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What exactly is 'scalping' ...?

  • Post #1
  • Quote
  • First Post: Dec 15, 2005 11:52pm Dec 15, 2005 11:52pm
So far with my demo account, I have had the most success with short term trades. I have heard of brokers not liking scalping trades. I guess that I am curious as to exactly what they mean. Right now I am holding my positions for anywhere between 10-30 minutes... Is this not desired? I'm doing pretty good with it.

Thanks

Brad
Quoting BradN901CB
So far with my demo account, I have had the most success with short term trades. I have heard of brokers not liking scalping trades. I guess that I am curious as to exactly what they mean. Right now I am holding my positions for anywhere between 10-30 minutes... Is this not desired? I'm doing pretty good with it.

Thanks

Brad
if your gonna scalp and i dont consider 10 to 30 minutes scalping use a broker without a dealing desk like interbankfx. at least you wont have someone actually trading against your actual position. i have heard some horror stories about forex traders trying to scalp against a dealing desk. whether they are true or not is debatable i guess. also remember that demo vs a real account is like a putt putt course vs augusta national. welcome to the forum.
Can I paste this?
I figured it might help illustrate my questions...


12/15/2005 20:49:31 Open Trade 2351975 USDJPY .2 S 116.05



12/15/2005 21:27:27 Close Trade 2351975 USDJPY .2 S 116.05 115.95 $17.25




12/15/2005 22:46:02 Open Trade 2352062 USDJPY .2 S 116.07




12/15/2005 23:00:19 Close Trade 2352062 USDJPY .2 S 116.07 116.00 $12.07





5 12/15/2005 23:15:51 Open Trade 2352084 USDJPY .2 S 115.98



6 12/15/2005 23:25:03 Close Trade 2352084 USDJPY .2 S 115.98 115.96 $3.45
Quoting BradN901CB
So far with my demo account, I have had the most success with short term trades. I have heard of brokers not liking scalping trades. I guess that I am curious as to exactly what they mean. Right now I am holding my positions for anywhere between 10-30 minutes... Is this not desired? I'm doing pretty good with it.

Thanks

Brad
Scalping is very quick in and out trades, especally during high volume and volatile periods. Many times the trades only last a minute or 2. Takes skill, experience and practice when using real money. Your avarage retail broker (actually they're market makers) doesn't like scalpers because sometimes it doesn't give them a chance to hedge or pass on the position to their liquidity bank source. So if you want to scalp you have to use the right broker and of course one with a tight spread. I scalp, and I use InterbankFX as my current broker. They have no problem with scalpers.

JohnFX
Thank you james I am following your chart thread as well.
I am currently using CMSFX - should I look closer into interbank?
John, Thanks
I do not plan on making trades in that time frame. My usual is 10 minutes or so, with small movements. I will demo interbank, I have heard many good things but have not put much effort into their interface yet.

Brad
Quoting JohnFX
Scalping is very quick in and out trades, especally during high volume and volatile periods. Many times the trades only last a minute or 2. Takes skill, experience and practice when using real money. Your avarage retail broker (actually they're market makers) doesn't like scalpers because sometimes it doesn't give them a chance to hedge or pass on the position to their liquidity bank source. So if you want to scalp you have to use the right broker and of course one with a tight spread. I scalp, and I use InterbankFX as my current broker. They have no problem with scalpers.

JohnFX
ahhh my good friend john. how are you sir. my brother on the battlefield with tradevomit. share your scalping method with us sometime john.
Quoting BradN901CB
Thank you james I am following your chart thread as well.
I am currently using CMSFX - should I look closer into interbank?
as with all brokers you will get varying reviews but like john i like tight spreads and no dealing desk to worry about. thanks for watching my thread. you will like it here.
Quoting JohnFX
Scalping is very quick in and out trades, especally during high volume and volatile periods. Many times the trades only last a minute or 2. Takes skill, experience and practice when using real money. Your avarage retail broker (actually they're market makers) doesn't like scalpers because sometimes it doesn't give them a chance to hedge or pass on the position to their liquidity bank source...
Yes John brokers hate quick in and out during volitale times because they claim that they lose money due to the time factor it takes for orders to process. They say that market price has moved between the time you clicked and locked in the price on your screen & time that they received and processed that order on their end. They are forced to honor that price but hate the fact that it happens multiple times due to your scalping style of trading. My account with FXCM has been put on manual execution because of this scalping method.
Sad but true,
Hi,

I am using Oanda at this moment. They have very tight spread 1.5 for EUR-USD,
their lots management is great. And last but not least, it is a bank and not a broker.
Downside of it, you cannot hedge or downscale an open position and their trading platform, even good, is not so friendly.
Well, nobody's perfect.
So far, i happy with them.

