Scalping is the least risky. Time (risk) in a position is minimal. Missed opportunity (risk) is minimal. Infrastructure failure (risk) is equal to all other styles of trading Physical wellbeing (risk) is equal to all other styles of trading. Size and leverage (risk) should have been factored in the decision to develop a scalping style with intent towards longevity... Otherwise the style of trading is known as cowboy, not scalping.
I gotta disagree on that one. Way less stress swing or position trading. I'd rather spend my time on the golf course that in front of a monitor. I spent about 1/2 hour a day on trading, most of it when the market is closed. Very little stress.
I'd guess the risk is the scalper will have a harder time overcoming trading costs (bid-ask spread, commission, and any other fees) than someone trading longer time frames.
It was worded wrong... I was trying to imply something like dropping dead at the desk! As for your point about stress... I agree with you, it's less. But everyone is different in what triggers and how they measure stress.
Personally, I'm with Tiddly on this one when it comes to day trading at least. A small unleveraged swing or position trade shouldn't cause much stress either, but I tend to want to check my positions more when I have a trade on. Today and Friday's catch (trade duration less than 5 minutes on both). A good 30 minutes of preparations, but done in less than an hour both days.
Agree on the concept, however, and not to be confused with HFT, if the difference between profitability or not for a scalper is spreads and commissions, then I submit the methods being used are not worthy of being traded.
Yes it was funded at brokerage, sent monthly brokerage statements. I think it was Lind Waldock. After contest, I continued to trade much more long term commodities and learn some on hedging, got my risk down to zero when I entered trades. I then started doing the same with stocks, most of the risk is in the entries. In 2010 I started to really plow into risk management, wanted to reduce intra-trade drawdowns, so on many pullbacks, automation hedges current open positions. I have much more gaps in my favor than against, it is part of this business. This time or sooner next year, will have very little stocks and much more into commodities. I lose on 2-5% of my trades, am much better trader than 1992, I am risking few hundred to make either 60+% or partial of last nine year extremes. With ES being as high as it is now, "scalping" for few ticks and risking few ticks, I can't produce high winning percentages, ES in first 30 minutes mostly 2+ point bars, now am generally risking 3-4 points to generally make .25 to 2 points. Breakeven trades to me means making 1 tick. My average time in a trade changes each week, but mostly 40 seconds in first 30 minutes and 2 minutes rest of the day. And I average down on all trades plus double up after a losing trade. Costs to hedge this is impractical as options might not move enough for 2 points or too much premium or lack of options. I really can't see anyone "scalping" like old days in the Indexes at these levels. On my losing days, they are huge and might take 1-2 months recover, averaging down is what causes it, but year to year basis it better to do for me. Scalping in Forex much more difficult unless USA mornings trading with trend for me. I think it easier to use 5 minute chart and go for larger profits. Risk small and go for much larger.
Actually not in Honduras at the moment. Time stamp. Of course the time stamp of my post is after the trade. I cannot very well show trades on a chart that are put there by the platform before the fact now can I? The platform placed those entries and exits as they were made live. Then I take a snapshot and take the time to write up my post and post it. So, Yes by that time many minutes have passed. Is that so hard to understand?
This seems to conflict with a tight risk management strategy? I have trouble considering averaging down a risk management strategy. Am I missing something?