Tuesday, February 8, 2011

- 4 pips

This kind of scalping is not doing me well. I'm just building small losses one by one. First entry was late, second on time. Then I put in limit order too late. Then string of losses with market doing nothing really, and lastly trade that cut loss in half. -8 half size pips.
I feel like I'm experimenting. I'm taking too many trades for this kind of scalping market. Maybe I'm taking profits too soon also on really good trades. Don't know, I'm adjusting to doing things with those small stops. I never traded this way. Remember swings from before and averaging? So in a way it's all new to me and I'm just learning. Also market is a bit different, lack of quick followthrough for scalp moves, moves are shorter. Now twenty pips straight run is a bingo. I need to put closer attention to range on small time frames, short top of it. Usually shorting bottom of the range gives fake out and instant loss. Probably I should use more limit orders to put me in, market order is now regularly late and I give away 2-3 pips that should use as a buffer while defining is move valid or not. Maybe I should stop looking for the moves the way I used to and start thinking in terms what will give me five pips.


Soma said...

As you mentioned, perhaps you should go for small amounts of pips. I'm still a beginner at this too but so far I've found that if I get out as soon as price stalls or reverses I can usually get 1-3 pips. I used to hold too long to get more, but usually got a loss. So now I'm just in and out quick.

FX said...

True, but I find it difficult it all feels so small. With the way I trade now 6 pips of the size I enter should be my goal, even goal for a day. Before I didn't think of 6 pips at all as a profit. My R before was around 20 or so pips and I was very happy with +20 days. Now I should be happy with +6 days.

Gump said...

What's being described above is gambling, not trading.

FX said...

Maybe, but what's the difference except that I didn't stack the odds on my side enough on majority of those trades.

Gump said...

Yes, that would be the difference. If the odds are stacked in your favor you have a positive expectancy and that is not gambling, that is running the casino.

I would not count pips,I would look for the odds in my favor as you say. The pips will be a byproduct of properly doing that.

What is/are the average swing sizes of your market/markets? Are they just 6 pips?

FX said...

For scalping average swing size of market is around 6 pips before momentum stops on time frames that I trade.
I agree with you about odds and can't argue with that.