Scalping is risky ?

J

JimmyChoo

scalping is a trading approach that brings profit in a short time, it considered as the most profitable trading system from all in Fx trading for retail traders, but sometimes it causes a huge risk despite good knowledge and experience. whats your experience when scalping?
 
JimmyChoo said:
scalping is a trading approach that brings profit in a short time, it considered as the most profitable trading system from all in Fx trading for retail traders, but sometimes it causes a huge risk despite good knowledge and experience. whats your experience when scalping?
More...
Define scalping. For some it is 1-5pips, for others it is 20+
Most newbies are drawn to it because it is quick and provides immediate feedback to the brain, it is definitely the most risky particularly in FX.
Just because of spreads and commissions, it's the least likely to generate a profit. Scalping futures based on DOM trading and time and sales analysis, I can see how there might be an edge there but not for humans, you need a HFT program.
 
No trading play is especially risky if you exercise stop discipline.

Big Risk comes into play when you allow a play to run against you, hoping it will "reverse and save your bacon".... even worse when you "average into a losing position".
 
Risk=knowledge, more you understand, risk can go way down. But who wants to study for a few years of reading charts. Averaging down should never be done by retail unless they done extreme back testing.
 
Scalping is definitely not for everyone. That requires a particular temperament and attitude to handle the risks involved here, without being emotionally affected by the market moves. It takes intense concentration and quick analyzing power to do scalping efficiently.
 
Scalping the most profitable intraday strategy? More like the fastest way to burn your account balance.
 
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