Scalping is the most controversial way to make money. My experience for 4 years
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In this thread, I would like to expand on the theme of scalping and explain, including from my own experience, why it is the most controversial method of making money in crypto trading.
What do I mean by calling scalping the most controversial? Scalping is the most affordable way to trade for beginners and beyond. This is the most affordable way to try to make money with a small deposit. Scalping does not require complex analytical approaches to calculate the price, which will be in a month or a year. Bought it, waited from 1 minute to several hours, sold it, etc. There is no pressure on the psyche, these painful expectations, the risk of losing a large amount of money. But at the same time, scalping is the hardest, most exhausting and most frustrating type of crypto trading.
And now, in order.
Why do many novice traders choose day-trading or micro-scalping? Many come to the crypto market without the appropriate knowledge and without good start-up capital. A crypto is a kind of ticket to a new life, a chance to multiply your small depo and become independent. Many people come to crypto trading for easy and fast money, as cryptocurrency is distinguished by its insane volatility. And on such a difference, you can quickly increase your deposit. There is still very little knowledge for investments, this is fear of projects, of the unknown, misunderstanding of how the market works, inability to correctly analyze historical data, inability to apply fundamental analysis. Here you need knowledge and skills gained by your own experience, and not just from reading posts on the Internet.
Therefore, many are looking for ways to multiply money in an easier and faster way. And scalping meets these criteria. There is not much money, experience as you trade, the risk is short-term. But the dark side of scalping comes out later. And I felt this from my own experience.
I started to engage in crypto-trading in 2017, having entered the market from 2000$, having absolutely no knowledge of cryptocurrencies, but having initial knowledge of trading in the stock market, that is, I knew charts, patterns, etc. Accordingly, mining was not interesting for me at all, I had little knowledge for investing, but they were for speculative trading.
I started scalping in the fall of 2017. At first, everything turned out better and further (since I got into the cryptocurrency pump and there any shit I bought, no matter where, grew at an astronomical speed) Then I started to lose money when there was a correction, then again was profit. And now exactly a year passes and I decided to check whether all this makes sense for me and how much I earned for a year of sitting almost every day at the computer.
And here the first disappointment awaited me. Many novice traders, when they earn 2-3 months on the crypto market, then start running around the Internet and yelling that they have found a way to earn 100%, they start sharing their strategies, their signals. They've been trading profitably for several months now, so they understand this business? But in scalping, such profitable 2-3 months are often replaced by 2-3 months of terrible stagnation, when you constantly lose money.
And I would recommend these newly minted trading gurus to do so. Take and calculate how much money they brought to the exchange and how much they brought from there, at least to their independent wallets, and even better to fiat. Since the final profit is always calculated by the money that you have fixed, and not by the numbers on the monitor screen. I am sure many will be disappointed in their skills and knowledge. So it happened to me. I counted how much I brought my money to the exchange and how much I took from there. The difference was a plus, but literally by a few percent. If we go back to my initial statements, then here I ran into the first disappointment. Because I divided the profit by the number of days that I spent sitting on the exchange and was horrified. My hour of work on the exchange was equal to a couple 10 cents. And then I realized that scalping and in general all this short-term trading is well tested at a distance, at least a year. It's just that many scalpers never calculate exactly the total for the year of their activity. They always measure their success over a certain period in their trade, when there was a profit, and consider themselves extremely successful. But few can boast of success at a distance, at least a year.
So, scalping will take a lot of time from you, which you will sell for mere pennies, and if you count the first year since the start of your trading activity, it will be good if you break out. Let's not forget that 95% of distance traders lose their money. You will be disappointed because of the lost money and because you seem to have earned from time to time, and even very badly, but on the distance you did not earn anything at all, at best it will be crumbs, and at worst it will be the loss of most your initial deposit.
