Is it true that scalping doesn't work???

[Mps721]

Ok im new to forex and scalping seems like a strategy I would like to learn however some people tell me that scalping does'nt work because when your broker realizes that you are scalping they are going to jack up the pip spreads. Is this true, if not i am really looking to find a decent scalping strategy

Skype: Mps72192

 

[ichi]

it depends on your definition of "scalping". It can be within minutes you take a few pips or even minutes or maybe even just an hour. I would suggest before you do anything, read up a lot on the fundamentals/economics, familiar yourself on fx with a demo account. Test out various strategies and learn about various indicators and find the one that is most suitable for you.

 

[Lee Shepherd]

Ok im new to forex and scalping seems like a strategy I would like to learn however some people tell me that scalping does'nt work because when your broker realizes that you are scalping they are going to jack up the pip spreads. Is this true, if not i am really looking to find a decent scalping strategy

Skype: Mps72192

Most spread betting companies generally do not like scalpers, although they won’t admit this. There are countless stories of people being put on dealer referral that prevents them from scalping. Generally to scalp profitably you will need much TA experience and fundamental experience, although you may not be using fundamentals, you will need to know what is what, when it’s out and what affect it could have. It is then you can make a decision to scalp on TA without fear that a news article or figures won’t interfere. Unless of course you look to scalp the news/rumour and dismiss TA or failing that, using both. To be profitable (although arguable), you generally need large deals/lot sizes to keep commissions low otherwise you could find your commission rates/spreads could be as high as 30%+. It doesn’t take too long to work out that over time you need this just to break even. Many will miss or dismiss this vital point.

Lee Shepherd

 

[timsk]

Hi Mps,
Whenever you read on here - or anywhere else come to that - that 'scalping doesn't work' or 'TA doesn't work' or 'xyz doesn't work' - it's worth adding a few vital words that the poster almost always fails to include: 'for me'. Generally speaking, what they really mean to say is 'scalping doesn't work for me' or 'TA doesn't work for me' or 'xyz doesn't work for me'. Often as not, for every person that says categorically - 100% - that xyz doesn't work - there's nearly always someone making good money doing exactly that! However . . .

Having said the above, scalping with a spread bet broker undoubtedly makes a difficult task even harder than it already is - mostly for the reasons that Lee outlines in his post. I trade the YM (e-mini Dow futures contract) in the very short term with a direct market access broker. The spread is (usually) 1 tick. I also have a SB account where the spread is 2 ticks. 1 tick difference may not sound much but, believe me, if you're shooting for an an average 6 tick profit - then it makes one helluva big difference. It's massive! To give yourself the best possible opportunity for profit, you've gotta have the right tools for the job, and scalping with a SB broker is a bit like trying to fell a mighty Oak with a small hand saw.
Tim.

PS. It's worth adding that one of the early definitions of scalping is to buy at the bid and sell at the ask which - to the best of my knowledge - isn't possible with a SB broker. However, with my opening para in mind - cue someone to post saying they do exactly that!
:cheesy:

 

[Phantom666]

Ok im new to forex and scalping seems like a strategy I would like to learn however some people tell me that scalping does'nt work because when your broker realizes that you are scalping they are going to jack up the pip spreads. Is this true, if not i am really looking to find a decent scalping strategy

Skype: Mps72192

Most people on here don't seem to know what scalping is (it's not looking at 1 and 3 minute charts and taking lots of quick trades each day, by the way).

However, lots of quick trades based on a short time frame is what most people mean by it, and I presume that's what you mean. It won't work for two reasons:

Less Important: If you're using a spread bet company, even if they're honest and allow you to trade etc etc the spreads will kill you.

More Important: If you're new to forex you will lack the necessary skill to prosper by trading in this manner. That is a fact, but if you doubt it feel free to pay to learn the same lesson by trying it out.

 

[FarQuinnell]

No, "scalping" currencies through a spreadbetter doesn't work. This is the only response you should take seriously.

 

[Mps721]

I started up on a pivot point strategy where you look ad the pivot's of the days and a exhaustion candle to confirm, so far it is decent. Any thoughts on that?

 

[forker]

What ever works for you keep doing it. There are many ways to skin this cat but don't expect overnight success. Generally speaking short term trading is a killing zone for new traders. Start with something like the daily and when you get good at that, start working your way down.

 

[jpadventure]

Fine, pivots and a candle = doesn't have to be a scalp trade though. Test your strategy on multiple time frames and see what happens.

