Scalping is a good method but was a little too involved for me. If I had more time I'd probably be more into it.
Scalping.
- Thread starter Adam Jackson
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Pairs that exhibit decent momentum properties and have high daily volatility are good for scalping since you for breakouts, pullbacks and other similar market structures when price movement tend to accelerate and you aim to capture such movements. However you should be fast at pulling out of the trade because price can go in a wrong direction too and it can do it fast.
In my experience, some of the best non-repainting indicators for trading include Ichimoku Cloud, SuperTrend, and Heiken Ashi. These indicators offer reliable signals for trend direction and entry/exit points without repainting past data, providing traders with confidence in their analysis and decision-making.
Position size, leverage, stop loss based on hard rules or technical indicators like ATR (which account for volatility), pyramid orders, trailing stops, etc. Lots of them
Yes lots depends on how a trader handles pressure when for example a series of losses happens or a streak of gains. If a trader can accept it without any emotional reaction then I think he is perfectly suitable for scalping.
Absolutely, managing emotions is key! Have you found any techniques particularly effective for keeping cool while scalping?
Yeah, one effective solution was to create clear entry-exit rules and code them into an algo bot. You don't need to stare at monitor and also the risk of a trade error due to fatigue is completely eliminated.
True, Scalping can be exciting and profitable, but it's also super risky and stressful, especially for beginners. If they want to try it, they should start with small positions to keep the risk low and avoid overtrading.
Yes, we could also introduce a, let's say boring, strategy. Not that boring but still, not as exciting as scalping, and you profit from small gains. Trend trading based on various Moving average indicators. For gold, for instance, I'd suggest mixing the 200-day SMA with the 20-day EMA and identifying a movement. Although that gives you way fewer entries, but at the same time clearer ones with less risk ratio. You can also do other periods as well.
Scalpers usually set tight stop-loss orders to manage risk and keep potential losses to a minimum. They also need to pay close attention to market volatility to handle risk effectively when scalping.
Sounds so difficult, but the concept of getting profits so quickly is always tempting.
