Hope you liked my previous posts, and it was of some value. Would apologize for the length.
Would like to talk about Scalping. Before going for it, may I caution all of you that, its not meant for faint hearted or newer traders. Aspiring scalpers should know what they r doing
Would like to talk about Scalping. Before going for it, may I caution all of you that, its not meant for faint hearted or newer traders. Aspiring scalpers should know what they r doing
2. Scalpers inhabit an area of fairly small trade movements and feed off the table of bigger fish. It is a trading style in which a trader takes a profit on the first leg of a movement, not allowing the stock any meaningful retreat.
This is contrary to the more conventional
This is contrary to the more conventional
3. and commonly accepted approach where a trader lets profits run, risking losing them on a reversal or a severe pullback.
I would like to believe, that it is easier to get a higher amount of winning trades when profits are taken faster, minimizing the cases when relatively
I would like to believe, that it is easier to get a higher amount of winning trades when profits are taken faster, minimizing the cases when relatively
4. small profits evaporate and turn into a loss.
Scalping has helped me being a better trader over a period of time. I do scalping only in Index options as the quantity gets managed very efficiently And there are few windows you get invariably during the day when you get to
Scalping has helped me being a better trader over a period of time. I do scalping only in Index options as the quantity gets managed very efficiently And there are few windows you get invariably during the day when you get to
5. see huge explosive moves, and we just need to capture those with help of indicators & PA
It starts with piloting the trade with small quantity and only when it starts picking momentum and system giving signal of an up move, I will increase the volume (pyramiding the trade)
It starts with piloting the trade with small quantity and only when it starts picking momentum and system giving signal of an up move, I will increase the volume (pyramiding the trade)
6. Movement itself is what matters to a me. Ability to disregard the reason for the movement, ingrained desire to limit risk as much as possible even at the cost of sacrificing potential up-move are the key.
Strict stop discipline is necessary for a scalper’s survival
Strict stop discipline is necessary for a scalper’s survival
7. The intent is to get rid of positions as soon as the script is not doing what was expected. No scope of Hope trade. As a scalper, will buy the same script without hesitation, even though I may have just sold at a lower price in the previous move.
8. Scalping relies on a higher probability of success rather than a bigger ratio in the size of winners vs. losers. For me every trade exists in its own realm, independent of previous trades. If I notice a strong trend I will buy and sell it each time when a valid setup forms,
9. even though the next setup could occur at a much higher price. I strive for small but consistent gains. I can summarise scalping with the following
10. a - Lessened exposure limits risk: Being in the market for a relatively brief period of time decreases the chances of running into extreme adverse movements, causing huge losses
b - Smaller moves are more frequent than larger ones: A large single-directional
b - Smaller moves are more frequent than larger ones: A large single-directional
11. movement is not very frequent
c - Smaller moves are easier to obtain: Moving to a smaller time frame, we can see clear movements and setups in what was just noise from the point of view of a larger time frame
c - Smaller moves are easier to obtain: Moving to a smaller time frame, we can see clear movements and setups in what was just noise from the point of view of a larger time frame
12. Hope this presents a clearer picture of Scalp trading. Will post a trade of yesterday that I did. Hope it will be clearer. Have a good trading day.
