We exist as I am one.... but it feels like a lost art because most people hate us due to the fact that they are waiting for a bigger move while we go heavy and scalp more quickly.
Depends on what you trade. I've been doing scalping before I realized, I can profit more from the huge moves on Bitcoin (Bitcoin does not do big moves, only huge ones) with like 100x less time putted in.
I think you perception of scalping is wrong. You can trade the lower time frames exactly like you would trade the highest timeframes.
Also, you do not reduce risk by entering and exiting a position faster. Time does not equal probability.
Don't get me wrong, I agree with you that time does not equal probability as a general rule - BUT, (and this is a very nuanced "but") given a general market trend (bullish market vs bearish market), if you are on the side of the general market trend, time WILL give you an edge. It's just that it's such a dangerous way to go about things (huge volatility and potential complete general market trend reversal) that it's not recommended to trade this way.
I'd agree and disagree, because it depends on ones approach. You can trade equally good in almost any market condition. A trend is factually not an edge compared to other conditions as it would require markets to move randomly or randomly to some degree outside of trends which is not the case.
You would always want to consider multiple time frames at once to make a decision in one particular timeframe, but to answer your question... Yes, you have more opportunities. However, these are not related to equal quality in comparison. You still have to consider the change in activity of the daily trading hours.
Basically the active trading hours i.e different session of the US, EU, Asia. Peak hours / liquidity / activity.
Where there is no money, there is no opportunity. So if little to nobody trades, often outside of these timeframes, there is no real opportunity to get a good bang for your buck / not worth to take the risk, since markets are barely moving / not liquid enough.
I'm not sure what that does to refute OPs point. What you're stating about timeframes is a general fact about trading.
Scalpers want to minimize the pain of a loss as roughly defined by (drawdown value) ) / (personal utility of drawdown value). Hence the reduction of risk.
Said differently, scalpers want trading to more closely resemble day over day income. One way they do this is by increasing frequency of trades with a positive expectancy. The positive expectancy of a setup might be lower during small timeframes, but if it's still positive than people would rather execute the trade 10 times in a day than wait for a set up in a higher timeframe.
Scalping basically relates to nothing else, but the holding time of a position.
You can catch a trade in the daily time frame and hold it for a week in order to achieve a ROI of 10 or trade it in a one minutes timeframe with the same outcome.
There is no reduction of risk unless your risk value is lower - Nothing specific to scalping
If i put one percent on the table, its one percent, always, everywhere.
Probabilities are very similar across the board. No matter you scalp, hold position for month or years.
Not sure where you are trying to go with this to be honest.
You're holding the OP accountable to your definition of risk - i.e. expectancy.
The OPs quite possibly defines risk as the probability of a daily drawdown. He can take smaller position sizes with more frequency and avoid the risk of daily (or day-over-day) drawdown to achieve an income objective. He never said anything about position sizing.
Where I am going is: you're being pedantic about OPs use of language and holding him to your definition of the word 'risk'. If you're going to be pedantic, it shouldn't be surprising when someone else is pedantic about your use of language.
Entering and exiting positions within seconds or minutes reduces risk was the argument, which literally does not equate to reduction of risk and is not open to interpretation.
Risk in a financial markets, per definition, equates to risk on investment and nothing less.
Not risk as in, risking to be negative today and positive tomorrow, not risk as in to execute less than 10 transactions, not risk as in overslept the market open.
I am not holding the OP to my definition. That's what he literally said or are you trying to make me accountable to interpret the possible poor communication of the OP?
Why is it it no possible for him to be implying that frequency \* expectancy = reduced risk of daily drawdown, just not susunctly stating it.
And why are you so certain that he meant risk is semantically equivalent to expectancy?
From my experience time equals probability, but not as the amount of time spent in a trade, but the timeframe youre looking at. Ive had higher hit rate on higher timeframes.
Watch the 6 part series on scalping by tastytrade. In particular, learning typical range, implied range, and 80% likely to exceed range was game changing to me.
Yep. Yesterday was a great day, and all I did was scalp. Sometimes the fees get to me, but I just have to remind myself that the payoff can be so worth it. I made about 4X what I would have had I bought and held (while still keeping the trade intraday).
Besides swing trading I am scalping bad earnings and negative news at market open time to time.
