Do scalpers make money in the long run? | Forex Factory

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Do scalpers make money in the long run?

  • #1
  • First Post: Apr 16, 2014 2:10am Apr 16, 2014 2:10am
I was wondering if the traders who are scalping for 5-10 pips really make money in the long run?
is it a myth or some kinda of short term profit they have or they really make money in the long run ?

Experts whoever are there please explain and whoever says they make money scalping if you can provide proof they would be really nice.
  • #2
  • Edited 4:48am Apr 16, 2014 2:45am | Edited 4:48am
Why not?
I am sure there are many who are earning it..
If its possible then it can be done..

But i doubt that someone with lots of money is taking risk of a million dollar for 100 points to earn 100k in 10 mins..
  • #3
  • Apr 16, 2014 2:49am Apr 16, 2014 2:49am
Quoting mindgame
I was wondering if the traders who are scalping for 5-10 pips really make money in the long run? is it a myth or some kinda of short term profit they have or they really make money in the long run ? Experts whoever are there please explain and whoever says they make money scalping if you can provide proof they would be really nice.
short answer to your question is that "cut the losses short let the winners run" , i believe when any trader implements this he can be successful in any market.

Its not necessary that scalper always look for 5 10 pips, entry might go from 1 single pip to 1000 pip it would depend on market conditions.
  • #4
  • Apr 16, 2014 3:26am Apr 16, 2014 3:26am
I most certainly do.

I am not only a scalper, but also a Counter Trend (CT) scalper.

I don't aim for 5-10 pip scalps, but if that is all I get I am always happy. The most important thing for me is that at some point, my trades do at least get to a 5 pip profit level.

I trade 500 lots, at 400:1 leverage. I run a very tight Beak Even +1 pip at 5 pips profit with an EA. I trade at 2.5 lots per $1,000 of account equity. Each week I start each of my 5 trading accounts with $40,000, $200,000 collectively.

A 10 pip trade to me is 25% equity profit. I generally average 200% to 300% profit per week.

Quoting mindgame
I was wondering if the traders who are scalping for 5-10 pips really make money in the long run? is it a myth or some kinda of short term profit they have or they really make money in the long run ? Experts whoever are there please explain and whoever says they make money scalping if you can provide proof they would be really nice.
  • #5
  • Apr 16, 2014 3:27am Apr 16, 2014 3:27am
Yeah sure.
I know a good number of good scalpers. They can't hold it past 15 pips but make their share by the end of the day
  • #6
  • Apr 16, 2014 7:48am Apr 16, 2014 7:48am
Quoting dancingphil
I most certainly do. I am not only a scalper, but also a Counter Trend (CT) scalper. I don't aim for 5-10 pip scalps, but if that is all I get I am always happy. The most important thing for me is that at some point, my trades do at least get to a 5 pip profit level. I trade 500 lots, at 400:1 leverage. I run a very tight Beak Even +1 pip at 5 pips profit with an EA. I trade at 2.5 lots per $1,000 of account equity. Each week I start each of my 5 trading accounts with $40,000, $200,000 collectively. A 10 pip trade to me is 25% equity profit. I generally...
May i ask you what pairs you scalp and on witch timefreame.Us also how much is your SL - TP ?
  • #7
  • Apr 16, 2014 9:38am Apr 16, 2014 9:38am
Quoting XharpScalper
{quote} short answer to your question is that "cut the losses short let the winners run" , i believe when any trader implements this he can be successful in any market.
That's the point. I trade on a 3 min chart (MT5 and JForex can do that, MT4 not) and I'm quite profitable with getting in very early (sometimes right after the first candle) and out as soon as I see signs of a reversal. Sometimes these are just 5 pips and sometimes 100. It's actually very easy to make money that way, if you have the nerves and time to sit by your trades.

But, as usual, it also depends on your time and the timezone you live in. I'm not sure that would work in asian session, but it certainly does on london open and the close on friday evening. New york open can work, too, but volatility is sometimes nerve wrecking.

BTW: ADX with the +/- directional indexes is helpfull.
  • #8
  • Apr 16, 2014 1:05pm Apr 16, 2014 1:05pm
"MT5 and JForex can do that, MT4 not"

I think you have a point there. Down in the fast timeframe regions where you need speed MT4 just don't cut it, a friend of mine is on ctrader and I would most likely switch to that platform, it just looks and feel more professional than anything Metaquote has. To respond to the original poster you can make good money scalping, I have seen a lot of "rules" on FF that have been debunked all the time. There are many people making money from scalping you just need to weigh the pro and cons and you can make money if you know what you're doing.
Being a trader is lonely, but being a great trader is lonelier still
  • #9
  • Apr 16, 2014 1:44pm Apr 16, 2014 1:44pm
Quoting XharpScalper
{quote} Its not necessary that scalper always look for 5 10 pips, entry might go from 1 single pip to 1000 pip it would depend on market conditions.
Erm! I think you should go and look for the definition of scalping! The strategy you actually are talking about here is swing position...

