Discussion in 'Psychology' started by harrytrader, Jun 29, 2003.
In fact I was a good tennis table player when I was at school (today I lost a lot because I don't practice any more). Tennis Table is more fast than tennis as for time reaction. And in scalp above all in microscalp that just last a few seconds you have the same kind of sensation. I do not micro-scalp anymore because after the death of open-cry on french futures market the liquidity on microlevels became too bad (so I lost the advantage over the market makers whereas before they were relatively slow and since liquidity was good it was possible to play like them and even against them - be careful liquidity is different concept than volume it relates to risk above all when you have to exit a position at loss) nevertheless micro-scalp sensation is similar to the feeling I had when I was playing tennis table against a fast agressive player (like a market maker ) - Since I was fast agressive myself you could barely see the ball passing from one side to another hee hee .
Scalp is not generally for novices because it demands too much technically. Unhappily many novices adopt scalp without even knowing it sometimes but they don't master enough and if you don't master enough scalp is much more dangerous than swing. It is the contrary if you master you can control risk much better than swing. In fact in scalp you linearise the risk with a high percentage of winning and a lower win/loss than swing (around 1:1) so that the equity is a smooth line whereas in swing style you must have jump of equity curve with more relative big drawdown and generally a swinger must use money management to counterbalance the high rate failure ( now there is always particular cases I speak in general). Perhaps scalp can be compared to tennis table whereas swing can be compared to tennis but I have never been really a tennis player so I can't say.
What I wanted to pinpoint is that some sport is even more suitable to develop ability that casino gambling. I see many people refer to poker etc. I think that you must also develop physical reflex and observation not just intellectual or psychological. In fact by developping enough reflex you will lower the burden of the brain because some part will become automatism so that your psychic can better concentrate. If you lack reflex you will have to compensate with intellect and that takes too much time and when you trade you must not think too much you must act (think when you drive it is the same thing). When you play tennis table for example there are patterns, you acquire reflex and reflex is important for real trading whereas many people think it is just intellectual it is also physical. Many novices failed and complain that they don't succeed it is because they are lazy to train: they want too much frill of action and pay the cost of it. You must train physically as to shoot the ball or the market in a training environment. I said that because I laughed the other day when someone sent me an email saying: "your forecast was perfect to the pinpoint but I put my order 5 point below to be sure" so he missed the ball hee hee ! That's the kind of guy who lacks physical training.
You can even use it for making analogy with risk management. For example when you are badly positioned for a shoot you should take less risk and not use risky tactic. On psychological point of view also when you lead the marks you will tend to risk more and sometimes too much that's how your opponent can regain. You can get tired and then your discipline will become too loose etc.
Another master's piece from the legendary Harry (Potter) on ET. Harry (Potter) must understand that "They" do not allow Harry (Potter) to scalp off the floor. Harry (Potter) must pay dues to "they" before Harry (Potter) can scalp again. "They" are very nasty.
I still scalp. I said I didn't do micro-scalp any more (going in or out in only 1 or 2 seconds sometimes and not more than 30 seconds) so pay a little more attention to the story . Also the floor doesn't exist any more on french market that's what I said also - and that's the very reason I stopped the micro-scalp haha ! Also at that time I din't have my model so I scalped because I didn't want any headache about forecasting the market I was a pure reflex trader I used only the simplest indicator. Now that I have my model I have gained superior knowledge so that I can scalp or swing I can adopt any style with easiness.
You still around dude, I thought 'they' blew you out.
The sensations scalpers feel:
Separate names with a comma.