The Great Debate: Scalp vs. Swing
Written by NathanTucci on January 16, 2012 90 Comments
Nathan Tucci is a young trader . His trading techniques are based on Mathematics above all else. Though he understands technical analysis and fundamentals; his personal belief is that all trading success comes down to the Mathematical principles integrated into all trading. He loves to develop and improve strategies, and is constantly looking for ways to take advantage of the Forex Markets. Trained by Casey Stubbs, Nathan shares Casey’s belief that price is the truest of indicators, and a firm understanding of Price-action is vital to trading success. Nathan loves to share his lastest ideas, successes, failures and thoughts so that other people can benefit from his scientific approach to the market. Follow his latest thoughts on Twitter.
Today, I want to talk about one of the biggest topics among traders: whether it is more profitable (or perhaps logical) to scalp or to swing trade. In case you are unfamiliar with these two terms, let me give you a very generic definition of each:
Scalping: Trading that tends to target small moves in the market using short time-frame analysis such as 1, 5 and 15 minute time frames. Scalping puts an emphasis on being in the trade a short amount of time and winning a high percentage of the trades taken. Scalping, in most circumstances, requires a trader to allow his position to move into a farther negative position than what he is targeting on the positive side.
Swing Trading: Trading that attempts to capture large market moves. This trading is most often in the direction of large trends in the market. This type of trading usually requires traders to hold their positions for long amounts of time. Using the trend, most swing traders are attempting to risk far less than the total movement they are targeting.
Hopefully, that gives you a bit of an idea of what I mean when I say scalping and Swing Trading.
In this article, I just want to show you a short video I made to explain how I feel about it (assessing it mathematically, of course) and hopefully get a lot of feedback so that I can follow up with another article soon based one what you all have said.
Just a quick note to understand before you watch the video: I do fully understand that traders can be very successful using many different methods of trading and I know many that are using both swing trading and scalping. I also believe that traders can use both of these methods to attain success in Forex trading (and any other market), but I wanted to make a video that would point out which one I believe is a technically more sound way to approach the markets, especially for people who are newer to trading.
With that said, please enjoy the video, and make sure you leave a comment with your thoughts! Feel free to disagree!
Hope you enjoyed this little video. Make sure you leave a comment with your thoughts and opinion.
Thanks again for reading and watching, and make sure you are following me on twitter for my latest thoughts.
Link: http://www.winnersedgetrading.com/the-great-debate/
Nathan Tucci is a young trader . His trading techniques are based on Mathematics above all else. Though he understands technical analysis and fundamentals; his personal belief is that all trading success comes down to the Mathematical principles integrated into all trading. He loves to develop and improve strategies, and is constantly looking for ways to take advantage of the Forex Markets. Trained by Casey Stubbs, Nathan shares Casey’s belief that price is the truest of indicators, and a firm understanding of Price-action is vital to trading success. Nathan loves to share his lastest ideas, successes, failures and thoughts so that other people can benefit from his scientific approach to the market. Follow his latest thoughts on Twitter.
Today, I want to talk about one of the biggest topics among traders: whether it is more profitable (or perhaps logical) to scalp or to swing trade. In case you are unfamiliar with these two terms, let me give you a very generic definition of each:
Scalping: Trading that tends to target small moves in the market using short time-frame analysis such as 1, 5 and 15 minute time frames. Scalping puts an emphasis on being in the trade a short amount of time and winning a high percentage of the trades taken. Scalping, in most circumstances, requires a trader to allow his position to move into a farther negative position than what he is targeting on the positive side.
Swing Trading: Trading that attempts to capture large market moves. This trading is most often in the direction of large trends in the market. This type of trading usually requires traders to hold their positions for long amounts of time. Using the trend, most swing traders are attempting to risk far less than the total movement they are targeting.
Hopefully, that gives you a bit of an idea of what I mean when I say scalping and Swing Trading.
In this article, I just want to show you a short video I made to explain how I feel about it (assessing it mathematically, of course) and hopefully get a lot of feedback so that I can follow up with another article soon based one what you all have said.
Just a quick note to understand before you watch the video: I do fully understand that traders can be very successful using many different methods of trading and I know many that are using both swing trading and scalping. I also believe that traders can use both of these methods to attain success in Forex trading (and any other market), but I wanted to make a video that would point out which one I believe is a technically more sound way to approach the markets, especially for people who are newer to trading.
With that said, please enjoy the video, and make sure you leave a comment with your thoughts! Feel free to disagree!
Hope you enjoyed this little video. Make sure you leave a comment with your thoughts and opinion.
Thanks again for reading and watching, and make sure you are following me on twitter for my latest thoughts.
Link: http://www.winnersedgetrading.com/the-great-debate/