After the first year, I temporarily froze my activities on the exchange and began to look for a strategy that was as profitable and correct as possible, which fits my psychology and vision of the market. I created all sorts of experiments, one of them even posted on this forum. I had to do some serious analytical work. Trading has always been interesting to me.
Since autumn 2019, I have restarted my scalping strategy. And everything seemed to be getting better, I learned how to make profit from this activity, which allowed me to give up working in the real sector altogether, completely switching to life through trading. Little by little, I began to study cryptocurrencies, technology, and other investment methods. The next major scalping disappointment happened quite recently, just a few months ago.
Over the past year, it was a pleasure to trade, volatility was at a good level, good liquidity, cryptocurrency prices almost always grew and it would seem that this is success. That is, the long-distance strategy showed a confident plus. But, everything is learned in comparison. How did you communicate with one of my friends and share our successes in the crypto world. He is not a trader, he is a holder. And when he showed me his growth in assets, I was, of course, very surprised and at the same time very depressed. I remembered how much time I spent multiplying my capital. It was a daily marathon of 10-12 hours at the computer, constant nervousness, constant risk, sometimes the market tested me for strength, leaving for a 25-30% correction. And my friend, the holder, did not have all this, he just bought cryptocurrencies in the summer and calmly held.
Comparing these 2 activities in the same period of time, a clear realization came to me that scalping is a frustrating, difficult, tedious and psychologically exhausting type of crypto trading. And he has no advantages. Neither time nor profit. He loses in all respects.
So, well, now let's summarize the subtotal. Scalping is only useful at the beginning of your crypto trading journey. In the long run, you are more likely to be the loser. If you find yourself with a profit, you will pay for it with your time and your nerves. Sitting for hours every day and watching the charts, making a decision to buy/sell is exhausting more than any physical work. Although it would seem, sit at your computer and click the buttons.
A scalper's life looks something like this
:
Just count the amount of time spent at the computer and divide it by your profit over this period of time. You will be surprised how cheap your time is. It flies away in vain, and numerous clicks on the BUY\SELL buttons just create the illusion of vigorous activity. I remember myself how much time I spent on the exchange to earn as much as my friend the holder earned.
From summer 2019 to summer 2020 I spent ~3676 hours, from summer 2020 to summer 2021 (present) I spent ~3479 hours. It becomes more difficult to maintain such activity on the exchange over the years. I remember how much I spent a day on the exchange:
2019 year - ~12-14 hours a day
2020 year[/b] - ~10-12 hours a day
2021 year - max. 8 hours a day
After 3 years, I understand that I can’t endure psychologically more than 8 hours a day and the trend will only intensify. Sitting in front of a monitor for years is an extremely dubious pleasure. In 2020, I began to understand this and gradually move to the holding, transferring funds from the exchange to the wallet for the purpose of long-term investment. At the end of 2021, I plan to completely abandon short-term trading, because it is a low-profit and extremely exhausting activity. Yes, it helped me at the start, helped to increase the deposit, but it is not advisable to constantly maintain such a pace. Development and time savings are needed, since trading is the same job that you do in real life.
Using my own example, I showed why scalping is:
As a person who, from my own experience, has gone through all the delights of short-term trading, I can say for sure, if you come across a person who will argue that trading is more profitable than investing (holding), then you can safely send him to hell, because he is either brazenly lying to you or does not understand what he is talking about. At a distance in trading, and even more so short-term, you will lose money in 95% (at least) of cases, while holding well-known projects - no. Except when you invest in all sorts of noname shitcoins.
Study cryptocurrencies, read whitepapers and invest in projects, from this you will get much more profit than from trading, in the long-term, for sure. And if possible, engage in scalping until you collect more or less the required amount and then gradually switch to either medium-term trading or investment. Because in the ratio: spent time/money/nerves and possible profit, short-term trading, including scalping, is in the last place. Appreciate your time and opportunities.
Thanks and sorry for my english.
