Topic: Scalpers and day traders, what makes you to make profit in trading? (Read 401 times)

agreed with this though scalping and day trading is riskiest when it comes to losing money, some small rumours and the money is done for, literally vanishing into thin air, though not whole of them.
but roughly thats the thing with these scalping and day trading.
there are many stories already that scalpers not only limited in cryptocurrency and stocks, but also commodities and even gaming console that have massive lost, though there are also story that says they are profitting big time but thats the thing with these scalping and trading, there is always possibility that things go wrong and the money is lost.

No doubt that steady little profit is better than continuous losing of little capital because at the end of the day, the capital will keep reducing until it is gone but if you get to accumulate your profit no matter how small if it is steady, you will have some success story. I was saying therefore that to add to the profit strategy will mean a little more increase in the profit while the strategy still remains the same. As a trader who is making profit, you have lesser work to make more profit only you have to maintain your strategy.

There's close similarities between the two if one understands the strategy in both, one can easily move from scalp trading to day trading in some circumstances, the main idea that should be well portrait from this discussion is in the understanding that both are day trading, or happens within a day, I will recommend an article to further his readings to understand more about their similarities and differences https://www.daytradetheworld.com/trading-blog/scalping-vs-day-trading/

Scalping and day trading are the riskiest among all types of trading. In fact, they are not different at all. Just like I have once said, some scalpers will be losing and turn the trade to day trading. And some day traders will want to leave a trade but the market will go to their direction and they make money within some seconds, minutes or within an hour and they will close the position opened which makes that a scalp trading. You may not know these if you have not been trading. Both are the riskiest but you can use the strategies to make them less risky.

As long as you check every possible outcome, you are going to be ready for them and it is not going to hurt you on the long run. I understand that it may not be the ideal situation you want to see, but that is going to be the case for most veteran traders.

There are two options, either you are going to trade like a newbie and hope for a huge return, which most of the time ends with losing a lot of money, or you will be like a veteran and get a short little uptick which you could be at least certain about. I think it's better to have that little short uptick in income constantly and consistently, that way you will make a good return without a doubt, it should be the most important thing in your arsenal to keep doing it all the time.

There are 2 ways you can maximize your profits through:

1. Increase your leverage in a single ongoing trade, but time it well

If you are trading taking 3-5% risk of your capital and the reward you expect is around 10-15%, then you can do 1 thing here. Long/short whatever you wish to with let's say $25 out of your $500, and keep the leverage to 1x.
Now, if the position is in your favor, just let it run and if you reach your target, voila you're done.
However, if in case it retraces and you're still in profit or come into loss, double the leverage to 2x and let it run.
Now wait for about an hour's candle or two and see the results. Still if you aren't in profits, go to increase your leverage to 4x or 5x max again and wait, now if your position is in profits, put an SL to your entry + 0.5-1% and let it run till your ultimate goal is reached. If it's still in loss, then don't risk the whole $25 and come out of the position at max $5 loss.

2. Increase your position size in a single ongoing trade, again time it well

Here, you keep the leverage intact but keep buying/selling at loss in order to slightly move your entry price near and in this case, you can double it just once and let it run. Do the SL thing same as explained above and don't lose more than $5 again here. The numbers are just for example, however you can try and see for yourself;)

I am also a crypto trader. I am trading on Binance. I like scalping. I think scalping is best for me. I am huge profited form scalping through future trade. I think scalping is better than day trade. I invested $300 in Binance and i am doing future trade from last month and now my wallet balance is $630. I take position in trade for maximum 5-10 minutes. And my target 2%-3% profit. But some times market go my Against and that’s trade has been long trade, but some times i close trade with loss.

My observation, we should trade will low volume. When we were greedy then loss will happen there has no doubt. So we have to set our mentality low risk low profit otherwise we will loss our valuable fund there has no doubt.

Personally i prefer day trading to scalping cause it is much more safer ,the cryptocurrency market is very volatile and one can easily lose a lot of money trading it . Although scalping can be more profitable cause of the abundant trade opportunities in the market i choose the day trading strategy cause it is not as risky as scalping  and can help me protect my funds.

It is really a situation where it would be not ideal if you are not happy with the results, it will definitely reach to a point where it could be a lot more different to a lot of people and we should just make it work the way it is. I get that some people will not be happy about it, but as long as we are happy about it, that should be fine.

