The more I learn how to scalp the more it dawns on me that predicting which way the price will go is less relevant because say you lay a back trade first and its taken and the price moves down then you place a lay trade and you have a one tick profit however if the money on the back side lessens instead of increases you do a scratch trade and you have no profit but also no loss so at the end of the day after trading the price say on the favourite like this several times a race you will be in profit with no losses so why is it important to predict the movement of the price ? and also who can predict price movement in any case ? even the experts admit they cant ...
I was amazed when I watched Adam Todd's video called the "advanced coin toss trade or something similar because he traded continuously without bothering which way the price may or may not go ie "coin toss" so why do we spend a great deal of time trying to find reasons why the market moves if it really doenst matter ?
Price move does it matter ?
You don't need to know which way it's going when scalping, ideally, you want a steady price not going anywhere in the short term (unless directional scalping) then your aim is to get in and out as fast as possible and as many times as possible.
If your swing trading then you do need to have an opinion which way it's going, if you don't you shouldn't be opening the trade
If your swing trading then you do need to have an opinion which way it's going, if you don't you shouldn't be opening the trade
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- Joined: Sun Jan 31, 2010 8:06 pm
Scalping always seems an easy option as you generally get so many winning markets it's easy to think you've almost cracked it. The problem is if you don't pick your markets and trades wisely a price can easily run away from you. The days of blindly sticking money into the marets like Adam Todd's videos and making easy cash are long since gone.
Nothing wrong with scalping but steady static markets aren't usually as easy to find as they first appear.
Nothing wrong with scalping but steady static markets aren't usually as easy to find as they first appear.