Trying scalping with a 1000 bucks - Scalping is expensive! | Forex Factory

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Trying scalping with a 1000 bucks - Scalping is expensive!

  • #1
  • First Post: Jul 23, 2020 9:28am Jul 23, 2020 9:28am
Trading with pepperstone.

Looks like 75 cents for a mini lot and if my average trade is to capture 3 pips with 2% risk per trade, seems pretty expensive.

Am I doing this right?? Is this normal?

For a standard lot, I capture 3 pips with 2 % risk, 30 dollars ...commission is 7-8 dollars RT.

That's a huge chunk out of my profit??

Seems like if I have a small account it's going to be struggle.

Any cheaper solid brokers for scalping out there?
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  • #2
  • Jul 23, 2020 10:03am Jul 23, 2020 10:03am
Quoting pa18
Trading with pepperstone. Looks like 75 cents for a mini lot and if my average trade is to capture 3 pips with 2% risk per trade, seems pretty expensive. Am I doing this right?? Is this normal? For a standard lot, I capture 3 pips with 2 % risk, 30 dollars ...commission is 7-8 dollars RT. That's a huge chunk out of my profit?? Seems like if I have a small account it's going to be struggle. Any cheaper solid brokers for scalping out there? {image}
u should try xm very solid broker with very tight spread
  • #3
  • Jul 23, 2020 12:01pm Jul 23, 2020 12:01pm
Quoting pa18
Trading with pepperstone. Looks like 75 cents for a mini lot and if my average trade is to capture 3 pips with 2% risk per trade, seems pretty expensive. Am I doing this right?? Is this normal? For a standard lot, I capture 3 pips with 2 % risk, 30 dollars ...commission is 7-8 dollars RT. That's a huge chunk out of my profit?? Seems like if I have a small account it's going to be struggle. Any cheaper solid brokers for scalping out there? {image}

As soon as you place a trade you start negative because the broker charges you the comission/spread right away AND as soon as you are in positive numbers, Whatever profit you end up with its PURE profit in your pocket, you dont get discounted again.. read more about it =)
  • #4
  • Jul 23, 2020 5:42pm Jul 23, 2020 5:42pm
Your going to need to get a rebate on your commissions paid to your broker. It looks like you will be profitable but after a month you will be ahead a very impressive 50% +or- $500 but your broker will have made over a thousand bucks off of you.
  • #5
  • Jul 23, 2020 5:46pm Jul 23, 2020 5:46pm
Quoting pa18
Trading with pepperstone. Looks like 75 cents for a mini lot and if my average trade is to capture 3 pips with 2% risk per trade, seems pretty expensive. Am I doing this right?? Is this normal? For a standard lot, I capture 3 pips with 2 % risk, 30 dollars ...commission is 7-8 dollars RT. That's a huge chunk out of my profit?? Seems like if I have a small account it's going to be struggle. Any cheaper solid brokers for scalping out there? {image}

Yes seems 7.50$ RTL commission, many good brokers charge 5$. By scalping 3 pips you will end up paying half of your profits in commissions, brokers are gonna love you , and that is if you are good lol.

Cheers,
LDFX Trading Ltd
  • #6
  • Jul 23, 2020 10:58pm Jul 23, 2020 10:58pm
You need to learn how to exit so you can profit more than 3 pips per trade. It will only take ONE time that you are losing and decide to hold onto it to see if it will turn around and you will be hurting, because you didn't ride out previous profits. Instead of wasting your time trading like a scared rat, invest it in figuring out how to exit. If you think you know when to enter, start there. See if you can use the next entry as your exit and get more than 3 pips. Good Luck.
You cannot be extraordinary by being normal
  • #7
  • Jul 23, 2020 11:11pm Jul 23, 2020 11:11pm
Quoting dkrock
You need to learn how to exit so you can profit more than 3 pips per trade. It will only take ONE time that you are losing and decide to hold onto it to see if it will turn around and you will be hurting, because you didn't ride out previous profits. Instead of wasting your time trading like a scared rat, invest it in figuring out how to exit. If you think you know when to enter, start there. See if you can use the next entry as your exit and get more than 3 pips. Good Luck.
Are you a scalper bud?
  • #8
  • Jul 23, 2020 11:36pm Jul 23, 2020 11:36pm
Quoting pa18
{quote} Are you a scalper bud?
I am an intraday range trader. Years ago, I did scalp, but it was based on so much precision that I ended up losing more money than I made. I kept losing my place in the market direction and so trading become quite emotional. Then I went through a phase where I was worse than you, as I preferred to exit as soon as I beat the spread. Often the broker's spread was more pips than my profit per trade. I had to reevaluate what I was doing so I could rely on the math and so I worked to figure out how to be more successful.
You cannot be extraordinary by being normal
  • #9
  • Jul 24, 2020 11:11am Jul 24, 2020 11:11am
Quoting pa18
{quote} Are you a scalper bud?
The good thing is that you are trying to improve your performance.
Since you like scalp Dkrock gave you the way.
It is very likely that some of your operations will score more than 3 points.
It is to identify these points to improve the quality of points in your trades.

