You are using an out of date browser. It may not display this or other websites correctly. You should upgrade or use an alternative browser. Discussion in ' Strategy Development ' started by schizo , Apr 2, Log in or Sign up. I wish there was a crash course for scalping when I started out.

The Best Forex Brokers for Scalping

How ironic that there ain't any even to this day. Interestingly, most of the day traders that I meet are better labeled as scalpers than otherwise. So I would like to start a brainstorm session in the hopes of catering to this ever burgeoning crowd. This thread is devoted to all things scalping. Non-scalpers need not participate. Let me kick it off by throwing out a couple basic questions for you to chew on: If your goal is to capture, say, 5-ticks, should the stop be smaller than 5-ticks?

As you probably know, the true definition of futures scalping is 1 to 5 ticks usually regardless of the instrument , multiplied by 10's or 's of contracts resulting in 's or 's of contracts traded per day,. Knowing that, from a profitability standpoint it is near impossible for a retail trader to be a "real" scalper for any extended period of time.

Scalping: Small Quick Profits Can Add Up

Sometimes that's 2 or 3 ticks, sometimes it's many multiples of that. A single entry and exit are based on a single time frame.

Changing time frame after a trade is on is a no-no. Put on another trade. Your question applies to all types of trading! Scalping is not an exception. Seat of your pants?? Even if it were just 1 tick?? Who the fuck cares how many ticks?

You play not to lose. You play so you can play again. If you do not have a well defined set of rules for entry, maintenance, and exit of a trade, AND the discipline to honor those rules you are merely playing a video game, and you will lose. You are just accumulating ticks.

End of day result is all that matters. If you want to capture ticks today, you must be prepared and willing to lose at least ticks today. Stops are the things that allow you to go pee without fear of blowing up. Who the fuck cares how many ticks that is? If you are honoring your trade entry, maintenance, and exit rules this question answers itself.

Good trading to you Tiddlywinks. I find "scalping" with a specific fixed tick amount target is a losing game. A scalper should not limit himself but take whatever the market is willing to give in a specific situation. If you learn to read the tape or the charts, you will find situations where the price will probably move 10, 20, 30 or more ticks within 5 minutes.

These are the situations a scalper should look for, patiently waiting instead of chasing the market and running for ticks hundreds of times a day. A good scalper can live with trades a day. A Stoploss is essential because of the high leverage a scalper uses. There should always be a disaster Stoploss for the case of disconnects.

People with difficulties with discipline and trading psychology also should have a fix SL to protect themselves.

The Art of Scalping | Elite Trader

The size of the SL depends on the waves one wants to capture. If for example one wants to capture 5minute waves, the disaster SL should be at the long term like period ATR of the 5Min. The maximum lot size should be one that gives you max. The target is open. Just get out when you see the wave is stopping, weakening or reversing. Always get out as soon as you detect the PA is not doing what you expected.

Do not wait for the price to hit your disaster Stop. A scalper is a newbie who has not figure out yet a way to go for the big bucks with position trading or trend-following. You asked for a definition, didn't you? By the way, do not confuse scalpers with professional HFT or pit traders who see the order flow.

Your average scalper is a noise trader. Scalps should be "arranged" in automated systems in such way they also provide a "hedging action" With the exception of the uninvited nonscalper, thanks goes out to you all for sharing your variegated experience as scalpers.

As for myself, of course I know what scalping is and how tough it is to make a living as a retail trader. But I also firmly believe that you need to fully understand what scalping is in order to become a successful trader.

Now I would like to expand the subject of scalping a bit. Scalping these days is not the same as it was in the early part of the Internet revolution. With the emergence of HFT, the rule of the game has completely changed. Hence, it's crucial to understand the market dynamics from the angle of HFT. For those who are unfamiliar with HFT, I suggest you check out this video and other related videos in that series: You must log in or sign up to reply here.

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