I Decided to break away for half an hour from work and write this post and explain what is “Forex Scalping”. By the way here you can download absolutely free mt4 scalp indicator:
Okay, let’s Get to a story on scalping, the methods and ways of scalping, scalping indicators for, and of course on how to make money.
To get started in this post look at what is scalping, as different people, as it turned out, this term is interpreted differently.
Scalping or scalping – a trading strategy in which the trader is trying to make a minor price fluctuations over short periods of time. He however, subtle and often “cut” recaptures the market – “cut scalps.”
A trader who uses scalping strategy, called – scalpers.
Scalper usually sets for himself a small target (low Take Profit). Typically, it ranges from 5 to 10 pips. Stop Loss – from 15 to 25. As you can see, these units are in complete contradiction with the principles of positional trading. The time it spends on hold scalper open position, takes several hours to several minutes. Scalpers say “If I manage to pick up 30-35 pips of net profit per day, per month, I double my deposit.”
Forex scalpers are in direct competition with the market-maker (investment banks). At the same scalper is in a less advantageous than they position because he has “slowly” technology, less information, less capital.
Because of that, some traders view that scalping is not suitable for private investors (ordinary traders) and earn a scalping is impossible, but it is false. Scalping is brilliant method of day trading and works fine if you use right tolls.
Scalper (trader) can make even a lot of money, but he needs to know on what signals are and how to respond, at which time trading, etc. In general, the scalper earn on Forex – is a specialist high-end, which has iron nerves and endurance.
Factors influencing the scalping strategy:
Volatility – usually remove scalpers profit from small price fluctuations. Large price fluctuations in the market in different directions (high volatility) for scalpers is unprofitable and dangerous. But when the market is calm, scalper may make hundreds of transactions per day, without putting yourself at risk.
Liquidity – The scalper is better to work on the highly liquid market, because it has more features.
Risk – most scalpers expect to “lift” just a few pips per trade, so the size of the lot they are extremely large. On error, not every pips in his direction, scalper loses a lot of money, which can then be compensated only in dozens, even hundreds of successful transactions.
Okay, that’s enough for today, dear traders.