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Chronicles of the Price Action Scalpers

  • #1
  • First Post: Edited Aug 2, 2009 11:52pm Jul 20, 2008 1:43pm | Edited Aug 2, 2009 11:52pm
Scalpers,

I would like to start a home for other scalpers to come and share their insights, trader knowledge, progress, and encourage one another.

Looking for traders who simply fit the following:

1. Use no lagging indicators but trade Price Action Only. (Note: Price action only can be viewed by multiple tools. Many use the Rainbow, or Candlesticks, or Line tick charts, or Heiken Ashi bars, etc. none of these are lagging but are pure price action)

2. Entering on 5 min. time frame or less. (May use higher time frames to check trends, S&R, etc but trade entry is 5 min. or less.)

3. Using a scalping trade style of getting in and out of market fairly quickly (ex. 10 sec - 30 min. depending on Time Frame used)

4. Making only S&R, Trends, Channels, Fades, 00's, Fibs, & of course, Pure Intuition Trades based on much screen time.


If you fit this script then it would be great to have you chime in and share how you are doing and any tips you can give to others starting this journey.

We have two great things going for us:

1. Scalping is the most profitable and has hope for the greatest returns if one can master it. This is because if you have two people trading with a R/R of 1:1 with 1% risk each with both profiting on 70% of all trades. Then if one is trading 5 times a week and the other is trading 50 times a week... Well, you do the math

2. We have come to the great realization that indicators are more of a hindrance than a help to us. By waiting for these to all line up we more often than not miss the move entirely. By going with PA alone we are able to use our intuition and get in at precisely the correct moments giving us the highest probability for return.

I will be posting again shortly.


Sincerely,

Mike Lewthwaite
  • #2
  • Jul 20, 2008 1:53pm Jul 20, 2008 1:53pm
Sounds good to me! Wonder how many anti-scalpers we will get in here hehe
  • #3
  • Jul 20, 2008 1:58pm Jul 20, 2008 1:58pm
this will be great thread
  • #4
  • Jul 20, 2008 2:02pm Jul 20, 2008 2:02pm
ok suggest any pair that you scalp and let see how we can help with sometimes work in community is worth it because everyone know something that other could not know everyone learn from other this is great ...
  • #5
  • Jul 20, 2008 2:05pm Jul 20, 2008 2:05pm
Hi Mike, I have discovered what you point out in your post, namely:

"2. We have come to the great realization that indicators are more of a hindrance than a help to us. By waiting for these to all line up we more often than not miss the move entirely. By going with PA alone we are able to use our intuition and get in at precisely the correct moments giving us the highest probability for return."

I have decided to get back to the roots of trading. When I first heard about trading forex, and subsequently enrolled in a learning program, price action is what I was taught. It sure would be nice and easy if we could just slap any indicator we wanted onto any chart of any time frame and have it tell us exactly what to do. It just doesn't work that way, at least for me it never has.
I was looking for a short cut. I never found it.
It is hard for me to scalp because of my work scedule and i don't have a job that is in front of a computer all day. That is why I gravitated to the daily timeframe and most if not all the daily systems here at FF are loaded with indicators.
I look forward to following this thread and hope to learn from it. Who knows, maybe I can even contribute.

Thanks dave
Is it Break Time yet?
  • #6
  • Jul 20, 2008 2:23pm Jul 20, 2008 2:23pm
All you need is good money management and price action.

Don't like the ..."a R/R of 1:1 with 1% risk each with both profiting on 70% of all trades."...
You shouldn't expect numbers like this if you have a small stop relative to your target if you are scalping. If you have these expectations, you will fail.
If you are scalping with R/R of 1:1, there is no way you will hit 70%. Too much spread and volatility.

Let's see if you guys can pull it off.
  • #7
  • Jul 20, 2008 2:34pm Jul 20, 2008 2:34pm
I wait for the new york session to open and the news to come out to get the momentum going, then I watch the stock markets, the dollar index and the usd/chf when scalping. the best thing I like about scalping is I don't leave many positions open overnight. Then I started looking at indicators and long term trends because I wanted to lower my spread cost, nothing worked and I started getting stuck and/or losing trades, after realizing that this market at the present time is perfect for scalping I am going back to scalping, and I love the rush from it
  • #8
  • Jul 20, 2008 3:10pm Jul 20, 2008 3:10pm
this is my kind of thread!


GOOD TRADING!

JL
  • #9
  • Jul 20, 2008 3:11pm Jul 20, 2008 3:11pm
Quoting jeta
All you need is good money management and price action.

Don't like the ..."a R/R of 1:1 with 1% risk each with both profiting on 70% of all trades."...
You shouldn't expect numbers like this if you have a small stop relative to your target if you are scalping. If you have these expectations, you will fail.
If you are scalping with R/R of 1:1, there is no way you will hit 70%. Too much spread and volatility.

