FOREX STRATEGY: What is Forex Scalping?
forexscalping
Forex scalping is a Forex strategy in which the trader positions are only for very short time open, with the aim to tackle small profits quickly. This can be a very profitable way of trading Forex are.
The time that the position remains open varies from a few seconds to less than 2 minutes. Above is actually no more of forex scalping but normal intra-day trading spoken. The target profit per trade is generally between 1 and 5 pips net ie after deduction of the spread. In theory, it is also possible to use a scalping forex strategy to which the profit target between 5 and 15 pips net is, but in that case the position will still be held regularly for longer than 1 to 2 minutes.
Why not a good forex scalping strategy Forex for beginners
Forex scalping is by definition associated with the use of high leverage, because the only way to make sense to try small profits off course to hone. When working with mini-lots where 1 pip is $ 1, it is less profitable to develop a strategy whereby the average profit per trade is 0.5 pips (or $ 0.5). This is different to the standard 10 times as large lots (one standard lot represents $ 100,000 in currency) where 1 pip is $ 10 and profit of half a pip per minute a good living can bring. (Imagine that in one hour 60 standard lot trades open and shut, and you have a scalping forex strategy which you average 0.5 pip per trade wins, you earn so 60 x $ 5 = $ 300)
One of the biggest mistakes novice traders make is directly trying to maximize profits through the maximum leverage in such a way to bet that any risk manana ment the neck is turned about. (And when forex scalping is applied in a wrong way that is exactly what happens)
50 euro free markets
Another reason why this Forex Strategy is not intended for novice traders is that a strategy is that a lot of discipline and stress resistance is required. A single trade can indeed profit from the carefully constructed an entire day of sweeping the table, and a trader for a few minutes on tilt can even ease the profits of a whole month pulverized.
You can stop / loss limits set yourself some protection, but with automatic take wins work is often just again not a good idea, because you can not benefit from unexpected 'spikes', where the price suddenly by shooting, and the profit on a trade from 2 to 20 pips is driven. Experienced forex scalpers use whatsoever, or an automated system or a quick, cold-blooded mouse finger.
How does forex scalping in practice?
The trader must first devise a working system. The most important part of any forex scalping strategy is at least risk management. The difference between profit and loss is because of the risk of only a small fraction of the total capital and quickly address any profit. After all, anyone who already has some experience in trading with the online currency market knows that it can deal with as great a profit as risk can not accept / make up the loss.
Successful forex scalps means risking 1% to 2% of your total capital and never, not even occasionally. If you work with very small profit margins, there is no room for greater loss.
The scalper is developing a solid strategy developed which is not deviated. This is also why the forex scalps increasingly using automated systems (forex bots) automated forex trading because human psychology (and hence the inevitable vulnerability of it) effectively put out of play.
Does this mean there anyway forex bots which you can become rich while sleeping? No, because you'll still get the automatic trading system itself must learn to what parameters he must adhere to itself and therefore you will first need to know exactly what you are doing and what a profitable forex scalping strategy. (We recommend you not to just buy forex software that you promise to be rich without you yourself have to do anything).
why many brokers are not happy with forex scalpers
Many forex brokers themselves have a dealing desk and take positions on the other side of the trader. Because scalping is so fast, the forex broker is often no time to position dealing, making it much easier to lose money.
The forex brokers who do not have this problem are those without their own dealing desk, which orders directly off put by the banks themselves. These are usually then called the brokers where you at least a few thousand dollars to be paid if you make an account.
Forex Scalping the holy grail of profitable trade?
No strategy is the holy grail of profitable trading. The sooner you realize how quickly you can start working on setting up a profitable Forex strategy. Before you build a trading strategy based on scalping, do well to get yourself fully familiar with money management, risk management and disciplined trading.
For an experienced trader who is willing to stabbing much time and effort in creating a well thought scalping forex scalping system a highly profitable forex strategy. Forex for beginners it is more often a killer ..
related posts
- Indicator Envelope
- Gator Oscillator
- Ichimoku Systems
- Ichimoku Trading System
- Macd Osma
Forex is simple follow the trend and you will rich.
ConversionConversion EmoticonEmoticon