Why people use scalping???? | Forex Factory

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Why people use scalping????

  • #1
  • First Post: Dec 6, 2008 8:48am Dec 6, 2008 8:48am
Think about this!!!
With a 3 pip (tick) spread on your preferred market, with a $10K trading account, 50:1 leverage, and only trading twice a day, it calculates your trading costs at $75K a year. If you are able to trade half of a 12 pip swing--when you win you will barely get a couple of pips, and when you fail, you will lose all your variation plus at least 3 pips spread at a time.

My best suggestion is: forget it! The only people I know who are able to consistently day trade Forex are bank traders. Virtually no spreads when they trade, and they can see ALL of the orders --this means yours and mine.

The solution to profit from the market is a LONG TERM TRADES!!!
forexflash
  • #2
  • Dec 6, 2008 9:17am Dec 6, 2008 9:17am
Think about this!!!

Unless you have spent a lot of time researching and looking into scalping techniques you can not say wether it is a viable aproach or not. For every single argument that scalping cant be profitable there are just as many that it can, including the arguments you brought up. If something does not work for you or does not make sense to you it does not mean that it will not work for anyone. What we all do is trade our beliefs about the market instead of the market itself. What never seizes to amaze me is how often people think that their beliefs are the only corect once and everithing outside of them is doomed to fail.

By the way i am not a scalper, just someone with an opened mind!
Stubbornly persistent
  • #3
  • Dec 6, 2008 9:26am Dec 6, 2008 9:26am
forexflash
  • #4
  • Dec 6, 2008 9:32am Dec 6, 2008 9:32am
Quoting FOREXflash
Think about this!!!
[font=Arial]With a 3 pip (tick) spread on your preferred market, with a $10K trading account, 50:1 leverage, and only trading twice a day, it calculates your trading costs at $75K a year....
Agree....
  • #5
  • Dec 6, 2008 9:36am Dec 6, 2008 9:36am
Quoting LaTeCoMeR
Agree....
This guy would disagree:
http://championship.mql4.com/2008/users/PrizmaL
And i'm thinking he has more say in the matter since he is using a scalping technique, and is currently in the 1st place of the MT4 trading championship. Does not seem that those "huge costs" bother him.
Stubbornly persistent
  • #6
  • Dec 6, 2008 9:51am Dec 6, 2008 9:51am
Sergiu, my intention was not to "flame" anyone....
And Im not saying that Im right, and I agree with you
that everyone have its own "edge".
I just want to show people that they give huge
amounts of money to the brokers!
To succed by using scalping systems, you need to
have a huge edge along with great MM to succeed,
and i want even talk about emotions and stress involved.

Regards
forexflash
  • #7
  • Dec 6, 2008 10:02am Dec 6, 2008 10:02am
Quoting FOREXflash
Sergiu, my intention was not to "flame" anyone....
And Im not saying that Im right, and I agree with you
that everyone have its own "edge".
I just want to show people that they give huge
amounts of money to the brokers!
To succed by using scalping systems, you need to
have a huge edge along with great MM to succeed,
and i want even talk about emotions and stress involved.

Regards
I see where you are coming from but...
You are wrong about something. The spread is not a problem in the way you describe it. I am willing to trade a system that wold make the broker $50000 in spread as long as i'm making making half of that or more. How much money the broker is making does not concern me. The only thing i care about is how much money is in my account at the end of day. The only impact tha the spread has is on the prababilities - you need a bigger move to make a profit than to loose. As long as the system has a big enough edge to overcome that it does not matter what the broker makes.

Just MHO!
Stubbornly persistent
  • #8
  • Dec 6, 2008 10:13am Dec 6, 2008 10:13am
Quoting sergiu
The only impact tha the spread has is on the prababilities - you need a bigger move to make a profit than to loose. As long as the system has a big enough edge to overcome that it does not matter what the broker makes.

Just MHO!
I agree, if you can find the right edge it is possible. Scalping reduces your time exposure to risk. It's all about finding that edge! Care to share one?
  • #9
  • Dec 6, 2008 10:40am Dec 6, 2008 10:40am
Quoting DiemTrader
I agree, if you can find the right edge it is possible. Scalping reduces your time exposure to risk. It's all about finding that edge! Care to share one?
The chinese think only if they can get something and not see how little they get from investing a lot. They can thus produce and beat those who only see that they MUST get a certain fix ratio.
Forget the spread you have to give away. Focus on what you can get. JUST REMEMBER TO RESPECT YOUR STOP LOSS !!! That was mine lesson. I now hedge the trade or close it when it begin to touch where I don't want it to be. No double thoughts.
  • #10
  • Dec 6, 2008 6:59pm Dec 6, 2008 6:59pm
Quoting highway
The chinese think only if they can get something and not see how little they get from investing a lot. They can thus produce and beat those who only see that they MUST get a certain fix ratio.
Forget the spread you have to give away. Focus on what you can get. JUST REMEMBER TO RESPECT YOUR STOP LOSS !!! That was mine lesson. I now hedge the trade or close it when it begin to touch where I don't want it to be. No double thoughts.
Yes, a very big lesson. With scalping you must respect your stop and get out as soon as the trade turns against you.
  • #11
  • Dec 7, 2008 3:48pm Dec 7, 2008 3:48pm
I like the longer term trades, but when when the market goes sideways then what to do?

