Scalping The Yen

G

gamalruach

Aside from the screwy back and forth pro-USD/anti-USD economy sentiment in the market presently, the USD/JPY pair has definitely turned into a short scalping market.

It appears that we have heavy resistance around 111.00. This provides ample short scalping room between there and anything to 110.75.

Remember to keep your trades in proportion to your acct size though.

This condition should remain thru tomorrow's US retail news pop.

2 to 10+ points per scalp should be easy.

I am only going short not long. This pair is popping 100 points down in a bat of eye - so too risky going long.

My size is varying between 30K and 60K with 40K being the average because I have a small account plus already a small build up short from a couple weeks ago.

If this is working for you, pls post your results.

I use OANDA so I am only 3 points wide.

Volume should be pretty good for the next 16 hours.

Sam
 
Of course, don't rule out nailing one of those 100 point drops in 6 seconds either.

They ARE on the dinner menu.

US data news due out Thursday 03-11-04 8:30AM EST.

Sam
 
How DO one scalp?! (An elegant way of saying WHAT is scalping?)

And what do you mean by a 6 second 100 point dip?

regards,
Sam
 
Quote from Sampharo:

How DO one scalp?! (An elegant way of saying WHAT is scalping?)

And what do you mean by a 6 second 100 point dip?

regards,
Sam
More...
Sam, I use OANDA to trade currencies where you can trade as little as 1 unit, not 100,000 units other brokers lock you into. Therefore you can trade smaller amounts.

Scalping is simply opening a trade then closing it once it goes 2 to 4+ points in your favor.

It appears that USD/JPY has turned into a scalpers market especially since this week.

OANDA is ideal for this because the vast majority of my trades are closed right on the point with zero slippage. Seems like out of 100 trades I make I may get 2 to 5 trades with minor 1 to 2 point slippage.

Try out OANDA's demo - set up USD/JPY and scalp short. Live is identical.

Regards,

Sam
 
It is quite impressive what this java applet has in simplicity that matches the trading software of other major companies.

You're right, tight spreads and no slippage is apparent. The limits and stop-losses can be as close as 1 point from current market price. I like the graphical representation too of the trades and their stops/limits.

Did two trades and realized $17. Not bad for a beginner scalper! :) However I still feel there was a lot of exposure as I had no idea what I should do if the market continued to go adversely, and frankly i used 100K in one and 50K in the other, which doesn't make sound risk management if I am scalping I suppose.

So how do I anticipate the waves? And how do I limit my losses if the market goes against me? Tight stop/losses I think are out of the window for they will do much more damage.

Also, I still didn't get what you said about a 100 pip drop that can happen in seconds in the USD/JPY?

Regards,
Sam
 
I suggest you buy add space like the other vendors, alternatively you might take this ridiculous crap to another site. I have heard that the broker you mention is slow, unreliable and "requotes" regularly. In addition I have heard that the simulator is total crap. Nice try.
 
Quote from steve46:

I suggest you buy add space like the other vendors, alternatively you might take this ridiculous crap to another site. I have heard that the broker you mention is slow, unreliable and "requotes" regularly. In addition I have heard that the simulator is total crap. Nice try.
More...

Nice bust Steve!
 
This has probably been discussed elsewhere, but you guys don't find that 3 pips is too great a transaction cost for scalping currencies?
 
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