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Forex Scalping Strategy

Discussion in 'Making Money' started by gileakh, Feb 19, 2009.

  1. gileakh

    gileakh Registered Member

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    Hi Guys,

    I am a newbie in Internet Marketing, but I've been trading forex online for several years.

    And I can see that there are some threads and discussion about forex in this forum, I hope I do not breach any rules for posting this kind of thread.

    If it breaks the forum rules then simply delete this thread.

    It's a wonderful online opportunity, you can make money online everyday!! but if you do not take real money management and strategy discipline, this could hurt you a lot!!!

    In the Past, I've watched my account just dropped to nothing in no time

    So, what I do today, I try to discipline myself and not being "carried away" by "greed and fear", the most ruthless enemy of forex trader.

    I used to underestimated psychological aspect of trading, but it turn out to be the most important part.

    Ok, if you plan to use small amount of money to invest in Forex (300 USD to 5K), I recommend you open mini account ( 1 lot trade in mini account is one tenth lot of regular account).

    I only trade EURUSD (it's better that we trade not too many pair), using brokerage with MT4 trading platform.

    For Main Indicators I use Pivot Point and pivot midline indicators, MA (20,50,120), also sometimes I draw Fib level on some "important" part.

    I just aim for max 20 pips per trade (with stop loss sometimes higher than that, depend on technical S/R level, and sometimes only use mental stop loss, but you have to be real careful with this).

    For Scalping, the most important levels are (all are daily level) :
    1. Pivot Level
    2. all S levels (S1, S2 and S3)
    3. all R levels (R1, R2 and R3)
    4. Less important is the midlines levels (in between S's and in between R's)

    Another important levels are :
    Previous Highs and Lows

    On scalping, I always look at the longer time chart starting from daily down to H4 and then H1, M30, and M15 (sometimes M5).

    Look at the trend and go with it, the key is, when price hit the main levels (S or R), there is almost always some reaction at least 15 pips, so I utilize this to get 10 pips (or sometimes just 6 pips).

    When I'm in a trade and it's getting along with the trend, sometimes 50 up to 100 pips is not difficult to catch (but this is not scalping anymore, watch out, don't be greedy).

    The explanation above is not clear without picture on how i did the scalping, I'll try to make it and post it later.

    Also if anyone have interest, I have pivot levels and midlines indicators for MT4 so you don't have to calculate daily pivot SR, it will automatically drawn on your chart.

    Since I'm a newbie, I don't know how to upload a files or zip files in this forum.

    I'll upload it later when I know how to upload.

    Good luck and take care
     
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  2. mike330

    mike330 Regular Member

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    gileakh, thanks for the info. Are you trading Forex full time?
     
  3. xvoidx

    xvoidx Registered Member

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    I think the most important thing about Forex is a person's emotions. If you can come to the table with no emotions you'll succeed hands down. Doing that is a lot easier said than done though. It took me awhile to get to that point. While I don't agree with scalping strategies I agree with many of your points. The only reason that I don't agree with them is that they don't fit into my trading philosophy so to speak. If they work for you run with it. They just don't work for me. I prefer long term trades (1 week to my longest of 9 months)

    Your guide is very helpful though for anyone interested in scalping. Awesome job.
     
  4. gileakh

    gileakh Registered Member

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    Mike, I have my own job, but I traded heavily, and as for voidx comment, I agree 100%, scalping is not for everyone, the roller coaster ride can ruin your heart beat, so the bottom line is like voidx said, control emotion and money management! and it's true that it is easier said than done.

    As I said, I used to neglect this psycho "mumbo jumbo" ,.... but it's really not a "mumbo jumbo" .... it's real!! so whatever strategy we use, always remember this psycho things!

    My other favourite strategy is SRDC (Support Resistance Daily Candle) by OrangeRoshan (he is a veteran full time trader), much more secure strategy and best for beginners (and season trader as well), You can find it in forex forums. It's used to be free to fetch the ebook. The ebook was written based on live discussion on the forum, because so many people joining SRDC (it's free after all) I saw that it has grew and became a group of traders exchanging their experience on SRDC (there are SRDC I to III), and I saw that (last year?) Orange Roshan conducted live seminar on SRDC at London UK and other countries. it's really awesome strategy, not too many trade only 1 or 2 per day but it's safer.

    I think SRDC is still free, I'll try to find the file and post it in here (not a promise though)

    Notes : Please Take Care of Your Account! use wise money management (some trader said, above 2% risk per trade is consider as agresive trade)
     
  5. gileakh

    gileakh Registered Member

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    One more warning for forex trading .... it's a high risk high reward game, so for complete beginner who want to trade forex, I recommend :

    1. make a demo account, study how to use the trading platform inside out (how to place a trade, how to close it, how to put stop loss and take profit, hoe to create a pending order etc.) it's not hard, but you have to know it throughly (especially when scalping) because the price changes is very dynamic especially on volatily times.

    2. Use that demo account to trade your virtual money

    3. Take one strategy (2 at most) and stick to it! discipline with them, even on demo account, trade seriously, think of it as your real money. Trade your demo account for several months and take notes on what happen to your trade

    4. Avoid to trade during the news announcement (Non Farm Payroll, Feds Interest Rate announcement etc.) the list of the news, Time Sched and it's impact can be found at ForexFactory.com
    I don't trade 30 minutes before the news and 30 minutes after the news. During news time, spread can be much wider (EURUSD spread is 2 pips, but during the news it can become 4 or 5 pips or more) and very wild.

