My Simple Forex Scalping Method

9 September 2017, 01:29
Global Trade Pro
1 668
For every two Forex traders, there are four opinions of the best method for Forex trading. Furthermore, for every Forex expert that swears by the Forex scalping method, there is another one that will tell never to scalp.

What is Forex scalping? Before we get into that, let's give a little background and general information on the Forex market. It is the biggest market in the world, by far. Not only is it the biggest, it is also the most volatile, meaning it moves the fastest. This could of course work to your advantage or if you are not careful, it could work against you.

Forex scalping will take the huge risk associated with Forex trading and minimize it. However, as the saying goes, no pain no gain, which means in our case that scalping lowers your risk but also lowers your potential to make big money.

Here is how Forex scalping works. Instead of opening positions for hours at a time or even days, which involves rollover fees, you open Forex positions for minutes at a time maximum. Sometimes Forex scalping can mean opening a position for seconds at a time.

The philosophy behind scalping is pretty simple. How much money can I possibly lose in a minute? The truth is, it is a dangerous philosophy since a minute in the Forex market can cause a lot of damage but that is a topic for another time.

The thing with Forex scalping is that it requires tremendous discipline on the part of the trader. If for example, you open a trade for two minutes and in those two minutes, you lost 100 pips, you will most likely be very tempted to leave the trade open for another two minutes with the hope that the trend will reverse itself. This is a scalper's biggest mistake.

The golden rule of Forex, which applies to Forex scalping as well is, if you decide on a trading strategy or trading plan, the important thing is that you stick with it no matter what. It is for this reason that every trader, before they begin risking money in Forex, needs to make some serious decisions about what kind of trader they are and what type of strategy fits them best.

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