On the ES, is a 3-4 point profit objective still considered scalping?
On the ES, is a 3-4 point profit objective still considered scalping? I always try to hold for bigger moves if they happen, but as a minimum I look for at least a 3 point move, and I don't take a lot of trades during the day. Would this still be considered scalping, or simply active trading? Thanks.
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3-4 points could be just scalping if you are trading weekly charts for example, but considered very long position taking on a 1min chart for instance
I think you should look at it from a different perspective though...
Check how is your strategy doing, what are your KPIs and then you would know.
Are you getting an 80% to 90% win rate! and very small profit to loss ratio like 1:1 or less? Then you are most probably scalping...
Or perhaps, you are in the range of 40% win rate but profit to loss ratio is like 3:1 or something. This is definitely not classified as scalping
Either strategy is valid of course and gives positive expectancies, no need to worry about terminologies - scalping or not.
Just see what suites your personality and psychic Better! Some traders are very unconfortable losing and thus opt for a high win rate / low profit ratio performance, others are fine with the opposite, etc...
You alone would know what suites you better.
Successful people will do what unsuccessful people won't or can't do!
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By most accepted definitions I don't think 3 points would qualify as scalping, but really what you can do is look at the average daily range and then figure what your "scalping" on each trade as a percentage of that range. I would say if it's under 10% it's a scalp but this is just a personal way of looking at things.
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I really look at it as how long the trade takes as to whether or not it's a scalp. Usually trades that take under 30 minutes to an hour I'd consider scalps. I consider scalps when you're at your computer watching price from the time it goes in to the time it comes out. That's my opinion though.