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Scalping

  • Post #1
  • Quote
  • First Post: Edited 2:27pm Jan 31, 2009 2:07pm | Edited 2:27pm
Hi all,
I am a scalping trader and I want to ask other traders which are trading for little pips on short timeframes(5M, 1M) a few question. This question are for account with balance of 1000eur.
1.Which system you use for trading for small pips?

2.Which timeframes you use for trading, which for enter the trade, which for looking the trend,...

3.Where do you think i should put stop loss, how many pips in opposite direction?(I have broker with 5pips spread)

4.Where do you think i should put limit order?

5.Can you suggest mi some good broker with good platform and little spread, if possible in European Union, now I`m using my private trade which has 5pips spread.

This is all for now and if anybody have some other proposal please write it down.

Regards,
scorpionFX
Quoting scorpionFX
Hi all,
I am a scalping trader and I want to ask other traders which are trading for little pips on short timeframes(5M, 1M) a few question. This question are for account with balance of 1000eur.
1.Which system you use for trading for small pips?

2.Which timeframes you use for trading, which for enter the trade, which for looking the trend,...

3.Where do you think i should put stop loss, how many pips in opposite direction?(I have broker with 5pips spread)

4.Where do you think i should put limit order?

5.Can you suggest mi some good broker...
Dont know of any in the EU, i do know of a couple of brokers in the US that would allow what you need. You can contact me for more details. the rest of your questions are questions that only you can find answers too. All the best.
  • Post #3
  • Quote
  • Edited 2:43pm Jan 31, 2009 2:41pm | Edited 2:43pm
A "short time frame" is 5 seconds. You can do that with MT, but it is more trouble than it is worth. Use free Ninja Trader with free Gain data feed for charts, Use MT for order entry. Where the brokers office is is not important. He is as close as your keyboard.
ps: "Secrets"? What if you had 100 2-pip winners, and 20 4-pip losers? Would you consider that a good day?
Not trying to be a dick, but traders who ask for these kinds of answers ALWAYS fail. Trading is about figuring things out for yourself, because every trader is unique.

If you are unable to find answers for yourself now, you will certainly be unable to do so when the market changes and you need to adapt.

If it was as easy as telling people to use a certain system, put their limits and stops at certain places, etc, there wouldn't be such a high failure rate in this industry.

Research and gain experience, and the answers to your questions will become clearer. Best of luck.
[quote=Kenz987;2506647]A "short time frame" is 5 seconds. You can do that with MT, but it is more trouble than it is worth. Use free Ninja Trader with free Gain data feed for charts, Use MT for order entry. Where the brokers office is is not important. He is as close as your keyboard.
ps: "Secrets"? What if you had 100 2-pip winners, and 20 4-pip losers? Would you consider that a good day?[/quote

why NT with Gain? when you say MT do you mean Metatrader? You are crazy if you think where the broker resides isnt not important! any day in the black is a good day!
Quoting Kenz987
...ps: "Secrets"? What if you had 100 2-pip winners, and 20 4-pip losers? Would you consider that a good day?
Yes i will consider that as a good day, in that situation I am 120pips in positive...or not
  •  zykas
  • | Joined Oct 2008 | Status: ... measure thrice, but cut once | 196 Posts
Quoting scorpionFX
Hi all,
I am a scalping trader and I want to ask other traders which are trading for little pips on short timeframes(5M, 1M) a few question. This question are for account with balance of 1000eur.
1.Which system you use for trading for small pips?

2.Which timeframes you use for trading, which for enter the trade, which for looking the trend,...

3.Where do you think i should put stop loss, how many pips in opposite direction?(I have broker with 5pips spread)

4.Where do you think i should put limit order?

5.Can you suggest mi some good broker...


Just do a little search in here, and you will definitely find what meet your needs. There are great stuffs in here.Remember its about you not another person. Good luck
I like the Big Dogs because I trade like them
Quoting yubitsu
Not trying to be a dick, but traders who ask for these kinds of answers ALWAYS fail. Trading is about figuring things out for yourself, because every trader is unique.

If you are unable to find answers for yourself now, you will certainly be unable to do so when the market changes and you need to adapt.

If it was as easy as telling people to use a certain system, put their limits and stops at certain places, etc, there wouldn't be such a high failure rate in this industry.