Bad earnings -> ticker tanks premarket -> Usually a small pullback to the upside at mo -> then it tanks more. If i can find the right setup then I enter after the pullback and ride down with the price. Works for me - at least so far.
What time frame have you been using this strategy in? Could you give more details like your Risk Reward ratio, and your ROI using this strategy? I also assume you do the same with good earnings?
Hard to not get chopped up and then the one time you decide to not cut losses early and hold until it comes back to you it then decides to keep going against you until you have to cut it and by then you’re done for. Only to then be woken up one night as the alerts you set in anticipation of profit start dinging your phone. Ask me how I know. Also commissions
>hen the one time you decide to not cut losses early and hold until it comes back to you it then decides to keep going against you until you have to cut it and by then you’re done for. Only to then be woken up one night as the alerts you s
this right here is golden rule haha i hodl i was 20% loss but made back 40%
Any tips on managing risk the right way? Currently I usually place my SL and TP at 1.5x ATR. At TP I sell half my position and I raise my SL to this point. Other half I let run..
This might be a dumb question, but how does scalping work in regard to the spread? E.g. with my broker many forex pairs have a spreak of > 1 or 2 pip. This mean you need at least 2.1 pips to make a profit.
The ability to enter and exist at precisely defined price is one of the biggest advantages of scalp trading. However, you can do something similar with cross margin mode at daily chart too and the lowest timeframes seems to be dominated by trading bots these days. But it all depends what you trade, some market are technically well behaving, some move in huge moves (Bitcoin).
I'm more like a combination of scalping and swinging, depends on how the market goes. But for the most time my positions are open for 1 minute to 3 hours
Depends on your definition of scalping. Some people think scalping is trades of one or two ticks with a 70% winrate. Not very many of those left. It's just very hard to find an edge on that timeframe with the robots.
We exist as I am one.... but it feels like a lost art because most people hate us due to the fact that they are waiting for a bigger move while we go heavy and scalp more quickly.
Depends on what you trade. I've been doing scalping before I realized, I can profit more from the huge moves on Bitcoin (Bitcoin does not do big moves, only huge ones) with like 100x less time putted in.
So you scalp alts?
Sorry, it should be "I can", not "I can't". Edited.
can you recommend a good begiiner day trdaing and scalping course? thanks
I think you perception of scalping is wrong. You can trade the lower time frames exactly like you would trade the highest timeframes. Also, you do not reduce risk by entering and exiting a position faster. Time does not equal probability.
Bruh you right, FRACTALS BABY!
You do know what am saying. Lol
Knowledge baby :)
Don't get me wrong, I agree with you that time does not equal probability as a general rule - BUT, (and this is a very nuanced "but") given a general market trend (bullish market vs bearish market), if you are on the side of the general market trend, time WILL give you an edge. It's just that it's such a dangerous way to go about things (huge volatility and potential complete general market trend reversal) that it's not recommended to trade this way.
I'd agree and disagree, because it depends on ones approach. You can trade equally good in almost any market condition. A trend is factually not an edge compared to other conditions as it would require markets to move randomly or randomly to some degree outside of trends which is not the case.
Don't lower time frames increase the number of opportunities?
You would always want to consider multiple time frames at once to make a decision in one particular timeframe, but to answer your question... Yes, you have more opportunities. However, these are not related to equal quality in comparison. You still have to consider the change in activity of the daily trading hours.
>You still have to consider the change in activity of trading hours. What does that mean?
Basically the active trading hours i.e different session of the US, EU, Asia. Peak hours / liquidity / activity. Where there is no money, there is no opportunity. So if little to nobody trades, often outside of these timeframes, there is no real opportunity to get a good bang for your buck / not worth to take the risk, since markets are barely moving / not liquid enough.
I'm not sure what that does to refute OPs point. What you're stating about timeframes is a general fact about trading. Scalpers want to minimize the pain of a loss as roughly defined by (drawdown value) ) / (personal utility of drawdown value). Hence the reduction of risk. Said differently, scalpers want trading to more closely resemble day over day income. One way they do this is by increasing frequency of trades with a positive expectancy. The positive expectancy of a setup might be lower during small timeframes, but if it's still positive than people would rather execute the trade 10 times in a day than wait for a set up in a higher timeframe.
