Scalping - Easy or Hard?

Discussion in 'Strategy Building' started by Norm, Oct 12, 2005.

  1. Norm


    I've read that scalping is easier than other types of trading and that it can even be used to renew a traders confidence after a string of loses from other types of trading.

    Any opinions regarding whether scalping is easy or hard would be appreciated.

  2. Brandonf

    Brandonf ET Sponsor

    Is it harder to nail the Penthouse Pet of the month or the girl gracing the cover of Vogue? Both are probalby beyond me, but each woman probably requires a different approach, but equal skill. Same with scalping vs other types of trading. Trading is trading, the skill sets in one type vs another may vary, but all require skill that is hard to aquire, but can be done with dilligance. Good luck.

  3. I cannot say one is inherently easier than the other. Some people find it easier to scalp while others find it easier to do long-term trades. It has nothing to do with the strategy whatsoever and everything to do with you and your own trading style and risk management skills.

  4. bighog

    bighog Guest

    The costs are much higher relative to the rewards, as you surely know. Requires also an unflinching discipline to cut losers "FAST".

    Myself, i prefer to do what i call day swings, try for the "RUNS" where the moving average crosses occur with a second eye on the days pivot points as minor profit objectives and spots to "PRE-SET the stop loss.
  5. cable


    I've had my ass handed to me scalping before. There's a bad combination of factors against you -- commissions, slippage, psychology, human errors, computer glitches can kill you, dead markets that just sit there and taunt you until you crack, the fact that you have to trade size to make it worth your while, small interest charges if you're trading forex...

    It's fun if you're winning though. I made $1800 in half an hour scalping the Euro. That was great fun. I gave it back the next day, and then some. That was not so fun. A few more days of stress and I was done with it (for a while, anyway).

    The most scalpish thing I do now is trade the news, which many still don't recommend, but I do.
  6. Depends on your temperment. You have to study the patterns, indicators as well as basic supply and demand to figure out what works in what kind of market. You probably have to read the tape a little more to scalp well since indicators lag.
  7. bighog

    bighog Guest

    Here is a little dittie to use as a scalping method to "PREVENT" some losses.

    Say you get a cross and get long (mind you now, i only trade ES futures, no stocks), Ok, you are filled and long.

    Next thing you do is put the STOP in, Ok, now you sit and watch. The point when the risk is the greatest is at this point.

    Ok, good deal, the mkt ticks up about 4 ticks, but i do not move the stop up to breakeven until a minimum of +6 ticks.

    Then if the STOP is moved up from there (another +6 ticks), it no longer is a STOP Loss, it is a TRAILING STOP, Right?

    So, back to the beginning of the trade upon getting the fill. If the mkt goes lower from the start it is just gonna be a loser, nothing you can do.

    But if the mkt goes up, say 3 or 4 ticks, you are now in a subjective situation. You can watch to see if you can get the +6 ticks---OR--- IF it looks like the follow through to the upside is slowing and or it drops a tick or 2 and bounces around.....TAKE IT!!!

    Good trades either work real soon or i like to get out before it nails me. more often than not....Yoy can always get back in, a small profit or a scratch is good for the phyche, losses hurt...OUCH!!! Good Luck
  8. bigdog has the right idea

    I scalp into my long term trades,

    I hate scalping all the time, monkey work thats draining.
  9. empee


    how many famous zillionaire scalpers are there?
  10. cable


    If you don't mind me asking, where do you put your stops in for scalping? Too wide and your profit:loss is no good, too narrow and you get stopped out all the time. I had my stop at a loose 4-5 pips when I was scalping (forex), and I kept getting hit -- mostly because I wasn't selective enough with my trades. Or do you use a wide real stop just in case the market or your computer crashes, and a tighter mental stop for actual trading?
    #10     Oct 13, 2005