Why scalping beats any other trading style

cashmoney69 · Oct 24, 2008

ok thanks

The Voyager · Oct 24, 2008

You can certainly scalp efficiently off one time frame but since the volatility these days/weeks is so monstrous it pays serious money to stick to the winners for an extended amount of time. For this you must be aware of confluential areas not witnessed intraday but you could easily mark them in your chart before the market open the gates so you can be prepared and act accordingly if and when the time comes.

TV

short&naked · Jan 2, 2009

Quote from yoohoo:

trade4success - interesting point - but I don't believe you. However I don't dismiss your opinion - so prove it to me.

I've traded multi million $ positions in one stock and I now scalp futures. Trying to get in/out with $50m is competition. Trying to enter 10 lots on the ER2 ain't anything like it in my opinion. So I hold my view, you can't out perform a hot scalper unless you position trade with size.
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You can't outperform a hot scalper...

but you can and will over time. Try compounding on event he most liquid markets with large size.

trendo · Jan 2, 2009

Quote from short&naked:

You can't outperform a hot scalper...

but you can and will over time. Try compounding on event he most liquid markets with large size.
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So you're saying he can't, but he can. I understand, but I don't understand.

YTEurope · Jan 28, 2009

Quote from Jahajee:

AN INTRO, rambling on...

I use 1-m, 5-m, and 60-m ES and NQ charts. Lately, I have
focused on Es scalping.

I prefer scalping against the trend. I particularly enjoy scalping against markets that are dropping or rising quickly, in a big range day, like this week. It seems to me that markets moving quickly tend to overshoot, especially on the downside,

The key to scalping is to keep losses small, and to actually take these losses rather than 'hope' for the markets to come back to you. It may eventually do so but by that time you would have ruined the trading day by holding on to your cherished egoistic position that you want to prove that you got it right.

My position size is 8 lots, usually entering all immediately or in two entries but I begin to scale out as soon as I have 2 or 3 points profit and set a stop at break even on the rest. Commissions are quite low so I feel free to trade as much as I wish without being bothered with commissions & slippage. With less liquid markets or in fact any market other than ES and NQ you would consider the cost of commissions & slippage.

My tools: a momentum indicator - basically a 10-bar momentum on the ES 1-m chart, with a 4-bar average of momentum and an upper and lower momentum band that is the 30-bar average of momentum. I have oversold and overbot momentum lines at 30 and 70 % of the momentum average.

Next I have overlaid on the above a very ST RSI - 5 or 7 bars

And, I find quite useful the Awesome Chaos oscillator which is a 5/34 oscillator, you can select other values.

MY price chart is 1m ES candlestick, with ST MA - 5bar, and long MA - 200 bar. I have 10-bar breakout high and low indicators and pivot high and low 5, 10, and 20 bars.

I also have a 1-m TICK and VIX chart on another PC and several charts on another, and Bloomberg online TV and NY TIMES etc on another.

I have Multicharts and TOS, as well as backup to broker.

I have a trading system running live based on the Awesome Oscillator but I am a discretionary trader; the tools provide me with a visual image of what is happening, the trading system buys and sells and exits allow me to track what is happening and than make decisions as to enter and exit.

My trades may last as long as 5 minutes and as short as 30 seconds. I only care about market direction during the duration of a trade, I do not care if the market is going up or down in the next 15 minutes or hour or tomorrow. My policy is to take profits and move on to the next trade. Exit quickly - win or lose, and get on to the next trade.
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You got it(one thing i havent found in this are Linear regression channels wich are useful combined with pivots),, i got pretty much the same setup
333 tick, 5m,15m,60m, the vix and tick, awesome, stochs, RMI.making entries with the awesome according to the trend on wider timeframes

GCSICLRBC · Jan 28, 2009

Scalpers are the cheapest traders on earth.

Every time I begin to resent their silly craft and their "ticks" I realize they provide liquidity that we all seek.

So I'm thankful for scalpers.

But there is NO WAY they are more profitable than smart directional traders.

When I trade ES I'm looking for 10-30 points on a swing.

I buy support & sell resistance (Classic - no fibo, stoch, MACD or other bullshit).

Today's high in ES will likely either be 865 or 875 followed by a 20-point drop from there.

I'm the guy who sells near the top risking 2-3 points; hitting some, missing others.

Sorry if this post comes off as arrogant but I greatly dispute that SCALPING is the most profitable method of trading.

Picking short-term tops & bottoms is GOLDEN. Those with 10,000+ hours live trading & making money know what I'm talking about if they watch 60-minute charts & view these beautiful reversals.

Good luck to ALL of you today!

short&naked · Jan 28, 2009

Quote from trendo:

So you're saying he can't, but he can. I understand, but I don't understand.
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The first line was a quote.

YTEurope · Jan 28, 2009

Quote from GCSICLRBC:

Scalpers are the cheapest traders on earth.

Every time I begin to resent their silly craft and their "ticks" I realize they provide liquidity that we all seek.

So I'm thankful for scalpers.

But there is NO WAY they are more profitable than smart directional traders.

When I trade ES I'm looking for 10-30 points on a swing.

I buy support & sell resistance (Classic - no fibo, stoch, MACD or other bullshit).

Today's high in ES will likely either be 865 or 875 followed by a 20-point drop from there.

I'm the guy who sells near the top risking 2-3 points; hitting some, missing others.

Sorry if this post comes off as arrogant but I greatly dispute that SCALPING is the most profitable method of trading.

Picking short-term tops & bottoms is GOLDEN. Those with 10,000+ hours live trading & making money know what I'm talking about if they watch 60-minute charts & view these beautiful reversals.

Good luck to ALL of you today!
More...

if you trade directional you can catch the daily range, if you scalp and you master a profitable technique you could make over 100pin a single trading day on futures, i dont know if it is the most profitable way if you master it, all i know is you need a broker wich is cheap on commision