Scalping is Risky?

“After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!

--Jesse Livermore--
 
I'm testing intraday scalping using OTO conditional trades with trailing stops .1 .2 .3.

Lessons learned recently: tight .1 or .2 works better than loose .4; best to stop trading by 10:30am
 
as a new in trading love doing scalping but sometimes this causes a great level of risk after having good money management.
 
@David's faith couldn't agree more. I think it's obvious as swing traders hold on to their trades for quite some time until the market reaches to their desired levels, with scalping they earn some quick bucks through price movements. A blend of different strategies is the best strategy.
 
SCalping can be risky if you do not have a good strategy or broker for it. Traders that enter scalping take risks and have money management skills to reduce the chances of loss.
 
David's faith said:
Every swing trader scalps from time to time too
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I don't think so, because a swing trader holds on to a position for quite sometime and they wouldn't take the risk of scalping and ruin their account for a few bucks . Although what i think is that once a scalper losses his trade, they begin to swing trade.
 
I have excellent automation that does scalping, been scalping over 25 years, half of my time manually. Am just getting at an age where average per trade seems to go lower every year, much tougher to get all my orders filled. First it was the E-Minis watering down size of the ticks and now Micro watering it down even more, next time it be Mini Micros at 4 cents a point.

Long ago I added scalping so as to have something coming in, but I have learned how to trade options and let them waste away.

Couple scalping systems will continue, but overall have shifted funds that pay much more per average trade.
 
Market uncertainty is proportional to the time of investment, from this point of view scalping carries less risk. Also, managing a series of small losses are easier to manage than a couple of large drawdowns. This is especially true for rookie traders.
 
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