lol, how can I resist I respect short&naked's opinion because I believe he's an accomplished trader but it doesn't mean I have to agree with it. Both of the above statements do not concur with my own trading experience and I've been at this game for a while now. I can only go by my own results, as some know I scalp Eur/Aud with a 8-10 pip spread most of the time, and a 95% win rate....I'm still here. I think there is only one 'rule' when it comes to trading and that's manage risk and preserve capital. After that no-one has the monopoly on profitable trading strategies, it's up to the individual how he approaches the challenge and there's not really any 'right' or 'wrong' way to trade, as long as you're consistently making money then it simply can't be wrong.
Hey CT....this is a great post...thanks for your insight...when you say "Scalp"...what kinda "hold" timeframe are you talking about for your trade?...1,3,5,10 minutes?...I would think anything longer is a "short term" trade rather than a scalp trade, correct? also...does your set-up have anything to do with looking to trade possibly at the top of any given hour?...meaning 9:00AM or 5:00PM New York times...just wondering...thanks for a great reply
Right, and Eur/Aud can be volatile even in the quietest market. Add in the mix a bit of latency and the spread pretty much melts away
No particular times such as top of the hour, no, just whenever there's an opportunity. This kind of scalping isn't really the true definition, but trades can last anything from a few seconds to a few hours if I end up having to average into a trade. I keep trade size small on those kinds of trades in order to keep risk reasonable. This isn't the best way to trade by the way, it's just I can't stay in these long trend-following trades for very long, if I see money I just have to take it!