I get that some people will want a lot more from trading, and they want to maximize and optimize it all, but sometimes it will take a lot more time than you anticipated to get there, and you should try to avoid it as much as you possibly could. I get that it will not be simple, but you should be able to do it one way or another. In this regard, it's always happy to just go back to normal levels.

The time spent on this doesn't really feel like its worth it to be fair. Maybe I am wrong and there are some people who made some great returns on this, but most of the time it doesn't feel like that at all. I think it should be something that makes you a lot of profit to make it worth it, otherwise there is really nothing that worths it at all. I think it should be something that needs to be  considered as hourly work. So lets say you made 50 dollars in 10 hours of work, congratz you just made 5 dollars per hour. When you start to consider it that way, it starts to not be that great, sure you may look like you are making a lot of money, but in reality you are just selling your hours for cheap.

Find yourself to be comfortable first on spot trading on using up that 2x lev and even if you are already that earning that peanuts or too small then what you do really need here is consistency because trading isnt really a race on which you are really that thriving yourself on making profits as much as you can in a short time and this is something a behavior which needs to be eliminated because this would really be making out that kind of desperation which would lead into impulsive trading decisions which is something that not really recommended. I have been used on trying out to scalp or daytrade on which you would be basically

be depending on indicators or tools which usually on moving averages and even on RSI whether on oversold or overbought on which you could really consider out on positioning yourself on this time.
How to make profit? This is something that we are the only ones who do able to find out because we do have our own ways on how to trade and how to make out decisions on certain conditions or moments.
Profitability would really be always vary on each trader and we know that there are different types which one does love on shorter ones and there are ones who do really love holding.

If you as a trader can trade without losing, even if you make little profits, it will still be profitable trading. The major goal of every trader in either forex or cryptocurrency will be to make profit and stay profiting from trading. If high risk management practice involving use of safe leverage can help you achieve that, then it should be a part of your strategy. Get familiar with the emotions that come with one level of leverage before you ever consider using a higher leverage to trade.

Scalpers need the ability to read market conditions quickly, master technical analysis, and have considerable capital.
If a scalper only uses a small capital, the profit earned is also small. The greater the capital used, the more profit each trade will bring.
But remember the risk is also getting bigger. Focus on fast trading and don't be late to enter and exit the market.

Bitcoin, Ethereum, and BNB will be suitable coins for scalpers, but some coins with high volatility also provide an advantage because the movement will be faster and orders are quickly executed.

You are really using a suitable approach to trading the market because your style of trading shows that you are considering risk management factor which is one of the key factors to succeeding in the trading world. This is the same approach that I've been using lately, and it also works out fine.
 
One thing with most traders who usually lose money in trading is that they forget that keeping that capital alive is paramount because that's gonna keep you staying in the trading business. If you are a good trader that applies proper risk management you will barely blow your account despite how bad the market is.

Don't you know some traders like low volatile assets? Bitcoin volatility was truly very low and some traders would be frustrated. The traders that would be frustrated are the swing traders. Scalpers and day traders would continue to trade and enjoy it because as bitcoin price moves a little they would have already closed the position opened.

The last few months it was tough to day trade. We basically got barley any volume and volatility was near record lows. Unless you were up 24 hours just to catch 1 or 2 moves, you probably wouldn’t of taken any trades.

Usually during the New York open there was some trades you could take but now it’s mostly sideways actions. Sometimes there is some action but lately it just trades with correlation to stock market and then usually reversed with stocks. Very difficult to trade.

I'm just using the same strategies with others. But for me, before I become profitable, I have good risk management.
With that, I always have a plan and always stick to it especially having a good risk: reward ratio.

About the technical part when it comes to doing some charts, analyzing patterns, supports and resistances and basic indicators is already enough for me.

but is it worth it to continue your trading if you are just making a steady profit of 1-2 bucks? with all the effort and time you are dedicating into it. maybe, there are more worthwhile activities that will give you better earnings. but this will depend on the person. if he is just comfortable doing this over and over again even if the profit is small, then go for it. but for me, i maybe looking for other side jobs that will give me more income.

Lol you might have felt a negative trading during the time you were on it. Nothing wrong with any kind of trading if you adopt the right strategy as advocated by professionals and the first and most important thing to do while trading is to always be sure you use your stop loss. This is important because most traders will lose their guard and focus on only the profit and the price can drop back to hurt you. So if you happen to go back to trading, you have to use stop loss and low leverage you will be fine.

