scalping

[asylum]

Does anyone use scalping methods when markets are sideways like today?

[nala]

what is scalping?

[asylum]

Scalping is a trading style specializing in taking profits on small price changes, generally soon after a trade has been entered and has become profitable. It requires a trader to have a strict exit strategy because one large loss could eliminate the many small gains that the trader has worked to obtain.

[#4]

Asylum, I think you can scalp on currency futures, and maybe on the FTSE or the DOW intraday. The problem on the JSE is the question of spreads. You will need to set a stop of a minimum of 60pts - meaning you need a 60pt gain to give yourself a 1-1 risk reward ratio. This equates to a 120pt move (30 to cover your purchase, and 30 to cover the sale). Gaps are the only reliable way of setting that kind of exit target.

[john_1]

what. there are guys who make 10 point on average per trade...and do 100-150 trades a day.. not my thing but I respect it.

[#6]

bit like buggery?

[#7]

only been scalping today....cause until we get data later not much gonna happen and I need to go to lunch....so just scalping with one contract has produced ZAR 4600...costs about ZAR 300...pays for lunch ...

[#8]

scalping is not my thing either but it is a complimentary strategy which enables me to say with 99% certainty that when I go to my computer I will walk away with my target for the day...no matter what the market conditions...

[asylum]

Chartist when scalping what criteria do you employ, trend lines, MA ? Thanks

[Ameesh]

At what point do you exit when the market moves against you ? 10p or 20p loss ?

[thekid]

To chartist. Im curious so what exactly are you trading? Currency futures, or the Alsi future?

[#12]

Alsi Futures

[Electrox]

So far today the market is trading sideways.. so how exactly does one scalp using a basic scalping strategy? thx

[#14]

on the 5 min look for 2 consecutive higher closes...thats one strategy...most times though...I scalp naked....just look at the order flow and depth and play it like that...sometimes you even get a runner...mostly these scalps are 50 pt moves...

[Electrox]

thx chartist. do u also use this with the 18ema you show on your screencast?

[#16]

yes...if we are bouncing around between this and the bollingers...

[Electrox]

So your exits then are just purly based on how many points you wanna take out of the scalp. 30-50pts. what about your stop? how far away do you set them in?

[#18]

for scalps I dont enter stops....what I do is if I go short I enter a buy order a few pts higher in the order box...keep it live on my screen..with finger hovering if I see its going wrong I just exit with one click in a nano second...

[JohnnyCash]

U could scalp with 1 or 2 contracts and depending on the move in your favor or against you close the position by trading double to contracts the other way. That way you can keep it as tight as 20 to 30 points against you and sooner or later you will pick up a runner, as well as get into the market rythm
But with the last 2 hour's action I'd pre-load a buy and sell on both sides, just outside of the current range and depending on which way it breaks it should pick me up. (Conspiracy theories though have me thinking that placing these trigger trades allow the brokerages to see where they are and may just run the market to trigger these levels before reversing the trade, might just be paranoia!!)