Scalping is Risky?
- Thread starter Coner1980
- Start date
It is not risky. The winning percentage is high but profit margin is low.
But if you don't know when to do it and aimlessly go in and out you will be victim to overtrading and commissions.
In my opinion, scalping and intraday trading are quite different. I love to intraday trade. I trade 2 futures contracts, but take risk out on one position and move my stop to breakeven. If I were to scalp, I would close both positions simultaneously. There is much less risk when you take risk out on multiple contracts.
You can lose money as fast as you want with any strategy 
.
Scalping can be used as a main strategy or be used as a sub strategy. For example, my main strategy involves picking a stock long early on where I think it will end higher near mid or late in the day. I may do a few scalps while I wait for that to happen.
I wont talk about risk in terms of scalping but I will say that manual traders typically don't have an edge in scalping as it is dominated by algo traders and institutions who have better pricing and data supporting their entries & exits.
I'll also lean towards that scalping shouldn't be one of the first trading strategies one should learn and the strategy should only be used by those who have successful experience in other trading strategies.
Also, I just noticed NOW that this is under the forex sub forum... I'm fairly certain trading large swings is much more profitable than scalping forex lol.
.Scalping can be used as a main strategy or be used as a sub strategy. For example, my main strategy involves picking a stock long early on where I think it will end higher near mid or late in the day. I may do a few scalps while I wait for that to happen.
I wont talk about risk in terms of scalping but I will say that manual traders typically don't have an edge in scalping as it is dominated by algo traders and institutions who have better pricing and data supporting their entries & exits.
I'll also lean towards that scalping shouldn't be one of the first trading strategies one should learn and the strategy should only be used by those who have successful experience in other trading strategies.
Also, I just noticed NOW that this is under the forex sub forum... I'm fairly certain trading large swings is much more profitable than scalping forex lol.
to scalp you need to recognise high probability trades......which takes a great deal of experience .
to make things worse you are playing for small amounts of market movements which means you have to be very precise in entry and exit.
i counter this need of precision by averaging down but here you again need to experienced to know when to average down.
that is why i do not trade in trends
but unlike most scalpers i trade very small so i can average down and i do not make many trades 3-4 at the maximum. on many days i make one trade and the average is 2.
also i aim for a small profit and stop trading once profit is equal to my daily expenses.....so i am literally trading only for the day.
earlier for 13 years i was swinging for the fences and trying to make millions.
to make things worse you are playing for small amounts of market movements which means you have to be very precise in entry and exit.
i counter this need of precision by averaging down but here you again need to experienced to know when to average down.
that is why i do not trade in trends
but unlike most scalpers i trade very small so i can average down and i do not make many trades 3-4 at the maximum. on many days i make one trade and the average is 2.
also i aim for a small profit and stop trading once profit is equal to my daily expenses.....so i am literally trading only for the day.
earlier for 13 years i was swinging for the fences and trying to make millions.
Last edited:
I agree with that.
Most people will lose money very fast in this game whether they scalp or do any other form of trading.
Reason? Sadly most people are real dopes ESPECIALLY the one's under 25 years old. They rush into the game, understand little, know even less, and above all don't realise that the people they're trading against have often taken years to perfect their craft.
As an analogy read a few books on the Law then go up against some heavyset lawyers in court and see how you get on. To say you'll be laughed out of court is a gross understatement.
No different with trading but so many think they'll be able to not only match the heavyset traders but take money from them (overtime).
If you want to get into trading and make a real go at it, be prepared to spend YEARS on your craft otherwise it's almost certain that your money will gravitate to the people who have taken the time...
Reason? Sadly most people are real dopes ESPECIALLY the one's under 25 years old. They rush into the game, understand little, know even less, and above all don't realise that the people they're trading against have often taken years to perfect their craft.
As an analogy read a few books on the Law then go up against some heavyset lawyers in court and see how you get on. To say you'll be laughed out of court is a gross understatement.
No different with trading but so many think they'll be able to not only match the heavyset traders but take money from them (overtime).
If you want to get into trading and make a real go at it, be prepared to spend YEARS on your craft otherwise it's almost certain that your money will gravitate to the people who have taken the time...