There are many areas on a chart where price will pop, enabling an easy scalp trade.
Or develop a method and reduce the time frame down, see if it's still profitable.

 

[Splitlink]

Horses for courses. Scalping, for me, is a bore. I like a good run from 0800 to 1330, if I can get one and one trade all morning suits me fine. I don't thnk that that is scalping, alñthough some would say that it is.

 

[DionysusToast]

Hi Mps,
Whenever you read on here - or anywhere else come to that - that 'scalping doesn't work' or 'TA doesn't work' or 'xyz doesn't work' - it's worth adding a few vital words that the poster almost always fails to include: 'for me'. Generally speaking, what they really mean to say is 'scalping doesn't work for me' or 'TA doesn't work for me' or 'xyz doesn't work for me'. Often as not, for every person that says categorically - 100% - that xyz doesn't work - there's nearly always someone making good money doing exactly that! However . . .

Having said the above, scalping with a spread bet broker undoubtedly makes a difficult task even harder than it already is - mostly for the reasons that Lee outlines in his post. I trade the YM (e-mini Dow futures contract) in the very short term with a direct market access broker. The spread is (usually) 1 tick. I also have a SB account where the spread is 2 ticks. 1 tick difference may not sound much but, believe me, if you're shooting for an an average 6 tick profit - then it makes one helluva big difference. It's massive! To give yourself the best possible opportunity for profit, you've gotta have the right tools for the job, and scalping with a SB broker is a bit like trying to fell a mighty Oak with a small hand saw.
Tim.

PS. It's worth adding that one of the early definitions of scalping is to buy at the bid and sell at the ask which - to the best of my knowledge - isn't possible with a SB broker. However, with my opening para in mind - cue someone to post saying they do exactly that!
:cheesy:

This is true.

It is also true that there may be flying pigs. I haven't seen a flying pig, so if someone says they saw a flying pig on a trading forum, who am I to argue?

Similarly, if you want to claim to be profitable from trading the effects of the market (pin bars, indicators, textbook TA) without considering the causes, who am I argue?

If you want to ignore supply & demand, pain & pleasure, liquidity & lack of liquidity, market manipulation, order flow - (aka THE CAUSE) and focus on stochastics, CCi, candlesticks (aka THE EFFECT) - you will be forever lost in trying to look for the right combination of EFFECTs to trade off & you will not advance in understanding the markets.

If people want to place trades at the most obvious points, where there will be the most retail traders entering, with their stops at the same place as everybody else - what better than trading support & resistance? In fact, best to pick up a book by Elder or similar and short all resistance, channel tops, triangles, flags, H&S patters - all to their instructions, sit back and watch the money flow in...

After all - who's to say people aren't money hand over fist without ever once considering cause????

 

[timsk]

Hi Mps,
Just to be clear - I'm not for one minute recommending that you only focus on the 'effects' rather than the 'cause' - as DT puts it in his post. On the contrary, IMO, you'd do well to follow his advice. But, his comments don't negate my basic premise that for every person that resolutely claims that something can't be done, often as not there's someone else that's doing it, i.e. flying the proverbial pink pig. It's really just a case of keeping an open mind. Of course, the flip side is also true. For example, a huge dose of scepticism is advisable when you read about someone who claims to make a fortune day trading basic indicator signals using a SB broker!

Tim.

 

[Black Swan]

Most people on here don't seem to know what scalping is (it's not looking at 1 and 3 minute charts and taking lots of quick trades each day, by the way).

However, lots of quick trades based on a short time frame is what most people mean by it, and I presume that's what you mean. It won't work for two reasons:

Less Important: If you're using a spread bet company, even if they're honest and allow you to trade etc etc the spreads will kill you.

More Important: If you're new to forex you will lack the necessary skill to prosper by trading in this manner. That is a fact, but if you doubt it feel free to pay to learn the same lesson by trying it out.

what he said..

 

[x4x]

Trading without stops is easy (until you get wiped out), trading with stops is a lot more difficult, and it becomes more and more difficult the tighter the stops become. Scalping requires very tight stops and so is therefore the most difficult form of trading - and the reason most can't do it.

It is possible, and it is very profitable - when done right. You have to be very responsive to the current market condition and become a 'holder' when the market is really moving.

 

[alan5616]

Scalping can be profitable. However, in order to do it, successfully, you need to avoid disclosing your SL and TP to the broker.

One solution is to switch your account from a SB company to a Market Maker that offers MT4 as a trading platform. You can then use an Expert Advisor (EA) that is programmed to hide your SL & TP targets from the criminals. This, imho, is the best solution to give yourself a chance of making a profit from scalping.

