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Old Apr-22-2007, 18:01
clockwork71 clockwork71 is offline
Junior Member
 
Join Date: Apr 2007
Location: Columbus, Ohio
Posts: 6
Default scalping...

I have to agree with what you have heard, scalping is a hard way to go.

For starters, you have to be right much more often to come out ahead. (Remember, every time you enter a trade, you have to cover the spread.)

Scalping generally means you are in and out VERY quickly. A typical scalp can be something like 5 pips.

So, if you enter 5 scalps a day, you have to be right almost all the time. I used to try to scalp, but one bad trade can wipe out 4 winners, and fast.

The bad trade may start out at -3,-4, or -5, depending on the pair. Then add your losses. For example, if you have a bad trade on EUR/JPY (4 pip spread typically) you wont normally get out until -10 or so until you are convinced. So if you are lucky, the next 2 trades will be +5, and now you broke even. All this for being correct 66% of the time.

As far as systems go, all you can do is try them out, they are everywhere. However, never pay for more than a book. They are almost always based on EMA's, Fibo's, Trendlines, etc.....just with different numbers. (i.e. the 20 EMA vs. the 50.)

Just my 3 pips.....oh, and if you want to read some advice for newer guys, check out my blog, it's geared towards you. (since I am in my 4th month, looking back I figure that I may have a little something to offer. Recent memory of daily whippings! LOL)
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