Is scalping still profitable?
- Thread starter qlai
- Start date
Any way of trading is still profitable if you have the right setup.
But as with most trading strategies, most will fail and a few will succeed.
But as with most trading strategies, most will fail and a few will succeed.
Most of the discussions at ET that I've seen involving scalping was in reference to stocks and futures. You got to be automated, excellent latency, low(er) commissions than the typical day trader, using a trade execution platform suitable for scalping to be profitable.
The theme revealed that many retail traders of the above markets weren't even setup properly to succeed even prior to their first trade. For example, too many references by traders saying they scalp manually via the 5min chart or that they don't use stops. That statement is not a joke...it was a common theme.
In contrast, the video you posted seems to involve scalping in reference to CFDs, Spread Betting and FX. I'm not sure if the above variables that are needed to succeed in stocks & futures are the same needed for success in CFDs, Spread Betting and FX. I'm going to just assume YES.
wrbtrader
I've watched a lot of clips from the same site, they're generally practical and informative.
But let's face it, profitable "scalpers" don't watch videos entitled "Is scalping still profitable?"
So its a clip for new or not yet traders. And this is where the dishonesty comes in. Show me 100 new traders, leave them alone with Youtube and social media and at the end of the year I'll show you 95 guys who blew up doing this. So in practical terms, the answer is actually, no, scalping is not generally profitable - for the viewers this clip is aimed at.
But let's face it, profitable "scalpers" don't watch videos entitled "Is scalping still profitable?"
So its a clip for new or not yet traders. And this is where the dishonesty comes in. Show me 100 new traders, leave them alone with Youtube and social media and at the end of the year I'll show you 95 guys who blew up doing this. So in practical terms, the answer is actually, no, scalping is not generally profitable - for the viewers this clip is aimed at.
The video is pretty irrelevant. Except for about two minutes in the middle, when he actually *mentions* price action and the lack or the power thereof. Then he *mentions* expectancy and discipline, and spends the closing minutes repeating their importance.
So, in 6 seconds: Yes, scalping *can*be* profitable, provided we have sufficient price action to lend entry and exit to the market you're trading, and that you have the discipline to exit when the market goes against you, or when your best-expected-profit is reached.
FWIW, we've had *stinky* scalping markets for 5-6 years. (Yes -- ATR again...
)
So, in 6 seconds: Yes, scalping *can*be* profitable, provided we have sufficient price action to lend entry and exit to the market you're trading, and that you have the discipline to exit when the market goes against you, or when your best-expected-profit is reached.
FWIW, we've had *stinky* scalping markets for 5-6 years. (Yes -- ATR again...
)Ive yet to come across any books or resources online (that are free) that provide you with a good enough scalping education to really understand the way price moves. Primarily the “why it moves the way it does”. Once u get the why out of the way, it’s easier to send someone off on their own to give themselves a charting education.
And by scalping, my definition is holding anywhere from 15 seconds to 2-4 minutes.
And by scalping, my definition is holding anywhere from 15 seconds to 2-4 minutes.
Scalping by itself will never be profitable. Trading by itself will never be profitable. Just like any business will never be profitable by itself. Think about it. What makes stuff successful ?
Is boxing profitable ? Is F1 driving profitable ? Not for me, and probably not for you. But wow, it was pretty profitable for Mike Tyson, or Michael Schumacher.
Same with scalping. It all depends on YOU. The question is, can YOU be profitable with something, can YOU be successful with something ?
I would say about 80% here on the forum COULD be profitable with a very shortterm trading method (aka scalping), if they would know what they have too look for and if they would trust in this what they do and if they stick to it.
The markets however are not the problem. Take a 15 tick chart of the NQ. Take a 5 tick chart of the FDAX. Follow the ZN or FGBL DOM throughout the day. Not enough action ? Not enough volume ? Not enough volatility, opportunities ? If you truly believe that the markets of this year give not fantastic opportunity for scalping then maybe you should better go and flip burgers or something like that. This year the US equities are great. Last year the currencies. 2015 and 2016 the FDAX. The years before CL was fantastic to scalp... there is always something scalpable, a market that has lots of attraction, lots of fear and greed, volume and volatility. There is always somewhere money moving into and money moving away from. It was always like this. And it will always be like this.
Is boxing profitable ? Is F1 driving profitable ? Not for me, and probably not for you. But wow, it was pretty profitable for Mike Tyson, or Michael Schumacher.
Same with scalping. It all depends on YOU. The question is, can YOU be profitable with something, can YOU be successful with something ?
I would say about 80% here on the forum COULD be profitable with a very shortterm trading method (aka scalping), if they would know what they have too look for and if they would trust in this what they do and if they stick to it.
The markets however are not the problem. Take a 15 tick chart of the NQ. Take a 5 tick chart of the FDAX. Follow the ZN or FGBL DOM throughout the day. Not enough action ? Not enough volume ? Not enough volatility, opportunities ? If you truly believe that the markets of this year give not fantastic opportunity for scalping then maybe you should better go and flip burgers or something like that. This year the US equities are great. Last year the currencies. 2015 and 2016 the FDAX. The years before CL was fantastic to scalp... there is always something scalpable, a market that has lots of attraction, lots of fear and greed, volume and volatility. There is always somewhere money moving into and money moving away from. It was always like this. And it will always be like this.
The video is pretty irrelevant. Except for about two minutes in the middle, when he actually *mentions* price action and the lack or the power thereof. Then he *mentions* expectancy and discipline, and spends the closing minutes repeating their importance.
So, in 6 seconds: Yes, scalping *can*be* profitable, provided we have sufficient price action to lend entry and exit to the market you're trading, and that you have the discipline to exit when the market goes against you, or when your best-expected-profit is reached.
FWIW, we've had *stinky* scalping markets for 5-6 years. (Yes -- ATR again...
tom - I never do any intra-day TA, the only time I see a 30 minute chart is when I open my provider's charts - they default to this - just before I re-set them to D1.
Is ATR down so much?
What caused this?
Is it temporary or a permanent feature now?
Thanks.