Chronicles of the Price Action Scalpers @ Forex Factory

Pip Ventures · #1 Jul 20, 2008 2:43pm

Scalpers,

I would like to start a home for other scalpers to come and share their insights, trader knowledge, progress, and encourage one another.

Looking for traders who simply fit the following:

1. Use no lagging indicators but trade Price Action Only. (Note: Price action only can be viewed by multiple tools. Many use the Rainbow, or Candlesticks, or Line tick charts, or Heiken Ashi bars, etc. none of these are lagging but are pure price action)

2. Entering on 5 min. time frame or less. (May use higher time frames to check trends, S&R, etc but trade entry is 5 min. or less.)

3. Using a scalping trade style of getting in and out of market fairly quickly (ex. 10 sec - 30 min. depending on Time Frame used)

4. Making only S&R, Trends, Channels, Fades, 00's, Fibs, & of course, Pure Intuition Trades based on much screen time.

If you fit this script then it would be great to have you chime in and share how you are doing and any tips you can give to others starting this journey.

We have two great things going for us:

1. Scalping is the most profitable and has hope for the greatest returns if one can master it. This is because if you have two people trading with a R/R of 1:1 with 1% risk each with both profiting on 70% of all trades. Then if one is trading 5 times a week and the other is trading 50 times a week... Well, you do the math

2. We have come to the great realization that indicators are more of a hindrance than a help to us. By waiting for these to all line up we more often than not miss the move entirely. By going with PA alone we are able to use our intuition and get in at precisely the correct moments giving us the highest probability for return.

I will be posting again shortly.

Sincerely,

Mike Lewthwaite

fxRichard · #2 Jul 20, 2008 2:53pm

Sounds good to me!

Wonder how many anti-scalpers we will get in here hehe

teodosy87 · #3 Jul 20, 2008 2:58pm

this will be great thread

teodosy87 · #4 Jul 20, 2008 3:02pm

ok suggest any pair that you scalp

and let see how we can help with sometimes work in community is worth it because everyone know something that other could not know everyone learn from other this is great ...

dkhinckley · #5 Jul 20, 2008 3:05pm

Hi Mike, I have discovered what you point out in your post, namely:

"2. We have come to the great realization that indicators are more of a hindrance than a help to us. By waiting for these to all line up we more often than not miss the move entirely. By going with PA alone we are able to use our intuition and get in at precisely the correct moments giving us the highest probability for return."

I have decided to get back to the roots of trading. When I first heard about trading forex, and subsequently enrolled in a learning program, price action is what I was taught. It sure would be nice and easy if we could just slap any indicator we wanted onto any chart of any time frame and have it tell us exactly what to do. It just doesn't work that way, at least for me it never has.
I was looking for a short cut. I never found it.
It is hard for me to scalp because of my work scedule and i don't have a job that is in front of a computer all day. That is why I gravitated to the daily timeframe and most if not all the daily systems here at FF are loaded with indicators.
I look forward to following this thread and hope to learn from it. Who knows, maybe I can even contribute.

Thanks dave

jeta · #6 Jul 20, 2008 3:23pm

All you need is good money management and price action.

Don't like the ..."a R/R of 1:1 with 1% risk each with both profiting on 70% of all trades."...
You shouldn't expect numbers like this if you have a small stop relative to your target if you are scalping. If you have these expectations, you will fail.
If you are scalping with R/R of 1:1, there is no way you will hit 70%. Too much spread and volatility.

Let's see if you guys can pull it off.

sarchin · #7 Jul 20, 2008 3:34pm

I wait for the new york session to open and the news to come out to get the momentum going, then I watch the stock markets, the dollar index and the usd/chf when scalping. the best thing I like about scalping is I don't leave many positions open overnight. Then I started looking at indicators and long term trends because I wanted to lower my spread cost, nothing worked and I started getting stuck and/or losing trades, after realizing that this market at the present time is perfect for scalping I am going back to scalping, and I love the rush from it

JLivermore · #8 Jul 20, 2008 4:10pm

this is my kind of thread!

GOOD TRADING!

JL

Pip Ventures · #9 Jul 20, 2008 4:11pm

Quote:

Originally Posted by jeta

All you need is good money management and price action.