What do I mean by calling scalping the most controversial? Scalping is the most affordable way to trade for beginners and beyond. This is the most affordable way to try to make money with a small deposit. Scalping does not require complex analytical approaches to calculate the price, which will be in a month or a year. Bought it, waited from 1 minute to several hours, sold it, etc. There is no pressure on the psyche, these painful expectations, the risk of losing a large amount of money. But at the same time, scalping is the hardest, most exhausting and most frustrating type of crypto trading.
And now, in order.
Why do many novice traders choose day-trading or micro-scalping? Many come to the crypto market without the appropriate knowledge and without good start-up capital. A crypto is a kind of ticket to a new life, a chance to multiply your small depo and become independent. Many people come to crypto trading for easy and fast money, as cryptocurrency is distinguished by its insane volatility. And on such a difference, you can quickly increase your deposit. There is still very little knowledge for investments, this is fear of projects, of the unknown, misunderstanding of how the market works, inability to correctly analyze historical data, inability to apply fundamental analysis. Here you need knowledge and skills gained by your own experience, and not just from reading posts on the Internet.
Therefore, many are looking for ways to multiply money in an easier and faster way. And scalping meets these criteria. There is not much money, experience as you trade, the risk is short-term. But the dark side of scalping comes out later. And I felt this from my own experience.
I started to engage in crypto-trading in 2017, having entered the market from 2000$, having absolutely no knowledge of cryptocurrencies, but having initial knowledge of trading in the stock market, that is, I knew charts, patterns, etc. Accordingly, mining was not interesting for me at all, I had little knowledge for investing, but they were for speculative trading.
I started scalping in the fall of 2017. At first, everything turned out better and further (since I got into the cryptocurrency pump and there any shit I bought, no matter where, grew at an astronomical speed) Then I started to lose money when there was a correction, then again was profit. And now exactly a year passes and I decided to check whether all this makes sense for me and how much I earned for a year of sitting almost every day at the computer.
And here the first disappointment awaited me. Many novice traders, when they earn 2-3 months on the crypto market, then start running around the Internet and yelling that they have found a way to earn 100%, they start sharing their strategies, their signals. They've been trading profitably for several months now, so they understand this business? But in scalping, such profitable 2-3 months are often replaced by 2-3 months of terrible stagnation, when you constantly lose money.
And I would recommend these newly minted trading gurus to do so. Take and calculate how much money they brought to the exchange and how much they brought from there, at least to their independent wallets, and even better to fiat. Since the final profit is always calculated by the money that you have fixed, and not by the numbers on the monitor screen. I am sure many will be disappointed in their skills and knowledge. So it happened to me. I counted how much I brought my money to the exchange and how much I took from there. The difference was a plus, but literally by a few percent. If we go back to my initial statements, then here I ran into the first disappointment. Because I divided the profit by the number of days that I spent sitting on the exchange and was horrified. My hour of work on the exchange was equal to a couple 10 cents. And then I realized that scalping and in general all this short-term trading is well tested at a distance, at least a year. It's just that many scalpers never calculate exactly the total for the year of their activity. They always measure their success over a certain period in their trade, when there was a profit, and consider themselves extremely successful. But few can boast of success at a distance, at least a year.
So, scalping will take a lot of time from you, which you will sell for mere pennies, and if you count the first year since the start of your trading activity, it will be good if you break out. Let's not forget that 95% of distance traders lose their money. You will be disappointed because of the lost money and because you seem to have earned from time to time, and even very badly, but on the distance you did not earn anything at all, at best it will be crumbs, and at worst it will be the loss of most your initial deposit.
After the first year, I temporarily froze my activities on the exchange and began to look for a strategy that was as profitable and correct as possible, which fits my psychology and vision of the market. I created all sorts of experiments, one of them even posted on this forum. I had to do some serious analytical work. Trading has always been interesting to me.