Let's see if you guys can pull it off.
Jeta,

This is purely an example. But I think you knew that.

If you want to be a help then help. If not, find another thread.

Mike
  • #10
  • Jul 20, 2008 3:13pm Jul 20, 2008 3:13pm
Pip Ventures which pairs do you usually scalp bro?i might help oooooooo definitely the best should see this thread great trading ...... http://forexfactory.com/showthread.php?t=92727 if you already didn`t or anybody that trade this way should look this guy trading very good and clean trading with only 1 loose
  • #11
  • Jul 20, 2008 3:21pm Jul 20, 2008 3:21pm
Not sure why you are malicious right away? Are you sour because I was right about Expat while you defended him only to figure out in the end that the guy was a scam?

It was not "obviously" an example because the first post on a trading systems' thread should be a pretty obvious description of system use.

Again you are concentrating on your winnings before you concentrate on your losses. Typical newbie mistake.

Get your head our of your as* and maybe I can help you learn something which you are obviously lacking in order to be a successful trader.

I would appreciate an apology.

Quoting Pip Ventures
Jeta,

This is purely an example. But I think you knew that.

If you want to be a help then help. If not, find another thread.

Mike
  • #12
  • Jul 20, 2008 3:25pm Jul 20, 2008 3:25pm
Quoting teodosy87
ok suggest any pair that you scalp and let see how we can help with sometimes work in community is worth it because everyone know something that other could not know everyone learn from other this is great ...
I think the important thing is that a pair have a good Range/Spread ratio. The best I have seen is the EUR/USD and this is the only pair I am looking at presently.

The other pairs that "I" see have good potential are:

USD/JPY
EUR/JPY
GBP/JPY

Regardless of the pair you use it is the method that is what will bind us on this thread. I dont want another EUR/USD thread or Scalping GBP/JPY thread.

Happy Scalping to all!

Mike
  • #13
  • Jul 20, 2008 3:28pm Jul 20, 2008 3:28pm
Quoting jeta
All you need is good money management and price action.

Don't like the ..."a R/R of 1:1 with 1% risk each with both profiting on 70% of all trades."...
You shouldn't expect numbers like this if you have a small stop relative to your target if you are scalping. If you have these expectations, you will fail.
If you are scalping with R/R of 1:1, there is no way you will hit 70%. Too much spread and volatility.

Let's see if you guys can pull it off.

jeta,
i have good management, big part of my trading success....and i def pull off more than 70% (90%+)...so its def possible...and i have a journal here so you can check it out.

don't tell neone that theres no way to hit 70%...to me 70% is just 'ok'.

GOOD TRADING!

JL
  • #14
  • Jul 20, 2008 3:36pm Jul 20, 2008 3:36pm
Hey JLivermore,

I have seen your journal and what I have said in my post by no means contradicts your winning %.

Your risk reward per trade is not 1:1. You don't have a stop loss of 10 pips and a take profit of 10 pips.

You manage your risk by averaging in and letting losing trades run until you are not comfortable with the losses or until it hits your risk of ruin stop loss of 250 pips (5% of account) while looking for small profits.

I realize that is part of your game plan and it is working out for you. Your average loss is much bigger than your average win (usually 2:1 or more). That is a requirement for successful scalping. The rest is called unsuccessful scalping with a fixed risk reward ratio and risked number of lots a trade is entered with.

As I said, there is no way to have 70% winning trades if you are scalping for up to 10 pips or so at a time and your stop loss is 10 pips. If your spread is 2 pips and market is somewhat chaotic, your can expect a winning % of no more than 30%.

Quoting JLivermore
jeta,
i have good management, big part of my trading success....and i def pull off more than 70% (90%+)...so its def possible...and i have a journal here so you can check it out.

don't tell neone that theres no way to hit 70%...to me 70% is just 'ok'.

GOOD TRADING!

JL
  • #15
  • Jul 20, 2008 3:40pm Jul 20, 2008 3:40pm
Not sure if I truly qualify since I do like to keep some indicators on my charts...

Anyway, I'll generally scalp the eurusd (low spreads) on the 1m with a 5m on the side.

If I can't read the market for some reason I'll switch to the 5m/1hr and look for some more conventional setups.
nav++
  • #16
  • Jul 20, 2008 3:57pm Jul 20, 2008 3:57pm
I've never considered myself a scalper.

The more and more I analyze my trades the more I realize I'm probably in this category.

Scalping... much like day trading is one of those words people in the financial markets don't like.

The majority of my trades don't last more than 5 minutes.

I use psych levels 00,50,80 after I determine the session direction using the central pivot point.

I only trade the EURUSD and only during prime time.

