Well, it seems that we will have a new billionaire in a few time period
Not even the money managers I was looking for perform this numbers consistently...
Not even the money managers I was looking for perform this numbers consistently...
Why your broker is your friend and your enemy 4 replies
So what is your Return on Equity monthly or annual targets? 15 replies
dont fall in love with your daily return 11 replies
DislikedDoes compounding only work for scalping?
Everytime I see it mentioned it's always scalping examples..
Why doesn't it work on hourly or 4h or daily?Ignored
Dislikedbecause it takes too fucking long to cycle through enough trades to find a new plateau that is real, and not merely a temporary high in a series of wins and losses.
good luck compounding when you trade only a couple of times a week, yet your trading requires at least a dozen or 2 trades before your results begin to roughly express your expectancy.Ignored
DislikedI understand that you're talking about statistics..
But if we don't think about statistics..
Who will make more money in 2 months?
A swing trader or scalper?
I think they should be able to make the same amount.
Scalper gets lots of small trades in and swing trader gets a few big trades.
So even if we cant compound a swing trader because it would take a long time to get 100 trades at least... He can still make as much as the scalper just that we don't know ahead of time from compunding from statistics?
Hope that made sense lol.Ignored
Dislikedyou think that a scalper doing up to and over a hundred trades a day won't be increasing their stake a LOT faster than a swing trader who takes a few pot shots a few times a month?
a scalper takes thousands of times more cuts out of the pie than a swing trader taking just a few straight slices.
a scalper resolves their expectancy within a single day, unlike a swing trader who might not resolve it within a whole year.
so who makes more, compounds faster, and is all-round better-off? a scalper, or a swing trader? you don't need to do any math....Ignored
Dislikedyou think that a scalper doing up to and over a hundred trades a day won't be increasing their stake a LOT faster than a swing trader who takes a few pot shots a few times a month?
a scalper takes thousands of times more cuts out of the pie than a swing trader taking just a few straight slices.
a scalper resolves their expectancy within a single day, unlike a swing trader who might not resolve it within a whole year.
so who makes more, compounds faster, and is all-round better-off? a scalper, or a swing trader? you don't need to do any...Ignored
Dislikedyou think that a scalper doing up to and over a hundred trades a day won't be increasing their stake a LOT faster than a swing trader who takes a few pot shots a few times a month?
a scalper takes thousands of times more cuts out of the pie than a swing trader taking just a few straight slices.
a scalper resolves their expectancy within a single day, unlike a swing trader who might not resolve it within a whole year.
so who makes more, compounds faster, and is all-round better-off? a scalper, or a swing trader? you don't need to do any...Ignored
DislikedOf course.
The reason swing trading is more popular for most FF traders is because it's easier for people who aren't very good at trading to sit in long term positions.
The argument that position size can be compounded in a swing trade doesn't stack up against banking profits consistently and increasing position size based on actualized growth of principle. The longer a trade is open, the higher exposure it has to unseen consequences which can result in pullbacks, drawdowns, and reversals.
If someone knows how to trade their risk is...Ignored
DislikedI don't scalp but I take between 2 and 10 trades most days, I jump in after retracements / pullback = low drawdown. I absolutely had to learn to trade like this because I couldn't find the mental strength to hold positions longer than a few hours at most. Plus of course why suffer drawdown once you have learned how the pullbacks work .
1% risk per trade, 2 - 10 trades a day, rinse and repeat, it soon adds up.Ignored
DislikedDoes compounding only work for scalping?
Everytime I see it mentioned it's always scalping examples..
Why doesn't it work on hourly or 4h or daily?Ignored
DislikedI understand that you're talking about statistics..
But if we don't think about statistics..
Who will make more money in 2 months?
A swing trader or scalper?
I think they should be able to make the same amount.
Scalper gets lots of small trades in and swing trader gets a few big trades.
So even if we cant compound a swing trader because it would take a long time to get 100 trades at least... He can still make as much as the scalper just that we don't know ahead of time from compunding from statistics?
Hope that made sense lol.Ignored
DislikedExactly.
I do about 10-15 trades a day, so in the same range basically. Maybe my outlook on scalping is a bit different than the classic definition of it. I don't trade for 2-3 pips at a time. Anything 30 pips or under is a scalp for me.
I probably should also clarify that there are some quite good swing traders I know as well, so it's not that swing trading in of itself isn't profitable. I used to do more of it before the markets got choppier this past year, but the change in conditions actually made me tighten up my trading considerably....Ignored
DislikedI would disagree. Methods that work on higher time-frames might not work on lower ones, cause of higher relative trading costs.Ignored
DislikedThat depends greatly on your stake, your broker, and how you amortize your cost of entry against profit targets.
With an MM, you may well have to take into account higher spreads, slippage, misquotes, server disconnects, whatever, so trading for a few pips can be a riskier proposition.
With a tier 2 ECN, you have to take into account commission (but lower spreads), and don't have to deal with a lot of the other nonsense, so typically can move a trade into profit more quickly.
For example, let's say you place a 20 lot EU trade, the round...Ignored
DislikedWell, let me give you this example: you trade maybe on the 15 min time-frame and achieve an average profit of 10 pips per trade.
Now let's say this is gbp/usd with a 2 pip spread and maybe a 1 pip slippage per trade = 3 pip trading cost. 10 pips - 3 pips = 7 pips net profit per trade.
Now if you trade the 1 minutes time-frame with the same system, you would maybe only get an average profit of 2-3 pips. Including the trading costs, you would be at a loss (on average).
That's just an example, but it clarifies why you can't trade a lot of...Ignored
DislikedAll that tells me is that the m1 tf isn't worth trading unless the RR is correctly calculated. Like fundy says do the math then trade accordingly. M5 up is all good.Ignored