A Question for Scalpers
- Thread starter FaderTrader
- Start date
Never calculated it...
Figure about 10-20%, I think.
Again, I don't scalp.
Figure about 10-20%, I think.
Again, I don't scalp.
Scalping is the toughest thing you can do. 98% of all scalpers fail.. By not scalping, the odds are 10-20% greater that you'll make it. Or you might've already made it because you didn't scalp.
But, its always fun to figure out numbers where had I traded 75% less, and saved 25% in commissions.. how much more would I've made etc etc..
You all make some good points about Scalping....but if done right....it can be rewarding. I think Scalping Stocks is a lot harder than scalping Futures.
I have been day trading and scalping for many years now. Started with stocks....now totally scalp the e-mini's for the past several years. Will never trade a stock again.
So far....all the conversation seems to be about Scalping Stocks. I think there is a big difference scalping Futures.
I use a lot less margin per trade....and make a much better and faster profit than I ever did scalping stocks. Of course....when I lose on a trade....I lose much bigger and faster....haha
My win_loss ratio is very high. The key to my trading is my Discipline. My Discipline is based on a set of Rules which I Strictly follow. Years ago....I had Rules....but I used to break them all the time....and that is when I lost....big. I was Wild....be up $500 in the morning....down $1000 by the time the market closed....and the funny thing is....I thought I was a Disciplined trader back then. In reality....back in those days....I didn't have any idea about what Discipline really was. I had to train myself to follow my Rules....then I started being consistently profitable.
By the way....I NEVER use more than $2,000 on any trade. I scalp the ES or ER for 2 ticks....4 contracts. It cost me $500 per contract. When the trade is done....I have the same money to trade with again. I Net....$64.40 per 2 tick trade....on 4 contracts. My RT commissions are $15.60 for 4 contracts. I do have losing trades....but not too often....and if I make a mistake....I take the loss.
The biggest problem I see for Scalpers....is waiting for the trade to set-up. If you Force a trade....you will burn yourself....but if you wait for the Set-up....you can win at Scalping. Years ago....I was the type of trader who always had to be in a trade....and that was one of my biggest problems....and that is when I lost the most. If you are Scalping....you better damn sure wait for the right Set-up.
I do a combination of Scalping and trading in a Trend. One thing I will say....since I learned how to Scalp....I am now a better trader when trying to follow a Trend.
Good trading to all!
VSTscalper
I have been day trading and scalping for many years now. Started with stocks....now totally scalp the e-mini's for the past several years. Will never trade a stock again.
So far....all the conversation seems to be about Scalping Stocks. I think there is a big difference scalping Futures.
I use a lot less margin per trade....and make a much better and faster profit than I ever did scalping stocks. Of course....when I lose on a trade....I lose much bigger and faster....haha
My win_loss ratio is very high. The key to my trading is my Discipline. My Discipline is based on a set of Rules which I Strictly follow. Years ago....I had Rules....but I used to break them all the time....and that is when I lost....big. I was Wild....be up $500 in the morning....down $1000 by the time the market closed....and the funny thing is....I thought I was a Disciplined trader back then. In reality....back in those days....I didn't have any idea about what Discipline really was. I had to train myself to follow my Rules....then I started being consistently profitable.
By the way....I NEVER use more than $2,000 on any trade. I scalp the ES or ER for 2 ticks....4 contracts. It cost me $500 per contract. When the trade is done....I have the same money to trade with again. I Net....$64.40 per 2 tick trade....on 4 contracts. My RT commissions are $15.60 for 4 contracts. I do have losing trades....but not too often....and if I make a mistake....I take the loss.
The biggest problem I see for Scalpers....is waiting for the trade to set-up. If you Force a trade....you will burn yourself....but if you wait for the Set-up....you can win at Scalping. Years ago....I was the type of trader who always had to be in a trade....and that was one of my biggest problems....and that is when I lost the most. If you are Scalping....you better damn sure wait for the right Set-up.
I do a combination of Scalping and trading in a Trend. One thing I will say....since I learned how to Scalp....I am now a better trader when trying to follow a Trend.
