Best place..book...resource... to learn the art of the SCALP! | Forex Factory

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Best place..book...resource... to learn the art of the SCALP!

  • #1
  • First Post: Dec 17, 2009 1:02pm Dec 17, 2009 1:02pm
New member here... HI.

So the thread title is pretty self explanatory.. I like to get to the point!

I'm going to start my forex trading life as a scalper and hopefully it will be gloriously painful and fulfilling! I like to work hard but I just need some direction.

So all the scalpers out there... where did you begin!
  • #2
  • Dec 17, 2009 1:19pm Dec 17, 2009 1:19pm
Quoting Deusomega
I'm going to start my forex trading life as a scalper
Your forex trading life will probably end in a couple weeks as a scalper.

Welcome to Forex Factory!
  • #3
  • Dec 17, 2009 1:37pm Dec 17, 2009 1:37pm
Newbie here but I have been told myself that I should look into the following when I wanted to scalp (I dont scalp any longer.. moved on to higher time frames although I still look at tick data.. tape reading)

Jesse Livermore... Reminences of a Stock Operator.

Techniques of Tape Reading by Vadym Graifer and Christopher Schumacher

Ask around for good money management books.. you want to understand positive expectancy, consistency, in statistical terms..ect..
  • #4
  • Dec 17, 2009 2:26pm Dec 17, 2009 2:26pm
I think, to learn scalping, you should start at the Daily / Monthly chart levels and then work your way down.

Not the other way around.
  • #5
  • Dec 17, 2009 6:39pm Dec 17, 2009 6:39pm
Quoting philmcgrew
Your forex trading life will probably end in a couple weeks as a scalper.

Welcome to Forex Factory!
Why? Do good scalpers not exist? Na I think the key is actually getting advice from a good scalper, if I don't then you are probably right! The blind cannot lead the blind! But if I get some decent beginning advice for scalping then I think if I devote myself to it I can do it! Besides I often read on here that screen time is key... so if one gets started in a good direction for scalping then puts the time into replaying historical data then just imagine how many trades one could do!
  • #6
  • Dec 18, 2009 3:10am Dec 18, 2009 3:10am
Right...you want to learn how to scalp?

Both my father and I have been trading for a couple of years now: stocks, forex and futures.

I learnt from a guy's youtube channel. No need to purchase anything at all: just be prepared to absorb what you see him doing. It's very simple: breakout of morning range on good volume: hop in! Where you exit is up to you, but make sure that you sell or buy into the herd. That way there is almost a complete certainty that you will get filled.

http://www.youtube.com/user/sgomez858

Oh, and make sure that you are well capitalised, if you're in a country where no leverage is available on stocks...
  • #7
  • Dec 18, 2009 6:30am Dec 18, 2009 6:30am
Hello,

You forgot to mention the youtube guy.

Thank you
Learn something difficult and earn real money for ever, a lot.
  • #8
  • Dec 18, 2009 8:31am Dec 18, 2009 8:31am
for some reason, I could not post the link...

well youtube sgomez858...he has over 300 videos on his channel. Very informative.
  • #9
  • Dec 18, 2009 1:40pm Dec 18, 2009 1:40pm
It depends on what you are calling a scalped trade. Once you decide that, you need to determine if the trading method you are going to employ meets the criteria for profit. There are 6 critical numbers that you need to understand whether for a scalping system or a long-term system. How those numbers work together will determine your success rate. Those 6 numbers are: Capital you will start with, percent risked on every trade, your stop, your risk to reward ratio, your win percentage and the number of trades you plan to take each week. This leads to the 7th number which will tell you how much money you will make and in what amount of time.
Once you have a system that meets a winning criteria you should turn it into an EA so that it trades automatically for you and so that you can provide ongoing testing and optimization as markets will change.
Paul
  • #10
  • Dec 18, 2009 2:56pm Dec 18, 2009 2:56pm
Yeah EA's seem great and all that but, I'd rather learn how to read the market first and sooooo an EA is far away. Thanks for the youtube link! And that youtube guy does sell stuff... on his website.. how often do these gurus pop up?? I swear I ofc haven't looked over his youtube vids yet but I noticed his website in his profile and guess what $249.99 per month for his "service". So he's either successful and just wants extra passive income from people or he sucks.
  • #11
  • Dec 18, 2009 3:28pm Dec 18, 2009 3:28pm
Quoting philmcgrew
Your forex trading life will probably end in a couple weeks as a scalper.

