Scalping

[Nieco]

Hi Everyone

I am planning/ specalise in scalping esp S&P500. I do have a couple of questions, and any contributions are appreciated. I plan to make money on small movement 1 to 5 points at a time 
1. Do you recommend IG for scalping or do you recommend other platforms?
2. Any other instruments I should consider learning
3. How can I access level 2 Data in pro real time, when I look at US500 the order book is empty?
4. Do you recommend any sources/guide/courses for scalping?

I have plenty of time and would like to learn deeply

Thank you in advance and have a nice weekend

Regards

[Nieco]

re  :)

[dmedin]

On 13/06/2020 at 13:42, Nieco said:

I am planning/ specalise in scalping esp S&P500

Wow that is very specific.

[Caseynotes]

On 13/06/2020 at 13:42, Nieco said:

Hi Everyone

I am planning/ specalise in scalping esp S&P500. I do have a couple of questions, and any contributions are appreciated. I plan to make money on small movement 1 to 5 points at a time 
1. Do you recommend IG for scalping or do you recommend other platforms?
2. Any other instruments I should consider learning
3. How can I access level 2 Data in pro real time, when I look at US500 the order book is empty?
4. Do you recommend any sources/guide/courses for scalping?

I have plenty of time and would like to learn deeply

Thank you in advance and have a nice weekend

Regards

Hi, IG are ok with scalping, other brokers you would need to check, some make it difficult eg must keep trades open for x minimum amount of time.

Consider the major markets, keep away from illiquid markets and stocks, indices, fx majors and the major commods are fine.

Level 2 data is by subscription and displayed on the DMA platform, you won't need this to get started, probably not even later.

Scalping is just like normal trading except on a tighter time frame, you are still looking to buy the dip and sell at the swing high (visa versa for shorts).

You should start on the mt4 platform where you can place trades of smaller size than on any of the other IG platforms, those stop outs may be small but they will add up over many trades and get to be very expensive during the learning process. Start on demo but move to live sooner rather than later, demo is just not real.

[Nieco]

I look at other charts at the same time.
Since I place a buy order that area is not getting hit but when I look at other charts that order shouldve been hit?
Has IG been scamming me?
I've lost a lot of money on this platform and it feels like a scam now.
I only started watching other charts recently to make sure that there is consistencies vs other platforms 
But it seems like there is 10 points different between other live platforms vs IG

Please provide valid response

This is asx 200

[dmedin]

S&P 500 is not the best for scalping as far as I am aware, the best indices for scalping are DAX, Wall Street and Nikkei 225 as they move in much bigger numbers.

[AndrewS]

A video and a blog post.

 

http://theimpatienttrader.blogspot.com/2008/01/holy-grail-setup.html

 

[Phil_Trader_IG]

Why would you use IG to scalp? Their spreads are too wide for scalping in my opinion. Some other providers have smaller spreads which will massively impact scalping results.

[AndrewS]

On 19/06/2020 at 18:50, dmedin said:

S&P 500 is not the best for scalping as far as I am aware, the best indices for scalping are DAX, Wall Street and Nikkei 225 as they move in much bigger numbers.

It’s horses for courses. If my primary focus were American trading hours I might trade the S&P500 or if the focus were Asian trading hours I might trade the Hang Seng. But I like to be able to have a swing trade with a scaled entry and exit around the clock.

[jaykay]

There is scalping and scalping.

I only tend to trade DAX  5min/2min/1min for a minimum of 10 pips. Some traders would not consider this scalping.

With regards to Rayners video - I would disagree. In theory he is correct but in practice I factor the spread in ie go for 11pips to pay the spread. Ok he will argue that factoring in the spread is the same thing, but is it that much more difficult to make 11 pips than 10 ?

[jlz]

Looking at all the techniques that could be considered scalping, I think we just have to count that the life of the trade is very short. Short in the sense of seconds, half a minute the most. The numbers of pips-points don't seem to be part of any scalping technique if you want to get strict. You could modify your exit point in the range you would  prefer but if you exit within seconds, that is considered scalping regardless of the limits you are setting up to exit the trade.

For that reason you need a very volatile market with the minimum spread possible. As some of you have said already, major Forex pairs or indices are the best. I don't think DAX is going to work every day, there are days when that market is very static because is highly correlated with the rest of major European indices. One that is very popular for scalpers is https://www.ig.com/uk/marketanalysis/ig-indices/russell-2000. The spread seems to be decent and it is constantly moving within a strong sideways trend. The movement range seems to be within 400-500 points the most so you might have a good chance there. 

[TREBOR84]

Also need to know when news releases are coming so you don't get dumped on. IG have a Economic Calendar for that.

[jaykay]

Russell 2000 I don't think so.

[AndrewS]

8 hours ago, jaykay said:

With regards to Rayners video - I would disagree. In theory he is correct but in practice I factor the spread in ie go for 11pips to pay the spread. Ok he will argue that factoring in the spread is the same thing, but is it that much more difficult to make 11 pips than 10 ?

The point Rayner was making is if you only have a five point target and your win rate is not very high it is probably not a viable strategy.

[DavyJones]

Using Spread bet is not suitable for scalping in my view , you get filled and exit at a poor price and its hard to cover a spread. Depends on what your definition of a 'scalp'  is though

 

Share dealing is  a lot better for US stocks (no fees) but you need the capital and can only go long.