I use a 15 pip stop and take profit at the at the next psych level or when I feel the push may turn on me.

I win consistently and aim for 10-20% on a monthly basis.

Each trade uses less than 1% capital.

The thing I like the most is low draw down.

Many might find this a stressful approach to trading however I find having positions on the table over night is much more stressful.

I've included a pic of the 17th - you can see a flurry of activity around the levels mentioned above.
Attached Image (click to enlarge)
Click to Enlarge Name: ScalpPic.JPG Size: 63 KB
  • #17
  • Edited 5:04pm Jul 20, 2008 4:01pm | Edited 5:04pm
Quoting jeta
Not sure why you are malicious right away? Are you sour because I was right about Expat while you defended him only to figure out in the end that the guy was a scam?

It was not "obviously" an example because the first post on a trading systems' thread should be a pretty obvious description of system use.

Again you are concentrating on your winnings before you concentrate on your losses. Typical newbie mistake.

Get your head our of your as* and maybe I can help you learn something which you are obviously lacking in order to be a successful trader.

I would appreciate an apology.
Jetta,

I dont want a confrontational thread.

Ive seen you come on Keiths thread looking interested in helping and in the end you were totally bashing him. I think it best to leave the judgments until there is further proof. I am following his group and we will see what happens. But you dont have any proof that he is out to con others and you shouldnt make statements until you do.

I don't know your motives for coming on this thread that is why I said if you want to help then that would be appreciated but if you want to come and tell us how wrong we are then find another thread.

I dont have anything against you and would love to have your input.

If your motives are pure and you really just want to help others and enjoy the scalpers atmosphere then welcome aboard and I apologize if you took any offense.

I am still a Newbie (as you can see it is only my 1 year forex factor birthday in a few days) and I do have much to learn.

I have found that using a 6 pip hard stop and targeting 4-10 pips / works well on the 1 min. with EUR/USD. I also get out many times with a 1-3 pip loss because I know it is going against me and not according to plan. (again, the example had nothing to do with real trade setup. It purely showed that with the same situation and profitability the one who trades more often comes out ahead sooner.)

You mentioned this being a trading systems thread. This was a mistake as was noticed by moderators who moved it to the Forex Discussion. This is what it is. It is not a pure system with one pair and one strategy. It is merely a group of scalpers discussing their trading. This is what I had in mind and why I did not describe a SYSTEM in the post but rather a general broad method.

If it doesn't work for you then thats ok. But I know others besides myself who this ( or very close to it) is working well for and you shouldn't presume that it is a newbie mistake to do so.

Lets start fresh and well see what happens.


Happy Scalping,

Sincerely,

Mike Lewthwaite
  • #18
  • Jul 20, 2008 4:04pm Jul 20, 2008 4:04pm
Quoting Pip Ventures
Jetta,

I dont want a confrontational thread.

Ive seen you come on Keiths thread looking interested in helping and in the end you were totally bashing him. I think it best to leave the judgments until there is further proof. I am following his group and we will see what happens. But you dont have any proof that he is out to con others and you shouldnt make statements until you do.

I don't know your motives for coming on this thread that is why I said if you want to help then that would be appreciated but if you want to come and tell us how wrong we are then find another thread.

I dont have anything against you and would love to have your input.

If your motives are pure and you really just want to help others and enjoy the scalpers atmosphere then welcome aboard and I apologize if you took any offense.

I am still a Newbie (as you can see it is only my 1 year forex factor birthday in a few days) and I do have much to learn.

I have found that using a 6 pip hard stop and targeting 4-10 pips / works well on the 1 min. with EUR/USD. I also get out many times with a 1-3 pip loss because I know it is going against me and not according to plan. (again, the example had nothing to do with real trade setup. It purely showed that with the same situation and profitability the one who trades more often comes out ahead sooner.)

If it doesn't work for you then thats ok. But I know others besides myself who this ( or very close to it) is working well for and you shouldn't presume that it is a newbie mistake to do so.

Lets start fresh and well see what happens.


Happy Scalping,

Sincerely,

Mike Lewthwaite

CHEERS!
  • #19
  • Jul 20, 2008 4:14pm Jul 20, 2008 4:14pm
i'm interested to see how many scalpers survive.... ie) how many of the same people here will be posting 12 months from now....

linuxtroll claimed to have great success w/ the rainbow, and maybe he's retired (i know he set up his own site) but then again maybe he really wasn't successful. time will tell.... presently it's too scary for me though.
  • #20
  • Jul 20, 2008 4:18pm Jul 20, 2008 4:18pm
Hi Pip Ventures,

Could you (or JLivermore) share some of your techniques for trading PA.

I know.... higher highs, higher lows, etc... But what criteria do you use to determine your entry and exit points?

Thanks

~Mike21
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