Scalping is Risky?

Discussion in 'Forex' started by Coner1980, Jul 22, 2020.

  1. S.Luke

    S.Luke

    Scalping is risky because most traders that enter scalping have the mindset of making quick money in it, and it is one of the quickest methods to make profits.

    Scalping can be predicted with good strategies and is profitable if used with reliable brokers such as CMC, Pepperstone, or FP Markets.
     
    #271     Apr 14, 2022
  2. easymon1

    easymon1

    What timeframe charts do you like to scalp?
     
    #272     Apr 14, 2022
  3. Handle123

    Handle123

    I been scalping since 1987, mainly ES Emini S&P last 20 years. I prefer to scalp/day trade currency futures and use forex for long term trading. Pip spreads generally too wide to scalp. Americans too gullible to realize that their commissions paid is the spread.

    I learned the correct way, learned long term first. Charting, then very few indicators, I don't use indicators that generate signals but I look at relationships between price and indicator. Look for divergences that generally don't make sense. Also, study average length of up and down swings, want to only take buys early and middle of trending swing. I keep many stats, this is where the bucks come, better one knows past out comes, better idea of using in future.

    People generally do scalping cause lack of funds and scalping is hardest form of trading. Rather funny in my mind.
     
    #273     Apr 14, 2022
    Benjamin_prTrader and beginner66 like this.
  4. yes only due to lack of funds beginners choose scalping as their main trading approach.
     
    #274     Apr 24, 2022
  5. Oxymoron

    Oxymoron

    Traders also prefer scalping as it offers many potential opportunities for trading whose profits can be amplified using leverage.
     
    #275     Apr 27, 2022
  6. As we all know Scalping is an attempt to make a profit from small price movements You need to follow charts and make trading strategies for that. If one is aware of this, he or she can go for scalping.
     
    #276     Apr 28, 2022
  7. Scalping is definitely risky because of the high frequency of trades involved. That's why it's only suitable for those who have a good experience and knowledge about the market.
     
    #277     Apr 29, 2022
  8. bublu

    bublu

    That might involves overtrading when we take too much trades and over trading plus over leveraging your account might cause some serious blows in my opinion.
     
    #278     Apr 29, 2022
  9. Rapunzel

    Rapunzel

    It's just a risky as any other kind of trading. You need to have an edge so that you win at a higher rate than that required to break even, considering your risk reward ratio.

    If you don't have an edge, it just delays the inevitable ultimate loss.

    Edge? Scalping to make £100 for £1,000 risk, so r:r 1:10 means you have to win more than: 10 /(10 + 1) = 0.90909 percent of the time to make money in the long run.

    Pros: Soft landing for newbie, takes time to lose
    Cons: Hard to extract an edge from (1 - 0.90909...), deception of doing well until you lose it all.
     
    #279     Apr 29, 2022
  10. Thanks for your kind reply. It will be helpful for me to trade with scalping strategy.
     
    #280     May 1, 2022