What is Forex Scalping?

Scalping, at least in trading, is a term used to show "skimming" small profits on a regular basis, with in and out of positions several times per day. Scalping is not like day trading where a trader will open a position and then close it again during the current trading session. In other words the scalper never carries a position to another trading period or holds a position overnight. Though a day trader may look to take a position once or twice, or even several times a day, but the scalper is much more frenetic and try to get a few small gains several times in one session. A day trader can swap the charts for 5 minutes and 30 minutes, but the scalper often redeems the tick chart and one minute chart. In particular, some scalpers like to try and capture the high speed moves that occur around the time of the release of economic data and other important news events, such as the release of employment statistics or GDP releases if it is a high-level economic agenda.

Scalping, though, is not for everyone, and one thing is for sure: You must have the temperament to be a scalper. Scalpers need to "love" sitting in front of a computer for the entire session, and they need to enjoy the intense concentration that the scalper needs. You may think you can sit in front of the computer all day, or all night because of your insomnia, that's not enough. You should be able to react very quickly without analyzing your every move. No time to think. Being able to "pull the trigger" is the key quality required for the scalper. This is especially true for reducing positions if it has to move against you even with two or three pips.

Scalping is very fast paced. If you like action and can focus on a one or two minute graph, scalping might be right for you. But if you want to analyze and think about each of your decisions, you do not fit in with scalping. To be a scalper you must have excellent and reliable access to market makers with a platform that allows buy or sell very quickly. The platform has a buy and sell button for each pair of forex. All you have to do is press the right button to enter or exit the position. In a liquid market, execution can take place in a fraction of a second.

Practice using the platform before you trade scalping. For scalping, you simply redeem the most liquid market in the main forex pair, such as EUR / USD or USD / JPY. The forex pair for a particular session may be far more liquid than the other. Make sure your internet connection is as fast as possible. If the internet goes down you can phone directly to the dealing desk. All of these factors become very important when you are in a position and need to get out quickly or make changes. You must have a system that you can follow almost automatically. Periasanya for trading with trends, at least if you are a beginner scalper. To find these trends, set up daily and daily time charts and enter trend lines, Fibonacci levels and moving averages.

Scalping is trading at high speed and therefore requires a lot of liquidity to ensure quick execution of trading. Only the main forex trading where liquidity is the highest, and only if the volume is very high, as when trading London and New York traded. Stop trading if you have a series of losses and give yourself time to regroup. Do not try to get revenge with the market. Scalping can be fun and challenging, but it can also create stress and tiring. You must be sure that you have the personality to enjoy high-speed trading. Remember, scalping is not for everyone. Use a screenshot to record your trades and then print them for your journal.