Can scalping make you rich?

[fayalac]

Hello mates....
I have been testing my scalping strategy for a while now....., please dont ask details, i will not provide any, i just want to answer the basic question related to this forum.
I want to say, also, that all that profit finished at the comode because yesterday i made a basic mistake, i left some uncovered positions without a stop...., i know that is not a basic mistake it is a huge one....
Anyway, i started trading at 10:00 GMT, by 14:00 GMT i had made some wonderful 200 pips, obviously the party at EUR/USD lasted a while longer, lets say that if i had decided to remain trading one more hour i could made some wonderful 300 pips.....
It finished at the comode because those 200 pips were swallowed by only three positions left uncovered and without a stop. If i dont do this, my scalping strategy can yield anything from 150 through 400 pips each day.
It is up to you to decide each pip´s value.
So, keep working, it can pay you some bucks.
And for those guys who spend their time here looking for a good quarrel, please dont ask, i am not looking for your support or your approval, my account´s support and approval is enough for me.

 

[Pferd]

Hello mates....
I have been testing my scalping strategy for a while now....., please dont ask details, i will not provide any, i just want to answer the basic question related to this forum.
I want to say, also, that all that profit finished at the comode because yesterday i made a basic mistake, i left some uncovered positions without a stop...., i know that is not a basic mistake it is a huge one....
Anyway, i started trading at 10:00 GMT, by 14:00 GMT i had made some wonderful 200 pips, obviously the party at EUR/USD lasted a while longer, lets say that if i had decided to remain trading one more hour i could made some wonderful 300 pips.....
It finished at the comode because those 200 pips were swallowed by only three positions left uncovered and without a stop. If i dont do this, my scalping strategy can yield anything from 150 through 400 pips each day.
It is up to you to decide each pip´s value.
So, keep working, it can pay you some bucks.
And for those guys who spend their time here looking for a good quarrel, please dont ask, i am not looking for your support or your approval, my account´s support and approval is enough for me.

Lot's of if.......

 

[vergis92]

Lot's of if.......

Scalping can be very profitable, but it's also very stressful, I have been testing a technique that wins consitently, had 40 winners in a row, one loser, then another 30 winners, and 4 winning tricky trades that had to use stops and limits on, and leave open.


All in all very stressful, a trade will go between -$40 to -$500, then will be closed at +90 to +$300, it will take nerves of steel to watch that -$500 and not panic.

 

[vergis92]

OK, What is your strategy to hve 70% of trades in profit, then What is your strategy to have 50% trades in profit. Both of these are ludicrous claims of posssibility. Totally farkin ludicrous.
Brain dead wonkbag claims
Braindead pillockile aspirations
Braindead BOLLOX
If scalping was the way forward, with your 6 yaer old's calculations then we would all have to the 3 above attributes which I grant you many traders probably have.:idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea::idea:
If you are not now suitably illuminated follow this link:
braille - Google Search

There are setups where probability favours particular strategies, I was tested for a tradin firm once, and I blew a $20,000 acc down to $2500, in just a week, because I felt overconfident I could repeat past tests' success.... I blew it to $2500 in 'sure fire' swing trading..... then guess what, I managed to repair this acc at a rate of $500 per day in scalping trading, 70 winning trades, one loser, and some tricky trades.

But there's theory behind this scalping echnique, you don't just trade any day and certainly not any price zone, if you attempt to exapand this technique to all days and price zones, profitbility will tend to zero.


don't be surprised at 70% win ratio or even 95%, if it's mathematically possible then it is outhere somewhere

 

[Pferd]

And how/where can we learn about this technique?

 

[vergis92]

And how/where can we learn about this technique?

the described technique uses no stops, except when a losing trade is to be kept till tomorrow, it's quite stressful, a great deal of psycholog and judgement is needed, and few basic rules. I cannot teach anything, I can only use this to prove it works, and trade your acc.

I originally tried this as a way to repair broken accounts, it is evident that it could have helped me pass any trading test, since most firms require you to handle a $20,000 simulated acc, over a month and make profits.

The problem is you have to trade within that specific month, and swing trading may not be suitable during that month, or may yield poor results. Scalping will work in any month, it can take the account up to $30,000 in the first month, thereby passing the test, but they will not be happy allowing you to trade with real money without stops....

the kind of thing trading firms want is sitting at the computer all day, following a boring and safer set of rules, and executing at least 3 trades per day.
That's why I have never been hired even though I did good profit wise, there was a $100,000 a year job offer once, I did the test, acc was almost 50% up at the end, but I broke the rule of 'not overnight trading'

it's very difficult to meet their requirements, it goes against your creativity and you become a drone who just accepts orders.

