The Secret Of Forex Scalping Strategy
One technique that is currently rising in the world of forex trading is ” scalping “. Traders as if “hypnotized” with these terms and scalping suddenly become a rising forex strategy .
Based on data obtained through Google as of December 22, 2014, the word “scalping” occupies the most number of searches in a month only for netter in Indonesia. An average of 210 searches a month, even beat the keyword technical analysis (an average of 170 searches a month).This shows that scalping is one of the techniques that is quite intriguing to traders, at least in Indonesia.
Are you among the traders who are curious about scalping ? Have you at least thought of becoming a scalper ?
There is something you need to know: that even though scalping looks like an easy way to print small profits in minutes, it’s actually not that easy. Although scalping in forex trading is known to provide fast results, this forex strategy can only produce results only if you can make the right decision in a short time. Even then, if you are not bothered by the internet connection in Indonesia, it is often often ” disconnected “, or spreads that are wide, or re-quote because of volatile prices while internet connections do not support.
Scalping is like a computer game that relies on the speed of eyes and hands. For example a car racing game where you have to be able to make decisions at critical times in a short time, or your car will slip off the track. At first glance it looks fun, but in scalping , your money is at stake.
Likewise, scalping may be one of the forex strategies that you need to know too, or at least you know how it works. At least to add to your insight before you try it.
What is scalping ?
In forex trading , scalping is a forex strategy where the trader tries to “pick up” small profits in a row. A trader will enter and exit the market several times a day, trying to find profits between volatile market movements. Scalpers will usually react quickly when there are economic data releases or other news that has a large impact on market movements.
Although it looks similar to day trading , it’s actually not the same. In day trading , a trader will only open one or two positions and the position will be closed before the trading day ends. He never – or very rarely – let the position experience overnight . Meanwhile, a scalper can open and close more positions and only target small profits every time you open a position. If day trader uses a 15 minute chart up to 1 hour, the scalper utilizes a 1 minute chart.
Day traders usually target a profit of $ 200 to $ 500 each time opening a position, while a scalper usually only targets $ 5- $ 10 per transaction. If he manages to make 10 transactions that generate profits, then he will be able to book a profit of $ 50- $ 100 per day. Of course, that amount can only be obtained if all the transactions that he does end with profits.Sometimes, once a losing transaction actually eliminates the profits obtained from the previous 9 transactions.
Scalping or not?
Scalping is a forex strategy that requires consistency and very high concentration. You must be available in front of a computer to monitor market activity and react as quickly as possible to respond to every opportunity. You must be able to sit for hours in front of your monitor and must be able to make decisions in a short time. If your attention is distracted for a while, you will miss the opportunity or experience a painful loss.
You must be able to quickly get out of the market as fast as you enter using a variety of forex trading methods. For that, you can have a reliable internet connection. Imagine if you can’t close your losing position because the internet connection is lost. Ridiculous, right ?
You also have to be able to deal with a higher level of stress than day trading . If you are still often overwhelmed with emotions every time you trade, you should think again before deciding to implement a scalping strategy, because this technique is not for those who are easily hit by emotions. Even a day trader can’t even be emotional when trading, let alone a scalper .
Are you ready for all of the above? If so, please try your skills. If not – or even doubt – think about it first.
Next : https://forexsignal30.com/the-secret-of-forex-scalping-strategy-2/The Secret Of Forex Scalping Strategy 2