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Scalping the pip out of it

  • #241
  • May 13, 2008 9:44pm May 13, 2008 9:44pm
Hi guys. Have been kind of sick this week

haven't really been trading much. And I have also found an incredible bad habit.

I have another confession to make. I have made a change to an ECN. That means I am getting a lot better spread. I am trading the EURO at 1/2 of a pip spread!!!!!Up to 3 pips.

I am trading the GJ at as low as 2.

This would at first glance seem like a great idea. And IT IS!
The only problem is ......... I am trading too much!

I have been ignoring the wait for setups and just going for an aggressive stochastic scalp. Problem is, when price turns against me I don't take my loss. I just double down and average out the position. I have not lost a trade yet, which is also a problem. I can feel myself starting bad habits.

HEHEHEHE.

This is only going to become a real problem when I start to lose money.

I cannot stress enough to look for good setups and stick to your plan. I will try to get some charts posted this week. Until then

put it in the bank
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  • #242
  • May 13, 2008 9:55pm May 13, 2008 9:55pm
Quoting Jurrasic
Hi TheWalrus,

That's some great stuff Keep it up and I wish you success with it.
I'll defenitely look into it myself, problem is for me that's mostly the middle of the night... What's the full range of hours that you trade this ? Like about a couple of hours after NY close till about a couple before London open, I assume ?

Thanks
Prime time for me Is Mon-Thurs 6pmEST-12pmEST. I work and sleep before and after those hours. Not sure how this would affect you to be honest

Quoting Piitb
I have been ignoring the wait for setups and just going for an aggressive stochastic scalp. Problem is, when price turns against me I don't take my loss. I just double down and average out the position. I have not lost a trade yet, which is also a problem. I can feel myself starting bad habits.

HEHEHEHE.

This is only going to become a real problem when I start to lose money.

I cannot stress enough to look for good setups and stick to your plan. I will try to get some charts posted this week. Until then
Welcome back man, glad things are working out. I also agree. I think setup is more important than the exit. A good entry makes or breaks the position in my opinion.
  • #243
  • May 14, 2008 9:36am May 14, 2008 9:36am
A lot of what I look for in a scalp is an inevitable retracement.

For instance, Yesterday, the Yen crosses ran up a lot. After the London markets were closed price had moved too far. I waited and got in for a 30 pip retracement.

A good thing to remember is currency pairs have a daily range. When a currency meets its daily range it is good to look for a retrace. With this trade, price moved up over 100 pips. This is about the average daily range for the pound dollar.

This keys me in to a possible trade.

Then I look for my standard qualifications for entering into a scalp.
On this one I added the 60 min chart so you can see the confluence that I saw

1: Price has done its daily range
2: We are in a downtrend
3: Price is engaging the 50EMA 60 min chart
4: Price is engaging the 200 EMA 15 min chart!!!
5: Stochastic and Rsi line up on 5 min chart.
6: Stoch line up on 5 & 15 min chart.
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  • #244
  • May 14, 2008 4:51pm May 14, 2008 4:51pm
Does anyone want to comment on these charts?

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  • #245
  • May 14, 2008 7:56pm May 14, 2008 7:56pm
Btw that was a thirty pip move. Price went down to 1.9440

This is another perfect example of confluence of indicators. We got a two-for-one today on this trade off of the EMAs.

I hope someone was watching

hehe.

Take care
  • #246
  • May 14, 2008 8:33pm May 14, 2008 8:33pm
What pairs are you scalping from ???
  • #247
  • May 14, 2008 9:31pm May 14, 2008 9:31pm
I trade mostly the GJ and the EJ but sometimes there is just nothing going on. I am always checking in on all of the currencies. And I am trying to stay on top of the news for what it is worth these days. But yeah, Mostly GJ and EJ
  • #248
  • Edited 7:09am May 16, 2008 6:16am | Edited 7:09am
ITS TIME FOR ANOTHER ADDITION OF "HOW TO SCALP THE MARKET"

(roar of applause)

Well we have another great show lined up for you guys today!

But wait? could it be? MORE OF THE SAME???

This is my trade. ALL day every day

1: Overlapping fibs
2: Stoch and Rsi line up
3: Stoch on 5 and 15 Line up
4: Price engaging 50EMA on 60 min chart( only if you are LOOKING at one!)
5: Previous resistance, also on 60 min,

Could have easily gotten 30 pips out of this one seeing as it went for about 52
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  • #249
  • May 16, 2008 9:49am May 16, 2008 9:49am
Can it be used on EUR/USD pair,too?Or any pairs with EURO.....thanks.
  • #250
  • May 16, 2008 12:00pm May 16, 2008 12:00pm
Quoting vladv
Can it be used on EUR/USD pair,too?Or any pairs with EURO.....thanks.

Hi Vlad.

The techniques that I use can definitely be used on any major currency that I have seen so far. I would like to clarify though, I am not selling " MY " system. I am only using a confluence of indicators that can be found when a trader becomes familiar with them. And yes it works with the all of Euro crosses. The example that I gave happens to be with the EUR/JPY.
  • #251
  • Edited 1:03pm May 16, 2008 12:49pm | Edited 1:03pm
I wanted to take a minute to talk about exit strategy. If you are to be sucessful trading this market you must have a better exit strategy for your trades than President Bush!! Yeah I just went there.

