Thread: Chasing few pips and intraday scalping

Hello!
I was wondering whether it is bad to trade like I do, and by that I mean trying to hold very short rankings and take profit at 1-2 pips. Is it a dumb thing to do ? Thanks!

Just how many lots are you setting up? 1-2pips translate into barely any money in any way, unless you're going in with lots of lots in a go. .

I Utilize 0.05 lots, the profits are minimal However, as my Aim is to Keep myself to green if we talk about 1% returns per trade

Any respected broker could have you booked or on limited exchange conditions trading like this, how can I know? Personal Experience.

I used back in the day some stupid eas from MQL5, well, they were actually very good, they caught abrupt volatility for 1-10 pips and lasted less than one min.
But after a week or so, with whichever broker I was with as my lots got larger too, my series rate declined immediately, while still finished demonion it consistently made profit, why? Because on my live accounts I was B reserved, and this really is an eduion from the banks in the Brokers pool, not the broker themselves.

The reason is this. A broker makes profit from the commission per trade right. Therefore a profitable trader is also profitable for them as you will trade longer, so against belief brokers DO want you to be profitable, I certainly know now being profitable myself for several decades, and I have an extremely close relationship with two brokers due to this.
Anyhow, what happens when you click buy/sell your trade is routed into a pool of banks supplying quotes, and your trade has to be offset in the opposite direction using one of those banks best quotes, now if your transactions are available and closed within minites, then the trade cannot be offset and then the broker/bank has to be on the other side of the trade, so let me put it this way, how long do you believe a broker/bank will allow you to keep winning at their cost? I believe you can figure that one out yourself.

Originally Posted by ;

Any reputed broker could have you B booked or on restricted trade conditions trading like this, how can I know? Personal Experience. I used back in the day several dumb eas out of MQL5, well, they were actually very good, they caught abrupt volatility for 1-10 pips and lasted less than one min. But after a week or so, with whichever broker I had been with as my lots got bigger also, my series rate declined immediately, while still over demo it consistently made profit, why? Because on my live accounts I had been B reserved, and this is an instruction from...

Are you sure its 1-10 pips at which stage a broker would put the trader under limitations? I can understand if its 1-3 pips or something, but more than 5 pips seems unusual. I mean, high frequency traders trade for about precisely the identical number of pips, and lots of respected brokers welcome high frequency traders. I am only wondering. Perhaps you can shed some light on it, as you said you have several years of expertise and good connections with brokers.

Originally Posted by ;

quote Are you sure its 1-10 pips in which stage a broker would place the trader under restrictions? I can understand if its 1-3 pips or some thing, but over 5 pips seems odd. I mean, higher frequency traders trade for about exactly the identical amount of pips, and several respected brokers welcome large frequency traders. I am just wondering. Maybe you can shed some light on it, as you said you have several years of experience and very good connections with brokers.

It wasn't so much the amount of pips, more the brief length of time the transaction was open.

1-2 Pips is achievable, but a retail broker's spreads will kill you. You are always going to have a negative expectation after you factor in their spreads (1-2 pips) and retail broker's spreads widen the most out of any trader, which will stop you out of transactions simpler.

You are going to require a direct line to the interbank market through an ECN (The abbreviation ECN stands for electronic communiion system. ECN can be described as a bridge linking smaller participants from the market using tier-1 liquidity suppliers through an FX ECN broker.)

Large FX traders pay the least in spreads, some 0 pips. Most reveal Eur/Usd spreads of 0.0-0.5 With those spreads, you will have a far much higher prospect of hitting on a TP of under 10 pips. You'll be able to trade in actual lots and should you select HFT, ask to set this up with the ECN.

ECN advice
http://www.dailyforex.com/forex-arti...ographic/68163

Here's some ECNs
https://tickmill.com/accounts/types/ecn-pro/
https://www.vantagefx.com/forex-trading/best-spreads/
http://www.fxcc.com/spreads

Simply Make Sure That Your broker is a Genuine ECN dealer. Downfall is a capital requirement. . But that's the cost to perform with the true IB market. Not a trader that gravitates their prices customer's stops.

I believe taking small profits, and repeating is a perfectly viable method of trading. Granted it is not for everyone, but some can profit this way. As long as you do not have commissions, and you also watch for the factor spread you should be fine.

Originally Posted by ;

Hi! I had been wondering whether it is bad to exchange just like that I do, and by that I am attempting to hold really short rankings and take profit at 1-2 pips. Is it a thing to do ? Thanks!

Yes, it is not a fantastic idea! Because, once you're using TP for 1-2 pips then what will become your SL? Over TP? It's not a alternative that is fantastic, never and ever!

I think taking small profits, and copying is a totally viable method of trading. Granted it is not for everybody, but a few can profit this manner.