 

[Pferd]

Now I undersand, how I knew this was simulated account and not real money.....

For sure not profitable in the long run to trade without SL. It has been proven repeatdly.

Why do you think these firms don't operate like that, because they don't want to make more money....?? Or maybe it is because they know it does not work.....:whistling

 

[vergis92]

Now I undersand, how I knew this was simulated account and not real money.....

For sure not profitable in the long run to trade without SL. It has been proven repeatdly.

Why do you think these firms don't operate like that, because they don't want to make more money....?? Or maybe it is because they know it does not work.....:whistling

Wrong! I have traded with real money in the past, following other people's techniques, it never got me past a month's profitability. Stop losses can apply only to swing trading, and they have to be quite large. most of the things they teach in books are wrong, I have learned the hard way. I tested several different techniques back in 2000-2005, trading with real money ( $3000) accounts, I tried everything the best books can teach, only a portion of the content was true, and no longer than a month of trading the acc was blown!

The firms don't really know what they want, why is 'overnight' trading seen as risky?? the forex market is open 24 hours. The ones that make money usually apply momentum based techniques and simple S/R analysis, still the losing trades will inevitably come, and when they do they fire the trader.

I don't believe any other technique besides scalping can recover a $2500 account back to $20,000, try any way you want, simulated / real money, it will never get back to $20,000.

Swing trading would require more money /longer period
Day trading can hardly work, in fact day trading on news and reports is a losing game, to this day I have not met a successful FX report trader

 

[vergis92]

Now I undersand, how I knew this was simulated account and not real money.....

For sure not profitable in the long run to trade without SL. It has been proven repeatdly.

Why do you think these firms don't operate like that, because they don't want to make more money....?? Or maybe it is because they know it does not work.....:whistling

There are firms and investment banks that are clever, and do more sophsticated trading, those can survive bad markets, but there also have been stupid investment banks (Barrings Bank, Long Term Capital Management, anoher French Bank recently, and others) they were WIPED OUT by trader mistakes, a single person's mistakes.

especially Long Term Capital Management that was wiped out because of unbelievable misunderstanding of an arbitrage trading technique.


Firm's big size is not necessarily indicative of more clever traders! they are humans just like us, especially in arbitrage trading , option trading and forex CARRY trades the individual traders can be more inventive that any firm.:!:

 

[BILLV]

and no longer than a month of trading the acc was blown!(

Vergis mate

It isn't hard to blow an account and particularly so in the beginning when we make mistakes.
You claim success without using SL's.
It's possible but you'll need to be at your screen watching the charts or it will have to be a cyclical and boring market.

Do you use hedging at all? (opposite trades)
What lot size do you use and how much gearing?
I found that I can be profitable with1 broker and not with another because of different lot size and gearing.
I need to look into this further

 

[raef]

Lot's of if.......

good luck with it-happy tading--personally i decided not to join any more conversations-more fun making money

 

[Pferd]

Without SL is simply impossible to make money in the long run, it does not matter if you are right 99 of every 100 trades. It is a mathematical certainty. As explained before:

The higher your % of sucess per trade implies that you use a riskier (negative) reward:risk ratio.

If your success rate is 99% very likely you are using a 1:10 ratio at the very least. If you couple that with trading without SL I am not surprised you blew the account in one month.

You can have a 70% - 50% or even 30% success ratio and not only be profitable but easily beating your strategy.

We get paid for making money in the overall picture, not for the amount of trades we win. We are not baseball pitchers.

 

[vergis92]

Without SL is simply impossible to make money in the long run, it does not matter if you are right 99 of every 100 trades. It is a mathematical certainty. As explained before:

The higher your % of sucess per trade implies that you use a riskier (negative) reward:risk ratio.

If your success rate is 99% very likely you are using a 1:10 ratio at the very least. If you couple that with trading without SL I am not surprised you blew the account in one month.

You can have a 70% - 50% or even 30% success ratio and not only be profitable but easily beating your strategy.

We get paid for making money in the overall picture, not for the amount of trades we win. We are not baseball pitchers.

You misunderstood me, I always used stops in swing trading, and still got blown,
I have done 3 trading tests, passed 2, blew 1, then repaired the acc using scalping.


In scalping you face the speed problems, and placing a stop is not necessary unless you leave the trade unattended, if I do leave the losing trade open till the next day, I place a very tight limit order, and a massive stop loss. Like a risk - reward ratio of risking 90 pips and winning only 5 pips, if the trade just goes 5 pips in my favour I'm out in this case, the probability my limit order willbe hit is VERY high!


