Being a Scalper who depends for "normal" price action, DAX use to have when Index was smaller but since mid 2014 ranges had changed, I have tried to adapt to the changes, it been hit miss, still having more wins than losses but a trying on my nerves way to trade, and since markets might be topping, moves going down will become worse for me scalping and have to do to more of a "running" day trading and not scalping. Enclosed is monthly chart of DAX and you can see ranges change mid 2014. I use 10 different signals for scalping, chart patterns that have tested well-most by themselves and few with indicator probabilities. The main market I have trades is S&P500/ES for 31 years and most of them as a scalper, I have dissected price on how it should flow, "normal" price action, so when it is not normal expectation, rules don't allow me to trade it or it has time rules for me to wait like a four point range for one minute bar-I have to wait 20 minutes before trading again. My "style" of trading is sweeping up the profits that have very very low losing percentages-being so I can average down 4 price levels, so up to 50% breakeven plus one tick trades, when averaging down will make for steady profits. And I never advise anyone to average down as most traders don't do extensive backtesting. Backtesting 11 years and trade same system for past six years which is now automated and follows many future markets. The Euro Stoxx 50 has been being traded but I am stopping the Dax for Scalping now and increasing size on the "50". I will switch to more of a running system on DAX, meaning much deeper retracements for entry. I have over 20,000 sample size on 8 signals, (most markets only scalped on their first 60 minutes of trading except overseas markets trade all day and back tested this way)so I know very well what individual signals will do and all signals so I know when to stop trading cause volatility has spiked up and I know when to increase size by 50% after string of 2 losing days in a row, with is huge cause of the averaging down, but overall based on monthly stats works well regardless of losing days. I use to average down 8 price levels which caused for losing months and take longer to recover so I changed number of levels but did increase size. I use to scalp ES all day long and do up to 65 trades a day, but with 75% of profits coming in first 60 minutes, not going to waste time for other 25%. Risk is way too much for possible reward. Up to half of my trades are Breakeven plus one tick, have to get to breakeven plus one tick in 3 bars, otherwise becomes new target which has high degree of achieving, 45% are trades that travel 2-14 ticks, so I am risking approx. 14 ticks trying to make 14 ticks. I never ever recommend others to scalp cause you have to be numb as after few thousand trades, it all becomes numb. But I still make more on very Long Term(years of rollovers) Commodities trading, Options and Spreads. If I was first coming into trading, I'd find who teaches Spread trading as Spreading is really better than Scalping, you do need larger account, but overnite margins much lower and some spreads can be day traded like ES/NQ. Bones has impressive program. Scalping just wears on you, every tick means so much. Starbucks time, feeling tired.
It has occurred to me through the benefit of reading through this thread that "swing traders" likely have a much more robust and mature trade (money) management skill set than other types of traders.
Great advice and well said. I have seen and observed thousands of traders and will be happy to provide any specific feedback but the bottom line is each trader is a different entity in so many ways....