Most of my starts are also fast from 50 to 200 points for each open order.
But, I open 5 to 7 orders with 25 points difference from one order to another.
Use 1.5% risk. To get 0.5 to 2% a day. But, as everyone knows, we don't always pick flowers.

Good luck! Stay green!
  • #10
  • Jul 24, 2020 8:59pm Jul 24, 2020 8:59pm
Quoting pa18
Trading with pepperstone. Looks like 75 cents for a mini lot and if my average trade is to capture 3 pips with 2% risk per trade, seems pretty expensive. Am I doing this right?? Is this normal? For a standard lot, I capture 3 pips with 2 % risk, 30 dollars ...commission is 7-8 dollars RT. That's a huge chunk out of my profit?? Seems like if I have a small account it's going to be struggle. Any cheaper solid brokers for scalping out there? {image}
Hi pa18

I don’t see a problem. If you use a trade manager that shows just the profit, and focus on that - it’s cheap finance. I scalp the London session looking for 3-13 pips on average and couldn’t care less about costs. Let’s face it, take 30 trades with a average win of just 3 pips profit and you are earning 20% equity rise a month.
That beats most traders on forex factory, most trade professionals hands down.
You should be thanking your broker, send him a bottle of wine this Christmas.

Focus on your skill-

Cheers Rick
Trading thin liquidity at the boundary of the charts
  • #11
  • Jul 25, 2020 12:09am Jul 25, 2020 12:09am
Quoting pa18
Any cheaper solid brokers for scalping out there?
I pay 4 r/t (per std. lot, euro in my case), plus 0.1/0.2 spread (E/U) most of the time. No comm. on indices (cfd), only spread, i.e. spread in dax is 0.8 points (during london sess.), s&p500 is 0.49 points.
Return To Disorder
  • #12
  • Jul 25, 2020 4:34am Jul 25, 2020 4:34am
Quoting havo
{quote} As soon as you place a trade you start negative because the broker charges you the comission/spread right away AND as soon as you are in positive numbers, Whatever profit you end up with its PURE profit in your pocket, you dont get discounted again.. read more about it =)
Completely agree. Don't even try it. The only winner here is your broker no matter what.
  • #13
  • Jul 25, 2020 3:02pm Jul 25, 2020 3:02pm
Quoting RickM
{quote} Hi pa18 I don’t see a problem. If you use a trade manager that shows just the profit, and focus on that - it’s cheap finance. I scalp the London session looking for 3-13 pips on average and couldn’t care less about costs. Let’s face it, take 30 trades with a average win of just 3 pips profit and you are earning 20% equity rise a month. That beats most traders on forex factory, most trade professionals hands down. You should be thanking your broker, send him a bottle of wine this Christmas. Focus on your skill- Cheers Rick

Well perhaps you do have the skill to do that, if that then I congratulate you. But Forex factory is like prison, everybody in Prison is innocent, in forex factory everybody is successful..., which doesn’t mean a thing unless you can prove otherwise.

Nevertheless you said a right thing, “3 to 13 pips” which is very important, not like a 3 pips tp, which is by the way only relative to the stop loss and hit rate, which pa18 never mentioned.

I hope his stop is at max 3 pips also, but even then giving the relative high cost of commission and slippage and the handicap of the spread even as low as 0.3 pips on eurusd I really doubt it’s gonna be profitable, without mentioning that having a positive expectancy on a h1 tf is already so hard and that he seem to be a newbie.

So definitely I would advise a bigger TP than only 3 pips and mostly a TP higher than its loss, such as you mentioned, but 3 to 13 pips on “average” isn’t an average anymore...



Cheers,
LDFX Trading Ltd
  • #14
  • Jul 25, 2020 3:04pm Jul 25, 2020 3:04pm
Quoting rockit
{quote} I pay 4 r/t (per std. lot, euro in my case), plus 0.1/0.2 spread (E/U) most of the time. No comm. on indices (cfd), only spread, i.e. spread in dax is 0.8 points (during london sess.), s&p500 is 0.49 points.

