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Do scalpers make money in the long run?

  • #261
  • May 21, 2014 7:48am May 21, 2014 7:48am
I actively manage my trades. Use a dynamic TP based on my system instead of a fixed TP. If the market goes against a trade, I exit. Some trades last minutes, others hours. Am I a scalper? One thing is certain though, the longer a trade, the higher the likelihood that it will be impacted by an unpredictable, random event. This event can be either positive or negative on your trade.
Audentes Fortuna Juvat
  • #262
  • May 22, 2014 7:58am May 22, 2014 7:58am
Quoting Nijee
I actively manage my trades. Use a dynamic TP based on my system instead of a fixed TP. If the market goes against a trade, I exit. Some trades last minutes, others hours. Am I a scalper? One thing is certain though, the longer a trade, the higher the likelihood that it will be impacted by an unpredictable, random event. This event can be either positive or negative on your trade.
MMMMMM
  • #263
  • May 22, 2014 1:11pm May 22, 2014 1:11pm
Quoting HedgeManager
to be honest scalping is the only way to make quick money in forex, and yes I know many great scalper who makes living out of scalping. even I am a scalper, I got inspired from my uncle who is in US and he scalps only one pair which is EUR/USD he understands that currency very well and he scalps hell out of it, I got impressed by scalping when I saw his trading statement almost 10k profits on daily basis. I am trading comparatively small account then him which is just 5k so I make relatively small amount at this moment. I am just concentrating on...

hello...

how many pips are you trying to get, and also, on average how many trades a day do you make ?
  • #264
  • May 24, 2014 10:18pm May 24, 2014 10:18pm
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.
lets answer at this question using common sense.
(sorry, I have no statement or proof. Just rationale thinking.)

Take away spread, every trade (whether long or short) has a 50% chance to reach your +10pip target profit or -10pip stop loss.
Throw in your reasonably positive analysis and strategy, maybe you win 7 trades and lose 3 trades out of 10 trades daily.

There, you get net winning trades of 4 per day.
The key here is to be consistent. That has to do with your strategy.

Imho, whether you trade swing or scalp, its equally important to follow the swing at the back of you mind to increase your chances.
They are just 2 different styles of entering and exiting trades, but both styles require the same market knowledge equally.
  • #265
  • May 25, 2014 12:48am May 25, 2014 12:48am
yeah and include spread, true cost is say 2 pips, and this subtracts 20 pips in 10 trades.

Count occasional slippage when stopped say 5 pips per 10 trades.

And you are left with 15 pips per 10 trades or 1.5 risk. Or you are making 0.15 risk per trade.

Once you increase size, your slippage creeps up.

Doesn't look sustainable.
  • #266
  • May 28, 2014 10:40pm May 28, 2014 10:40pm
Quoting seaman2
yeah and include spread, true cost is say 2 pips, and this subtracts 20 pips in 10 trades. Count occasional slippage when stopped say 5 pips per 10 trades. And you are left with 15 pips per 10 trades or 1.5 risk. Or you are making 0.15 risk per trade. Once you increase size, your slippage creeps up. Doesn't look sustainable.
The thing is - we don't know other's exact statistic.

I know a few people who trade 1 minute chart for big banks... while I don't know their result, I seriously doubt the bank would hire them for 10+ years if they're not making profit.
Everything you can imagine, is real - Pablo Picasso
  • #267
  • Dec 19, 2014 1:40pm Dec 19, 2014 1:40pm
I just read what Dancingphil writes. Someday he burn out all his account. Trading 1:400 leverage absolutely isn't giving possibility for long-term profit but only loss. An example could be that suddenly something happens in the market and the quote goes 150 pips in the wrong direction in 2 seconds. Then having a stoploss at a few pips does no help as no broker will be able to get that quote but only a quote 150 pips away and they won't pay the big loss the trader gets. The business rules one agrees to when opening an account always says that the quote eventually in a highly volatile market will be different from the one you asked for. Therefore with leverage 1:400 one burns out most of the account one worked and scalped for a long long time in only 2 seconds. What happens then? One is frustrated and burns out the rest of the account because one takes a lot of trades fast to try to win in all the lost money. That will be a lot of trades with bad opportunities because good setups doesnt happen very fast mostly. I have burned out many accounts doing big leverage. You have no chance long-term at leverage 1:400. Everything higher than 1:20 is gambling. Now I trade a small account at leverage 1:10 and don't think all the time about the money but mostly the technic. Then in some years I may be able to slowly build up my account to a big account. If I succeed in that then it should be possible again in one year to double that account. This is the only way it eventually can be done. Wishing you all good trading.
  • #268
  • Dec 20, 2014 4:27pm Dec 20, 2014 4:27pm
Excellent post!! Well done! I have the same opinion!
  • #269
  • Dec 20, 2014 5:41pm Dec 20, 2014 5:41pm
Quote
That will be a lot of trades with bad opportunities because good setups doesnt happen very fast mostly. I have burned out many accounts doing big leverage. You have no chance long-term at leverage 1:400. Everything higher than 1:20 is gambling.

