What is scalping?

Handle123 said:
Actually, in all the trading that I do, scalping and day trading has by far the greatest risk and percentage wise, biggest percentage returns, I do use distant options that are kept on in case of Black Swan, and just a matter of time of another 911, people always say History doesn't repeat, but it does in forms of other people, whether it is religion or acquiring land, people just don't get along. Of all the trading I do, it is the extremes of long term commodities and finding the tops/bottoms, which often takes a dozen and more times, but hedging saves me from most of the losses, but one of last feelings I did well and happy to get them.



Absolutely, long term trading has the most wealthy people in this group, I prefer to do long term than scalping/day trading any day of the week. But unless you know how to dance options around your stocks/commodities to generate enough to cover ongoing losses due to price cycles coming too early/late to hedge open profits on stocks/commodities when there are retracements of the ongoing trend, very difficult to make anything on a monthly basis. My commodity long term system has profitable trades 7-15% on average every year and I am more than alright with this cause of the hedges. But the add-ons have more of a 50/50% and they hedged as well. Stocks, all is hedged and ave 40% profitable trades. Some years battling to stay above zero percent is the norm, so like 1 in 3 years of normal patterns long term have big years and other 2 much less. At least for how I trade. ​
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While I agree that once you are wealthy you have a luxury and experience to hold on long terms, for the past three years I am mastering very accurate scalping. We are called to show different step and there will be always someone to bring something new on earth and in every art and science. I prefer to be glued to my screen for the whole time of the main activity of CME - 07.00 am till 4.15 pm, sometimes, rarely 4.30-44.5 pm ECT. This erasing me from uncomfortable damaging feeling that was created on us back in 2008. Novice and naive we left an order for the gold in May 2008 and have not heard anything from our banksters of BNP Paribas, Lugano, Switzerland, until October 2008, when in the middle of the crash (the words like go short, stop losses were all unkwon and unheard by us) we got a call from this bankster who advised us that we are losing 500,000$ and "politely" asked how much more we are intended to go down? He told us a story that once we did not cancel the order they bought position later - in the midst of falling market! What a bad joke, but the capital was ours, and the huge loss was ours too. Well, we are still thinking to sue them for this episode and couple others, once we will have a little bit of time more, but for now, scalping trading looks to be only one way. First, our capital is ridiculously small. Second I can not effort one more time going through the risk of being in the hands of somebody else and not knowing whats going on with your position, even for a moment. So, in our case, I feel we are literally called to bring scalping at another level, as more accurate and less risky method of trading for us.
 
Handle123 said:
I have to disagree with most of you, 100's different ways of scalping and I consider myself a scalper. I will on aggregate for the day between automation and any manual trading I do exceed 300-500 scalps per day per 24 hour symbol, risk on all of them exceeds any profit I might be able to make(my thoughts are why take a loss if you don't have to do so). And I enjoy the most of being in the 40-80% of making that one tick as this is the most consistent, by averaging down, all exits are one tick of original entry, so other entries am getting out between 2-6 ticks profits, am constantly testing to expand this 40-80% range. And while trying to prove something else, by error discovered patterns within the "book" or "price ladder", If I let it run full out, would do thousands of trades of ES in a 24 hour day, but always refining so as not to be a hog and put a limit of one signal an hour on both. If didn't ave down, maybe 1-2 losses a year if that, but ave down does produce more profit, and when price action rules dictate, a lose for someone else would occur, on average that would nail one tick gain cause average price went down. I would never trade a system where I didn't have an 90% edge.

I can read price pretty well of one minute and larger timeframe, BUT all based on percentages, can change opinions much faster than I can post one minute frames, LOL, almost every single time I am trying to learn to be more patient to stay in longer, prices will hit area of what I would have targeted and end up getting nothing for my time as trying to stay in longer, LOL

Any time people who have said "not to" or "can't be done", I view most as challenges and accounts be rewarded when I accomplish. On average in scalping for day sessions will average $8-23 per trade after fees, more trades the average goes down. Most people concentrate on making most money whereas I spend my time in my cave trying to get losing percentages and drawdown down. I ave down on each signal, down 5 price levels. Shutdown for the day does occur at 3 full losses, but due to reverses that cause some loss do not count, many trades are reverses as I try to go from wave to wave and get pieces of it. Most signals are counter-trend when entered.

