Scalping for dummies

[alus1onZ]

This is my giveback to the community.

Do whatever you want with this information. I probably won't reply to most of the posts.

1. The price ALWAYS retrace to the 5, 13, 50 and 200 EMA at the 1H, 15M, 5M and 1M charts.

2. If the price moves sharply from the 50 or 200 EMA it will retrace about 30-50% of the move shortly after and will retrace to the nearest (50 or 200) EMA in the same trading session.

3. Don't f*cking trade when the price is moving sideways at the 50 or 200 EMA or is way away from those EMAs

4. Trade only at Tuesday, Wednesday and Thursday, except Elon tweets something

5. Never trade on weekends, except Elon tweets

6. Never go balls deep when scalping. Trade low and try to improve your success rate. Don't think about earning or losing money, just think about your success rate and if you trade low you'll be OK.

7. Don't stay in a losing trade more than 2 hours except you are really really sure it will turn to profitable one if you wait more. Remember you will always have another trading opportunity when scalping.

8. Pay yourself! As soon as you play the game with "free" money you got from your successful trades your psychology will change and you will be less emotional and more successful when executing trades.

 

[resurrects]

thanks for the tips brother! and what a timing , I started scalping 2 days ago haha

is it a sustainable money making strategy? what would an average monthly ROI be?

thanks in advance!

 

[alus1onZ]

thanks for the tips brother! and what a timing , I started scalping 2 days ago haha

is it a sustainable money making strategy? what would an average monthly ROI be?

thanks in advance!

Forget about the ROI, focus on the success rate of your trades. Your goal should be over 70% successful trades. That should cover your losing trades if you trade low.

 

[oldguyjoe]

I’ll just add some really basic tips to what OP already posted:

• Define clear entry and exit rules for your trades and write them down.
• Define take profit and take loss targets.
• Determine position sizing that won’t blow up your account in a streak of losing trades. The more money you have, the smaller % this number is. You’ll probably start in 2-5% range per trade.
• When you trade, stick to those rules like your life depends on them, because it probably does.
• Always backtest your trading strategy.
• Always forward test your strategy with fake money first.
• Keep track of your trades, replay them and learn from them. Just like in ad tracking, you’ll learn that you make more money at certain times during the day so tracking your performance will help you optimize. This is exactly analogous to ad optimization. Some use tradervue for this.
• Check your local tax code. Not all jurisdictions recognize a “wash sale”. You don’t want to end up unable to deduct your losses from your winnings and nuking your profits in the process. Laws vary in crypto even more than with stocks.
• Don’t trust streamers and gurus. The bigger the numbers, the more likely they trade with fake money. Especially don’t trust gurus that let you buy a seat to trade along side with them (delayed a few seconds of course so you can end up holding their bag).
• Trading platforms are not your buddies and have interests that are NOT aligned with yours. Do extensive research to determine how they route your orders and who do they sell your order flow (this probably applies more to stocks).

Imo, it is far easier to get rich with good old problem-solving entrepreneurship where everyone wins, you and your customers. With trading (not investing!), the majority will end up losing money and those that win, can only win if others lose. It is also easier to outsource and grow your classical business, than your trading business. There is no "micro-niche" approach to trading. You’ll regularly get tricked by big players and by pump-dumpers on low float stocks.

Take into account how those next to you will view you (if that is important to you). You probably don’t want to tell them that you trade. If you fail, you’ll be the dumb idiot. If you win, you’ll be the bastard.

 

[alus1onZ]

@oldguyjoe I agree with most of the things you say, but there is one thing that I don't agree with. Playing with demo account might f*ck up your trading logic, because everyone feels and trades differently when they use real money. I just test my strategies with low amount of money, just to have some feelings when executing the trade.

 

[oldguyjoe]

@oldguyjoe I agree with most of the things you say, but there is one thing that I don't agree with. Playing with demo account might f*ck up your trading logic, because everyone feels and trades differently when they use real money. I just test my strategies with low amount of money, just to have some feelings when executing the trade.

I understand that that one is a personal preference that is controversial among traders. Once real money is involved emotions kick in that you never knew were there before. I would say that if you have enough of money, you can afford to test with some real money sooner. But consider this forum is full of some really poor people that won’t be able to deposit any substantial play-money in their accounts early on. But yea, I know where you are coming from.

There is one argument against trading in demo account that is not emotion-based and that is that trade execution on demo account does not represent real trading. Not because of the removed or added liquidity by that 1 trader, but more because of delays in execution and slippage that happens in volatile situation when you have to act quickly.

 

[alus1onZ]

Today was a perfect day for scalping, loving it.

Just check the tips from OP and check what the price of all cryptos are doing today.

Happy days