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What exactly is scalping in general meaning, and who can be successful with a scalping based strategy

11 November 2014, 18:16

Sergey Golubev

522

The scalping can be a viable short term trading methodology for anyone depends on the trading styple of the particular trader.
we can just look at what exactly is scalping in general meaning, and who can be successful with a scalping based strategy.

What is a Scalper?

A Forex scalper is considered anyone that takes one or more positions throughout a trading day. Normally these positions are based around short term market fluctuations as price gathers momentum during a particular trading session. Scalpers look to enter the market, and preferably exit positions prior to the market close.

Normally scalpers employ technical trading strategies utilizing short term support and resistance levels for entries. While normally fundamentals don’t factor into a scalpers trading plan, it is important to keep an eye on the economic calendar to see when news may increase the market’s volatility.

High Frequency Trading

There is a strong misunderstanding that all scalpers are high frequency traders. So how many trades a day does it take to be considered a scalper? Even though high frequency traders ARE scalpers, in order for you to qualify as a scalper you only need to take 1 position a day! That is one of the benefits of scalping. You can trade as much or as little as you like within a giving trading period.

Risks

There are always risks associated with trading. Whether you are a short term, long term, or any kind of trader in between any time you open a position you should work on managing your risk. This is especially true for scalpers. If the market moves against you suddenly due to news or another factor, you need to have a plan of action for limiting your losses.

Who can Scalp?

So this is the final question. Who can be a scalper? The answer is anyone.

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