Why scalping beats any other trading style

bighog, interesting observation because it did affect his health.

Pekelo, in your example I'd be the better trader unless the market moved from reversal to reversal without any internal waves. My profit would almost always exceed yours by a very large margin after slippage and commissions.
 
i also can make a system with 95% accuracy, anybody wants to buy? i can´t promise no sudden drawdowns though ;-)

what i want to say is, 90% probability doesn´t say anything. it´s the combination with drawdown that makes it interesting.
 
Quote from yoohoo:

Hook N Sinker - you missed the point but you are correct, 100% is impossible. The point is the swing from absolute high to low of the tradable wave. The shorter the timeframe the more waves appear that can be traded. The shortest I can go is a 3 range chart, so if the YM moves 4 points from a top/bottom I'm in. Someone using a 5 min chart could never take even half the trades I take.
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Agree. The short time frames, reduce risk and provide more opportunities. However, the draw back is screen time. It is nice to sip chardonnay while looking at weekly charts, but to do it you need to operate on large scale in order to attain any meaningful results.
 
Quote from yoohoo:

A friend of mine came up with this...

did a quick analysis to determine what I already knew in my head. Scalping definitely generates more Net Profit and for anyone with a calculator it is a no brainer. The following is a table from the analysis. The analysis was taken from the day session for the last 3 days on the Nasdaq E-Mini

(see attachment - it's a Word Doc)

The only way to have the potential to make more than a day trader is to position trade large size.
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you are forgetting that competition at the smallest timeframe is 100 times larger, so actually i don´t agree with you at all.
 
trade4success - interesting point - but I don't believe you. However I don't dismiss your opinion - so prove it to me.

I've traded multi million $ positions in one stock and I now scalp futures. Trying to get in/out with $50m is competition. Trying to enter 10 lots on the ER2 ain't anything like it in my opinion. So I hold my view, you can't out perform a hot scalper unless you position trade with size.
 
Yoohoo,



Can you ask your friend to do this for
even smaller time frame than 1 minute ,if
possible ?

I agree with you regarding that competition thing.


Trade4success,



Where do you get your 100 number ?
haven't noticed any more competition
 
Quote from yoohoo:

trade4success - interesting point - but I don't believe you. However I don't dismiss your opinion - so prove it to me.

I've traded multi million $ positions in one stock and I now scalp futures. Trying to get in/out with $50m is competition. Trying to enter 10 lots on the ER2 ain't anything like it in my opinion. So I hold my view, you can't out perform a hot scalper unless you position trade with size.
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hard to prove something like that, so let´s take it back.

another point though, "unless you position trade with size." that´s the thing, the larger the timeframe, the bigger size you can trade.

i think i just get a ... from looking for weak points in arguments :confused: i should´ve become a lawyer or politician
 
Quote from NickBarings:

Yoohoo,



Can you ask your friend to do this for
even smaller time frame than 1 minute ,if
possible ?

I agree with you regarding that competition thing.


Trade4success,



Where do you get your 100 number ?
haven't noticed any more competition
More...

100 number, just a ballpark guestimate
 
anyway, to "theoretically" prove my point about competition: where the easiest money is, it attracts the most competition, so it will stop being the easy money, get my point?
 
yea but the longer the timeframe the easier it is to judge the signal - that's why scalping is considered the most difficult trade to master. Wouldn't the greatest competition be at market open for equity traders?
 
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