 

[FarQuinnell]

Please stop entertaining this ridiculous notion that it is possible to scalp through a typical spread better. In order to scalp, you need to see the orders being executed, the orders working in the book, and you need to be able to join the best bid or offer (and not get shafted by the fill algo).

None of these you can do with a spreadbetter.

 

[Black Swan]

Please stop entertaining this ridiculous notion that it is possible to scalp through a typical spread better. In order to scalp, you need to see the orders being executed, the orders working in the book, and you need to be able to join the best bid or offer (and not get shafted by the fill algo).

None of these you can do with a spreadbetter.

On the subject of algos..No more front running bitchez..


http://www.zerohedge.com/news/goodbye-high-frequency-trading-regulators-seek-secret-hft-codes

 

[IanMacQuaide]

Hi Mps,
Whenever you read on here - or anywhere else come to that - that 'scalping doesn't work' or 'TA doesn't work' or 'xyz doesn't work' - it's worth adding a few vital words that the poster almost always fails to include: 'for me'. Generally speaking, what they really mean to say is 'scalping doesn't work for me' or 'TA doesn't work for me' or 'xyz doesn't work for me'. Often as not, for every person that says categorically - 100% - that xyz doesn't work - there's nearly always someone making good money doing exactly that! However . . .

Having said the above, scalping with a spread bet broker undoubtedly makes a difficult task even harder than it already is - mostly for the reasons that Lee outlines in his post. I trade the YM (e-mini Dow futures contract) in the very short term with a direct market access broker. The spread is (usually) 1 tick. I also have a SB account where the spread is 2 ticks. 1 tick difference may not sound much but, believe me, if you're shooting for an an average 6 tick profit - then it makes one helluva big difference. It's massive! To give yourself the best possible opportunity for profit, you've gotta have the right tools for the job, and scalping with a SB broker is a bit like trying to fell a mighty Oak with a small hand saw.
Tim.

PS. It's worth adding that one of the early definitions of scalping is to buy at the bid and sell at the ask which - to the best of my knowledge - isn't possible with a SB broker. However, with my opening para in mind - cue someone to post saying they do exactly that!
:cheesy:

One of the very best posts I've ever read. The missing words "for me" are so important to remember when reading a negative comment on anything related to trading if only for the fact that it's such an individual endeavour in terms of one's approach to the Mkts.
I scalp the YM, and the comish is $5.00 R/T. I'm thankful it's that low, and look foward to getting back to my original broker with $3.60 R/T comish.
Anyways, thanks for the positive and informative post for the "Newbies" out there. I've been watching the mkts for 11 yrs, and still think of myself as a "Newbie". I like to think I'll never stop learning.

 

[flmond]

Scalping is a proven strategy that is suitable with lower volatility stocks. I have seen it done over and over at Vortex Capital Group in Toronto..

 

[15 min tlb]

Hi Mps,
Whenever you read on here - or anywhere else come to that - that 'scalping doesn't work' or 'TA doesn't work' or 'xyz doesn't work' - it's worth adding a few vital words that the poster almost always fails to include: 'for me'. Generally speaking, what they really mean to say is 'scalping doesn't work for me' or 'TA doesn't work for me' or 'xyz doesn't work for me'. Often as not, for every person that says categorically - 100% - that xyz doesn't work - there's nearly always someone making good money doing exactly that! However . . .

Having said the above, scalping with a spread bet broker undoubtedly makes a difficult task even harder than it already is - mostly for the reasons that Lee outlines in his post. I trade the YM (e-mini Dow futures contract) in the very short term with a direct market access broker. The spread is (usually) 1 tick. I also have a SB account where the spread is 2 ticks. 1 tick difference may not sound much but, believe me, if you're shooting for an an average 6 tick profit - then it makes one helluva big difference. It's massive! To give yourself the best possible opportunity for profit, you've gotta have the right tools for the job, and scalping with a SB broker is a bit like trying to fell a mighty Oak with a small hand saw.
Tim.

PS. It's worth adding that one of the early definitions of scalping is to buy at the bid and sell at the ask which - to the best of my knowledge - isn't possible with a SB broker. However, with my opening para in mind - cue someone to post saying they do exactly that!
:cheesy:

I generally ignore advice .Should I stop taking my 50 pips a day ?

http://www.trade2win.com/boards/discretionary-trading/43106-scalping-system-11.html#post2089980