The Secret Of Forex Scalping Strategy 2
Lately, scalping into a forex strategy is again popular, especially among novice traders, because they really want to profit from forex trading every day. They don’t want to let their positions open for several hours, days, let alone weeks. They don’t want to put a stop loss because they don’t want to lose their money. There is fear that they will lose their money the next day if they leave their positions overnight .
The reasons mentioned above at first glance make sense, but the problem is then there is no forex strategy that guarantees that a trader will not experience losses in forex trading . Right: NO. Not long term trading , no day trading , no scalping.
Even the “best” forex strategy cannot guarantee that every transaction will definitely end in profit. There is no guarantee of “100% accurate”. However, in forex trading the important thing is not the accuracy of each analysis, but the accumulation of trading results from all transactions carried out. The “best” forex strategy can only benefit you in a long time, not instant. That too must be accompanied by good capital management and a step in anticipation of a strong risk.
Why is scalping so popular?
What is really a good scalping method? Why is scalping so popular?
Look: there really isn’t the best forex strategy . Each method must have advantages and disadvantages, just whether the trader using the method knows or not how and when to use the method. A method can work well for a trader but cannot work with other traders. In forex trading , the characteristics and level of knowledge of each trader influences the success rate of a strategy.
It’s just that scalping seems to have become “mainstream” . Moreover, there are claims that some can “formulate” price movements so that the market becomes very easy to guess or predict. Of course that is not true, because market movements are an effect of human behavior, while human behavior itself is unpredictable. Thus, the market is basically unpredictable.
The concept “history repeats itself”
Then what about the concept of “history repeats itself” in technical analysis?
This concept actually does not refer to the ability of a technician (adherent to technical analysis) in “predicting” the next price movement.In technical analysis, a technician actually just “reads” what is happening in the market through price movements themselves. In the past – and always repeated – prices tend to move in a certain direction after the appearance of certain price movement patterns. That is what is used as a reference to make a decision to buy or sell.
Likewise, any technician will not immediately assume that is a certainty.In the book “Technical Analysis of the Financial Markets” by John J. Murphy – which is said to be “the bible of technical analysis” – stated that technical analysis only has an accuracy of about 70%. What makes technical analysis valuable is when it is combined with risk & money management and has good risk-rewards .
Whatever people claim about a particular forex strategy, in reality forex trading remains a business activity that has risks. Thus, even though the opportunity offered is indeed very high, in reality it will only be achieved with an adequate level of expertise. Forex trading can even be dangerous for those who make transactions emotionally.
When can scalping methods be applied?
Because the scalpers always carry out transactions at “high speed”, even high concentration is absolutely necessary. A fast and stable internet connection must also be owned, so that it is possible to execute transactions in seconds.
If you want to do scalping, you should choose a major currency pair that has high liquidity and trading activities. In addition, the time chosen to run a scalping strategy should be times where there is an “overlapping” of the market, for example at a time when Asian, European and London markets are equally active.
Don’t run this method if you feel you don’t have enough time or can’t fully concentrate on your chart. Do not also try to scalping if you are not physically and psychologically fit. Especially when you are in an emotional psychological condition. Even the desire to reply to previous losses ( revenge trading ) must be removed from your mind.
Scalping, however claimed as a profitable forex trading strategy , is not suitable for everyone. This method is only suitable for those who meet the following criteria:
- Not easy to stress
- Can quickly take effective decisions in critical situations
- Not emotional in trading
- Have adequate knowledge about various trading methods
- Have a high “flying hour”
- Have high concentration (focus)
- Have a high body resistance
- Don’t forget: fast and stable internet connection.
If you meet all the criteria above, go with it . If not, don’t try. Wait until you have all of these criteria.
Don’t swallow raw sweet stories about scalping that you might hear from your friends. Remember that there is never a special formula that guarantees that you will be successful in scalping . Remember that a method that works for someone will not necessarily work for you. What you should do is try to find what method is suitable as your forex trading strategy .
Good luck. 🙂
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