Quote
Scalping is short-term trading taken a step further. Whereas day traders might be looking towards taking positions that deliver sufficient returns over the course of the trading day, scalpers are looking to trade over the micro-term – often around an hour – with a view to taking a quick profit.
 See more http://www.independentinvestor.com/f...ex-markets.php
  • #10
  • Apr 16, 2014 2:49pm Apr 16, 2014 2:49pm
It is all relative. On monthly or weekly your 100 pip swing is a scalp. :nerd:
  • #11
  • Apr 16, 2014 6:17pm Apr 16, 2014 6:17pm
Quoting fx01
Why not? I am sure there are many who are earning it.. If its possible then it can be done.. But i doubt that someone with lots of money is taking risk of a million dollar for 100 points to earn 100k in 10 mins..
I have read so many traders saying in the long term all those traders scalping the markets will eventually lose.May be they are right may be not.I'm not sure until is see some data atleast for 3 years.Like you said risking millions of dollars for small scalp is very risky
  • #12
  • Apr 16, 2014 6:19pm Apr 16, 2014 6:19pm
Quoting dancingphil
I most certainly do. I am not only a scalper, but also a Counter Trend (CT) scalper. I don't aim for 5-10 pip scalps, but if that is all I get I am always happy. The most important thing for me is that at some point, my trades do at least get to a 5 pip profit level. I trade 500 lots, at 400:1 leverage. I run a very tight Beak Even +1 pip at 5 pips profit with an EA. I trade at 2.5 lots per $1,000 of account equity. Each week I start each of my 5 trading accounts with $40,000, $200,000 collectively. A 10 pip trade to me is 25% equity profit. I generally...


Wow.If what you are saying is true then i will only follow you from today.200% profit per week.so roughly speaking you will be sitting next to warren buffet in the next few months.
  • #13
  • Edited 6:51pm Apr 16, 2014 6:23pm | Edited 6:51pm
Quoting Danny Maina
Yeah sure. I know a good number of good scalpers. They can't hold it past 15 pips but make their share by the end of the day

All my friends are traders but long term they make money but not 100% a month they trade very big lots and get about 10-12 % a month.But i was little curious about all the scalping threads,trading lower timeframe.I know even scalpers make money but my question is do they make money in the long run say even after 3-4 years.


The amount of money or pips they claim to make is outrageous.I'm little confused.Are institutions,Hedge funds fools to make only 10% .I think not.
  • #14
  • Apr 16, 2014 7:03pm Apr 16, 2014 7:03pm
And the best part about people starting a thread is none of the them i insist none of them have a trade explorer.99.9% of the traders in forums like these don't make a dime in the long run.
  • #15
  • Apr 16, 2014 7:16pm Apr 16, 2014 7:16pm
  •  aBaxs
  • | Joined Jan 2011 | Status: http://www.socialtrading-aula.com/ | 72 Posts
I am sure there are scalpers who make a lot of money. Just find your edge and use it like these boys.

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  • #16
  • Apr 16, 2014 8:45pm Apr 16, 2014 8:45pm
To be a great scalper, you must have a positive expectant trading system and you must have the discipline to adhere to the system rules at all times. More important than a good system, you must have strong money management/risk management rules to ensure you make more than you lose, e.g. risk/reward of 1:2 at least on all trades and don't risk more than 2% of your capital per trade. Lastly and the most important of all, you must be well capitalized with, in my view, at least 100k in disposal trading capital to really make it as a scalper.

I make a decent living full time as a scalper. I trade 5-10 lots, averaging 3-5 trades per day and make/keep on average about 30-50 pips per day. I am considered upper-middle income in my country making around 250-400k per year over the past 5 years.
  • #17
  • Apr 17, 2014 1:02am Apr 17, 2014 1:02am
Quoting mindgame
{quote} All my friends are traders but long term they make money but not 100% a month they trade very big lots and get about 10-12 % a month.But i was little curious about all the scalping threads,trading lower timeframe.I know even scalpers make money but my question is do they make money in the long run say even after 3-4 years. The amount of money or pips they claim to make is outrageous.I'm little confused.Are institutions,Hedge funds fools to make only 10% .I think not.
The deal with scalping is: Take out the profits at the end of the trading day. They may not make as much as they claim, but they make a good amount. Hedge funds making 10%. Right: the question is 10% of how much?
  • #18
  • Apr 17, 2014 1:57am Apr 17, 2014 1:57am
Even though I don't use Oanda anymore, I've followed this for years and it never changes. The most profitable traders appear to be scalpers.

http://fxtrade.oanda.com/analysis/to...ers-statistics
  • #19
  • Apr 17, 2014 2:11am Apr 17, 2014 2:11am
I've also done some analysis on this trader. Appears to scalp with a 30 pip stop loss. His win rate is 85%. Seems to be doing pretty good. Counter trend trader. Still need to chart more of his trades to see what I can come up with, but not bad. And it's a live account.

http://www.forexfactory.com/m_jay_blue#20
  • #20
  • Apr 17, 2014 2:57am Apr 17, 2014 2:57am
Quoting mindgame
{quote} All my friends are traders but long term they make money but not 100% a month they trade very big lots and get about 10-12 % a month.But i was little curious about all the scalping threads,trading lower timeframe.I know even scalpers make money but my question is do they make money in the long run say even after 3-4 years. The amount of money or pips they claim to make is outrageous.I'm little confused.Are institutions,Hedge funds fools to make only 10% .I think not.
And why wouldn't scalpers make money over the long term as opposed to longer term strategies? An edge's an edge... I'd suggest it's easier to predict the very short term than the medium term, but I guess that depends on the individual and method of analysis.
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