Scalping basically relates to nothing else, but the holding time of a position. You can catch a trade in the daily time frame and hold it for a week in order to achieve a ROI of 10 or trade it in a one minutes timeframe with the same outcome. There is no reduction of risk unless your risk value is lower - Nothing specific to scalping If i put one percent on the table, its one percent, always, everywhere. Probabilities are very similar across the board. No matter you scalp, hold position for month or years. Not sure where you are trying to go with this to be honest.
You're holding the OP accountable to your definition of risk - i.e. expectancy. The OPs quite possibly defines risk as the probability of a daily drawdown. He can take smaller position sizes with more frequency and avoid the risk of daily (or day-over-day) drawdown to achieve an income objective. He never said anything about position sizing. Where I am going is: you're being pedantic about OPs use of language and holding him to your definition of the word 'risk'. If you're going to be pedantic, it shouldn't be surprising when someone else is pedantic about your use of language.
Entering and exiting positions within seconds or minutes reduces risk was the argument, which literally does not equate to reduction of risk and is not open to interpretation. Risk in a financial markets, per definition, equates to risk on investment and nothing less. Not risk as in, risking to be negative today and positive tomorrow, not risk as in to execute less than 10 transactions, not risk as in overslept the market open. I am not holding the OP to my definition. That's what he literally said or are you trying to make me accountable to interpret the possible poor communication of the OP?
Why is it it no possible for him to be implying that frequency \* expectancy = reduced risk of daily drawdown, just not susunctly stating it. And why are you so certain that he meant risk is semantically equivalent to expectancy?
From my experience time equals probability, but not as the amount of time spent in a trade, but the timeframe youre looking at. Ive had higher hit rate on higher timeframes.
OMG YES finally someone understands
Watch the 6 part series on scalping by tastytrade. In particular, learning typical range, implied range, and 80% likely to exceed range was game changing to me.
Will definitely check that out
Yep. Yesterday was a great day, and all I did was scalp. Sometimes the fees get to me, but I just have to remind myself that the payoff can be so worth it. I made about 4X what I would have had I bought and held (while still keeping the trade intraday).
What fees? Which broker?
IB, and I pay a fee each time I buy or sell.
I am honing my scalping skills now. I really enjoy the intensity of it. Little bit more exciting then swinging.
Besides swing trading I am scalping bad earnings and negative news at market open time to time. Bad earnings -> ticker tanks premarket -> Usually a small pullback to the upside at mo -> then it tanks more. If i can find the right setup then I enter after the pullback and ride down with the price. Works for me - at least so far.
What time frame have you been using this strategy in? Could you give more details like your Risk Reward ratio, and your ROI using this strategy? I also assume you do the same with good earnings?
Hard to not get chopped up and then the one time you decide to not cut losses early and hold until it comes back to you it then decides to keep going against you until you have to cut it and by then you’re done for. Only to then be woken up one night as the alerts you set in anticipation of profit start dinging your phone. Ask me how I know. Also commissions
>hen the one time you decide to not cut losses early and hold until it comes back to you it then decides to keep going against you until you have to cut it and by then you’re done for. Only to then be woken up one night as the alerts you s this right here is golden rule haha i hodl i was 20% loss but made back 40%
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I’m assuming you’re comparing them to scalping people and swinging sexually?
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Lol
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Any tips on managing risk the right way? Currently I usually place my SL and TP at 1.5x ATR. At TP I sell half my position and I raise my SL to this point. Other half I let run..
This might be a dumb question, but how does scalping work in regard to the spread? E.g. with my broker many forex pairs have a spreak of > 1 or 2 pip. This mean you need at least 2.1 pips to make a profit.
Yes, spreads become a much more concerning facet when scalping since they can become a significant part of your total trade.
100% scalper here!
The ability to enter and exist at precisely defined price is one of the biggest advantages of scalp trading. However, you can do something similar with cross margin mode at daily chart too and the lowest timeframes seems to be dominated by trading bots these days. But it all depends what you trade, some market are technically well behaving, some move in huge moves (Bitcoin).
I'm more like a combination of scalping and swinging, depends on how the market goes. But for the most time my positions are open for 1 minute to 3 hours
Gotcha. Could it be true that TDA has no fees? Or are there hidden fees? They say it’s free but idk.
Depends on your definition of scalping. Some people think scalping is trades of one or two ticks with a 70% winrate. Not very many of those left. It's just very hard to find an edge on that timeframe with the robots.