Investing and Trading: Scalping Realities

My Daily Blog is at: http://investorandtrader.blogspot.com/

I had a video a while ago that dealt with being either a position / trend trader? Or a scalper, and the differences in both ability and psychology.

I want to talk today a little more about the 'realities' of scalping

NOTE: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research.

Category:

Education

Tags:

• daytrading
• howto
• stockmarket
• forex
• commodity
• futures
• scalping
• swingtrading
• trendtrading
• Airelon
• emotionaldiscipline
• RSI

[DeniedHealthCare]

As a scalper what kinds setups are you trying to trade? Are you a traditional scalper that is profiting the spread?

[AirelonTrading]

Swing trader.

I think traditional scalping sorta went away about the same time floor trading did on the major exchanges. At least 10 years ago, if not more. The spread now is held on first level by most of the banks, but that stuff is so tiny and tight on a closed level, it would be insane to try to go near it.

[FxScalper]

Suck ass spreads will kill you too. Should be 3 levels deep...on quotes Forget the Meal...beans offer better liquidity. Shit, the whole complex could of corn-holed you in a 5 min limit move.

AKA Limitup

[AirelonTrading]

True enough. But I stick to options on Futures, so the limit up doesn't affect me 'as much', unless it goes in my favor. I agree, Food and Grain seems like they love to limit. Of course, downside with the options is the liquidity availability for the strike price you want.

[Renegen1]

The video is bang on... I have a target that I maintain, coming on at about 1.4 reward to risk and if I get emotional and if I get 3 losses in a row, I take a mandatory break. But do you have any better advice?

[AirelonTrading]

But that consistent - % risked of capital helps endure the drawdown so much better. The % of capital mm strategy is truly defensive and helps endure drawdown ...

[freeSCALPINGindicato]

nice scaping info, thanks

[rtrain67]

Great advice

[AntiPsychopath]

Create a good set of rules and follow them strictly....never stay in a trade because of emotion. Example. The other day i shorted the es and as soon as i covered it dropped 10 points so i felt like a fool and questioned my rules. HOWEVER, most recently i shorted the es and exited based on my rules again and i was like if it drops another 10 i dont care....and guess what happened, it went up 15.....so i was profitable BOTH days. If you are sound, quick, nimble and humble you will do well.

[kencruth]

The FOREX markets are corrupt and unregulated. Save yourself from certain ruin by trading only regulated markets in the GLOBEX, which are part of the Commodity & Futures markets and are strictly reguated and free of the corruption that plagues the FOREX markets.

[Blooper1980]

AAAAAhhhh... 1:30 good buy!