I show a lot of charts about how to get into a trade. This is only half the battle. It is actually the easy half too!!!

You cannot wipe an account out with an entry. You can however, wipe an account out with an exit

I take a lot of my exits on the lower time frames. This is because I scalp and I do not necessarily want to be in for the whole move. I might get back in the same move later.

Here is a 5 min chart where I want to illustrate some exit points.

IF you were in this trade going south from the top. You should be always looking for previous resistance or support. These were once our friends in the pre-game, now our bitter enemies to be avoided.
Basically you are going to reverse engineer your entry for a possible exit.

The worst thing you can do in this market is stay in a trade too long and lose all your profit!!!!

You can see that price was coming down and hit a EMA at a previous swing. This is also a fib level at 1.9552 and stoch has played out its run down. This is a clear exit for me. I am not trying to call the longer term moves of the market, so I do not want to stay in and find out the hard way.

Price may very well continue down here. The session in London is over. Price has done its daily range so it should be time for a range bound consolidation. But I am getting out here because it is a higher probability stop in price action.

Confluence in Confluence out!!
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  • #252
  • May 18, 2008 9:49pm May 18, 2008 9:49pm
Quote
Problem is, when price turns against me I don't take my loss. I just double down and average out the position. I have not lost a trade yet, which is also a problem. I can feel myself starting bad habits.
Hi piitb,
I trade the exact same way you do - confluence of indicator and S/R set ups on E/J mostly. I must confess I also often refuse to take my loss and rescue the trade by averaging down at strategic levels. This works most of the time. Problem is when it doesent, and I finally admit I am gambling and with too much risk and cut the trade - I need to win the next 30 trades to make up for the loss - I hate that! The answer is to be less aggressive, more patient, take only the AAA set ups and take the loss when they come. This way you only need one winner to recover.
BTC Return This Year: na
  • #253
  • Edited 3:12pm May 19, 2008 2:10pm | Edited 3:12pm
To be fair I only really trade that way in a range bound market. I do not trade London or New York opens so it is a little less risky. I agree with your point about taking the loss.

I think more important that adhering to any form of trading is being able to recognize market patterns during times of day. For instance buying GJ right before rollover on Wednesdays is prolly gonna go up for the micro short term. Triple interest paid rollover Wednesday!!

Understanding times of day is key to this game. There are setups that are perfect that I would never take because of the time of day. If daily range is met. Pre news etc.

One more thing. About having to be right about the next 30 trades to make up for the loss. This isnt exactly pricing in all factors. If you are averaging out of bad trades, that has to be factored into your equation. If you can average out of 10 trades and in those 10 you were leveraged in 3 positions that is 30 contracts that you made equity on. You can price in a risky move later on profit!

I know that this thinking doesnt mitigate all of the risk, but it is something to be considered. Plus if you only average out of positions in range bound consolidating markets, you further reduce risk further.

THIS IS HOW I FEEL ABOUT AVERAGING OUT OF LOSING POSITIONS!!!!


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  • #254
  • May 23, 2008 6:39am May 23, 2008 6:39am
I think this one will give a couple of pips. But it is friday with a lot of movement this week. Hard to say. But I will take it!

Any thoughts anyone???
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  • #255
  • May 23, 2008 6:45am May 23, 2008 6:45am
the buying might be too hot for my taste
  • #256
  • May 23, 2008 6:55am May 23, 2008 6:55am
Because today is friday, I would like to be able to get in here with a trailing stop and let it go for the rest of the day. This has been a huge move up and might take some profit today. Meaning short!!! the move does is making neg div on 4 hr chart and we have previous highs on 60 min making resistance. angle and seperation on MACD too!

Only time will tell but I will definitely take this for extra yardage if i can!!
  • #257
  • May 23, 2008 7:02am May 23, 2008 7:02am
Looks like the NY session might kick in some downward pressure here
  • #258
  • May 23, 2008 7:09am May 23, 2008 7:09am
So I am in here with a trailing stop. Lets see what happens.
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  • #259
  • May 25, 2008 11:15pm May 25, 2008 11:15pm
I would love to see the GBP go up to 199 and then come down hard. I think I am feeling a little strength in the dollar this week. The Euro is looking like it needs to correct a little before it goes anywhere.

Any thoughts about the general direction??

The Yen crosses seem to have turrets syndrome right now.

I am generally short on Euro and GBP right now but my opinion could change very quickly. All of the market flows are up on higher timeframes. But that is also the time that you get reversal candlestick formations and have turnarounds.

A moment to reflect. This game is 10% luck 20% skill, 15% concentrated power of will, 5% pleasure and 50% pain. The name of this game is staying power. How persistent are you????
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  • #260
  • Sep 30, 2008 10:46am Sep 30, 2008 10:46am
This is a great trade because we are in a down market flow. We have a retrace so lets get in on some confluence

Notice the stochastical divervence. We only use that in a good confluence of indicators!!

take care
Piitb
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