[fxlabrat]

I'm interested in scalping. Is it a suitable trading style for a newbie? I've read that it's an advance technique but isn't it easier to catch 5 pips than 10 pips?

[Hlm]

Originally Posted by fxlabrat »

I'm interested in scalping. Is it a suitable trading style for a newbie? I've read that it's an advance technique but isn't it easier to catch 5 pips than 10 pips?

It all depends on risk/reward and the percentage of success. This is where your positive expectency and potential draw down comes from.

[BlowFish]

Originally Posted by fxlabrat »

I'm interested in scalping. Is it a suitable trading style for a newbie? I've read that it's an advance technique but isn't it easier to catch 5 pips than 10 pips?

Possibly. Though FX, Scalping and Newbie sounds like a recipe for disaster. I think you might be unaware (from your other posts) that most FX 'brokers' are in fact bookies. Not only that but you are betting on prices that are not centralised so the bookie can manipulate them a small amount for a short period of time. Add in that most times they are the counter party to your bet and I would give you long odds that it will end in tears.

[Hlm]

Can someone make money scalping (a few pips here and there) in the Forex Market...to put simply yes. However, due to the makeup of the Forex Market there are many opportunities to be taken advantage of. At this time the only currency trading I do is with larger swings. People have to understand that it's not about what CAN be done, but what is BETTER for the new trader...or any trader. When scalping on the Forex Market you don't have all the tools (DOM, Volume, etc) to compensate and take advantage of the micro time frame that many people call "noise" (smallest time frame that is affected by the spread). For this reason it is much easier for most to zoom out and work off the multiple trends in motion and the natural ebb and flow.

[BennyHey]

My methodology is largely based on Linda Raschke. I use Keltner Channel and Stochastics. I especially watch the tape around support/resistance levels. Once a group of traders are trapped either long or short that is the time to hop on the the opposite direction then sell back to them as their stops are being hit.

When I first started trading I tried Tape Reading without really knowing what to look for, and I could not see the value in it. Now I find it is the most valuable tool I have in giving me an edge over the other market participants.

-BennyHey

[SwingTradinJay]

I came up with an easy to follow swing trading style...

I follow the cross between a 3sma and 500 sma, 10 min charts (20 or 60 days). I even delete the candles off my chart, I only follow the cross.

I started trading like this when I realized most people scalp, when the entries are actually perfect for bigger setups. The signals are limited, but the average gain is in hundreds of pips. I also don't ever over trade now, becuase there are only 8-10 signals a month, perfect...the rest of my time is spent doing my laundry lol.

as far as exit, stops, position size, that's up to each trader...
I trade 10% or less of my total account. Scaling out is a good idea too.

[SwingTradinJay]

It is actually easier to catch 500 pips in one trade than it is to catch 25 trades of 20pts each. Scalping is a mistake for most...

I doubt the bigs sit around to scalp for a few pips...No they do not
Plus you're working against the spread, market makers, and expert scalpers with highly specialized scalping platforms...

If all you do is scalp, you leave hundreds, sometimes thousands of pips on the table...
I mean all you need is to swing correctly and you've got a cool 150-500 pips in a few days.
And it's not even WORK! It's getting in, monitor, and wait. To me trading is about doing as little "work" possible...I've already read books, scalped hundreds of trades..i've learned the hard way and paid in cash and screen time: so trust me, scalping is BS (for newbs and risk-averse types).

peace

[OAC]

It has always been swing traders bad mouthing scalping and not the other way around. I wonder why ?
May be they don't get much soundful sleep during the night ?