Wut Is Scalping ?? | Forex Factory

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Wut Is Scalping ??

  • #1
  • First Post: Aug 19, 2006 10:21am Aug 19, 2006 10:21am
Anyone expereince or pro pls help me up ? I need to know excactly wut is scalping. I do know the meaning of the word, but I am so lost when the word applies to FOREX. Wut does sclping mean in Forex ? Thx alot for helping ^^
  • #2
  • Edited Aug 20, 2006 12:49am Aug 19, 2006 10:34am | Edited Aug 20, 2006 12:49am
Quoting Glitz83
Anyone expereince or pro pls help me up ? I need to know excactly wut is scalping. I do know the meaning of the word, but I am so lost when the word applies to FOREX. Wut does sclping mean in Forex ? Thx alot for helping ^^
Scalping is a trading method in which a trader keeps a trade open for very little time ranging from few seconds to a couple minutes for grabbing two three pips.The scalper tries to cash in the daily noise of the market.It is a technique which is not quite easy and a new comer should avoid trying it as it may cause loss of capital soon.
Rather a new comers should wait for a trend to appear on charts and then should ride it for pips till it goes.

Just my views.
kolachi
  • #3
  • Aug 20, 2006 12:13am Aug 20, 2006 12:13am
Thx alot man but can i ask wut timeframe of chart to refer to for scalping ? The most ideal 1 I mean and if few 5 minutes we can earn 3 pips, it would be 30 pips in 50 minutes right ? damn nice right ?
  • #4
  • Aug 20, 2006 12:27am Aug 20, 2006 12:27am
Quoting Glitz83
if few 5 minutes we can earn 3 pips, it would be 30 pips in 50 minutes right ? damn nice right ?
LoL
I never said that scalping only gives pips.remeber it takes away too.
For scalping 1M is enogh but you may use 5Min too.
  • #5
  • Aug 20, 2006 12:31am Aug 20, 2006 12:31am
Quoting Glitz83
Thx alot man but can i ask wut timeframe of chart to refer to for scalping ? The most ideal 1 I mean and if few 5 minutes we can earn 3 pips, it would be 30 pips in 50 minutes right ? damn nice right ?
Yes you could get 30 pips in 50 minutes. You could lose 10 times that much in half the time too. Scalping will bury 99.9% of traders.

When you open a trade, you are already down 2-5 pips right at the beginning. What happens if in the next 30 seconds, it drops 10 pips. Now you are down 12-15 pips. Ok, yeah you can hold it another 30 seconds and see it if goes back up those 10 pips and be back at -2 or -5. What if it drops another 10 pips. Then you are down 22-25 pips. And that only took 1 minute to get there. Scalping on 1 minute and 5 minute charts is suicide.
JOHN 3:16
  • #6
  • Aug 20, 2006 2:44am Aug 20, 2006 2:44am
Been there. Done that.

I tried scalping (on demo) and always ended up -50% of equity in a week. NO matter how many indicator combo used, no matter what timeframe used, no matter what candle stick pattern used, I must say, I am just plain unlucky with scalping, it is totally idiotic looking back at those demos.
  • #7
  • Aug 20, 2006 3:56am Aug 20, 2006 3:56am
Hi Fellow.

Scalping is very nice for me. I always use TF 5 min n entry market 1 minute before FA (news) released with target 15-35 pips.

Here is my methode, before FA released

Put your order:

BUY Stop Order 6-8 pips above current price and SELL Stop Order 6-8 pips below current price, with logical Target (15-25 pips) depend on FA/news

You can grab the pips wherever price goes .

Then 5 minutes after news released we can see the price direction n jump into the market anymore after retracement.

Hope this help

Pips-Hunter
  • #8
  • Aug 20, 2006 5:24am Aug 20, 2006 5:24am
awwww ....looks like scalping really sucks for beginner.....damn.....Now I am so lost than before damn it !!!
  • #9
  • Aug 20, 2006 5:29am Aug 20, 2006 5:29am
Here, go to this site. Longer time frames are much better for beginners.

http://www.forexfactory.com/forexfor...6+chart+thread
JOHN 3:16
  • #10
  • Aug 20, 2006 7:57am Aug 20, 2006 7:57am
This is not really scalping. This is just another variation of a straddle on a news trade... Watch out, both your orders are going to get hit, with a widened spread... I think everyone would be wise to read "Fooled by Randomness" It explains what does happen to the successful trader du jour. Watch out for those black swans...

LoL, Scott


Quoting Pips-Hunter
Hi Fellow.

Scalping is very nice for me. I always use TF 5 min n entry market 1 minute before FA (news) released with target 15-35 pips.

Here is my methode, before FA released

Put your order:

BUY Stop Order 6-8 pips above current price and SELL Stop Order 6-8 pips below current price, with logical Target (15-25 pips) depend on FA/news

You can grab the pips wherever price goes .

Then 5 minutes after news released we can see the price direction n jump into the market anymore after retracement.

Hope this help

Pips-Hunter
  • #11
  • Aug 22, 2006 1:16pm Aug 22, 2006 1:16pm
As someone pointed out, Scalping is suicide for a newcomer. And they some in groups to get slaughtered. Is it a wonder why so many people fail?

Why not take the stress out of your life while you are learning and try to gain pips on a swing trade? That is about 200pips+ in 2 days if you are trading something like gbp.
Scalping is the fastest way to lose all your money in Fx trading.
You trade less and make more with a good swing trade.
There are plenty of good systems out here which do the job.

If you are not successful at swing trading, you will definitely fail in scalping.

Piphunter,
I dont quite know how you try and straddle with 6-8pips during news time. Its a sure way to lose money and very fast. The spreads widen with most brokers upto 10pips sometimes during news. Potential suicide for most traders. Definitely not for a new comer
  • #12
  • Aug 22, 2006 2:18pm Aug 22, 2006 2:18pm
Quoting smjones
This is not really scalping. This is just another variation of a straddle on a news trade... Watch out, both your orders are going to get hit, with a widened spread... I think everyone would be wise to read "Fooled by Randomness" It explains what does happen to the successful trader du jour. Watch out for those black swans...

LoL, Scott
I'm really appreciating the warnings from some of these old hats like Scott. My system is a heavy news-based system. I've looked at hundreds of setups and I can tell you that just because everything is fine and dandy July and August doesn't mean that will continue. I saw my account take a huge hit on FOMC as a result of LARGE slippage and a nasty whipsaw. But, it happens. When I first started trading, I thought the straddle method was great, until both sides were taken out and stopped out, effectively doubling my loss. I'm extremely careful about placing a straddle trade. Trade defensively, and you'll do fine. Remember, there's no such thing as a strong offense in Forex.

stockwet
  • #13
  • Last Post: Aug 26, 2006 6:19pm Aug 26, 2006 6:19pm
I love scalping. It is a high level of excitement, however I am always looking for a better way to trade (while scalping I don't fall into the 99.9% of losers, I am around 26.6% if my journal is right for this year in the positive. That means I have taken some major loses (don't get me wrong, they hurt when news hits and I forgot to check the calender). However I try to look for the trend and just friggen pray.
H. Bart
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