Tuesday, October 1, 2013

A few random thoughts on scalping / daytrading

I was thinking of starting a new blog dedicated to daytrading / scalping. Should I? The process of setting up another blog is tedious. On the otherhand, I know some readers are interested in my development and thoughts in swing trading, and mixing my entries with scalps may make the blog a little messy. However, it's been a decision that I've been considering for some time.

Why am I scalping (or daytrading)? I stumbled on this blog a few weeks ago (Forex Alchemy) and was quite impressed by the trader's simple methodology. Scalping is also what I consider "true" trading, in that you really develop a feel for the market, keeping abreast of current events and how they affect the market, minute by minute. I'm not saying that other forms of trading are "wrong". Any form of trading that generates money is good trading. However, scalping forces you to stare at the chart for hours and connect with the ebb and flow of price action. You begin to think of your opponents and how they will react to certain levels or situations. It becomes less mechanical, and more strategic. I find it very intellectually stimulating.

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