Every day is different, even thinking about placing a stop on every trade it interracts with your plans, and if you do place it it will just risk getting you stopped out... that applies to scalping only!

 

[vergis92]

Vergis mate

It isn't hard to blow an account and particularly so in the beginning when we make mistakes.
You claim success without using SL's.
It's possible but you'll need to be at your screen watching the charts or it will have to be a cyclical and boring market.

Do you use hedging at all? (opposite trades)
What lot size do you use and how much gearing?
I found that I can be profitable with1 broker and not with another because of different lot size and gearing.
I need to look into this further

I have tried almost everything, used many techniques, stop loss placement, it worked with some strategies but I still gave 50% of the profits back...
I tested with real and simulated money!

The only technique that has proved to make maximum money at minimum time, and consitently, without giving back much of the gains is scalping, that is calping without stops and paying close attention, all trades open as losers! they all open as losers and may become very large losers in the next 30 minutes, but because I know the chosen price zone will be volatile but trendless, within known limits, any breakout is seen as a false breakout and I fade it


if I was to resume my trading, and had $20,000, I would trade with a good ECN broker, and would apply scalping only, I believe I will be able to make $5000 - $8000 per month, without risk of acc blowout, because I am very chosey with what days I will choose to scalp, only 8 days a month meet the criteria, and even if a losing day comes (a big $3000 loss) I can recover it over 3 days easily.

take a look at the simulated trades, except for 2 large profits, all other trades were scalping, and they were LOSING trades for as long as 4 hours before finally turning around, it's hard and stressful, but it's the surest way to make money, or just pass any trading test / competition, since it can turn $20,000 to as much as $40,000 in a month

 

[BILLV]

take a look at the simulated trades, except for 2 large profits, all other trades were scalping, and they were LOSING trades for as long as 4 hours before finally turning around, it's hard and stressful, but it's the surest way to make money, or just pass any trading test / competition, since it can turn $20,000 to as much as $40,000 in a month

Hi Vergis
I believe you can do it.
I actually have done the same with a few trades that went wrong but I didn't need to wait 4 hours.
(I only trade for a few hours every night so I don't have this luxury).

I don't normally leave trades unattended overnight but I did this on Thursday night.
I had 2 long positions on GBP/USD and kept them open till the next day because of the stupid FIFO rule.
FIFO means first in first out so if you have several trades in the same currency and want to exit one, the broker will close them in the same order you placed them. I lost about 140 pips because my broker kept on closing the wrong trades.
When I realised what was happening I stopped closing my trades but I got caught out.

I'm also experimenting with hedging.
Sometimes when a trade goes wrong and I'm fairly confident that the chart pattern is repeatable I also take an opposite trade and I exit them both at different times. In most cases both of them make a profit (1 larger + 1 smaller profit) and occasionaly 1 will suffer a small loss or will break even

 

[vergis92]

Hi Vergis
I believe you can do it.
I actually have done the same with a few trades that went wrong but I didn't need to wait 4 hours.
(I only trade for a few hours every night so I don't have this luxury).

I don't normally leave trades unattended overnight but I did this on Thursday night.
I had 2 long positions on GBP/USD and kept them open till the next day because of the stupid FIFO rule.
FIFO means first in first out so if you have several trades in the same currency and want to exit one, the broker will close them in the same order you placed them. I lost about 140 pips because my broker kept on closing the wrong trades.
When I realised what was happening I stopped closing my trades but I got caught out.

I'm also experimenting with hedging.
Sometimes when a trade goes wrong and I'm fairly confident that the chart pattern is repeatable I also take an opposite trade and I exit them both at different times. In most cases both of them make a profit (1 larger + 1 smaller profit) and occasionaly 1 will suffer a small loss or will break even

You mean hedging against the open losing trade, and leaving both open, overnight, and on large stops, until the next day? this is interesting, of course one has to pay attention to the longer term trend as well. I can predict what will happen over 2-3 weeks , especially in EUR/USD, but I cannot predict tomorrow's day at all, if hedging is used properly though it can prevent big losses, and you take the uncerainty of the market

 

[BILLV]

You mean hedging against the open losing trade, and leaving both open, overnight, and on large stops, until the next day? this is interesting, of course one has to pay attention to the longer term trend as well. I can predict what will happen over 2-3 weeks , especially in EUR/USD, but I cannot predict tomorrow's day at all, if hedging is used properly though it can prevent big losses, and you take the uncerainty of the market

Hi Vergis,

Mate, with the EUR/USD pair I cannot predict what will happen in 5 minutes so I don't know how you can predict what will happen during the next 2 weeks.
Think about it.
You don't need SL's when you hedge but since I'm trading a live account I must protect it so I've started putting an SL of 20 pips on all my scalps (just in case my server crashes or I need to run off somewhere)
With the hedge I get in early and I cover my losing position limiting my losses to a few pips and provided that the pattern repeats itself the price will come good and I'll exit with a profit.