Welcome to Forex Factory!
About a two-day half life.
  • #12
  • Dec 18, 2009 10:11pm Dec 18, 2009 10:11pm
Quoting billflet
About a two-day half life.
Are you conting on the weekend?

Take a look at magnumfreak and Turveyd's posts/threads... if I'm not wrong, they have solid experience with scalping...

But I must say.... starting at forex, scalping? are you serious?
Many share my views with me. But I don't share them with them...
  • #13
  • Dec 19, 2009 1:49am Dec 19, 2009 1:49am
Best place..book...resource... to learn the art of the SCALP!

in

the

market

...

what is scalping anyway? i'd call it scalping if i go for the next candle on h4 too, here again, the risk outweighs the profit potential, the win% is high
Invincibility lies in the defence, the possibility of victory in the attack
  • #14
  • Dec 19, 2009 4:17am Dec 19, 2009 4:17am
Quoting billflet
About a two-day half life.
I've been known to last much longer
  • #15
  • Dec 19, 2009 4:18am Dec 19, 2009 4:18am
Quoting HouseTrader
Are you conting on the weekend?

Take a look at magnumfreak and Turveyd's posts/threads... if I'm not wrong, they have solid experience with scalping...

But I must say.... starting at forex, scalping? are you serious?
Oh yes I am quite serious! Thanks for the suggestions I also found "FxRichard" and his posts look promising and his forum. I'll take a look at all of them! I don't see the big deal with scalping.. I've read some traders claim the lower time frames are noise but I don't get that for instance...

A daily bar is made from 24 hourly bars... an hourly bar is made up of 60 minute bars... a minute bar is made up of 60 second bars... etc so the way I see it is that tick data is actually the "real" market movement. Besides ticks make up the market... so how can lower time frames be mere noise? a tick makes up seconds... seconds make up minutes... etc etc therefore by the "noise" peoples logic the entire market would be noise because its base is so called "noise".
  • #16
  • Dec 19, 2009 4:32am Dec 19, 2009 4:32am
Hi

Scalping can work for a short period of time. The difficulty with scalping is you need a real good system and you need to be on the computer looking at the market all the time as price actions do not go in a straight line and reversals can happen any time.

Finding/developing a system can take a long time and can be very sensitive as you are looking at lower timeframes.

If you do proceed, here are a couple of pointers that I used to use as an ex-scalper.

1. Read about what FA (fundamental announcements) from this site and make sure you do not trade or close all trades 15 minutes before the announcement unless you are sure you know the direction.

2. When the news is out, refresh your results so you know whether it is favourable or not as sometimes the initial price movement of an FA is false and quickly retraces back in the next bar or less.

3. Exit around about 13 minutes after the announcement.

4. Use some good momentum/trend indicators such as ADX, RSI and CCI. Play with the standard settings and adjust it to suit your personality.

*** Time you trade is important! Trade when there are lots of volatility or volumes as your spread (cost of trade) is lower!****

As a scalper you need to trade in the lowest spread possible and this is usually when two markets lapse... see www.forexmarkethours.com

Other than the above you can try to use point 4 by itself when no FAs are due and develop a system with it. Be sure to play with the settings in the right timeframes to suit your trading profile / personality.

Good luck and cheers,
Ronnie

Ps. it is a lot easier to make money in forex when using a proper system and not scalping. Take it from me...
  • #17
  • Dec 19, 2009 5:59am Dec 19, 2009 5:59am
Quoting Deusomega
Oh yes I am quite serious! Thanks for the suggestions I also found "FxRichard" and his posts look promising and his forum. I'll take a look at all of them! I don't see the big deal with scalping.. I've read some traders claim the lower time frames are noise but I don't get that for instance...

