IS THERE EXPERT SCALPER HERE . What are points that one should keep in mind while scalping please and can anyone share any time tested scalping strategy please .
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After doing this for a while with average success, I’d say it is all about position management for a scalper. Taking bigger bets when conviction is more, and trade with 1/10th of the size 90% of the times.
As a scalper if every trade is of the same size, the drawdown can be quite big if suddenly you hit a streak of 10 bad trades which is quite common for a scalper.
As a scalper, your best odds in terms of catching profitable trades is 6 out of every 10 times. So considering all the charges, you would most likely not be profitable if each of your 10 trades was of the same size, same profit and same loss. The trick is to figure out how you can have 1 out of these 6 winning trades to be much much bigger in size (the one which u r most convinced about), so you can come out of it net profitable.
But this is just my view, I have seen scalpers work using different kind of strategies and being able to profit.
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As a scalper the average best odds can be 60% only as per your view as well as my trading exp.
As per the above reply(much much bigger in size) if iam targeting certain trade with big lot say double than my average lots and if the SL triggers i may end up in a huge loss.
We can increase the profit points in one or two trades depending upon the conviction.
Kindly suggest/clarify the view.
thank you nitin as always you are logical and best
As a scalper the average best odds can be 60% only as per your view as well as my trading exp.
As per the above reply(much much bigger in size) if iam targeting certain trade with big lot say double than my average lots and if the SL triggers i may end up in a huge loss.
We can increase the profit points in one or two trades depending upon the conviction.
Kindly suggest/clarify the view.
I am a scalper by profession and use only NIFTY Options to scalp. The key to scalping success lies in the following things.
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Market Awareness - Meaning you need to understand how the market moves, this includes time based probabilities, basic chart patterns etc. It also includes an understanding probable ranges.
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Risk Management. - You cannot afford to loose more. Because in scalping you work with fixed profit targets you cannot have big losses. As someone said… you cannot eat like a bird and shit like an elephant.
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Position Sizing / Trade Management - Scaling in and Scaling out are very important factors for profitability. Remember best traders do not predict tops and bottoms, but they have a probabilistic sense of what’s within the normal range and whats not. And when they know things have gone beyond what they consider normal, they are out.
Scalping Strategy - I use a Trend following + Mean Reversion approach to scalping. In simple words its all about scaling in to pullbacks and scaling out.
Hope this helps.
Sandeep
niftyscalper.com
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Can you share your strategy?