Why scalping is mostly preferred?

Discussion in 'Forex' started by SmithFX, Jan 28, 2025.

  1. maxinger

    maxinger

    Some people said just close your eyes and buy stocks.
    A few years later, you can retire very rich with very little effort.

    Anyway, do your homework.
     
    #11     Jan 28, 2025
    beginner66 likes this.
  2. Coin Flip

    Coin Flip

    Two reasons:

    1. Due to the high volume of trades, the learning curve is a lot quicker with scalping than daytrading or swing trading. You can statistically see very quickly what works and what doesn't. Whereas daytrading or swing trading it takes a lot longer to build up that requisite sample size of a particular set up in order to actually analyze it.

    2. It smooths out your equity curve. Doing 200 scalp trades a week with a 60% win rate at the standard 1 to 1 risk reward, yields a smoother equity curve than ten big day trades with a 40% win rate but better risk reward.
     
    #12     Jan 28, 2025
    Math_Wiz, tomi01 and CALLumbus like this.
  3. christhesquid

    christhesquid

    Because the general public is addicted to gambling.
     
    #13     Jan 28, 2025
  4. Premature Ejaculation, light wallet, technical ANALysis
     
    #14     Jan 28, 2025
    taowave likes this.
  5. Andrew34

    Andrew34

    Profit are tempting but handling stress is real challenge. Do you scalp often?
     
    #15     Jan 29, 2025
  6. Waylen

    Waylen

    Scalping is preferred because it offers frequent opportunities for profit, allows quick action in volatile markets, and requires less exposure to risk. Traders enjoy the fast-paced nature and potential for consistent small gains.
     
    #16     Jan 29, 2025
    tomi01 and MarkBrown like this.
  7. shine

    shine

    I think that first of all, such traders want to be able to earn every day and withdraw their profits every day (but it is not a fact that many succeed :) ). Also, with such trading, the risks of unexpected price behavior at night and the associated possible losses (the occurrence of gaps against your positions) are minimized, as well as reducing your costs on negative swaps for transferring transactions to the next business day.
     
    #17     Jan 29, 2025
    tomi01 likes this.
  8. Just curious. What is scalping in your context, and how tiny are the profits you're generating on average per contract? If you can't approximate an average (understandable), then how about a range?
     
    Last edited: Jan 29, 2025
    #18     Jan 29, 2025
  9. Alexis_0

    Alexis_0

    Because it saves time and it’s not as thrilling as long-term trading.
     
    #19     Jan 29, 2025
    MarkBrown likes this.
  10. zdreg

    zdreg

    To make it understandable, reword your post in a complete sentence.
     
    #20     Jan 29, 2025