Since autumn 2019, I have restarted my scalping strategy. And everything seemed to be getting better, I learned how to make profit from this activity, which allowed me to give up working in the real sector altogether, completely switching to life through trading. Little by little, I began to study cryptocurrencies, technology, and other investment methods. The next major scalping disappointment happened quite recently, just a few months ago.
Over the past year, it was a pleasure to trade, volatility was at a good level, good liquidity, cryptocurrency prices almost always grew and it would seem that this is success. That is, the long-distance strategy showed a confident plus. But, everything is learned in comparison. How did you communicate with one of my friends and share our successes in the crypto world. He is not a trader, he is a holder. And when he showed me his growth in assets, I was, of course, very surprised and at the same time very depressed. I remembered how much time I spent multiplying my capital. It was a daily marathon of 10-12 hours at the computer, constant nervousness, constant risk, sometimes the market tested me for strength, leaving for a 25-30% correction. And my friend, the holder, did not have all this, he just bought cryptocurrencies in the summer and calmly held.
Comparing these 2 activities in the same period of time, a clear realization came to me that scalping is a frustrating, difficult, tedious and psychologically exhausting type of crypto trading. And he has no advantages. Neither time nor profit. He loses in all respects.
So, well, now let's summarize the subtotal. Scalping is only useful at the beginning of your crypto trading journey. In the long run, you are more likely to be the loser. If you find yourself with a profit, you will pay for it with your time and your nerves. Sitting for hours every day and watching the charts, making a decision to buy/sell is exhausting more than any physical work. Although it would seem, sit at your computer and click the buttons.
A scalper's life looks something like this
:Just count the amount of time spent at the computer and divide it by your profit over this period of time. You will be surprised how cheap your time is. It flies away in vain, and numerous clicks on the BUY\SELL buttons just create the illusion of vigorous activity. I remember myself how much time I spent on the exchange to earn as much as my friend the holder earned.
From summer 2019 to summer 2020 I spent ~3676 hours, from summer 2020 to summer 2021 (present) I spent ~3479 hours. It becomes more difficult to maintain such activity on the exchange over the years. I remember how much I spent a day on the exchange:
2019 year - ~12-14 hours a day
2020 year[/b] - ~10-12 hours a day
2021 year - max. 8 hours a day
After 3 years, I understand that I can’t endure psychologically more than 8 hours a day and the trend will only intensify. Sitting in front of a monitor for years is an extremely dubious pleasure. In 2020, I began to understand this and gradually move to the holding, transferring funds from the exchange to the wallet for the purpose of long-term investment. At the end of 2021, I plan to completely abandon short-term trading, because it is a low-profit and extremely exhausting activity. Yes, it helped me at the start, helped to increase the deposit, but it is not advisable to constantly maintain such a pace. Development and time savings are needed, since trading is the same job that you do in real life.
Using my own example, I showed why scalping is:
- the most expensive (in terms of time costs);
- the most disappointing, because any holder will earn more in the long term than a trader (with rare exceptions);
- the most difficult type of trading, because psychologically not everyone will be able to sit at the computer for 10-12 hours and make many micro-trades;
- the most controversial, because it is both the most affordable way to quickly increase your capital and the most ineffective way to make money, at a distance.
As a person who, from my own experience, has gone through all the delights of short-term trading, I can say for sure, if you come across a person who will argue that trading is more profitable than investing (holding), then you can safely send him to hell, because he is either brazenly lying to you or does not understand what he is talking about. At a distance in trading, and even more so short-term, you will lose money in 95% (at least) of cases, while holding well-known projects - no. Except when you invest in all sorts of noname shitcoins.
Study cryptocurrencies, read whitepapers and invest in projects, from this you will get much more profit than from trading, in the long-term, for sure. And if possible, engage in scalping until you collect more or less the required amount and then gradually switch to either medium-term trading or investment. Because in the ratio: spent time/money/nerves and possible profit, short-term trading, including scalping, is in the last place. Appreciate your time and opportunities.
Thanks and sorry for my english.