day scalping vs. intra swing trading

Discussion in 'Index Futures' started by milnarf, Nov 26, 2006.

  1. milnarf


    new to index trading. Seems like most shops advocate scalping with tight stops versus putting on a few good swing intra-day trades. Is the oddds better with scalping ( assuming you have a low cost structure, pro rate) or swing trading. Seems very difficult to constantly scalp all the random noise every day and be profitable. Also what is the success rate working at at prop shop and the time period to be profitable assuming you do get it. Appreciate any comments.
  2. Different strokes for different folks as they say...I am considering getting back into swing trading, to diversify myself...I am going to try the YM...maybe trade one contract per 5k...or maybe 10k ...don't really know yet...the margin is $1,950.00. I plan on using a 1% stop from entry price. I am looking at over a 72% winrate...and the winners are three times the losers or more.

    Now, I got to find out what a good commish is for very low volume...should I lie and promise them the world?

    Don't worry Folks! I am very experienced in losing money...

    Michael B.
  3. "Seems very difficult to constantly scalp all the random noise every day and be profitable"

    if it truly was "random noise", then that would be true.

    your choice of terminology shows your bias and misunderstanding of market structure.

    i scalp for a living. anywhere from 2 seconds to 1 or 2 hours usually maximum in YM.

    so, it clearly is NOT random noise.

    i have nothing against swings, but i prefer to do that with stocks, and B&Hold as well (hold some stocks for many years)

    but if you come into index futures trading with a bias that smaller timeframe moves are 'random noise' then you are starting off with a prejudice/opinion, and we all know what happens when one trades one's prejudice/opinions vs. seeing what the market is ACTUALLY doing.

    to put it briefly, yes you can profitably trade YM for scalps

    what i like about scalping is it is custom made for INCOME. since i make many trades a day, and the trades have high percentage wins, this results in little to no drawdown on a daily (and even less so on a weekly basis).

    swing trading does not provide as smooth an equity curve, ceteris paribus
  4. i`m sure glad i wasn`t trading the ym the past 2 weeks.....would have been fading every rally.....only to find a bigger like regular trending markets...choppy, trading range for ym.......i would not like to have been trading when the snp stops got taken out.....and it exploded by covering.....but other than that the ym is pretty fun to trade......something for everything in that one:)