Home Trading Strategies The Truth About Scalping That Nobody Tells You

The Truth About Scalping That Nobody Tells You

The Truth About Scalping That Nobody Tells You

hey hey what’s up my friend so in today’s episode I want to talk to you about the truth about scalping right nobody tells you right often you see you know videos I know master this one simple chat patent to be a profitable scalper right simple scalping strategy anyone can adopt blah blah blah and here’s the truth right scalping is not what you think right so first of all most what is scalping scalping is one of the fastest frequency of trade right there a discretionary trader canna top right you’re operating usually on to 1 minute timeframe the three minutes timeframe right and even some scalpers I know right trading the futures market they don’t even look at chunks they simply look at the order flow of the market right in look at how the beat set offers you know move up and down right and in place trades based on that information right so scalping is one of the fastest form of training right for discretionary trader and here’s the thing right scalping is not what you think right and first if almost all right let’s talk about stopping the market right using one pattern one Chuck bet that one strategy it is difficult right if you want to be a professional sculpin right you can just rely on one pattern one strategy and the reason for this is because market conditions are always changing market goes from an uptrend downtrend range low-volatility environment high-volatility environment etc and if you only know one pattern one pattern to stop the markets right what if market conditions changed right which ended zero once every few days right you if you observe a lower timeframe churn right the pattern the market condition the market structure it changes right once every few days or sometimes even faster so if you only know one pattern one strategy it is pretty done difficult right to be a profitable scalper right because market conditions change so quickly okay so that is the true friend the moment is that you can’t just rely on one pattern one strategy to treat the markets you’ve got to adapt right as market conditions change right for example if the market is in an uptrend where you look to buy the dips you look to my breakouts if the market goes into a high volatility I’m variable you can look to you know fit the highs fit in the lows right if the market goes up for example downtrend can look to sell the rallies and stuff like that you have to adapt accordingly to market conditions as market condition change you can just you know forced at one pattern to scuff the market doesn’t work that way number two as a scalper you will specialize only in a few markets and reason for that is because you just don’t have to pen with to treat 4050 market so I would say and best you can just straight know one two three four five markets that’s to pretty much the max you can go because you will really watch the price section understand the intricacies right of each individual markets that you’re trading and trust me right in different markets they have different behavior for example do you know that the pound against the dollar okay it’s a trending market what this means is that whenever price breaks above the previously high it tends to continue in the direction and markets like Ozzy Canadian it’s a mean reverting market whenever price breaks above the previous day high it tends to reverse lower from there right this is statistically proven you can do a back test and run it and you’ll see what I mean so different markets they have different behavior and it’s a scalper it’s important to understand the behavior of the markets that you are trading okay number three transaction cost is something you have to pay close attention to as a scalper I know some of you who trade for exiting our arena then there’s no transaction cost in the forex market yes there is and is in the form of a sprint right there is a sprint so let me give an example let’s say you treat your dollar right here for five people stop-loss a five people target profit and one pip spread for your treats and in the long run right let’s say your win rate is 55% let me ask you will you make money in the long run given the numbers I just shared with you and that says no you would make money right some of you may be thinking already a five pips top loss of five pips are you profit a 55% win rate I should make money but no if you take into account the spread of one pip if you do the math right it’s actually a losing strategy that’s right a losing strategy of fifty five percent win rate with a five pips top loss and a five bit target profit it’s a losing strategy because of the spread so you must take into account the spread and if you think about this right a one pip spread on a five P target profit there’s about 20% of your profit potential that’s being paid to the spread so be aware of this right now spread will quickly eat up into your returns if your scalp all right transaction is something that you can you know not pay attention to anyone stocks is even you know even something to even consider more so because now you have the spread you might also have your transaction cost your Commission’s they have to pay on each and every trip okay so moving on fourth thing news release so it’s a scalper and you have to be aware of news release in market and it’s not common right for in forex market for the spread to widen 20 30 pips during non-farm payroll and if you’re a scalper you have a five people stop-loss a ten people stop-loss guess what when the news comes up pum you’re stopped out of your tree instantly just like that okay so you have to be aware of major news release that’s coming up and whenever there’s news release coming up my advice is to you know stay out of the trade and close all positions right don’t go into news release right with existing positions because that’s like a huge gamble that could you know stop your instantly or even stop it up more than what your stop-loss is pretty to me okay news release and last thing the last point scalping is stressful if you can’t make money on the higher time frame then is unlikely you’ll be able to make money scalping the markets or anything about this are scalping it’s so fast-paced right you have to make decisions on the fly usually within seconds you can do whether you buy your the sell gonna stay out right it’s not like trading off the daily timeframe where you have 24 hours a day to to think whether I should I buy should I sell should I scale up my trades stuff like it it’s a scalpel if you’re trading off the one minute time frame guess what after 1 minute let’s say that the candle has closed I’m gonna enter right now every second then you hesitate is could mean that you’re gonna miss the trick so you have to be quick on your feet right you have to think almost on the flying right wait I should should I be entering should I be selling should I be staying out should i scale out of my trades should I end into my traits and stuff like that so this is why scalping it’s a high stressful endeavor that you are about to undertake okay so hopefully alright this five points right will highlight you the truth about scalping it’s probably not what you are expecting but I rather you know you understand where coming from in to help you better decide if scalping is for you so with that said I have come towards the end of this episode if you’ve enjoyed it right give me a thumbs up subscribe to my youtube channel the link is below click subscribe and I will talk to you soon you


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