I define scalping as a fast in and out trading style. It often means havig to make several scalps, to win the same profit as a trade which aims for a higher target. For example, say a trader scalps to capture just .10 at a time.. that trader would have to win 5 of those trades to equal a trader who can capture .50 per trade. The obvious advantage, though, is speed or time needed per trade and also flexibility in trading just about every market conition.
I like to see what the official definition is. I always look to this site as a source of reliable info..
So according to that definition, my trade was scalping since it did profit from some fast market moves and was pretty fast.. it finished in under an hour and I consider that fast.
The downside of scalping is a doosey.. most often the strategy requires a large risk (stop loss) in order to let price move and hit the target, which is usually much less than the risk. So any loss can wipe out many wins and a trader needs a high win rate to make the strategy profitable.
My scaping style follows that definition.. my risk might be what I normally would risk (in this trade it was 5 contracts X .35 = 1.75) but my target was less. (I was originally only going to target .20 X 5 cts = 1.00 or $10) but at the last second I decided to try for .30 per ct. :P
I still wanted to go with the flow, or current, so I start off looking at the hourly chart..
in a bull run here.
After a fast fall of price, the bull move continues here on the 15m..
Price was also all bull on the 5m. I was ready to jump on a trade, but this happened in the following minutes..
I thought that since it is a scalp, and more sensitive to price action, I would drop down to the 1m chart and enter when I saw a good bull signal..
notice how the less credit given (I usually get about .50) makes it necessary for me to increase my contracts in the trade from the 2 or 3 that I always use now, to 5 contracts.. to try for the same profit/gain.
I was seeing red (as in the trade was underwater) for just a bit, then it turned back up..
Here was my strike's delta as I entered the trade..
I definitely DO NOT like being that close the the money. (only 2 strikes away), but because of low VIX, the delta was still very decent at this level.
The trade was looking good to me. I thought price was surely rising more and would eventually hit my target, while my stop was safely far below the 100ema that I felt 80% sure pirce would never dip below. The 20% risk is that some big shark or two comes in and tanks the market.
I decided to check out my trade's delta at this time (about 30 minutes to end of market) and it was looking all good..
No sooner had I taken my snap of this when I hear a DONG! (more like a lower bell thump) which meant, either my stop loss was triggered, or I hit my target.
My scalp was over. I know it's not the most drastic version of scalping, but for me, it's probably the most risky scalpish trade I would ever consider doing.. (although, I doubt I would even get this risky.. no matter the profit potential)
https://leofinance.io/threads/view/ezun1/re-ezun1-pjqmdx53
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