I don't take one tick profits cause they are there, targets are based on ranges of one minute timeframes or 30 second timeframes, so original target be 4-8 ticks. Often times weak longs are my targets to reverse as they have losses or break evens. And most people will not say, if not for scalpers, they have larger spreads and get much slippage.
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i am always been tempted but could never manage to do what you are doing.
i am still trying
 
CSEtrader said:
For me scalping is most profitable and less risky way - by following market from smallest timeframes you are tunned and can feel breath and everystep. To stay more with the flow is coming with experience, like catching big waves on serf.
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what do you trade stocks?
 
E-mini on CME, only for now. The brief story of our evolution: stocks, no, no, especially all penny stocks and those which are not blue-chips. So, from the stocks, we arrived at ETFs nine years ago, 2009, FAZ and FAS, just the beginning... Then a friend told us about futures, my husband read Leo Melamed book "Escape to the futures", our teachers were on futures, so we tried even if we were far with understanding what it is and how it works. So since 2011 only futures, only CME group. Tried some Forex, still, love currencies but unfortunately fell with strange brokers. However, CME group is offering currencies futures too, which are pretty good for me.
 
CSEtrader said:
While I agree that once you are wealthy you have a luxury and experience to hold on long terms, for the past three years I am mastering very accurate scalping. We are called to show different step and there will be always someone to bring something new on earth and in every art and science. I prefer to be glued to my screen for the whole time of the main activity of CME - 07.00 am till 4.15 pm, sometimes, rarely 4.30-44.5 pm ECT. This erasing me from uncomfortable damaging feeling that was created on us back in 2008. Novice and naive we left an order for the gold in May 2008 and have not heard anything from our banksters of BNP Paribas, Lugano, Switzerland, until October 2008, when in the middle of the crash (the words like go short, stop losses were all unkwon and unheard by us) we got a call from this bankster who advised us that we are losing 500,000$ and "politely" asked how much more we are intended to go down? He told us a story that once we did not cancel the order they bought position later - in the midst of falling market! What a bad joke, but the capital was ours, and the huge loss was ours too. Well, we are still thinking to sue them for this episode and couple others, once we will have a little bit of time more, but for now, scalping trading looks to be only one way. First, our capital is ridiculously small. Second I can not effort one more time going through the risk of being in the hands of somebody else and not knowing whats going on with your position, even for a moment. So, in our case, I feel we are literally called to bring scalping at another level, as more accurate and less risky method of trading for us.
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I don't want to imply you are totally wrong...but in my way of thinking you are. You don't get wealthy overnite, you spend huge amount of hours into life of being a trader and most of what other people do in life...just don't feel comfortable in my own skin or being with other people unless I have to be so. You try trading over 100,000 trades and not learn a thing or two or over 100,000 hours of screen time and learn what most of what people think in trading, economy and life is wrong.

You couldn't see before the huge drop in 2008 before it happened? Sounded to me you were not knowledgeable on how to even trade or allow others to trade for you and now you want to blame others? Ten years have gone by and you still thinking about this? People have so little time to understand what they getting into and yet they spend months talking about future vacations, I don't understand.

Unless you have a concept on how to trade and either have no risk or positive expectancy based on back testing, I see no reason to trade long term. And cause I included "back testing", forward trading will have some losses but extremely low. And I can't scalp or day trade with zero risk, so therefore it is great risk for me to do. But I am very good at it by maintaining under 5% losses and I add additional risk so I am told by many here by averaging down and add to losing trades, but this makes perfect sense to me as I do not have abilities yet to guess where price will stop but get close enough. I don't bet the farm neither as all trades have rules within rules so there never be risk of ruin.

An experienced trader can start with $4,000 and make millions in couple years. My partner and I planning of attempting this end of the year for a Hedge fund, between us we have 70 years of experience.
 
traderGOD said:
back testing is experience
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That quote explained everything!!!

Back testing is a process, it has nothing to do with experience. It's the basis of finding a strategy/model that makes money.

You need to do what's you need to do. If you're looking for shortcuts, then trying to make money with trading is probably not for you. Just my 2 cents.
 
rb7 said:
That quote explained everything!!!

Back testing is a process, it has nothing to do with experience. It's the basis of finding a strategy/model that makes money.

You need to do what's you need to do. If you're looking for shortcuts, then trying to make money with trading is probably not for you. Just my 2 cents.
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backtesting is ok but so many things you cannot back test. like bollinger bands.
 
traderGOD said:
backtesting is ok but so many things you cannot back test. like bollinger bands.
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Incorrect...

100% dependent on the platform used to backtest, and the traders "interest" in learning how to use exposed values or variables. Not necessarily "programming" in the standard sense, as some platforms have other options or syntax for working with values and/or variables that are exposed. Could be as simple as writing an excel-like formula. 100% dependent on the platform.
 
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