That is great pricing, care to share the broker and your average loss and win in pips in order to enlighten pa18 ?


Cheers,
LDFX Trading Ltd
  • #15
  • Edited 3:44pm Jul 25, 2020 3:11pm | Edited 3:44pm
Quoting landorra
{quote} Completely agree. Don't even try it. The only winner here is your broker no matter what.

Agree.

Expecting a positive expectancy with such small pips is truly insane for retail traders, even if it is the size of the stop, which will very often be hit with slippage most of the time. So it has to be traded with a lot of skill, low risk per trade and most importantly high r:r ratio.

Even then you will be giving probably half of your profit to the broker, but if you have a high daily distribution coupled with a win rate over 50% with an average win higher than your average loss, you should be ok. On a very large sample of trades of course.

But keep in mind that it is the hardest form of trading ever.


Cheers,
LDFX Trading Ltd
  • #16
  • Jul 25, 2020 4:06pm Jul 25, 2020 4:06pm
if you dont know wth its bid/ask and how the targets gets affected by that you will always gona cry the wolf its coming and the brokers are the bad guys..

this "myth" that you lost more in comissions in the long run needs to end, level up already !!
  • #17
  • Jul 25, 2020 4:52pm Jul 25, 2020 4:52pm
Quoting havo
if you dont know wth its bid/ask and how the targets gets affected by that you will always gona cry the wolf its coming and the brokers are the bad guys.. this "myth" that you lost more in comissions in the long run needs to end, level up already !!
Havo is right.

Don’t get yourself fooled by trying to get over the ocean with a surfboard, while you could get over on a boat which is definitely much safer.
LDFX Trading Ltd
  • #18
  • Jul 25, 2020 4:54pm Jul 25, 2020 4:54pm
It's ultimately gonna be tough no matter what to not have a huge chunk of profits eaten up by fees if your targets are only 3 pips, since it's so close to entry. Hey though, if you can win 70-80% of the time, you should still manage to be profitable though!

Otherwise, you may wanna consider closer to 5-10 pip targets, which can often times be cleared in minutes if you're into that.
  • #19
  • Jul 25, 2020 4:55pm Jul 25, 2020 4:55pm
Quoting havo
if you dont know wth its bid/ask and how the targets gets affected by that you will always gona cry the wolf its coming and the brokers are the bad guys.. this "myth" that you lost more in comissions in the long run needs to end, level up already !!

I just erased my previous post answering to your post because I might have misunderstood yours.

What do you mean by “this myth” ?
LDFX Trading Ltd
  • #20
  • Jul 25, 2020 7:02pm Jul 25, 2020 7:02pm
Quoting LDFX
{quote} Well perhaps you do have the skill to do that, if that then I congratulate you. But Forex factory is like prison, everybody in Prison is innocent, in forex factory everybody is successful..., which doesn’t mean a thing unless you can prove otherwise. Nevertheless you said a right thing, “3 to 13 pips” which is very important, not like a 3 pips tp, which is by the way only relative to the stop loss and hit rate, which pa18 never mentioned. I hope his stop is at max 3 pips also, but even then giving the relative high cost of commission and...
Hi LDFX

I trade live during the London session with a few FF members on another Social Media platform where we are putting our live trades up all the time.
So I can prove I hit 85% plus win rates on every basket I enter if you follow my calls. I do use intelligent aggression when trading my Single Wave Strategy. That rely’s on using smart hedging and also calculated Kedging on occasions till I get another signal to clean up the draw down.

Honestly I don’t even care about spread costs. For example if you look at my posting history, you can see in June to early July I achieved a 46% increase in equity using a terrible broker. The reason was because I was trading in an Forex trading competition where I have to use only one broker.
Here I was paying 3 pips one way for a GBPNZD trade and 2 pips one way for a GBPJPY trade. That’s crazy but I still achieved that 46% I posted.

Unskilled traders fuss about spread/ commissions while professionals scalpers fuss about hitting profit targets.

Most times I just use IC Markets but I do have five other brokers to compare liquidity issues. It is more important to have several accounts from one broker because in the case of IC Markets, they may place you into a B book server whether you like it or not. Half of IC Markets servers are for newbies - that’s bad liquidity causing spikes that run stops. I would rather avoid stops for this reason.

Cheers Rick
Trading thin liquidity at the boundary of the charts
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