Over the last 3 weeks I started using systems that will be range friendly and scalp pips with targets of 10 to 50 pips.

Much harder to trade imho, but i'm just a student of this game.
  • #12
  • Dec 7, 2008 4:08pm Dec 7, 2008 4:08pm
That's why you scalp when the spread is 0 to 1.5 pips tops, just like any other system or method there are rules to follow.
  • #13
  • Edited 8:48pm Dec 8, 2008 8:45pm | Edited 8:48pm
Large payouts for spreads are fine if there are accompanying (and proportionally larger) incomes from most of the trades.

For example, if you'll give me $1.25 for every $1.00 I give you, then I'll just keep handing you money all day long, even though my investment costs eat up most of what you're handing back to me.

In like manner, if I can make five trades each day that charge me a spread of 3 to 8 pips, but I can make 30+ pips from at least 80% of those trades, then I really don't care about the spreads, so long as the system works for me. And parenthetically, this is a completely plausible scenario.

So, like you always hear; Never say never. I can't dunk a basketball, but that doesn't mean no one else can.

Good luck in your trading, and don't scalp if you can't make it work for you. Go with your strengths.
  • #14
  • Dec 9, 2008 7:29am Dec 9, 2008 7:29am
Trading the Forex Market(like any other market) is pure gambling! Only when you "lock-in" Profit w/Stop does it become an "investment". Is intraday trading Scalping?
FF = Forex Faggots
  • #15
  • Edited 10:02am Dec 9, 2008 9:14am | Edited 10:02am
Scalping can be very profitable. Your suggesting that under your conditions, one shouldn't scalp. What you fail to state is that these are not the same conditions that all scalpers are subjected to when trading.

Please, if you don't agree with scalping, you shouldn't be giving advice not to scalp to others on this forum. robertsonakp made a statement on this forum saying scalping can't be profitable. Many successful scalpers rebuttled his comment and called him a moron. It was later found that he was on a demo account and giving trading advice.

Quoting FOREXflash
Think about this!!!
With a 3 pip (tick) spread on your preferred market, with a $10K trading account, 50:1 leverage, and only trading twice a day, it calculates your trading costs at $75K a year. If you are able to trade half of a 12 pip swing--when you win you will barely get a couple of pips, and when you fail, you will lose all your variation plus at least 3 pips spread at a time.

[font=Arial]My best suggestion is: forget it! The only people I know who are able to consistently day...
"To Be A Successful Forex Trader, You Need A Successful Forex Mentor."
  • #16
  • Dec 9, 2008 9:18am Dec 9, 2008 9:18am
Supposedly: 95% of people lose at forex.....hmmmm I bet 95% of people are against scalping lol
  • #17
  • Dec 9, 2008 10:06am Dec 9, 2008 10:06am
Quoting fxRichard
Supposedly: 95% of people lose at forex.....hmmmm I bet 95% of people are against scalping lol
So true...lol
"To Be A Successful Forex Trader, You Need A Successful Forex Mentor."
  • #18
  • Edited 10:26am Dec 9, 2008 10:10am | Edited 10:26am
Are you guys always this depressed around holidays!??
forexflash
  • #19
  • Dec 9, 2008 11:33am Dec 9, 2008 11:33am
Quoting FOREXflash
Are you guys always this depressed around holidays!??
The only negative posting was actually yours.
"To Be A Successful Forex Trader, You Need A Successful Forex Mentor."
  • #20
  • Dec 9, 2008 7:31pm Dec 9, 2008 7:31pm
Quoting CTGUY
Scalping can be very profitable. Your suggesting that under your conditions, one shouldn't scalp. What you fail to state is that these are not the same conditions that all scalpers are subjected to when trading.
No one could say scalping is 100% profitable or 100% loss-making. All strategies have a risk margin, so why don’t mix long and short trades
If so many people talk about scalping it is because there are hidden pips they are discovering
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