Research and gain experience, and the answers to your questions will...
Dear yubitsu,
So in your opinion a football player should take a ball and go on the pitch an learn all by himself without a trainer which have experience. No, you are wrong a football player need a coach/coaches which are teaching him how to play football and then he takes a few good things from every coach and he became a unique player. So , yes I`m new in this, but I am asking other people becouse they have experience, so why should I spent 3 month for discovering something if it is already discovered, I just want opinion of other traders which are trading for a long time and have experience in this. And then when I have a 10 or 20 diffrent opinions and options I will try them then by myself and see which I like and which make me a profit. So on the end I will be unique trader becouse I will take different things form different people. Even you I think you didnt teach doing math by yourself but, teacher learn you, and also you didnt built house on your head only but you have seen how other people do it.

People are made for helping each other, becouse it will take to long for everybody to discovered everything by himself.

Understand?

Regards,
scorpionFX
scorpionFX, i think you should trust us more experienced traders and forum posters and go out and do your own research. The problem with many newbies is that they come into this forum expecting to find easy answers and make millions off the process.

Unfortunately trading is not like that. Many of the top traders do not have any secret methods that the general public does not have access to. In fact, successful traders with solid understandings of the markets and fundamentals can even make money of the simple MA crossover systems that many here shoot down as ineffective. Whereas others can trade with a completely naked chart and a couple of horizontal S/R lines. How is that possible? Because they have the experience from thousands of hours of market-watching to understand how price reacts in certain situations.

If you ask the best traders questions 1, 2, and 4, they will either give you ambiguous and conflicting answers or refuse to answer at all. That is because a good trader MUST be flexible. A trading system might work in one market condition and completely collapse in another. A stop of 10 pips might be ideal for one market condition whereas a stop of 50 pips might be NEEDED in another. Anyone who comes in and gives you advice on set stop loss and take profit ranges are either traders with little more experience than yourself or are only talking about the ideal ranges in the current market condition (which might last for weeks, a couple of days, or even hours).

So in short, a good trader must be flexible, they must understand how the market moves and react accordingly, they must understand which methods work in what conditions and what methods work in others, they must understand how good of a trade setup is and manage their risk accordingly, and the list goes on and on and on....

I don't mean to deter you from the incredible world of trading, but I would have to warn you that however hard you think getting into trading is, it probably is a lot harder than you ever expected. And it takes years of experience and thousands of hours of reading, research, and most importantly, it takes endless hours of watching the charts before you can expect to be consistently profitable.

So my advice is - stop expecting other people to answer those questions for you, because I am willing to bet that those answers will not help you in the long-run. Instead, go through this forum, read EVERYTHING and anything you can. Read the systems and methods that have succeeded (the james16 thread, for example) and why they succeed. And also read into the systems and methods that have not, and understand why they broke down. Go to the library or go online and find solid readings on forex, support/resistance, price action, indicators (if that's your thing), money management, trading psychology, fundamental reasons for currency moves and understand how all of those things affect your trading.

I'm sorry if that's not the advice you are looking for, but that unfortunately is the cold harsh truth.

Oh, and one last word of advice - don't come into the business intending to make money from scalping. I know many successful swing and position traders but I have heard of very few consistently successful scalpers. Start on longer timeframes - 4hr, daily, even weekly. And if you find that you really need to go lower, do so after you master the markets. It's your choice what you want to do with this advice, but i think this is something that experienced traders will tell you again and again.
"why NT with Gain? when you say MT do you mean Metatrader? You are crazy if you think where the broker resides isnt not important! any day in the black is a good day!"
Dear Dr. Brothers: Thank you for clarifying my mental state. I can now fire my psychiatrist! I have made numerous posts which no one seems to read about chart periodicity and scalping. Ninja Trader (FREE - not selling anything here) and Gain data feed (FREE) has charts down to the 1-second or 1-tick level. They are actually better than MT (Yes, That means MetaTrader - the overglorified platform everyone is in love with). The question on "Secret" was to the original author of this thread -scorpionFX, who obviously does not think that would be a good day. He asked for opinions. I gave mine.
Lamdun, thank you very much!!
This is a answer which wake me up, becouse now i see Forex trading in a different way. I agree with you at all, but I still think that I can take some advice from more experienced traders.
Quoting Lamdun
Oh, and one last word of advice - don't come into the business intending to make money from scalping. I know many successful swing and position traders but I have heard of very few consistently successful scalpers. Start on longer timeframes - 4hr, daily, even weekly. And if you find that you really need to go lower, do so after you master the markets. It's your choice what you want to do with this advice, but i think this is something that experienced traders will tell you again and again.
About that, I think is difficult to trade on 4H chart with small account becouse if you are looking a 4H chart there are a lot of changes before you can take your piece of pips. And with small account I cant afford to wait for trade to go 50 pips in the opposite way, becouse that maybe already mean that I failed the trade and lost 50pips or even more. Am I right that in the 4H chart and bigger you make lower stop loss? So that is why I want to trade scalping. I hope you will answer me Lamdun.

