roshan jaiswar
Member
Scalping, at least in trading, is a term used to denote the "skimming" of small profits on a regular basis, by going in and out of positions several times per day. Scalping is not unlike day trading in which a trader will open a position and then close it again during the current trading session; in other words never carrying a position into another trading period or holding a position overnight. Whereas a day tradermay look to take a position once or twice, or even a few times a day, scalpers are much more frenetic and try to skim really small profits multiple times in a session. And whereas a day trader may trade off the five-minute and the 30-minute charts, scalpers will often trade off of tick charts and one-minute charts. In particular, some scalpers like to try and catch the high-velocity moves that occur around the time of the release of economic data and other important news events, such as the release of the employment statistics or GDP releases if that is what is high on the economic agenda.
Why Scalp?
Scalpers like to try and scalp between five and 10 pips from each trade they make and to repeat this process over and over throughout the day. Using high leverage and making trades with just a fewpips profit at a time can add up, especially if your trades are profitable and can be repeated many times over the course of the day. Remember, with one standard lot, the average value of a pip is about $10. So, for every five pips of profit made, the trader can make $50 at a time. Ten times a day, this would equal $500.
The Scalper's Personality
Scalping, though, is not for everybody, and one thing is for sure: You have to have the temperament to be a scalper. Scalpers need to "love" sitting in front of their computers for the entire session, and they need to enjoy the intense concentration that it takes to scalp. You cannot take your eye off the ball when you are trying to scalp a small move, such as five pips at a time. Even if you think you have the temperament to sit in front of the computer all day, or all night if you are an insomniac, you must be the kind of person who can react very quickly without analyzing your every move. There is no time to think. Being able to "pull the trigger" is a necessary key quality for a scalper. This is especially true in order to cut a position if it should move against you by even two or three pips.
The Pros and Cons of Scalping
Scalping is very fast paced. If you like the action and like to focus on one or two minute charts, then scalping may be for you. If you have the temperament to react quickly, and have no compunction in taking very quick losses, not more than two or three pips, then scalping may be for you.
But if you like to analyze and think through each decision you make, perhaps you are not suited to scalp.
The Difference Between Market Making and Scalping
Scalping is somewhat similar to what market makers do who trade around the spread. When a market maker buys a position he is immediately seeking to offset that position and capture the spread. Although the two types of investors serve different purposes, this is what a market maker does all day long. This is not referring to those bank traders who take proprietary positions for the bank.
The difference between a market maker and a scalper, though, is very important to understand. A market maker earns the spread, while a scalper pays the spread. So when a scalper buys on the ask and sells on the bid, he has to wait for the market to move enough to cover the spread he has just paid. In the converse, the market maker sells on the ask and buys on the bid, thus immediately gaining a pip or two as profit for making the market. Thus, the risk of a market maker compared with a scalper, although they are both seeking to be in and out of positions very quickly and very often, is much better for the market maker than the scalper. Market makers love scalpers because they trade often and they pay the spread, which means that the more the scalper trades the more the market maker will earn the one or two pips from the spread.
New traders will be directed to the original PVSRA thread to download the required templates and indicators and for study of already posted charts and PDF's; PVSRA Post #1 :
http://www.forexfactory.com/showthread.php?t=540706
This is not a PVSRA teaching/training thread. Our mission is for those that are already familiar with and trading PVSRA with the provided charts and templates to gather and share scalping and trading ideas.
Scalping PVSRA Mission Statement
As PVSRA traders we have never posted and nor will we ever post or ask for any account information. Some traders her trade demo's and/or live and we have no interest as to their account leverage or balances and trading micro, mini or standard as no one is therefore discriminated upon.
We are here as Traders Helping Traders with a proven system and pips, if either plus or minus indicates traders that are successful with the PVSRA system and those requiring additional help from other traders.
That is our MISSION, as we do post winners as well as losers not for bragging rights but to encourage new traders to begin the difficult but profitable journey of learning PVSRA and becoming successful as those that have already committed and dedicated themselves to this learning process and now reap the benefits of their dedication and hard work........
