The Ultimate DAX Scalping Discussion Thread!

Quote from Baruch:

Scalping is for losers. Why? Because you cut your profits.
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The key to being a good scalper is cutting losers just as fast.
As scientist showed sometimes a scalper holds on - if they sense that the move will continue. Why someone is a position trader or swing or scalper depends on different factors - but especially the character of the person. I tried to be swing but really couldn't do it; I couldn't stand seeing a positive position go south and wait around hoping for it to come back. bad for my blood pressure.
Scalping is what fits me - even though I am far from being profitable.
 
Leaving money on the table, if you fret about it, will drive you nuts. You should be keeping track of all your trades, whatever your methodology and you should have a very good idea of how many times your target is exceeded and by how much. If you are leaving money on the table more than half the time increase your target until you find equilibrium.

This is an oversimplification but you get the drift.
 
Quote from Baruch:

If a scalper holds on, he is no longer a scalper, but a intraday trader.
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Good point. I guess the "scalper" won't lose any sleep over his sudden change in profession;).
I am a cross between the two. I won't take a trade if it is only likely to result in one tick, but I might if it is 2. And if I have more than one position will get out half quick and then hold on a little longer for the remainder.
 
Didn't this word originate in the days of SOEX? This was a trader who would use high speed equipment and track inter-exchange anomolies to take very, very small ticks out of the imbalance?

Michael B.



Quote from Baruch:

Scalper or not? What's wrong with the old word DAYTRADER?
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Quote from Baruch:

Why drop out of your position if it goes your way? You could place a protect profit stop instead.
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I think scalper used to mean the pit guys who are in and out on the bid/ask.
Now for me it means someone who is taking profits based on short term trends in the market but usually not staying in the trade beyond 3-5 minutes. (In the hang seng I would be out in less than a minute). This is a very short-term daytrader. I know I saw a better definition somewhere.
Some daytraders will stay in a trade for an hour or 3 and can happily watch the wax and wane of the prices, confident that it is still probably heading in the overall right direction.
But a scalper likes to see the trade going his way fullstop.

Why not put protective stops? depends on the move. If you are only expecting a 2 or 3 tick move then getting stopped out will take one of those ticks (and maybe all if it is a low volume market). Scalpers hate to see that happen so they let the trade come to their limit order- but carefully adjusting that limit on the fly to try to maximise the profit.
I'm not saying anyone should trade like this but just that some traders have to trade this way to suit their character..
 
When a move begins, no one knows how long it will take us. Let the market decide that - by using a trailing stop. It is unsound strategy to cut your (potential) profit.
 
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