I'm sorry but it's bullshit. Leverage doens't matter at all. What does it matter? Two things a) How much you risk per trader b) do you accept that.
For example your system may produce an average loss of 5% per trade with a leverage 1:1. On the other hand you can loose 0.3% per trade with a leverage 1:30.

Then you have to accept your loss. Someone could accept a loss of 4% and someone esle couldn't even accept a loss of 0.8% for many reasons.

So there is no such thing like a leverage higher than 20 is gambling de facto. You can be a gambler with a leverage 1:1 and an experienced and successful trader using a leverage 1:50.
  • #270
  • Dec 20, 2014 6:41pm Dec 20, 2014 6:41pm
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...
And what happens to your account when there is a black swan event? Bye bye Account, hello huge broker debt, hello life over
  • #271
  • Dec 20, 2014 7:19pm Dec 20, 2014 7:19pm
Quoting NaughtyPip
{quote} And what happens to your account when there is a black swan event? Bye bye Account, hello huge broker debt, hello life over
What a stupid and ignorant statement. If you don't want risk, don't trade, don't live, life over.
  • #272
  • Dec 20, 2014 10:35pm Dec 20, 2014 10:35pm
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...
Don't speculate trade with surety.
  • #273
  • Dec 21, 2014 12:55am Dec 21, 2014 12:55am
Society writes that - If you don't want risk, don't trade, don't live, life over. If it is an answer to my statement then I will give the answer that it doesn't address my statement. All trading is taking some risk. Succesfull trading though long-term is about how much one risks everytime one trades and how one approaches the market.

Unabletrader writes leverage doesn't matter at all. Well my answer is that it of course implicitly in my statement - and all over where people refer to the problem that big leverage burns out accounts for sure in the long run - is meant that when having the account set to leverage 1:400 e.g. then the trader uses it 100%. No trader would typically set the leverage to 1:400 without at least using it 100% regularly or often. If using it seldom one could just the same have the leverage set at a much lower leverage. Setting a low leverage also removes the temptation to trade far to big. And yes setting a leverage higher than about 1:20 is gambling. Maybe a very good trader can cope doing a little higher leverage. But already 1:30 to 1:50 is rather a high leverage. He/she would struggle often with the emotions when being forced to close out a losing trade. That is in fact the very important subject. One must be able to close out losing trades without feeling discomfort about it. At leverage higher than about 1:20 the trading becomes gambling alike. In fact 1:10 is the highest recommended leverage and professionel dealers for banks and funds don't even go that high often. I have traded intensively for many years and know this as a fact.

I would like to write some thoughts also about interest. When one places funds in the bank one would be able to get an annual interest at mostly 10% and mostly much less. That is what the financial world for sure can squeeze out of the market and pay. It is of course reducted with their fess, earnings and so on. Maybe the banks earns 20% from the market based on the funds people place with them. Why should any forex trader then think he/she could sqeeze e.g. 500% or 1000% from the market every year without doing very high risk? At leverage 1:400 one can double an account in a week or 2 days. I have done that often. Then in shorter time I have burned out the account. Doubling an account 12 times a year would give an interest at 4096% p.a. It of course says it self it can't go for more than a short time. Of course one can try gamble an account higher but typically one don't stop the trading before one has lost it all again. That is what happens in casinos also. The casino always wins because the odds always are a little more than 50% to the casino. In the market one though has the opportunity to choose doing calculated well-planned trading (low leverage) and theirby having e.g. 70% odds in your favour. That makes it possible being profitable long-term.

A very good day to you all.
  • #274
  • Dec 21, 2014 1:10am Dec 21, 2014 1:10am
And thank you for the approvement and agreeing from Pilatus and NaughtyPip.
  • #275
  • Feb 11, 2015 1:25am Feb 11, 2015 1:25am
unicorn any1 ????
  • #276
  • Feb 11, 2015 1:54am Feb 11, 2015 1:54am
Quoting xdj3richo
unicorn any1 ????

?????? Huhhhhhhhhhhhhh
  • #277
  • May 29, 2015 8:22am May 29, 2015 8:22am
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. 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.
absolutely right....
  • #278
  • May 29, 2015 4:35pm May 29, 2015 4:35pm
What are we all doing here ?

Are we investing,for the most we are scalping,or for a better word trying to take some money from intra day movements.

you are behind price or with price.

we are all scalping.

excuse me for the swing traders.

can you make money ;YES YOU CAN
  • #279
  • May 31, 2015 11:07am May 31, 2015 11:07am
Quoting society
{quote} What a stupid and ignorant statement. If you don't want risk, don't trade, don't live, life over.
I think you mis understood.
  • #280
  • Jan 23, 2016 5:19am Jan 23, 2016 5:19am
How to make money by scalping

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