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Nothing to something scalping system

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TH,

Do you have empirical evidence that "they all do it?" I assume here you mean only market making CFD brokers. The DMA CFD broker that I use has allowed me to profit handsomely with no interruption to service.
 
el caballo said:
TH,

Do you have empirical evidence that "they all do it?" I assume here you mean only market making CFD brokers. The DMA CFD broker that I use has allowed me to profit handsomely with no interruption to service.
Click to expand...

So have you answered your own question??:(
 
Well, actually, I answered only one part of my question (ie. the DMA aspect) - the other implicit component, that is whether non-DMA providers allow clients to be successful, remains unanswered. I was hoping to hear of your empirical experiences along this line .... apart from the one outlined in this thread.
 
el caballo said:
Well, actually, I answered only one part of my question (ie. the DMA aspect) - the other implicit component, that is whether non-DMA providers allow clients to be successful, remains unanswered. I was hoping to hear of your empirical experiences along this line .... apart from the one outlined in this thread.
Click to expand...

With equities, the CFD providers would generally play fair, DMA more so because they can just hedge your position on market (in theory), and they would want to keep you happy so you keep paying brokerage.
Trading artificial indices and stuff is a different matter as they cannot afford to hedge on market every time someone places an order on mkt due to brokerage and liquidity issues. If you're position trading indices and taking 200pts with a 100pt stop, that would be very different to someone scalping 3 tics with a 1tic stop. You're just feeding on their coffers slow and surely... and bucket shops dont take too kindly to that!




On a side note, TH pity you missed out on the SPI today, some really great moves. Almost as good as the HSI, up 800, down 1000 :D
 
This thread is a testament to the great forum and community Joe has put together here at ASF.

Having people like TH onboard can only increase the knowledge here, and we are lucky he is willing to show what he is capable of. It is also good to know that 'anyone' can do it, if they have the dedication...

For all the doubters out there, I have seen the broker statements and i can confirm that all the trades are real, the $ values are real etc etc.

Keep it up TH, hopefully one day i can be a quarter as succesfull as you are. And make sure you keep posting ;)
 
prawn_86 said:
It is also good to know that 'anyone' can do it, if they have the dedication...
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The popular cliche quote is "only 5% of traders are consistently profitable" or something similar. Are you implying by your above comment that 95% of traders fail simply because they are not dedicated enough?
 
jersey10 said:
The popular cliche quote is "only 5% of traders are consistently profitable" or something similar. Are you implying by your above comment that 95% of traders fail simply because they are not dedicated enough?
Click to expand...

I would say most do, not sure about 95%. But how dedicated is dedicated enough? Some guys spend 15-20 years as loosers to break-even traders before they become consistently profitable. Trying various markets and styles of trading. TH put in his hard yards, he could have and would have become one of those 95% statistics if he didn't keep plugging away and that comes from pure passion. Other than some logic and basic arithmetic, it seems to be the general requirement in this game.
 
If I don't make a complete tosser of myself doing this I will come back and show the same with the futs.......... one day

Please do!! I would love to see that!:)
 
Just to add to the thread, though scalping can be the most angering and frustrating style, the absolute beauty is you can actually see the flow.

A simple example is a downtrend, you get a quick and sudden rally (covering, squeezers etc), then the price just stops in the order book, now what is the probability of what will happen next? Has the seller gone and a buyer all of a sudden entered? This is what it looks like, but most likely, no chance. When price stops (not even seen on the chart yet), this is where you try and enter the short. Or you can wait for the asks to move back down and the bids start being pulled or thinning out and try and clip them before others do. But with the second approach, you will probably have to have a slightly wider stop.

Being able to see the flow of price action intraday, is the true magic of it IMHO.

Maybe this post should be in the order book (market depth) thread. Ah well.
 
BUMP...

TH...i'm going on holidays soon. Funds are low.

Please provide Account Number and BSB so I can wire $800 to you for a handsome return in time for my trip.

Sincerely,

JTLP
 
Amazing thread, TH do you still scalp using CFD's? or have they shut you out from every provider????
 
Ageo said:
Amazing thread, TH do you still scalp using CFD's? or have they shut you out from every provider????
Click to expand...

I have completely given up on it for the following reasons,

1. SPI volatility has dried up.
2. CFD providers will not let you get any volume anymore. (So its a waste of time)
3. I'm concentrating on other Asian index futs where the size is close to unlimited :) the swings are many and the scalping is worth the effort.


But I want to make this clear because I have been contacted by a few newbies. As the SPI stands now with low volatility and a low amount of intraday swings its not the index to scalp. Certainly not with CFDs.

And I would say that just about rules out any scalping with CFDs in any market. As spreads on all other instruments are just to wide to get over jobbing along all day.

DON"T DO IT.
 
Trembling Hand said:
I have completely given up on it for the following reasons,

1. SPI volatility has dried up.
2. CFD providers will not let you get any volume anymore. (So its a waste of time)
3. I'm concentrating on other Asian index futs where the size is close to unlimited :) the swings are many and the scalping is worth the effort.


But I want to make this clear because I have been contacted by a few newbies. As the SPI stands now with low volatility and a low amount of intraday swings its not the index to scalp. Certainly not with CFDs.

And I would say that just about rules out any scalping with CFDs in any market. As spreads on all other instruments are just to wide to get over jobbing along all day.

DON"T DO IT.
Click to expand...

I dont trade intraday so thats fine, if you have another daily blog of your trading i would gladly participate as i found this thread 1 of the most entertaining and educating.

Cheers
 

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