Scalping - urgent help required!!

Discussion in 'Forex' started by theseriousone, Mar 30, 2006.

  1. I have read a few articles here about Scalping but still have some unanswered questions, help appreciated.

    I'm finding using my trading platform and with careful use of stops, that trading the EURUSD I can often "scalp" 1-4 or 5 points by paying VERY close attention to the ticks screen.

    I note a trend, get in on the trend (long or short) and get out quick. I enter the trend based on other similar trend behavior by looking at the charts sometimes back a few days.

    I stop a little under the entry (as much as needed to eliminate "noise" on the trend)

    I'm a new trader, so it may be just luck, but 28 of my 35 trades resulted in a "scalp".

    Now I'm only using a "mini-lot" (i.e. $10K lot $1/pip), as I am trying to minimize risk (I have tried it a few times with standard lots, i.e. 100K, $10/pip but thats kinda scary for a newbie)

    I'm now a few hundred dollars up on an initial 2K investment, around $100/day.

    Will my broker (cms) cut me off for "scalping"?

    PS. You may think my strategy is crap (and it well maybe) but my question really is about scalping and not mylack of experience.

    Thanks Guys!!
  2. No, your broker will not care...In fact, he will like the fact that you are "scalping", because it means more money for him.

  3. thanks Kastro

    Am I wrong then in assuming that a Broker will not frown upon this sort of "unfair" (in their eyes) behavior?

    I was under the impression from reading this board that scalping was a BIG no no in the straight forex world...
  4. Broker does not care. I can't speak for others, but there is nothing wrong with scalping.

  5. theseriousone,

    In fact....the more trades you or lose....your broker will love you more....haha

    Some traders like Scalping....some like to follow a Trend. While I do both....I have been scalping for many years now. I used to scalp stocks....stopped that years scalp the e-mini futures. I have scalped the Forex....but for me....I like the Futures.

    Do whatever makes you comfortable....and whatever makes you money. For me....the Key to my trading is my Discipline....and keeping my charts simple and uncluttered. My Discipline is based on a set of rules....which I strictly follow.

  6. On another thread about scalping, someone said that Oanda dosen't allow scalping. I've checked oanda's website and I can't find anything about not being able to scalp. Anyone here dealing with Oanda and scalping?
  7. Look for the phrase "temporal imbalance" under the account agreement.

    "Scalping" perhaps is the wrong term. Some have coined the phrase "picking".

    "Picking" may well be defined and forbidden. "Picking" is if you have E-signal or other quotes from an another dealer/marketmaker besides your quotes from your dealer/marketmaker and you compare them to find one of them leading the other.

  8. 1000


    You need to first figure out why you are trading in the first place.:)

    What is your purpose comrade:cool:
  9. If they don't allow "scalping" it makes me wonder why they
    would have 5 and 10-second charts not to mention tick charts.

    Or was that FXCM that has tick charts... Or both...:confused:
  10. HoggZilla


    We call it scalping when you go for a few pips, but that is just trading. Scalping, as has been defined above, is really the use of technology and information against your broker. Knowing what the price is before they post it and acting on that information. Insider Trading LOL.

    If you trade large amounts, perhaps 10mil, then your broker might not like you jumping in and out quickly because it effects their hedging system, but for the most part I have not seen any real indication oanda cares.
    #10     Apr 1, 2006