Алексей Боровков – Scalping: The Art of Microscopic Profits. A Complete Guide for Traders (страница 2)
· Control question: How do you behave in a multi-kilometer traffic jam or in a queue that moves slower than you would like?
6. Perfectionism in execution, but not in results.
· Manifestation: You are obsessed with a perfectly executed movement: the entry key, the stop key, and the exit key. However, you are okay with the fact that 40% of your trades will be losing ones. The process is important, not each individual trade.
· Control question: In sports or games, do you prioritize executing technical elements flawlessly or winning at any cost?
2.3. Portraits of those who should NOT engage in scalping.
1. "The dreamer poet".
· Traits: Believes in a "big idea", seeks deep meaning, is prone to procrastination, and lives in a world of global forecasts. A romantic of the market.
· Why it is not suitable: He will be crushed and devalued by routine. He will think about the fate of the world when he needs to press a button.
2. " Gambler ".
· Traits: Looking for thrills, adrenaline from "winning". For him, a deal is a bet, and the market is a casino. After a loss, he has a burning need to win back.
· Why it is not suitable: This is the fastest way to a margin call. His discipline will collapse at the first series of losses. He will increase the volume, ignore stops. Scalping is suicide for him.
3. "Perfectionist-Result-Maker".
· Traits: Every failure is a personal insult. Needs 100% success. Cannot accept a series of 5 consecutive losses, even if it is statistically normal.
· Why it is not suitable: He will break mentally after the first drawdown. He will start avoiding trades, fearing a loss, or, on the contrary, fall into a neurosis due to excessive control.
4. "Slow strategist".
· Traits: Takes hours to make a decision, likes to collect a lot of data, and consult. Makes a decision once a day or once a week.
· Why it's not suitable: He simply won't be able to keep up with the speed of things. While he's analyzing a 5-minute candle, a scalper can make 10 trades on it.
5. "Tired and burned out".
· Traits: Comes to the market after hard work, with low energy levels, looking for a free meal. No resource for concentration.
· Why it is not suitable: Scalping requires peak concentration. Lack of energy will lead to fatal execution errors.
2.4. Minimum test: Are you ready to try?
Answer "yes" or "no" to the following questions:
1. I am comfortable working under strict regulations and many rules.
2. I am not prone to giving in to immediate emotions (rage, euphoria).
3. I am able to quickly switch between tasks without losing efficiency.
4. I understand and accept that even with the right actions, I will often (30-50% of the time) suffer small losses.
5. I have the opportunity to allocate 2-4 hours a day when I will not be distracted by ANYONE or ANYTHING (neither family, nor phone, nor colleagues).
6. I am not afraid of monotonous, routine work if it leads to the goal.
If you have 5-6 “YES” answers – you have psychological potential. 3-4 “YES” – you need to seriously work on developing the missing qualities. 0-2 “YES” – scalping is most likely not your way. Take a closer look at swing trading or investments.
2.5. Not a sentence, but a diagnosis
This chapter is not a filter that cuts off the "unworthy." It is a self-discovery tool. If you find yourself with features from an "unsuitable" portrait, but you passionately want to practice scalping, you have two ways.:
1. Consciously develop the missing qualities through training (for example, trading on a demo account using a timer), meditation, sports, and working with a psychologist.
2. Adapt the style: Instead of ultra-short scalping (seconds), you may want to try micro-swinging on 5-15 minute intervals, which gives you more time to analyze the market.
Remember: It's better to be a successful swing trader than an unhappy and deposed scalper. The market is faceless. It doesn't reward for efforts, only for results. And results are 80% determined by psychology.
In the next chapter: We will move from the psyche to the "hardware". What tools, programs and conditions are needed so that your new scalper psychology can manifest itself in full force? We prepare the workplace.
Chapter 3: Necessary Tools: Terminal, Exchange, and Speed
3.1. Requirements for a climber's equipment
Scalping is a climb to Everest in the world of trading. You won't go there with sneakers and a backpack from a supermarket. An inappropriate toolkit will not only complicate the task, but will also guarantee failure. This chapter is a checklist of professional equipment.
3.2. Computer and communication: the basics of the basics
Hardware (Hardware):
· Processor (CPU): Minimum 4 cores with a high clock speed (from 3.5 GHz). Preference is for Intel Core i7 / i9 or AMD Ryzen 7 / 9 of the latest generations. Most terminals are single-thread applications, and the frequency is important.
· RAM (RAM): 16 GB is the absolute minimum. 32 GB is the recommended standard. The market generates a huge amount of data. A smaller volume will cause lags and slowdowns at key moments.
· Storage: Only SSD (NVMe is ideal). Terminal loading, quote history – everything should happen instantly.
· Monitors: At least two, ideally three. On one – the main chart with a timeframe for scalping (1-5 min). On the second – an in-depth order book (Level II) and a tape of all trades (Time & Sales). On the third – a review chart (15 min/hour) and an order/position management window.
· Video card: Not critical for trading itself, but a powerful card will reduce CPU load when working with multiple monitors in high resolution.
· Backup power: An uninterruptible power supply (UPS) is mandatory. A 2-second power outage can cost you a month's profit.
Internet:
· Wired connection (Ethernet). No Wi-Fi. Periodic packet loss is deadly for a scalper.
· A dedicated line with minimal ping to your broker/exchange servers. Check the ping (latency) using special utilities. The goal is less than 10 ms, ideally 1-5 ms. This may require choosing a provider that specializes in low latencies.
· A backup channel (such as a 4G/5G modem from another operator) in case the main line goes down. Configure automatic switching in your router.
3.3. Trading terminal: your weapon
Choosing a terminal is choosing a type of weapon. Here are the main options for the Russian and international markets:
For the stock market (stocks, bonds):
· QUIK: Classic for the Russian market. Stable, with a deep cup. Requires configuration and learning. Hotkeys are customizable. Suitable.
· Transaq: A more modern alternative to QUIK with enhanced functionality. Popular among professionals.
· MetaTrader 5 (MT5): More suitable for forex and futures, but some brokers provide access to Mosbirja shares. Flexible, with algorithmic trading.
For the derivatives market (futures, options):
· NinjaTrader: One of the global leaders for scalping futures (CME, MOEX). Powerful built-in analytics, great DOM (glass) work, and convenient hotkeys. There is a free version for manual trading.
· ATAS (Advanced Tape And Searcher): The flagship for volume analysis and cluster analysis. It is ideal for scalpers working with a footprint and a market profile. Very popular on MOEX.
· Sierra Chart: A legend among professional traders. Extremely productive, highly customizable. It's difficult to learn, but it gives you incredible control.
· Thinkorswim (TD Ameritrade): A powerful platform with excellent visualization, but it is more focused on the American retail trader. Access to the cup and tape.
Selection criteria:
1. Depth of the cup (DOM/Level II): How detailed and fast the information is updated.
2. Customizability of hotkeys (Hotkeys): The ability to assign a complex action to one key (for example, buy 1 lot at the best price and set a stop at 10 ticks).
3. Speed of order execution: Test on a demo account. How quickly the order is sent and executed after pressing a key.