Scalping is Risky?

longandshort said:
Lol the dude is cherry picking screen shots and you believe him?
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Guilty as accused. These were two trades of several taken today. Most all were profitable. By far. The one loss I showed in my first chart above, however even that trade overall terms was profitable. Just some of the contracts generated a loss by my failing to move a SL after averaging down. Already explained above.

If you are concerned about cherry picking just go to my journal and you should be able to see where I shows charts for the entire session with all the trades I took in the session.

I have a high win rate. But I have always argued that a scalper needs a high win rate.
 
Overnight said:
That is just an anomaly of statistics. Successful scalpers can have low win rates. It's just the basal math that matters?
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Umm well you try it and see how that goes. You are scalping for small amounts. You got win more trades than you lose to make it especially after you factor in commissions.
 
deaddog said:
This seems to conflict with a tight risk management strategy? I have trouble considering averaging down a risk management strategy. Am I missing something?
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This is where backtesting comes into play. Any entry is not risk management. I am not risking same amount as original entry but targets are same as entry, so risking less to get more. So if original entry was Long 4695.50 PS 4691.50, 2nd entry 4694 PS 4691.25 & 3rd 4692.5 PS 4690.75 all with same target 4697.50
My winning/breakeven percentages last month in ES 86%/ 8% manually, 1,218 regular entries. I missed parts of days cause fatigue/fevers/etc. Two automated scalping systems still going are 24 hours a day and limited to one trade an hour per instrument, "pigs get slaughtered", don't wish to be greedy. 4 Energies/3 Indexes and other is Forex. Energies still decent markets without having to risk hugely.

Overnight said:
That is just an anomaly of statistics. Successful scalpers can have low win rates. It's just the basal math that matters?
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Are you writing about day traders? They can have lower win rates, but if a scalper is cracking out 60 plus trades a day and risk is much more than targets. If I was doing 70% wins/BE, I be losing for the month between losses, commissions, etc... on system am manually trading.

"Physical wellbeing (risk) is equal to all other styles of trading."

In my case, scalping definitely was wrong avenue to take, beside 12 surgeries between 2008 and 2020 and two this year with one to go in December, carpal tunnel both hands. No heart problems, off 4 meds for high BP, not diabetic....
I have zero concerns of long term trading, scalping is more of frustrations of getting filled on targets.

Maybe ten years ago I posted to forum live, gave dozen entries/PS/target ahead of time, even put on a ES trade just before gov't report and hedged, lost a couple overall. But it is really too too difficult, have to stay 100% focused instead of typing.
 
Scalping is a very effective strategy for forex trading which limits your risk of loss by using very short-term entry and exit points. Scalping is risky for beginners, but it does not take long to learn how to scalp successfully.
 
volpri said:
If you are concerned about cherry picking just go to my journal and you should be able to see where I shows charts for the entire session with all the trades I took in the session.
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Have you considered streaming/recording a session?
 
Nine scalps when I had time to do them. Could not trade the entire session. 8 winners. 1 loss. A scalper needs to maintain a high win rate. IMO I could not trade from around 9:00 a.m. till 13:10 as had other things to attend too but there were plenty of opportunity to trade during that time span.

Of the 81 5m bars in an ES session money can be made on most any bar using various tactics such a TR tactics and BO tactics and price probing by both bulls and bears. Bulls and bears always active in all sessions. All TF's.

This drives home the point that scalping renders many more scalping opportunities. A strictly trend trader wouldn't have had much to trade today except or maybe that opening BO south in first 30 minutes or so. I traded that BO with multiple scalps and then traded the sideways TR movement later in the session.

A repost of my post #155 in this thread. I think the chart of todays trading shows forth some of the salient points in that post:

"It is not more risky. It is actually safer. Scalping being more risky is a myth and mis-conception traders have had drilled into their brains..And it is based upon false viewpoints of “noise” in the market. And the extremely false concepts that they are random. Do we know why traders suscribe to the concept of “noise and “that markets are random?” It is easy to understand why if we just think through it. See, all this B.S. is deep wired.

Think about it. It is far easier to talk and forecast, possible, likely, probable, weather this afternoon than say weather a month from now. Can anyone guess why?

Think about it. Money is only at risk “when” it is IN THE MARKET. LOGICALLY what does that imply for scalping vs long term trading?

Think about it. Scalping increases trading opportunities for the session.

Think about it. Scalping enhances the opportunity for compounding.

Think about it. The market gives and the market takes away. Scalping lets one lock in profits. (Remember the story….bird done sh$t and gone).

Think about it. Scalping enhances profit potential. For instance, say the ES moves up 40 points. And a trader gets in when the move starts and he captures the entire 40 points. Successful scalping will render him much more in points because there will be many PB’s, many overlaps of bars that can be traded, many probings by bullish and bearish firms that can be traded…etc It isn’t likely the 40 point move will happen on one 5 min bar. It can but that would be abnormal.

Think about it. Why don’t more traders scalp?

I will qualify something. Scalping I see as 1 to 8 points in the ES on normal days, with most being in the 2 to 4 point range. On volatile days it can be bigger. I AM NOT TALKING ABOUT a one or two tick scalp."



9 scalps.jpg
 
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Nice pic, scalping on the range market is good to make a profit, there are few times wave the price swing up and down, become opportunity to catch small profit as scalping target, sometimes I scalp in gold, but yesterday I got three successive loss in my FXOpen account, I will try to recover the loss.
 
I scalp daily, up to 105 rts. Profitable days have dozens of tiny stops offset by occasional runs, scaled into correctly, that outdo the stops.

I scalp by setting up a sequence of 3-5 trades spaced .2 or wider to catch a run, and manually tighten hard stops to book profits.

Doesn't work on choppy af days though
 
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