following when I wanted to scalp (I dont scalp any longer.. moved on to higher time frames although I still look at tick data.. tape reading)
Jesse Livermore... Reminences of a Stock Operator.
Techniques of Tape Reading by Vadym Graifer and Christopher Schumacher
Ask around for good money management books.. you want to understand positive expectancy, consistency, in statistical terms..ect..
I think, to learn scalping, you should start at the Daily / Monthly chart levels and then work your way down.
Not the other way around.
Right...you want to learn how to scalp?
Both my father and I have been trading for a couple of years now: stocks, forex and futures.
I learnt from a guy's youtube channel. No need to purchase anything at all: just be prepared to absorb what you see him doing. It's very simple: breakout of morning range on good volume: hop in! Where you exit is up to you, but make sure that you sell or buy into the herd. That way there is almost a complete certainty that you will get filled.
Oh, and make sure that you are well capitalised, if you're in a country where no leverage is available on stocks...
You forgot to mention the youtube guy.
for some reason, I could not post the link...
well youtube sgomez858...he has over 300 videos on his channel. Very informative.
It depends on what you are calling a scalped trade. Once you decide that, you need to determine if the trading method you are going to employ meets the criteria for profit. There are 6 critical numbers that you need to understand whether for a scalping system or a long-term system. How those numbers work together will determine your success rate. Those 6 numbers are: Capital you will start with, percent risked on every trade, your stop, your risk to reward ratio, your win percentage and the number of trades you plan to take each week. This leads to the 7th number which will tell you how much money you will make and in what amount of time.
Once you have a system that meets a winning criteria you should turn it into an EA so that it trades automatically for you and so that you can provide ongoing testing and optimization as markets will change.
Yeah EA's seem great and all that but, I'd rather learn how to read the market first and sooooo an EA is far away. Thanks for the youtube link! And that youtube guy does sell stuff... on his website.. how often do these gurus pop up?? I swear I ofc haven't looked over his youtube vids yet but I noticed his website in his profile and guess what $249.99 per month for his "service". So he's either successful and just wants extra passive income from people or he sucks.
Best place..book...resource... to learn the art of the SCALP!
what is scalping anyway? i'd call it scalping if i go for the next candle on h4 too, here again, the risk outweighs the profit potential, the win% is high
A daily bar is made from 24 hourly bars... an hourly bar is made up of 60 minute bars... a minute bar is made up of 60 second bars... etc so the way I see it is that tick data is actually the "real" market movement. Besides ticks make up the market... so how can lower time frames be mere noise? a tick makes up seconds... seconds make up minutes... etc etc therefore by the "noise" peoples logic the entire market would be noise because its base is so called "noise".
Scalping can work for a short period of time. The difficulty with scalping is you need a real good system and you need to be on the computer looking at the market all the time as price actions do not go in a straight line and reversals can happen any time.
Finding/developing a system can take a long time and can be very sensitive as you are looking at lower timeframes.
If you do proceed, here are a couple of pointers that I used to use as an ex-scalper.
1. Read about what FA (fundamental announcements) from this site and make sure you do not trade or close all trades 15 minutes before the announcement unless you are sure you know the direction.
2. When the news is out, refresh your results so you know whether it is favourable or not as sometimes the initial price movement of an FA is false and quickly retraces back in the next bar or less.
3. Exit around about 13 minutes after the announcement.
4. Use some good momentum/trend indicators such as ADX, RSI and CCI. Play with the standard settings and adjust it to suit your personality.
*** Time you trade is important! Trade when there are lots of volatility or volumes as your spread (cost of trade) is lower!****
As a scalper you need to trade in the lowest spread possible and this is usually when two markets lapse... see www.forexmarkethours.com
Other than the above you can try to use point 4 by itself when no FAs are due and develop a system with it. Be sure to play with the settings in the right timeframes to suit your trading profile / personality.
Good luck and cheers,
Ps. it is a lot easier to make money in forex when using a proper system and not scalping. Take it from me...
Noise = Randomness
So a scalping technique to be successful it would seem would need a highly tuned mathematical approach that would need to be automatically determined (almost like high-frequency trading) and would look for moments of strong memory (or maybe correlations). Strong memory it would seem would be more predictable. What those moments are would require some serious thinking.
....yeah, I mean how difficult can it be right?
.... it's like learning to fish for sharks without even knowing what a shark is...
good luck, and thanks for the pips.
While this may be true, you should consider this. The tick bars, the 1 minute bars, are influenced by the higher time frames for the most part. A successful scalper, in my opinion, must be able to read higher time frame Price Action, and keep current and aware of that bias, because most of the time, through all the noise, all of a sudden price usually gravitates in the direction created by the higher time frames, and those are the times, in my opinion, that most scalpers lose their pants because they fail to recognize a free fall for what it is. A scalper must be very liquid, and quickly recognize when you're wrong, and act acordingly. While the flip side is that in every trend reversal, usually in hind sight, you can see the exact and obvious reversal point on the M1 or M5... however, how many times must you be wrong, before you're right??? If theres any advice I would give to any scalper wannabee, it is to put much more focus on following the trend, then trying to find reversals. This just creates a struggle... ask me how I know! Let the reversals reveal themselves through the H1 bar or above then reverse your bias. Always contain your scalp trading within a certain higher time frame, and get stopped out if your bias is wrong... don't chase it, forex aint goin nowhere, and theres always other trades that reveal themselves, without you playing Fetch.
That being said, I consider myself a bit of a scalper but I do trade mostly M5 and M15, and I never regard a tick chart.
Hope this helps, but expect great disapointment in yourself, because this isn't easy... probably impossible, without gigahours of screen time behind you.
© Forex Factory