At least for the OP, there were still somehow a profit. Mine sucked back in the days and that's why I quit day trading.  There is indeed no perfect trades, but when you know that it is not working out at all. Maybe time to call it quits for now.

I would crap myself if I was already making a steady of $1. I was waaaaaay below that when I tried during those times. I am not ever going back again to that hellish exhausting trading days.

Isn't what scalpers often do is in margin trade or perpetual trading they perform these activities? because if they do it on the spot, it doesn't seem that easy in my understanding and based on my experience in using spot trading. and also cannot avoid the risk that will be faced there if you pay too much and lack knowledge.

So I think it is better to use perpetual trading than margin trade in my opinion. though I know it's the same, it's still a risk.

Scalpers and day traders, what makes you to make profit in trading ?

Scalping goods for minutes excution
Day traders goods for holding
  so definitely it depends on you how to
 make profit  in trading its how you to execute the market its on how you analyze it

This seem like the point that I was making in my earlier post, having a strategy that gives a steady profit despite how small it is, is better than making losses because it brings your confidence level down and you will lose courage to continue. Therefore no need to ask for a better way to trade but only to add to your risk appetite which you have done and you have seen increased profit. But while increasing your risk appetite, you have to be sure you apply your stop loss incase the market change backwards against your plan.

Spot trading is safer than derivative trading, but all that is required is discipline, controlling your emotion and not going against your trading strategies and plans.

1x leverage is almost the same as spot trading but in a way you can also open short position. What that is dangerous in derivative trading is increasing leverage and trading of very volatile asset. As for me, I prefer to use bitcoin.

Maybe, but that is not how I trade. I prefer to use less volatile assets like bitcoin, but also with low leverage. Scalping is not as easy as it seems, sometimes a trader will not have any option than to keep a position opened for long, especially if the trader uses a very low leverage.

When you have limited capital and it is all that you have, you shouldn't trade in futures specifically with high leverage because if you got liquidated, you will be left with nothing at all. It's better if you simply do scalping in the spot market which might give you good profits and also won't have the risk of your total capital vanishing in thin air. However, even scalping isn't as easy as it may sound because most of the coins that pump and dump quickly are risky.

So when you are in the spot market hoping to do some scalping, you will need to find assets that are moving fast and in a positive direction, you will need to enter very quickly and also exit very quickly as well with just a small profit so that you don't get late and have your capital stuck forever.

it's a good thing that you have done, where at least you can consistently earn profits every day, even though you think it's small, but not many people can survive, at least secure their capital. but if you look at the percentage, I take the smallest $ 1 per day, then in a month I get $ 25, if it is a percentage of capital then the profit per month is 5%, I think that is a good step, and your strategy is also safe, and if you get a nominal higher in a month, maybe the compound method can be applied

It would be good to increase the trading fund than the leverage if you are using a certain leverage and winning already. Also before increasing the trading fund, it is good to make calculations that if bitcoin go against the position that you opened, that how much will you be losing at certain prices. If you are good with the calculation, you can increase the trading fund and follow your strategy. Assuming I started first and increase the leverage, emotion can set in and this can change my trading strategy. Some positions opened are not favouring a trader at the beginning, but because you use low leverage and capable of losing such little amount, the trader will not close the position and later the market can reverse and resulting to profit.

The bottom line is that if $1 to $2.5 you are earning is consistent then you can increase your leverage a bit just to increase your profit range to $10 ~ $25 which I believe is quite reasonable imagine trading with $1000 instead of $500 that means more profit will be earned, however you shouldn't be tempted to over increase your leverage of course you already knew it consequence, I believe reasonable profits earned consistently is far better than being greedy to earn huge profit afterall the market is always available 24/7 and many more trading opportunities abound in the market, personally I use 4 hour timeframe for trade meaning few trading set-up weekly though I am still having mixed results I hope to tweak the trading strategy to yield better result.

I would guess that making 1 into 2 is not the same as making 1 million into 2 million. There is a volume and marketcap block that prevents something like that from happening and I believe that we are going to end up with something like that eventually. Life is not that simple and we need to achieve something that is bigger volume to make that happen. Some small token could give you return that is double and you would be happy with that if you are using something small.

