Scalping is Risky?
- Thread starter Coner1980
- Start date
What do you consider scalping? To some a scalp for fractions of a point or one or two points. Does not matter if it is ES or SBUX...the way I was taught earlier that scalping is ok for a 1/4 for 1/2 pints if we trade 1000 shares, this was before decimalization. Now, in the trading room, scalping ES is 2-4 points and the Swing trade is 10-20 points.
Personally I believe that each and every trading style carries risk because all of them depend upon the market move, however if specifically I talk about scalping then it is a trading style which is adopted by many of the traders, the goal is to make small profits and exit from the market so consequently the size of the trades is also kept small in order to limit the risk. So in trading the risk is always there no matte how you trade.
It's all about the spread when you are scalping. I am a scalper that has made nice returns for about a year and a half now. You are automatically down when you place your trade so you are at a disadvantage right away. In my experience, I have tended to trade stocks with tight spreads. Tight spread targets are determined by a percentage of your capital (One day I'll chime into what I think a tight spread is). Also, Set your daily loss and gain targets.
all trading approach are risky if you dont have real trading plan , actually the success any trading strategy and approach depends on your money and risk management.
That's right. Its not about the trading style but how that particular style is managed and executed, which determines the results here.
