Is scalping blue-chip 'investments' viable?

Discussion in 'Trading' started by Ditzasaurus, Apr 16, 2020.

  1. Turveyd

    Turveyd

    The old buying quality, scalp for a profit or hold for ever ever until a profit comes back around.

    Might feel safer, but another down move like a few weeks ago and you'll be waiting a long time to get your +$50 scalp profit and likely down $5K in the mean time.

    As long as you don't hold over night or major news and therefore don't expose yourself to gaps then most of the time you'll get to profit, but ofcourse if your in a lossing position then your stuck over gaps and news, where it fails.

    Ofcourse SL's quite often get hit, just for the trade to turn into a profit, which forces you to take another trade which loses to, then 2 losers rather than 1 profit.

    There is no easy way to do this in short :(
     
    #11     Apr 16, 2020
    trader99 likes this.
  2. guowei58

    guowei58

    This strategy doesn't work. It may seem like it worked recently because the market is trending upward in the short-term, so you can get out profitably later if you're left holding the bag in a scalping trade. You have to have a stop loss in your system to prevent that one trade from causing a 50% drawdown.
     
    #12     May 17, 2020