Don't like the ..."a R/R of 1:1 with 1% risk each with both profiting on 70% of all trades."...
You shouldn't expect numbers like this if you have a small stop relative to your target if you are scalping. If you have these expectations, you will fail.
If you are scalping with R/R of 1:1, there is no way you will hit 70%. Too much spread and volatility.

Let's see if you guys can pull it off.

Jeta,

This is purely an example. But I think you knew that.

If you want to be a help then help. If not, find another thread.

Mike

teodosy87 · #10 Jul 20, 2008 4:13pm

Pip Ventures which pairs do you usually scalp bro?

i might help

oooooooo definitely the best should see this thread great trading ...... http://forexfactory.com/showthread.php?t=92727 if you already didn`t or anybody that trade this way should look this guy trading very good and clean trading with only 1 loose

jeta · #11 Jul 20, 2008 4:21pm

Not sure why you are malicious right away? Are you sour because I was right about Expat while you defended him only to figure out in the end that the guy was a scam?

It was not "obviously" an example because the first post on a trading systems' thread should be a pretty obvious description of system use.

Again you are concentrating on your winnings before you concentrate on your losses. Typical newbie mistake.

Get your head our of your as* and maybe I can help you learn something which you are obviously lacking in order to be a successful trader.

I would appreciate an apology.

Quote:

Originally Posted by Pip Ventures

Jeta,

This is purely an example. But I think you knew that.

If you want to be a help then help. If not, find another thread.

Mike

Pip Ventures · #12 Jul 20, 2008 4:25pm

Quote:

Originally Posted by teodosy87

ok suggest any pair that you scalp

and let see how we can help with sometimes work in community is worth it because everyone know something that other could not know everyone learn from other this is great ...

I think the important thing is that a pair have a good Range/Spread ratio. The best I have seen is the EUR/USD and this is the only pair I am looking at presently.

The other pairs that "I" see have good potential are:

USD/JPY
EUR/JPY
GBP/JPY

Regardless of the pair you use it is the method that is what will bind us on this thread. I dont want another EUR/USD thread or Scalping GBP/JPY thread.

Happy Scalping to all!

Mike

JLivermore · #13 Jul 20, 2008 4:28pm

Quote:

Originally Posted by jeta

All you need is good money management and price action.

Don't like the ..."a R/R of 1:1 with 1% risk each with both profiting on 70% of all trades."...
You shouldn't expect numbers like this if you have a small stop relative to your target if you are scalping. If you have these expectations, you will fail.
If you are scalping with R/R of 1:1, there is no way you will hit 70%. Too much spread and volatility.

Let's see if you guys can pull it off.

jeta,
i have good management, big part of my trading success....and i def pull off more than 70% (90%+)...so its def possible...and i have a journal here so you can check it out.

don't tell neone that theres no way to hit 70%...to me 70% is just 'ok'.

GOOD TRADING!

JL

jeta · #14 Jul 20, 2008 4:36pm

Hey JLivermore,

I have seen your journal and what I have said in my post by no means contradicts your winning %.

Your risk reward per trade is not 1:1. You don't have a stop loss of 10 pips and a take profit of 10 pips.

You manage your risk by averaging in and letting losing trades run until you are not comfortable with the losses or until it hits your risk of ruin stop loss of 250 pips (5% of account) while looking for small profits.

I realize that is part of your game plan and it is working out for you. Your average loss is much bigger than your average win (usually 2:1 or more). That is a requirement for successful scalping. The rest is called unsuccessful scalping with a fixed risk reward ratio and risked number of lots a trade is entered with.

As I said, there is no way to have 70% winning trades if you are scalping for up to 10 pips or so at a time and your stop loss is 10 pips. If your spread is 2 pips and market is somewhat chaotic, your can expect a winning % of no more than 30%.

Quote:

Originally Posted by JLivermore

jeta,
i have good management, big part of my trading success....and i def pull off more than 70% (90%+)...so its def possible...and i have a journal here so you can check it out.

don't tell neone that theres no way to hit 70%...to me 70% is just 'ok'.

GOOD TRADING!

JL

gvroom · #15 Jul 20, 2008 4:40pm

Not sure if I truly qualify since I do like to keep some indicators on my charts...

Anyway, I'll generally scalp the eurusd (low spreads) on the 1m with a 5m on the side.

If I can't read the market for some reason I'll switch to the 5m/1hr and look for some more conventional setups.