This technique is different to using SL's and getting out of the trade with a loss because
a) you hedge a losing trade well before a stop loss position
b) you don't waste the spread you've already paid and
c) you are likely to end up with a profit.

I know some people here will think I'm an idiot but I've tried it a few times and it worked and it is likely to work for your current trading strategy as well ( as long as you pick the right days and currency pair. Even if something drastic happens and the trend changes like the GBP crash the other day and the price turns against you by 100 pips your losing position will hit the SL and provided you remove the SL from your hedging trade you could make a lof of dosh.

In the demo account I noticed you take a lot ot EUR/USD positions.
Is it because of the lower spreads?
Euro tends to go in one direction these days and if you leave a long position open with no SL's or hedging you could expose yourself with an losing trade which will never become profitable.
Just a thought....

 

[vergis92]

Hi Vergis,

Mate, with the EUR/USD pair I cannot predict what will happen in 5 minutes so I don't know how you can predict what will happen during the next 2 weeks.
Think about it.
You don't need SL's when you hedge but since I'm trading a live account I must protect it so I've started putting an SL of 20 pips on all my scalps (just in case my server crashes or I need to run off somewhere)
With the hedge I get in early and I cover my losing position limiting my losses to a few pips and provided that the pattern repeats itself the price will come good and I'll exit with a profit.

This technique is different to using SL's and getting out of the trade with a loss because
a) you hedge a losing trade well before a stop loss position
b) you don't waste the spread you've already paid and
c) you are likely to end up with a profit.

I know some people here will think I'm an idiot but I've tried it a few times and it worked and it is likely to work for your current trading strategy as well ( as long as you pick the right days and currency pair. Even if something drastic happens and the trend changes like the GBP crash the other day and the price turns against you by 100 pips your losing position will hit the SL and provided you remove the SL from your hedging trade you could make a lof of dosh.

In the demo account I noticed you take a lot ot EUR/USD positions.
Is it because of the lower spreads?
Euro tends to go in one direction these days and if you leave a long position open with no SL's or hedging you could expose yourself with an losing trade which will never become profitable.
Just a thought....

I prefered EUR/USD because it's 1/3 of the whole market, and hence more liquid, but I now think it's not really necessary, we trade with small amounts anyway, some people believe that if a market is big, then it's impossile to manipulate. to be honest, I don't have a clue if there's coordinated manipulation in any fx market, in 1992 there was a coordinated attack against the british pound, many bankers around the world bet against the pound, led by investor Jewish George Soros and they suceeded! They effectively made billions at Britains expense.

Now, is there manipulation in the currencies, in the day to day movements?
sometimes there's is intentional Central Bank interventions, to help something in the economy, this causes sharp, 800 pip movement in 2 days, opposite to the trend, but later the old trend resumes.

Most of these moves are predictable, not with perfect timing but they can be expected during the next 5-30 days....


However, regardless whether there's manipulaion or not, it is impossible to predict the daily direction in a market in a specific day, because the news and reports give a combined probability, which is less than 50%, many people think it's just 50-50, soif the report is good market rises, if it's bad I will have a tight stop in place and cut my losses short as the amrket drops....

In reality you only have 12.5% probability of success because:

1)bad news - good news is one 50-50 bet, or 0.5

2)better or worse than analysts expect, is another 50-50 bet, another 0.5 factor

3) already priced in by the market or not - that is another 0.5 factor.


There's no way to make sense of the news and reports in that day, because
the probabilty of success is: 0.5 x 0.5 x 0.5 = 0.125 or 12.5%

Forex websites have to pay attention to the news because they need fresh daily content to keep up their SEO and rank high in google, but these reports and news are useless for picking market direction, only chart technical analysis may hint you about correct direction, a flag, a pennant etc, how many times we have seen markets rally on bad news, or decline on good news...


The loger term trend is predictable because you can use TA and simple tools.

I don't believe in Fibonacci, I only use simple trendlines, related currencies, for EUR/USD I look also at USD:CAD GBP:USD, and for flag formations on any of them.

Then there's more complicated tools also, but even these simple ones can be useful

 

[rwillia789]

scalping is obviously more profitable because you do many many more trades

 

[Bint_Crusher]

scalping is obviously more profitable because you do many many more trades

To an amateur maybe, your broker (bitch) will love you for it.