Larry
  • Post #11
  • Quote
  • Edited at 9:28pm Dec 16, 2005 9:22pm | Edited at 9:28pm
Quoting james16
ahhh my good friend john. how are you sir. my brother on the battlefield with tradevomit. share your scalping method with us sometime john.
Hey Jim, how's it going? How bout them GIANT's (oops, I mean Cowboys..LOL). Hope the G-men can hold on and win the NFC East. Our defense has been playing very good, but Eli has been a bit shakey lately. But have to remember he's basically still a rookie.

Jim, I started a thread about scalping a few weeks ago and I haven't posted too much lately. Basically I use a lot of instinct from watching price action, so it's kind of difficult to give specifics. Except that I mostly watch the 1 & 5 min. charts with only a couple EMA's (10,20). And also look for S/R levels to trade off of. Good luck with your new PF next month. I'm sure it will go over well.

Take Care

John
16-Dec-0517:54724745Zahid X GBP/USD Rolling DailyBuy911.772216-Dec-0517:51724726Zahid X GBP/USD Rolling DailySell111.77316-Dec-0517:48724716Zahid X GBP/USD Rolling DailySell111.773216-Dec-0517:47724712Zahid X GBP/USD Rolling DailySell111.77316-Dec-0517:46724710Zahid X GBP/USD Rolling DailySell111.77316-Dec-0517:40724696Zahid X GBP/USD Rolling DailySell31.772516-Dec-0517:39724694Zahid X GBP/USD Rolling DailySell31.772616-Dec-0517:39724693Hendrik X GBP/USD Rolling DailySell31.772716-Dec-0517:39724692Hendrik X GBP/USD Rolling DailySell31.772816-Dec-0517:38724691Hendrik X GBP/USD Rolling DailySell31.772816-Dec-0517:38724690Hendrik X GBP/USD Rolling DailySell31.772916-Dec-0517:38724686Hendrik X GBP/USD Rolling DailySell51.77316-Dec-0517:38724685Hendrik X GBP/USD Rolling DailySell31.772716-Dec-0517:37724683Hendrik X GBP/USD Rolling DailySell31.772616-Dec-0517:37724680Zahid X GBP/USD Rolling DailySell51.772616-Dec-0517:37724677Zahid X GBP/USD Rolling DailySell51.772516-Dec-0517:37724671Hendrik X GBP/USD Rolling DailySell31.772616-Dec-0517:36724669Zahid X GBP/USD Rolling DailySell51.7724
Quoting BradN901CB
Can I paste this?
I figured it might help illustrate my questions...


12/15/2005 20:49:31 Open Trade 2351975 USDJPY .2 S 116.05



12/15/2005 21:27:27 Close Trade 2351975 USDJPY .2 S 116.05 115.95 $17.25




12/15/2005 22:46:02 Open Trade 2352062 USDJPY .2 S 116.07




12/15/2005 23:00:19 Close Trade 2352062 USDJPY .2 S 116.07 116.00 $12.07





5 12/15/2005 23:15:51 Open Trade 2352084 USDJPY .2 S 115.98



6 12/15/2005 23:25:03 Close Trade 2352084 USDJPY .2 S 115.98 115.96 $3.45
JohnFX
I just got done watching the Giants kick KC's ass. So that's OK. Last week was not profitible for me. Trends kept changing. I like the system that I'm using so I don't plan on changing soon. I'm still doing about 15% per month; so thats OK.
Let us know how your new system is coming.
JIM
JohnFX,
Now that I read your last post; What PF? JIM
Downside of it, you cannot hedge or downscale an open position and their trading platform, even good, is not so friendly.
Well, nobody's perfect.
So far, i happy with them.

Larry[/quote]

You can downscale open position on Oanda, you need to submit it through new order though. i.e. if your long with 10,000 Euro, submit a new sell order for 6,000 Euro. That will take your total account to long 4,000 Euro.
Hi,
Quoting larry081721
Hi,

I am using Oanda at this moment. They have very tight spread 1.5 for EUR-USD,
their lots management is great. And last but not least, it is a bank and not a broker.
Downside of it, you cannot hedge or downscale an open position and their trading platform, even good, is not so friendly.
Well, nobody's perfect.
So far, i happy with them.

Larry
You can hedge by having a secondary/sub account in which you can make trades in the opposite direction to the main account. Email/ask oanda for details.

Regards
Alan
Quoting firehorse
Hi,
You can hedge by having a secondary/sub account in which you can make trades in the opposite direction to the main account. Email/ask oanda for details.

Regards
Alan
You can also hedge by trading in other corelated pairs. For example if you were long USDJPY, you could short CHFJPY as a hedge if you were wrong. Not a perfect hedge, but it would give you some peace of mind.

Regards,
Matsu
scalping is how to loose money very very fast asin in blowing money fast !
Scalping is a short time trading strategy. Scalpers often dive into the market and out within 10 to 30 minutes. They also use short time frame like M5, M15.
Quoting ViktorDanie
Scalping is a short time trading strategy. Scalpers often dive into the market and out within 10 to 30 minutes. They also use short time frame like M5, M15.
Man that guy asked on 2005 lol
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