    Again this is high risk high reward game, so take care
     
  6. Fingus

    Fingus Registered Member

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    Looks like this is the strategy you are talking about, thanks for pointing it out... :)

    Code:
    http://srdc.wikidot.com/episode-i
    
    And hereĀ“s the forum:
    Code:
    http://www.orangeroshan.com
    
     
  7. whale

    whale BANNED BANNED

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    forexfactory and babypips both are good places to learn forex trading....
     
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  8. gileakh

    gileakh Registered Member

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    Yes Fingus that's the url http://www.orangeroshan.com , you can register there for free, alot of discussions, indicators etc.

    I hv'nt been visited this site for quite a while, and now SRDC up to level X !!!

    But the beauty of this strategy for me is the simplicity and I like to keep things simple.

    In short, I only use SRDC I : yesterday highest price is the resistance, yesterday lowest price is the support, this is the simple way : look at the daily chart, whenever price higher than the resistance BUY, whn it go lower than the support SELL. for confirmation on SRDC I, before we place a trade, go to the 15Min Chart and wait for the 15 min candle to be fully formed below the support or above the resistance (the whole candle including wicks), when it happen, we go ahead place a trade ..... take profit between 5 to 10 pips.
    That's all to it!

    on higher level, they use channeling and ergodic CCI etc. but as I said I like to keep it simple

    Note : sometimes price do not penetrate either support nor resistance, in that case, simply just don't trade

    You can easily backtest this strategy by looking at the daily chart, you'll be surprise how easy and reliable this strategy is

    You can babysit the trade to get more pips
     
  9. gileakh

    gileakh Registered Member

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    yes, for basic knowledge, babypips is excellent, and both are free
     
  10. tommysc

    tommysc Senior Member

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    I know slim to nothing about the Forex Market; however, I would like to know more.
    Some great info in this thread, thanks for the share.

    Broadening the horizons folks :)
    -
     
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  11. gileakh

    gileakh Registered Member

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    Ok,

    This is my first time uploading on rapidshare

    indicators (mq4 files) are small, only several Kbytes,

    here are the link (see below) to download the indicators.
    I put pivot indicators and pivot midlines here :

    hxxp://rap**idshare.com/files/200203295/FXI_Pivots_1_1_.0.4.zip
    hxxp://rap**idshare.com/files/200203296/FXI_Pivot_Midlines_1_1_.0.4.zip

    Also I hv hundreds of indicators in 1 zip/rar files (size about 2MB), i put it in this link

    hxxp://rap**idshare.com/files/200203297/INDICATOR_LIST_1_.rar
     
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  12. gileakh

    gileakh Registered Member

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    Hope it helps Tommy, but as xvoidx said in his post .... the ideal way is to be emotionless.

    Until today I cannot achieve that emotionless state, .. partly because I cannot do it emotionless, and also sometimes I enjoy the heart beat.

    So, to reduce the damage when things gone bad, limit your amount of trade I recommend 2% to 3% of your total account at most

    This is an example of how I calculate the risk :

    If I have normal trading account, for example US $10,000 , I trade EURUSD pair. every pips change in price will represent profit or loss 10 USD

    So If I put 2% risk, it mean that on that particular trade I am willing to loose maximum US$200 , this mean that for 1 lot of a trade, 20 pips changes in price against me, will result in 2% loss .

    What if my technical level stop loss need to be place 40 pips away? so to keep my risk at 2%, with 40 pips stop loss, I will only place 0.5 lot
     
  13. plut0

    plut0 Regular Member

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    do you stick on metatrader ? then never enter the market on news release. just suggestion :). its just like got shaved lead on cpa networks. :tumblewee
     
  14. blackmagiquellc

    blackmagiquellc BANNED BANNED

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    Lol. It's crazy in that market. Had a friend lose 70K one trade and bank 400K on next. I don't know how the market works exactly but

    I'm an affliate WOOT WOOT!!

    ..
     
  15. whale

    whale BANNED BANNED

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    Not really...advanced forex traders are also there...not just for newbies.

    forex-tsd maybe is more expert or advanced...:)
     
  16. gileakh

    gileakh Registered Member

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    Yes I agree Whale :) , what I mean is for anybody who want to start forex trading, babypips is a great place to learn .... that does not mean it's not suitable for season trader though :)
     
  17. gileakh

    gileakh Registered Member

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    Yes!!! news release time is the most dangerous times, eventhough, there are some traders who specialized during news release (news trader, doing straddle etc.), but I personally feel it's too dangerous
     
  18. gileakh

    gileakh Registered Member

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    Yes it's very dynamic, but very interesting, the key is again .... money managament and psychological , discipline to your own rules and strategy that suitable for you.

    Regarding affiliate cpa ppc etc..... I am very eager to become success in this field, up until now have not achieve what I want :( , that's why I join this forum, there are a lot of experienced members in this blackhatworld forum, and they share a lot!!! thank's guys
     
  19. gileakh

    gileakh Registered Member

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    And here is the complete SRDC I, II and III methods

    Code:
    hxxp://rapidshare.com/files/200269779/SRDC_method_v1_1_.3.pdf.html
     
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  20. qqbot

    qqbot Newbie

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    news trading is not dangerous, unless you have a shitty broker. by shitty i mean the kind that lets you open up an account with 1k and gives you 400:1 leverage.

    if you want to trade news you need a real broker, with a good news feed. most of the online "brokers" are bucket shops and will not hesitate to fuck with you and take your money whenever they get an excuse (like big volume after a news release), or they are ecns and you wont be able to get your orders filled reliably enough to trade news. in order to get accounts with good brokers you need a big chunk of cash.

    forex is risky business and there is no exchange commission to regulate it, so its very easy to get burned. most successful forex traders trade futures and don't touch the spot market.