Re: Senior scalpers and day traders , plz comment on my money&risk management system
dear friend,
when I used to scalp, I did it without the use of charts, hence would not be able to comment there. you are the best judge here as you know when you get your signals and how far you are able to execute them. the problem I see at times with chart based scalping is that when you would analyze 20 diff charts EOD, there will definitely be a few which worked very well by any good system, but if one is tracking 10-20 scrips, what are the chances that
a) one would be trading that particular script on that day.
b) one wd trade all signals that day.
nevertheless, you have had good returns by your system. you must give it a try. I wd suggest trade one single script for 15-30 days.. if you get good results by the end of it.. you definitely have something up your sleeve.
but if you find you get a few good days, few bad and a few ordinary days, then it would be very difficult to make any money after factoring in the various costs and slippage.
regards
hmm ... True , I guess From feb 1st , I should Paper trade for 15 days by picking up 2-3 scripts from different sectors to see how it works .
Thanks for the suggestion .
And you said , you dont use charts for scalping ..... then what approach do you use ? only volume analysis ?
Regards,
HedgeFudge
dear friend,
when I used to scalp, I did it without the use of charts, hence would not be able to comment there. you are the best judge here as you know when you get your signals and how far you are able to execute them. the problem I see at times with chart based scalping is that when you would analyze 20 diff charts EOD, there will definitely be a few which worked very well by any good system, but if one is tracking 10-20 scrips, what are the chances that
a) one would be trading that particular script on that day.
b) one wd trade all signals that day.
nevertheless, you have had good returns by your system. you must give it a try. I wd suggest trade one single script for 15-30 days.. if you get good results by the end of it.. you definitely have something up your sleeve.
but if you find you get a few good days, few bad and a few ordinary days, then it would be very difficult to make any money after factoring in the various costs and slippage.
regards
Thanks for the suggestion .
And you said , you dont use charts for scalping ..... then what approach do you use ? only volume analysis ?
Regards,
HedgeFudge