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Why do people entitle scalping as invalid trading approach?

  • Post #1
  • Quote
  • First Post: Sep 11, 2023 12:13pm Sep 11, 2023 12:13pm
From the very first day of my trading life, I prefer scalping and have been scalping since then. I have high interest in this type of trading but I heard many traders saying scalping isn’t an authentic approach of trading. How will you evaluate their comment?
Scalping isn’t a professional way of trading and if you notice you can see expert traders always hold a trade to catch the entire market trend that is impossible by scalping.
Scalping is very hard because we trade against other traders who are better equipped than us to operate in a noise market, where we have to act quickly, make many trades and this all requires constant focus, discipline and monitoring, it can be very tiring, is very easy to get off track.

There are other aspects, but these already give an image of how difficult is to scalp.
Scalping is not for those who want it, but for those who can.

Cheers
Uncertainty of the market must be embraced and accepted.
Effectiveness of scalping or any approach depends on an individual trader's skill, strategy, and risk management, btw. So it's important to evaluate it based on your own results and comfort level.
Trading requires patience and low risk. When you are scalping, you are normally impatient and highly leveraged or exposed. You will not probably develop as a trader unless you cultivate that patience that leads you to wait for hours or days to find the A+ trade setup you know it works for you. And you only need one setup.

Said that, people say nonsense they hear elsewhere all the time. Do not pay attention to what people say.
You have no idea....
There are 2 main reasons leading to failure with scalping. It's all basic arithmetic really.

1. It's very difficult to overcome the High Ratio of transaction cost in relation to the average Maximum Favorable Excursion (MFE) due to short time horizon.
2. Successful scalping requires high accuracy on entry! In other words, you have to rely on very precise trading setups where you have to reduce the Maximum Adverse Excursion (MAE).

With scalping If you pay 1 pip per trade and the average excursion expectation is 5 pips this is huge cost (20%+)! Very difficult to overcome.
But if you pay the same 1 pip per trade and the average excursion expectation is 100 pips the cost is only 1%. So, with longer time horizon you have much higher chances. At least in theory, because You also have to add the swaps into this equation! It's bad..... yes.

And in case you have not noticed by now , the cost is added to your losses! And subtracted from your profitable trades. Do the maths please!
The main reason for scalping failure is your trade is an open hand and it’s trivial for counterparties to fluctuate the price past your tight sexy SL. There is no such thing as “accuracy” in this environment. If you doubt me, just tell me all the details of your trade a minute before you execute it and I’ll ensure you reach 100% … (in)accuracy.
Quoting FHNathaniel
Scalping isn’t a professional way of trading and if you notice you can see expert traders always hold a trade to catch the entire market trend that is impossible by scalping.
I agree. Trend following is the only thing that works it seems. And pretty much nobody likes it. Mentaly too hard to handle due to longer time frames and low winrate. But this it's usually where the money is.
Quoting alphaomega
You have no idea.... There are 2 main reasons leading to failure with scalping. It's all basic arithmetic really. 1. It's very difficult to overcome the High Ratio of transaction cost in relation to the average Maximum Favorable Excursion (MFE) due to short time horizon. 2. Successful scalping requires high accuracy on entry! In other words, you have to rely on very precise trading setups where you have to reduce the Maximum Adverse Excursion (MAE). With scalping If you pay 1 pip per trade and the average excursion expectation is 5 pips this is...
I don't see scalping something that is based on timefrme. For me, if you use a take profit target (or manually cloing your positions), you're a scalper, no matter what time frame you trade on.
Quoting AbdullahBin
From the very first day of my trading life, I prefer scalping and have been scalping since then. I have high interest in this type of trading but I heard many traders saying scalping isn’t an authentic approach of trading. How will you evaluate their comment?
You're are not the onyl one, it seems everybody just prefers scapiong, but it's really the brokers who are scalping you
  • Post #11
  • Quote
  • Last Post: Sep 26, 2023 3:57pm Sep 26, 2023 3:57pm
Scalping can be seen as risky and stressful due to small gains from quick trades. But hey, it's not for everyone – high risk, high stress, high rewards... if you're into that!
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