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Requesting advice from experienced Scalpers
In the Course Al talks a lot about how most people should not scalp and how it takes a rare type of person to be able to scalp profitably and enjoy it. I'm here asking for advice because I believe I may be that type of person but am worried I am being naïve.
I am one of the best in the world at a popular RTS video game like Starcraft 2. In this game a player must take 50-150 actions per minute, make decisions on the fly, and manage multiple things quickly, and accurately. I enjoy doing this; and to me, scalping appears to be similar in a sense that one must act quickly, decisively, intelligently, and accurately.
I am also able to not let my emotions get the best of me when things aren't going my way. I can take a hit if I understand the bigger picture.
I know that interpreting price action, structuring mathematically rational trades, and managing them well takes a lot of practice and experience, but I do believe if I get to that point where I can do it, the fast paced nature of scalping may be a good, enjoyable opportunity for me.
Anyone here scalp as their main form of trading? Am I being naïve to think that I could be that type of person who enjoys scalping? Thank you for reading all this and thanks to everyone here on this great forum. Al is an inspiration
I'm not a pro scalper at all but my best advice would be to try it and see for yourself. What ever people tell you, only your results matter after all. Start small as it can take a while before you see consistant results even tho you have all the skills needed to make it happen. Then scale up once you have a good track record that gives you the confidence that you are able to make it as a scalper.
Never forget that if you really want it, you can make it. You won't be the first nor the last successful scalper out there.
Wish you the best!
"Never forget that if you really want it, you can make it. You won't be the first nor the last successful scalper out there." Great way to look at! Thanks Christophe
I have played many times in my life, so I get where you are coming from, and I believe that can help you a lot with trading. You are already used to processing so much information that will help you.
While playing starcraft and trading both require processing a lot of information (which is a crucial skill to learn), they are still different. You did not just pick up Starcraft one day and become one of the best in the world in a week. I am sure it took you many hours and a very long time to get there, which is the same with trading.
I would first focus on learning the video course and applying the information. Start with the foundation videos (first half of the course) and understand it well. Then apply it in real-time.
While scalping is a great strategy, it isn't easy to make the math work, especially starting. The biggest challenge is trade management. If you are scalping, you have to have a high probability of making money. In general, if you buy or sell, you have a 40% - 60% chance of making money on 90% of the bars in front of you. This means that at any given moment, your edge is really small.
Think of it like this:
If you take a trade where you are risking $2 to make $1, you must be right at least 70% of the time to break even, and you need a higher winning percentage than that when you factor in slippage, human error, commission. There are so many things working against you that you are better off trying to swing trade first and transitioning to scalping down the road.
As Christophe said above, nobody can tell you that you are wrong if you are making money by trading any method.
I hope this helps.
It really depends on what kind of scalping you want to do. There is scalping when risking 2 pts to make 1 pt. There is scalping when risking 2 pts to make 2 pts and there is scalping when risking 2 pts to make 3 pts.
What kind of scalp setups you take depends on your emotional state, on how quickly you can execute trades and make decisions and on how well you can read the chart.
From what you are saying you could be pretty good at executing and managing 1 pt scalps while risking 2 pts. The only thing you have to do is be able to recognize those 1 pt scalp setups that have 70% probability of success throughout the day.
Alternatively, since you like more of a fast paced style of trading, you can take 2 pts scalps on the 2 min chart. This will satisfy your style for fast paced trading and will give you a higher probability of success.
As long as you can read charts well and recognize good looking setups and assign the correct probability to them, you can trade any way you want.
My advice will be to experiment and find your comfort zone and be able to recognize trade setups and attach the correct probability of success to them. Your guide will be your equity curve.
Thank you very much Brad and David. Both very insightful, well-thought out responses. I appreciate it with much gratitude.