New to scalping

[ajreardon]

Hiya people

Im pretty new to the whole spread betting scene but scalping has been of special interest to me, ( having a small amount of fund, and also being the most successful method ive used so far while using simulators for the last few months).

On a few demo accounts ive managed to turn over quiet regular 60-70£ profit daily by just placing £1 bets using trend lines to see determine the general flow of the market for the day and then using a relatively short term RSI to hop on a downward/upward trend.

Now i know this is a VERY basic form of trading and probably a terrible one, and that i have most likely been lucky.

Basically my question is can anyone give me advice / point me in the direction of anyone who can school me in scalping on a small amount of funds, ( £300-400). I want to make some money off this and as im currently unemployed i have a lot of time on my hands.

I want to get a proper system in place before i start using real money and i would love for any experienced day traders who turn themselves a nice profit to give me some advice/ input as to systems they have used which have worked for them 🙂

Any replies would be great.

Many thanks

Xander

 

[shadowninja]

Just keep testing what you're doing and look out for big loss potential. The more you stare at the charts, the more obvious it becomes.

 

[peto]

Wot shadowninja said. If you can find 60 points a day consistently , you won't find a tutor to beat you, in fact you should have a line of students beating a path to your door asking you to show them how you do it!
Just watch out for the losing days or losing trades, that you keep them under tight control. And bear in mind some demo accounts don't mirror reality. The cmc one does, it runs on the same servers as their real accounts.

 

[x4x]

Hiya people

Im pretty new to the whole spread betting scene but scalping has been of special interest to me, ( having a small amount of fund, and also being the most successful method ive used so far while using simulators for the last few months).

On a few demo accounts ive managed to turn over quiet regular 60-70£ profit daily by just placing £1 bets using trend lines to see determine the general flow of the market for the day and then using a relatively short term RSI to hop on a downward/upward trend.

Now i know this is a VERY basic form of trading and probably a terrible one, and that i have most likely been lucky.

Basically my question is can anyone give me advice / point me in the direction of anyone who can school me in scalping on a small amount of funds, ( £300-400). I want to make some money off this and as im currently unemployed i have a lot of time on my hands.

I want to get a proper system in place before i start using real money and i would love for any experienced day traders who turn themselves a nice profit to give me some advice/ input as to systems they have used which have worked for them 🙂

Any replies would be great.

Many thanks

Xander

If you're making regular and consistent returns with your method - keep doing it, don't change a thing, who cares if it is basic.

Scalping requires an inordinate amount of discretion, patience, self control, concentration, tight stops and pinpoint entries, that's why most can't do it - it's far easier to have a great big old wide stop loss or none at all, but the downside is you don't make much.

if you can re-create the same results live you've made it - but be warned, live trading is a totally different animal.

Start small, grow your account organically, don't over trade and don't get greedy. To me a more realistic target for scalping is 10 points per day - with the right method there is no reason why this can't be achieved even on the hardest of days.

 

[ronblack]

...and also being the most successful method ive used so far while using simulators for the last few months).

In simulation nobody trades against you so spread do not get tight or widen. In live trading someone bets against you, usually your own broker or some market maker. He is not willing to lose money, believe me.

Better try live. If you lose it all do not try again the same method. You will lose again.

 

[Aleton]

Hello everybody! it's a great community, and I would like go add my thought as well.

I choose this post since I am also new and have had the same concern...
will my scalping technique work on real account! in my case the answer was clearly NO!!!

I had 4000 euros gain in one week on the paper account, but when I start on the real one things went differently, and lost 200 euros in the first day.

the main difference I noticed, maybe the only one, is that when the price reaches the level you want to buy or sell, it doesn't mean that you are really buying or selling.

on demo account I was putting my target 3 ticks above (for long positions) and then reducing after few seconds to 2 or 1, and most of trades I was winning 1 or 2 ticks, because when the price hit my target, the order was executed.

on real account even when the price hit my target, the order is not executed, because it is queuing.
So you are sure that the position closes only when the price goes above your target.
For scalping I think this is a very crucial difference between paper and real account.
then eventually the price reverts back and closes to my stop loss, that is a 3 ticks trailing (maybe to short, because it gets hit quite frequently)

now I think I have to find a strategy that works with more ticks, like with targets set to 5 ticks, and I will start trading again only when I see that it works.
stop also maybe has to be 5 ticks, and when the position starts to be a winning one, go to break-even.

so from my side I would say the main difference is the queuing time... it's so stressing seeing the price at your target and seeing that your position is not closing!!!

I am also keen in receiving comments and suggestions!

cheers

A

 

[x4x]

I personally would never try to scalp a market using orders - get straight in with an at market entry.

 

[Aleton]

yes, I think I learned this...
I was also using a functionality provided by the tool to place order at bid price (for long positions) that would have "theoretically" saved me the spread between bid and ask (that is the reason for which it is advised)
that was really a disaster since I was missing few ticks of up direction before the position was open, that basically where the once for which I was betting!

the "entering the market" at bid price was very successful on demo, but not on the real one. because again you have queue

 

[x4x]

yes, I think I learned this...
I was also using a functionality provided by the tool to place order at bid price (for long positions) that would have "theoretically" saved me the spread between bid and ask (that is the reason for which it is advised)
that was really a disaster since I was missing few ticks of up direction before the position was open, that basically where the once for which I was betting!

the "entering the market" at bid price was very successful on demo, but not on the real one. because again you have queue

What platform are you using - I don't usually have any problems getting filled at market, but my entries are always on pull-backs, which does help.

 

[TOR102]

In live trading someone bets against you, usually your own broker or some market maker.

May I ask where did you pick up the above gem of information

 

[Aleton]

at market I also do not have problems, but when I want to buy at bid price I do.
the platform itself is very nice it's the futurestation from fipertec.
I don't if you know the feature that place a long order on the bid price, and the if the price goes up without being able to buy, your order also goes up following the bid price...
you basically wait for someone to "sell you"...
I think it is not very useful, because for scalping is not good, and for others one tick doesn't make a big difference I guess...
or maybe I just don't use it well, and then I would like to have some advise! 🙂

if you buy on pull-backs it should be fine, but I try to buy when I see that the market starts to go up again, and what I see is also my bid price going up and never buying!

what are you using instead?