Thread: Net/Long term effect of habitual low pips targets on account size

Let´s assume that you are professional trader, and you get a conservative way of trading. Let´s assume a year, it gives 40 percent of yield to you. Assume that you have a scalp system in which you exchange an acount witch is 20 times bigger than the initial one and you have a outcome of 400 percent a year. So you total return yearly will probably be ( 1.4 1/20x4=1.6 or 60 percent ).

And 2/3 of your profit came from a conservative trading.

So the question is: Is scalping 10/15 pips a way of trade by it self or it's a part of a more intricate system like a way of complement traditional commerce?

Is it feasible to perform just and just the scalp?

By how in which the return above is pure my begginer imagination..lol.

Good luck to all of you.

Originally Posted by ;

Permit ´s assume that you are professional trader, and you get a conservative means of trading. Let´s assume a year it gives you 40% of return. Assume you have a scalp system in which you exchange an acount witch is 20 times smaller than the first one and you've got a result of 400% a year. So you total return yearly will be ( 1.4 1/20x4=1.6 or 60%).

Originally Posted by ;

And 2/3 of your profit came from a conservative trading.

So the question is: Why Is scalping 10/15 pips a means of trade by itself or it is part of a more complex system like a way of complement traditional commerce?

Is it possible to perform only and only your scalp

From the way the return above is pure my begginer imagination..lol.

Good luck to all of you.

The beginners section is an exceptional place to post questions. More people can see this question and give answers to you.

Enjoy a great weekend

Originally Posted by ;

There are far more opportunities to successfully scalp than you will find to catch the 100 - 400 pips.

There are far more opportunities in scaling, but making the most of them consistently is harder than grabing that 100-400 pip trade.

Originally Posted by ;

scalpers = hyper traders
swing traders = lazy traders
heh, I don't know.

I am a laaazzzyyy exchange

Originally Posted by ;

If the writer of this report requires proof that scalping works better at the long term, just go to Oanda Contest and analise the winners. The vast majority ( if not all ) are the scalpers. Each month, every year, the winners are those who've perfected a scalping system, which took them many years to achieve, and they play that strategy.

The proof is right there made accessible by simply analising different peoples success.

You are basing your argument on the outcomes of a bucketshop contest???

Originally Posted by ;

You're basing your argument about the outcomes of a bucketshop competition???

Yes the results are there.

Lets take an example of why scalping is the most profitable:


Trader A (and this is a real person whom many of you know on this board) averages 5 percent / month for him and his clients.

This trader using suitable money management and a minimum of 2% risk per transaction.

He is a swing/position trader and has a winning percentage of roughly 70 percent of his transactions.

He takes roughly 15 transactions / month plus it takes him 15 transactions to earn this profit.

He makes his 5% / month and is quite profitable.


Now here comes the scalper, Trader B

Trader B also has appropriate cash management, risks max of 2% / trade, wins 70 percent of transactions.

BUT something is different. Rather than making 15 transactions that he makes 120 transactions month.

Hence the scalper is making 8 times as many transactions / month but with the same sum of profit/loss / trade.

So he makes 5% for every 15 transactions he takes, but because he takes 120 transactions / month that he makes 40% profit per month.

He is not any different then the place trader about his results per trade, but just in the amount of trades he takes.


This is easy math and all should concur. The only point of disagreement is the...

Could a scalper do exactly too PER TRADE for a place trader? Can he average the same effects PER TRADE or not?

If he can, or even when he can come near, then the above figures stand solid.


This is why if one desires the trading fashion together with the chance of the greatest returns afterward he'll resort to very short term trading or SCALPING.

Very excellent article. Thanks for taking time and attempt to talk about it.

Originally Posted by ;

Boy boy.... Grow up, or at least respect and listen to the trader, and maybe you'll find something. Do you really feel anybody is searching for your post to put you down in a forum with 43.692 members....

LOL

Originally Posted by ;

Can a scalper do exactly as well PER TRADE as a place trader? Can he average exactly the very same effects PER TRADE or maybe not?

If he can, or even when he can come close, then the above characters stand strong.


This is why if one wants the trading fashion with the possibility of their biggest returns afterward he will resort to very short term trading or SCALPING.

So over the long term those commissions will not add up?