I will post PA setups here that can be traded profitably... you can get away with just trading one of these setups and being profitable... profitability comes from good risk management and profit taking skills and being patient enough to grab a setup that has a rational context behind it... profitability comes from synergising many concepts together to create a plan and a system. This is up to you. If you would like a risk management/systematic approach I have another thread called "simple system". You can take the scalping approach/risk management from there and apply it to all the setups displayed here.
My personal opinion is... scalping is the way to go.
Let me give a metaphor. You got money to burn you're in a casino... you play roulette and you put down 10k.... against all odds you've won 5k.... you can walk away a winner.
But if you were to use traditional risk to reward theory in this situation... you would disregard the fact that you've accumulated 5k.... "bla bla I've risked 10k so I must make 10k!" and then you lose all the profits you accumulated... the same way a 1000$ trade can give you the opportunity to extract $500 from the market and you let it pull all the way back to either break even or to your stop.
Or say you walk down the street and you see a $20 note.... you gonna pick it up or wait for it to turn into a $50 or $100 note?
Doesn't make sense does it? Scalping doesn't mean you can't grab huge moves.... in certain situations it will be more optimal to take your partial and hold your stop and see if price continues to deliver... but not every trade does this, so don't always look for those 1-1 trades or even worse 1-2 so on and so fourth.
if you disagree.... you can trade these concepts with standard risk to reward theory and still be profitable but most likely on a more inconsistent and longer term basis... it will take a larger timescale for you to see the statistical edge play out.
My personal opinion is... scalping is the way to go.
Let me give a metaphor. You got money to burn you're in a casino... you play roulette and you put down 10k.... against all odds you've won 5k.... you can walk away a winner.
But if you were to use traditional risk to reward theory in this situation... you would disregard the fact that you've accumulated 5k.... "bla bla I've risked 10k so I must make 10k!" and then you lose all the profits you accumulated... the same way a 1000$ trade can give you the opportunity to extract $500 from the market and you let it pull all the way back to either break even or to your stop.
Or say you walk down the street and you see a $20 note.... you gonna pick it up or wait for it to turn into a $50 or $100 note?
Doesn't make sense does it? Scalping doesn't mean you can't grab huge moves.... in certain situations it will be more optimal to take your partial and hold your stop and see if price continues to deliver... but not every trade does this, so don't always look for those 1-1 trades or even worse 1-2 so on and so fourth.
if you disagree.... you can trade these concepts with standard risk to reward theory and still be profitable but most likely on a more inconsistent and longer term basis... it will take a larger timescale for you to see the statistical edge play out.