But, if you want to get a bigger amount and double that, the volume and liquidity of that small cap token may not be enough. This is why its quite important to focus on what you can do, and not what the token can do for you. Just look at the strategy a lot more.

With the amount of $ 500, you cannot do much, as the average daily profit will not reach 25%, but if you are in a country where $ 10 a day means a good life on average, then your attempt to trade with this amount is not a bad idea.
My deals in trading are weekly and about 700 to 1500 dollars per account and you can reduce the risk by buying near the levels of resistance and support, which generates a profit for you of about 20 dollars per week or 50 dollars if you are very lucky, so a profit of 1 dollar to 2.5 dollars from 500 dollars is very good in average.

i doubt its gonna be that easy though, raising the profits earned also means risking the capital and increasing leverage, it will be much more difficult to do than to say.
also there's reason why someone keep making $1-$2 they are trying to gate keep themselves from risking their money too much therefore the small profits that they get but sometimes
that is sufficient enough if being done consistently.
though its true that there might be some strategy that could boost profit earned, and usually if someone already could consistently score $1 - $2 with their current capital then they usually find some good strategy that they could try.

Agree with you. I would prefer to earn a little amount of money than those profit big but lose a lot when the trade not materialized. The important thing in trading is that if you satisfied with your profit of your strategy, then you can keep doing this. There's a lot of traders out there who loses a lot because of their mindset that if they trade they will immediately become rich, they didn't know that it didn't work like that. So I'm glad that you are not one of them, keep going.

Base on my experience with this market current status, the price of the coins does not make too much change and a scalper for a daily trade its better to plot already the possible price movement of the coin even though its a segway price movement, so I can make a position, I didn't put much leverage because way too much risky, unlike if the market before is in bull run many people doing a 100-120x leverage because they know the price goes up every day but in this case prefer is 20x but with a large amount of capital else ideal just to do with the spot trade.

The profit is what I am talking about, the fee is not calculated with it. Trading fee of $500 is very small. For taker with 3% trading fee, that is just $0.15 for opening and another $0.15 for closing position. If I use take profit, the order will be of maker fee and the fee can go lower.

5x would increased the trading fund to $2500, not $1500. Probably you mean 3x. People have different strategies, I use up to 3x to make the entry price get closer to the mark price to be able to earn better while losing already, but as you know, the closer the liquidation. I am planning not to go further than 3x. I hardly leverage though.

Not only that, earning $1 to $2 dollar a day is better than losing to trading. That makes it satisfying for me. There may also the good days, like yesterday I went short and I earned up to $38 because I knew the market might went down. Although I used $630 for the trading to open 1x short position.

If we can make $1 - $2 per day, there is a possibility that we can make $5-$10 a day. Yes, it is all about finding the most effective strategy and huge capital as well. Though earning $1 a day is not really satisfying but at least it was better than doing nothing. Well, as it keeps going, we can learn more things that can help improve our way of trading as we can't expect it instantly but as scalpers, there is a huge chance of getting higher especially if we already have long trade experience. We don't need to rush but have to keep timing together with hard work and perseverance.

It is what it is, my friend. Every day is not profitable, and 5x leveraging is not really too risky compared to 10x, but sometimes I really do take the risk of using 10x and am always ready to bear the loss.

I am not yet trading for now, but when I was dedicated to it, I didn't only trade futures; I also traded altcoins for the normal "buy/sell" sport trading on some CEX, and I was doing it daily. Some days, my profile could go as far as $10, depending on how volatile the coin was. My trading capital was not less than $500 as well, and sometimes if I buy a token for like $0.0121 before the next 24 hours, you might see the price has gone up to $0.0129 or 0.013. That was just how I was making money too, but not all the time. Some tokens can just drip to $0.005 after I buy them, and sometimes I will have to wait for up to a week before they can go up again. But if I see another very volatile coin to buy, I don't usually wait that long; I will just buy the new one and use it to recover my loss. It worked for me, Mahn. Back then, there was this coin, "CHZ (chiliz)," that profited me about $50 just in one day.

5x is actually good leverage. But it's always better to put leverage only in Bitcoin and at maximum I could say Ethereum because you know that only these two currencies will at least respect some supports when they begin to fall other than that I have seen a lot of currencies falling madly and people getting ripped off everything. Obviously, Stop loss can help but when it comes to leverage trading you can't risk anything. There can be chances you never hit your limit stop loss and the market stop loss might sell your assets at a very low price.