A daily bar is made from 24 hourly bars... an hourly bar is made up of 60 minute bars... a minute bar is made up of 60 second bars... etc so the way I see it is that tick data is actually the "real" market movement. Besides ticks make up the market......
People much smarter than me have written about "noise" but James Gleick (Chaos) defines it as randomness in the market but Benoit Mandelbroit in (Mis)Behavior of Markets summarizes the prevailing thought of modern business schools. "The fundamental concept: Prices are not predictable, but their fluctuations can be described by the mathematical laws of chance. Therefore, their risk is measureable, and manageable." This would assume that there is unpredictability between prices. Mandelbrot's studies (now recognized) is that price changes are not independent of each other. ". . . different kinds of price series exhibit different degrees of memory. Some exhibit strong memory. Others have weak memory. . . Whatever the explanation, we can confirm the phenomenon exists--and it contradicts the random-walk model."

So a scalping technique to be successful it would seem would need a highly tuned mathematical approach that would need to be automatically determined (almost like high-frequency trading) and would look for moments of strong memory (or maybe correlations). Strong memory it would seem would be more predictable. What those moments are would require some serious thinking.
  • #18
  • Dec 19, 2009 6:02am Dec 19, 2009 6:02am
....yeah, I mean how difficult can it be right?

.... it's like learning to fish for sharks without even knowing what a shark is...

good luck, and thanks for the pips.
  • #19
  • Dec 19, 2009 6:29am Dec 19, 2009 6:29am
Quoting Quidsey
....yeah, I mean how difficult can it be right?

.... it's like learning to fish for sharks without even knowing what a shark is...

good luck, and thanks for the pips.
You'd have to be one retard to open a live account without learning more and demo testing first... sorry I plan to be here for a while and test for a while No pips for you. That's what the brokers would like me to do but no thanks I mean seriously mentally deficient to fund an account and start trading without testing at least something for a good amount of time. The fact that these people exist and oftentimes make up the majority already puts me ahead of the curve.
  • #20
  • Dec 19, 2009 6:50am Dec 19, 2009 6:50am
While this may be true, you should consider this. The tick bars, the 1 minute bars, are influenced by the higher time frames for the most part. A successful scalper, in my opinion, must be able to read higher time frame Price Action, and keep current and aware of that bias, because most of the time, through all the noise, all of a sudden price usually gravitates in the direction created by the higher time frames, and those are the times, in my opinion, that most scalpers lose their pants because they fail to recognize a free fall for what it is. A scalper must be very liquid, and quickly recognize when you're wrong, and act acordingly. While the flip side is that in every trend reversal, usually in hind sight, you can see the exact and obvious reversal point on the M1 or M5... however, how many times must you be wrong, before you're right??? If theres any advice I would give to any scalper wannabee, it is to put much more focus on following the trend, then trying to find reversals. This just creates a struggle... ask me how I know! Let the reversals reveal themselves through the H1 bar or above then reverse your bias. Always contain your scalp trading within a certain higher time frame, and get stopped out if your bias is wrong... don't chase it, forex aint goin nowhere, and theres always other trades that reveal themselves, without you playing Fetch.
That being said, I consider myself a bit of a scalper but I do trade mostly M5 and M15, and I never regard a tick chart.

Hope this helps, but expect great disapointment in yourself, because this isn't easy... probably impossible, without gigahours of screen time behind you.

Quoting Deusomega
A daily bar is made from 24 hourly bars... an hourly bar is made up of 60 minute bars... a minute bar is made up of 60 second bars... etc so the way I see it is that tick data is actually the "real" market movement. Besides ticks make up the market... so how can lower time frames be mere noise? a tick makes up seconds... seconds make up minutes... etc etc therefore by the "noise" peoples logic the entire market would be noise because its base is so called "noise".
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