Regards,
scorpionFX
Quoting scorpionFX
About that, I think is difficult to trade on 4H chart with small account becouse if you are looking a 4H chart there are a lot of changes before you can take your piece of pips. And with small account I cant afford to wait for trade to go 50 pips in the opposite way, becouse that maybe already mean that I failed the trade and lost 50pips or even more. Am I right that in the 4H chart and bigger you make lower stop loss?
Now this is something i can answer.

It all depends on your risk management. Just because your stop loss on a 4h chart is 50 pips vs. 10 pips on the 10 minute charts doesn't necessarily mean that you will lose 5 times as much. The best way I personally have found to manage my risk is to think in terms of account percentages, not pips.

Let me give you an example. Say there are two trade scenarios:

1. a short term scalp with a SL of 10 pips and TP of 20 pips

or

2. a swing trade with a SL of 50 pips and a TP of 100 pips.

Would I put the same amount of money in either trade? NO! We are not in this business to make pips. Pips really don't mean anything. We are in the business to maximize our return. So lets say we are willing to risk only 1% of our 1000 dollar account on any one trade. We would price our trades like so.


1. set a trade amount so that each pip would equal one dollar. That would mean that you would lose 10 dollars (1% of 1000) if the trade does not go your way. And you would gain 20 dollars (2% of 1000) if it does

2. set a trade amount so that each pip would equal 20 cents. That would also mean that you would lose 10 dollars (1%of 1000) if the trade does not go your way. Likewise, you would gain 20 dollars (2% of 1000) if it does

As you see, if you look at trades from a risk % perspective, your risk:reward in dollar terms is essentially the same between the two different trades. Longer term trading is usually more reliable and a LOT less stressful. Plus, the spread on your broker might eat up 10% of your profits whereas on longer term trades, the spread is almost negligible.

I hope that makes it clear.
Yes I understand, but at my broker minimal value per one pip is 1eur and spread is 5pips. So if I open a position and set a SL -10eur and TP +20eur with my spread, I will loose in most of trades becouse is more chance to go -5pips first then +25pips. So here I see that is really better trading on longer timeframe with SL -50eur and TP +100eur. Am I right?

So your advice is to trade on longer timeframe, looking on 4H chart, which timeframe should I look to enter a trade?

Thanky you Lamdun.

Regards,
scorpionFX
Quoting scorpionFX
Yes I understand, but at my broker minimal value per one pip is 1eur and spread is 5pips. So if I open a position and set a SL -10eur and TP +20eur with my spread, I will loose in most of trades becouse is more chance to go -5pips first then +25pips. So here I see that is really better trading on longer timeframe with SL -50eur and TP +100eur. Am I right?

So your advice is to trade on longer timeframe, looking on 4H chart, which timeframe should I look to enter a trade?
My first advice would be to look for another broker. 5 pips spread are horrible, at least for the majors.
I absolutly second what Xaron mentioned, your first enemy in your scalper carrier is the spread.

Other than that I recomend a broker with one click execution.

I'm only short term trading, the 5M searching a good entrance in 1M.

My trades mostly don't take more than 15M.

Real scalping is taking a trade for minutes or seconds with high leverage and ultra short SL.

First sign of retrace you step out. Those trades give you about 3 to 10 pips.

It's a lot of stress and you need to have very good skills to survive this trading method.

Best entries are bounces from known S&R ,Fibs and Psych levels.

Good luck
For scalping I'd recommend Oanda, even though some people will probably try to kill me now.
Hey Xaron, maybe you can convince those guys they could have a lot more customers if they would make their api available for FREE.
Quoting Kenz987
Hey Xaron, maybe you can convince those guys they could have a lot more customers if they would make their api available for FREE.
Actually it is free if you have a trading volume of 12 mio at least. 12 mio are 120 lots per month.

Otherwise you could use FXSpyder which cost only 1/4 pip per transaction.
Quoting Xaron
My first advice would be to look for another broker. 5 pips spread are horrible, at least for the majors.
Do you have any advice, i preffer a broker from European Union. Or maybe I could also take one from US, but I dont know how is with transfering money from US to Europe, and other things. I think it is easier if I take a broker from EU or not, does anybody have experiences?

Regards,
scorpionFX
Quoting cobraforex
Other than that I recomend a broker with one click execution.
Cobra thank you for information, you gave me a lot of usefull information, I will try it demo, but I think for begin I will trade on higher timeframes do you agree? But I just want to ask you what mean broker with one click execution?
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