Strategies would vary which would really be in accordance with your risks management on which it is really that something that you would really be choosing whether this or that. If you do like on having that lesser risks on
sticking with 1x then its  your choice but going with 5x wont really be that bad but of course you should really be mastering yourself on making that be sustainable so that if you do earn $1 or $2.5 on $500 capital on 1x
then you could eventually earn more as you do go forward or higher in terms of those x's. Strategy? This would really be those common technical approach and certain combinations and varieties of tools
which it would really be just on the same concept on how its been used and things differ on how you do make out decisions basing up with those indicators. Decision making and other emotional kind of aspect
or part would really be definitely be different on each other. So you are the ones who would really be finding out on what suits you.

I was also told to not to use more than 5x leverage even many seniors and many YT influencers said not to use more than 5x leverage but after following their advice for a few days I start to think I could make more money if I just increase the leverage more and just have to save some more fiat in order to increase liquidation price.

But that experience did not end well for me, So, I took a break from that, and when I began to start it again but stopped by others due to some reasons so till then I never trade in the future.

And I am not a trader or scalper but a BTC holder. And I prefer everyone to be one but people do want to do something that could make them pressurized like losing and gaining money. So they start to do trading I know that's not a good factor but it is what it is. So, my strategy, for now, I good and make me less worried.

No trade is perfect and we choose what is good for us likewise you have chosen to go the way you are going. But I think when a strategy is producing result like us and it is steady then how do you want to change a winning strategy? You don't need to start worrying yourself if you are making steady $1 or $2, that means you have a working strategy. However, your profit margin is very low and it will amount to nothing at the end of the day, your cost and expenses plus time. If you want more, do a little of risk appetite.

Its important to remember that day traders and scalpers are most high functioning traders in the crypto world. Which means that they work way more than anyone else. For example I am a long term investor, all I do is buy and hold, that's it, I just buy and do nothing else. Some people are traders but not day traders, they buy when it hits a certain low, and sell when it hits a certain high, they trade based on the price, that can be within an hour, that can be in a month. But these people? They are the ones that trade with their analysis all day everyday and constantly. They have to be precise to the minute, and that is why its much harder to do what they do.

Current your kinds trading as future its seems very small with profitable earn under $3 and you use unbelievable leverage than 1x in future trading, actually is risk when use bigger leverage  in future trading but most difficult to earn profit based on your leverage using. Have 500$ capital is bigger and you can try use leverage under 5x and what for you trade in future still use 1x for leverage?
You can increasing up with leverage to 10x but spent with your capital and not entry for all fund, you can use about $400 or $300 for future trading and half your fund for margin to make it away from liquidation. Don't forget use stop loss if you still with future trading and manage less risk when your coin entry have loss from predicting.

Profits of $1 and $2.5 dollars are small profit with such capital, how do you settle the trading fees? Is it after the fees you get that PNL? I think there are other pairs in the exchanges you can trade to make an average of 5% in a single trade. With such a candle move, 5% of your margin is enough to give you a $25 profit, give or take you should be able to make more than $15 a day at an average condition of the market.

A 5x should increase your margin total capital to $1500, if the risk-to-profit ratio of any trade you have in mind is low, it will do you no good, I think that original capital is good enough for sweet profit unless now that the market is not stable to open trades.

Using leverage with cryptocurrency trading is gambling. You risk reducing your profit probability from 50% to less than 50%, which is what happens in gambling, as the gambling service will not continue if the return on it is 50% or more.
Day trading with a stable return, even if it is 1%, is great, even if it is low, it is better, since in the short term your portfolio continues to grow, and the same in the long term.

I have been trading with just just $500 for a long time now, the story was a success, but the profit is minimal. With $500, the day gain can be as low as $1 to $2.5. No leverage than 1x to start. But I will go up not more than 3x to 5x max while losing to let the entry price with the mark price become closer for better profit.

But there are days that are not favorable and I left the position opened if it is still just 1x.

Increasing the leverage increases the risk and the closer the liquidation, but 5x is still good.

This makes trading to be positive for me as I do not use too much leverage that has been making me to lose and lose in trading.

What are you strategies that trading has been profitable for you?