Some of the answers about larger tanks have some merit. Your young Oscars should have a fairly large tank,I'd say around 70 gallons as a minimum.
However what you describe as fighting is common cichlid behavior and should not be a problem at all. If your fish are "lip-locking" (grabbing one another's jaws and shaking), or threatening behavior (lateral displays) don't worry. I wouldn't consider separating them unless they were actually loosing scales, and even then if there were no serious injuries I'd let nature take it's course.
Perhaps you should do a little more research into Oscar behavior, it's most interesting.