Scalping Strategy

[ash71]

What broker do you use that provides a spread/platform/execution that enables your style?

[yasirdxb]

If you looking to make a living in trading you cannot work as a position trader wait for the wind to be at you back. ( maybe if your position is in the millions to start with) You must go with any movment you detect to gain as many times you can - be a trader- TRADE- buy sell as many times you can
Is'nt 3-5 pips a trade 3-5 times a day on a margin of 100:1 or even 50:1 with even only 1 regular lot can provide you with a VERY nice income? if it is 5 lots?

Hmmm.. I was looking to make a living by trading. thanks for sharing your

trick.by the way instead of trying to get 3-5 pips in 3-5 trades why not try

to get 25 pips in a single trade?

[rollingstone]

Tend to agree with most of what you are saying Tzachi although I do also like to use a swing trading system as well.

I have been trading on off for the past 2 years like everyone else have gone through all the timeframes all the indicators all the fibs elliot wave etc.

My preferred timeframe used to be 30 or 60 minute charts they give nice clean signals but the problem I find is that I tend to give back a lot of the gains in whippy days I could never find a way around this.

The beauty I find with 1 minute charts is.

A) There are some nice obvious smooth trends when the market gets it into its head to move in one direction even for 20 or so pips especially if you watch the market using H-A cles.

B) As you say as long as you are not trading around economic news you can generally be fly certain that any losses you have are going to be small.

C) Potential trade setups come along fly regularly generally at least 10 good setups per day across 5 currency ps sometimes more.

D) There are some nice opportunity to get what I call "second wave" trades i.e. when you've had a small move then retraces a few pips then has another go. These I tend to find are the highest percentage trades.

E) The BEST thing I find is that it doesn't matter if the overall p is trending or rangebound. On 30 / 60m charts if the p is rangebound you can get whipped around.

But on 1 min charts a rangebound market is good as you can trade the moves up down a 30 minute rangebound market is still moving up down between 30-50 pips.

a trending market is good as you can catch the moves earlier even if you close out early you can catch the second third "wave".

F) There are also some nice opportunities around data releases if you go with the flow generally stay away the most volatile (NFP) watching a data release on a 1 minute H_A chart gives very good opportunities to pull some pips.

The two thing I don't agree with you on is I wouldn't call this scalping it's just short term intraday trading even though on a closer view. The other thing is your targets of 3-5 pips I shoot for a minimum of 10 pips per trade close trades using technicals so a trade can be 10 pips or 40 pips depending on the indicators of course its also -10 pips sometimes.

True scalping is as you say in out in 1-2 minutes maybe seconds taking advantage of differences in quotes 30 maybe 100 times a day to do this you need a very small spread very quick fingers generally to be working for a Bank etc where the £'s being traded make it worthwhile.

As I say I shoot for between 5-8 trades per day depending on opportunities I tend to aim for 50 pips per day then shut up shop to protect it but it's hard not to watch for more opportunities.

Sorry if I'm rambling.

[Tzachi]

Rollingstone

U are right its not exectly scalping since we can stay in the trade a bit longer up to 10-15 min sometines with a CLEAR trend. If the market gives 20 pips we take it (if its a clear trend).The nasdaq daytrader get in out in secs to a min to grab a few cents a share.

I use ONLY the 1 min chart do not care about the long term trend stay away news. Its a real business. You invest (your startup capital account) you buy a product (open a trade) as a good businessman/trader you must have as many as turn over you can have to make a highr profit. So many trades a day (8-10) X small profits is safer than one trade that may go up down 30-50 pips your blood pressure rate too. at the end of the day the one trade may be a loss or even with the abvoe system.

This way its a business not gambling.

Tzachi.

[Fas]

Originally Posted by Tzachi

Looking to get 3-5 pips a trade

Im assuming you have found an Fx retail brokers which allows you to pluck 3-5 pips a trade. Most will not allow this.

Fas

[RedDuke]

Hi Tzachi
I currently mostly trade 30 min charts with 5 min to pick exact entries sometimes exits. I did try to use 1 min time frame found it to be more difficult/exhausting because it keeps you 100% occupied all the time to be able to utilize 6+ ps. ATrading off 30 min charts leaves me with a lot of free time after reading this thread I will revisit 1 min trading may be I’ll be able to do better this time.
In 1 min trading the main problem of course is the spread brokers putting you on manual when you stay in trades for too little time. So far I found that o a nda has the smallest spread which unfortunately increases occasionally but I did not trade economic numbers so most of the time I was Ok. Which broker are you using? I wonder if there is someone better. I currently use FXCM which is OK for 30 min trading (I usually stay in a trade 5min to 2-3 hours) but they make it almost impossible to do scalping.

Regards
redduke

[rollingstone]

Never come across this problem in the UK with spread betting you can open close as many trades as you like as often as you like the spread is fixed currently 3 on most majors 4 on USDJPY.

Obviously the more trades the more you are paying to trade but I tend to concentrate on the end of day bottom line as long as its a plus figure I'm happy paying the spread.

[Tzachi]

Rollingstone said it in a great way " end of day bottom line"

Working a 1 min chart is hard yes requires to watch the screen all time be extra alert to any move.

ITS WORK guys not a vacation or a fun trip to the casino.

Paying spread every trade? its the cost of doing business.
Working hard? the only way to make it if your father/wife is not rich

Generaly if you stay in a trade over 2 minutes the brokers' software will not detect you as scalper. ( a former FXCM insider)

as Rollingstone said the end of the day if you can take 5-15 pips the market be happy come again tommorow. The market will be there ready to generate new trading setups will not recall that you took some pips yesterday its a new day.

Good luck to all traders easy job hunting to all others

Tzachi.