Good trading to all!
VSTscalper
Quote from JMowery1987:
Did you even read anything FT posted??????
lol
First off, I'm not arguing at all with FT, I'm arguing the author of the article, I didn't even consider FT's opinion on this.
I have been talking to FT btw and been exchanging ideas with him VIA pm, so don't you look like a dumbass now? Congrats, now say you are sorry and go play with the other kiddies.
Oh and just incase you didn't READ what FT posted:
NOTICE something here.
My mistake for not realizing FT was paraphrasing someone else. Yours for continuing with the abusive comments, but Steelhead takes the cake.
Uncivil bastards, go get laid.
Agree with VSTscalper. It's all about the set up. New highs, new lows, reversion to the mean, dip after breakout, and especially VOLUME. It only takes a few winning trades a week to make a living at trading. The key is to have the patience to stay flat while waiting for those few infrequent set ups. A good scanner helps.
I've been betting dollars to make pennies for 13 years...
And have outperformed the S&P 500 by about 20% annually.
The key is to use statistically valid quantitative analysis...
To find "relatively mispriced stocks" in less efficient market niches.
Quants can scalp with a 10 minute horizon...
Or use ** exactly the same analysis ** to put on longer positions (like 1-2 weeks).
THIS IS THE KEY EXPLANATION.
So every time I enter into a position... I usually have 2 things going for me:
(1) I'm buying/shorting something that has become inefficiently priced.
(2) The bid/ask spread is in my favor.
And overall... my Portfolio is well diversified and close to 50/50 long/short.
How you manage your losses in the key to everything.
One must be absolutely ruthless at taking losses early and avoid bleeding to death.
Another bus comes along every few minutes... so I get off a losing bus quickly.
So Fader... I enjoy reading your posts...
But maybe you don't know a lot of quants.
And in terms of "randomness" I would probably agree with Taleb most of the time.
rm+
the answer is (IMO) two parted.....1. yes you may be betting dollars but your not really risking dollars.....if you buy a 1000 shares of a $20 stock it costs you 20k.....but your not risking 20k....your only risking the pennies the equity will move while you are in your trade...and as a scapler you wont be in that trade long enough to risk anything big....a $20 stock isnt going to 0 in 5 minutes so your not risking dollars to make pennies.....that is a very misguided statement to make......2. a scalper does not hold a position offside more than a penny or two (well a good scalper anyway).....so again your not risking dollars.....and all a scalper has to do is be more right than wrong and he will be successful.....and there are many many successful scalpers out there so obviously it is a viable and profitable way to trade
scalping is a viable strategy.
i scalp the YM.
i also swingtrade (and occasionally daytrade/scalp) stocks and options
and some stocks i buy and HOLD (for years)
scalping is a great and viable strategy.
but yes, if one is gonna eat like a bird, then one can't #$* like an elephant
and scalpers CAN let their profits run.
if i'm scalping 3 contracts of YM, 2 are targeted exits, and i let the third run with a stop @ entry (usually - it depends on the setup of course)
i don't have any problem with letting a scalp turn into a longer trade AS LONG AS it's because it's a winning trade. the loser thing to do is to turn it into a bagholder because you are Losing, and you think it is gonna turn around.
that is a loser mentality.
that's why i keep my position , swing and longterm trades in a seperate account from the scalps
i scalp the YM.
i also swingtrade (and occasionally daytrade/scalp) stocks and options
and some stocks i buy and HOLD (for years)
scalping is a great and viable strategy.
but yes, if one is gonna eat like a bird, then one can't #$* like an elephant
and scalpers CAN let their profits run.
if i'm scalping 3 contracts of YM, 2 are targeted exits, and i let the third run with a stop @ entry (usually - it depends on the setup of course)
i don't have any problem with letting a scalp turn into a longer trade AS LONG AS it's because it's a winning trade. the loser thing to do is to turn it into a bagholder because you are Losing, and you think it is gonna turn around.
that is a loser mentality.
that's why i keep my position , swing and longterm trades in a seperate account from the scalps