Forex Scalping? It’s okay
Scalping here means we are doing Open Position for a relatively short period of time, using relatively large margins with relatively small profit targets. Maybe you are still curious, how about it? exactly how long, what percentage of margin and how many pips the target?
Scalping here means we are doing Open Position for a relatively short period of time, using relatively large margins with relatively small profit targets. Maybe you are still curious, “how about relative? exactly how long, what percentage of margin and how many pips the target? “. Okay, if you have to call the numbers, usually if scalping, I use time frame between 5 to 15 minutes, the margin between 10 to 20 percent per position and profit target is about 10 pips. Or even, a margin of up to 40 percent with a profit target below 5 pips.
One of my mentors once said, scalping is a typical way of trading newbie … whatever is … frankly I also sometimes still scalp too, although actually I am more likely to choose a swinger trader. Well, sometimes just fun to feel the heart sport exercise is also pretty exciting hell.
Okay … whatever the word master, scalping legitimate done, as long as it does not violate the rules of the broker where we are trading, especially the problem of short trading rules. Scalping is usually limited for the smoothness of traders transact, because if all traders open frequency and close position in a short period of time, will be a burden for the broker server.
Well, for scalping, it’s good we choose the pair with a spread that is not too high but the movement is quite extreme, such as pair GBP / USD or EUR / USD. There is actually no ban, scalping in pairs with large spreads like GBP / JPY. Only, if the spread is large, yes we must be mentally prepared for waiting for a closed spread that may be long, if the movement is not too fast. Sometimes pretty tired too, waiting for the spread that is not closed-close, especially if fitting to play a big margin pake. Yes, the problem pick-select pair seems clear enough yes. Well, now … what kind of indicators are usually used by the scalper?
Let’s look at the following chart:
On the chart above, I use a 15 minute time frame for GBP / USD pair. The indicators I use are parabolic SAR, Simple Moving Average period 200 and W% R.The benchmark I use for entry is as follows: if the price is above SMA 200, the parabolic SAR is above the candlestick and W% R is in the sell area, so I do Open Position Sell. And if the price is below SMA 200, parabolic SAR is below candlestick and W% R is in buy area, so I do Open Position Buy. That’s just one example of a chart I use for scalping.
Combined indicator above is more suitable if the market is in sideways condition. If the market is trending, sometimes I just scalping based on candlestick only. Okay, please try and feel yourself. What is clear, if you want Open Position, always remember the endurance of our margins. So, do not do Open Position just based on lust for seeing the dancing charts flirting in front of the eyes. Can-can instead of profit that we get, but even MC.