Reference; Page #1, Post #3
Quote
I do ask that ALL TRADERS HELP MONITOR THIS THREAD so it does not get out of hand with lurkers dropping by and posting non-PVSRA system trades and non helpful comments. I will be here posting often as usual but not always and all must follow the FF Rules as to their conduct and language. We must all treat fellow traders with respect and encourage not discourage posting activity. Any references to profits and losses will be discussed in pips not money or account sizes/balances. All traders shall be respected equally with no regard to their lot size trades.
Stay GREEN My Friends!
Cigarguy
Why Scalp?
Scalpers like to try and scalp between five and 10 pips from each trade they make and to repeat this process over and over throughout the day. Using high leverage and making trades with just a fewpips profit at a time can add up, especially if your trades are profitable and can be repeated many times over the course of the day. Remember, with one standard lot, the average value of a pip is about $10. So, for every five pips of profit made, the trader can make $50 at a time. Ten times a day, this would equal $500.
The Scalper's Personality
Scalping, though, is not for everybody, and one thing is for sure: You have to have the temperament to be a scalper. Scalpers need to "love" sitting in front of their computers for the entire session, and they need to enjoy the intense concentration that it takes to scalp. You cannot take your eye off the ball when you are trying to scalp a small move, such as five pips at a time. Even if you think you have the temperament to sit in front of the computer all day, or all night if you are an insomniac, you must be the kind of person who can react very quickly without analyzing your every move. There is no time to think. Being able to "pull the trigger" is a necessary key quality for a scalper. This is especially true in order to cut a position if it should move against you by even two or three pips.
The Pros and Cons of Scalping
Scalping is very fast paced. If you like the action and like to focus on one or two minute charts, then scalping may be for you. If you have the temperament to react quickly, and have no compunction in taking very quick losses, not more than two or three pips, then scalping may be for you.
But if you like to analyze and think through each decision you make, perhaps you are not suited to scalp.
The Difference Between Market Making and Scalping
Scalping is somewhat similar to what market makers do who trade around the spread. When a market maker buys a position he is immediately seeking to offset that position and capture the spread. Although the two types of investors serve different purposes, this is what a market maker does all day long. This is not referring to those bank traders who take proprietary positions for the bank.
The difference between a market maker and a scalper, though, is very important to understand. A market maker earns the spread, while a scalper pays the spread. So when a scalper buys on the ask and sells on the bid, he has to wait for the market to move enough to cover the spread he has just paid. In the converse, the market maker sells on the ask and buys on the bid, thus immediately gaining a pip or two as profit for making the market. Thus, the risk of a market maker compared with a scalper, although they are both seeking to be in and out of positions very quickly and very often, is much better for the market maker than the scalper. Market makers love scalpers because they trade often and they pay the spread, which means that the more the scalper trades the more the market maker will earn the one or two pips from the spread.
New traders will be directed to the original PVSRA thread to download the required templates and indicators and for study of already posted charts and PDF's; PVSRA Post #1 :
http://www.forexfactory.com/showthread.php?t=540706
This is not a PVSRA teaching/training thread. Our mission is for those that are already familiar with and trading PVSRA with the provided charts and templates to gather and share scalping and trading ideas.
Scalping PVSRA Mission Statement
As PVSRA traders we have never posted and nor will we ever post or ask for any account information. Some traders her trade demo's and/or live and we have no interest as to their account leverage or balances and trading micro, mini or standard as no one is therefore discriminated upon.
We are here as Traders Helping Traders with a proven system and pips, if either plus or minus indicates traders that are successful with the PVSRA system and those requiring additional help from other traders.
That is our MISSION, as we do post winners as well as losers not for bragging rights but to encourage new traders to begin the difficult but profitable journey of learning PVSRA and becoming successful as those that have already committed and dedicated themselves to this learning process and now reap the benefits of their dedication and hard work........
Reference; Page #1, Post #3
Quote
I do ask that ALL TRADERS HELP MONITOR THIS THREAD so it does not get out of hand with lurkers dropping by and posting non-PVSRA system trades and non helpful comments. I will be here posting often as usual but not always and all must follow the FF Rules as to their conduct and language. We must all treat fellow traders with respect and encourage not discourage posting activity. Any references to profits and losses will be discussed in pips not money or account sizes/balances. All traders shall be respected equally with no regard to their lot size trades.
Stay GREEN My Friends!
Cigarguy
