What really is Forex scalping?
Forex scalping is a trading technique where a scalper enter and exit in a trade very quickly. The time between when a trade is opened and when it is closed doesn't exceed five minutes in more than 90 percent of the cases. A scalper usually do hundreds of trades in a trading day. And yes, scalpers even do more than this.
Every trade that a scalper opens and then closes ultimately results in profit or loss. The amount of loss or profit associated with a trade is very low, sometimes it amounts to $0.01 or even lower. After a complete trading day, scalpers usually receive a high profit that results from accumulated profits from all the individual petty trades. Some scalpers earn $300 or more profit each day. Being a scalper, you don't have any surety as to how much profit you will have at the day end.
What is so special about scalping?
What is so special about scalping? Why those hundreds and thousands of forex traders bother about small profits instead of going after a big profit? What is the basic idea behind scalping?
It's simple, scalping is very safe. It is less risky as compared to other strategies and even if a scalper faces a loss, it is very small and can be compensated. A scalper do trades very quickly and thus spends very less time in the market resulting is in less exposure to market volatility. Consequently a scalper doesn't have to face sudden price changes, market trends and other market risk that other traders face on regular basis. A forex scalper never faces huge financial losses. Almost all scalpers use keep themselves safe from sudden price shifts by backing their trades with stop loss and take profit orders.
In reality, most of the scalpers don't really care about market trends. These trader actually care about their share from within the spread, and this what they need.
Is scalping for everyone?
It is a fact that anyone can easily become a forex scalper. There are no restrictions whatsoever. Not all the trader who opt for scalping become successful in it. Forex scalping best suites to small investors. Normally it has been seen that large investment companies and experience traders don't use scalping techniques rather they look for something "big".
Patience, hard work and proper time are the three things that scalping demands. If you can manage to fulfill these three requirements, you will become a successful scalper. If you cannot meet these requirements, you need to look for another forex strategy.
Patience is very important. Those who think that scalping will make them rich within a few months, scalping is not for these guys. Those who don't want to waste their time for petty trades, scalping is not for them either.
Hard work is also very important. Scalping is very hard to do. It is not an easy thing to do several trades within a single trading day, five days a week. Regular practice is the key to success. Initially you will need lots of time to achieve your goals but with the passage of time you will get used to the system and then everything will become a piece of cake for you.
Time is, in fact, the most important factor. A regular scalper usually give more than five hours per day to scalping. Don't think of automated scalpers. Human beings are the best scalpers, and nothing can compete them. Bottom line, you have to do all the scalping stuff yourself, and to do that you, of course, need time.
Conclusively, forex scalping is easy, profitable and time-consuming. New traders must start their career with scalping. This particular forex strategy will keep you safe from extensive financial losses. It is, I suppose, is a must for every newbie trader, and for those who are trading with very low capital.
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