Scalping the forex market
All the ins and outs on scalping the Forex market. May Chris dives into the world of Scalping where he explains in great detail how this style of trading can be accomplished in the Forex market. This live webinar not only clarifies how a trader can scalp but also provides every Forex trader with a great guidance and extra tips.
Forum on trading, automated trading systems and testing trading strategies
Sergey Golubev, 2014.03.07 09:08
Who Can Trade a Scalping Strategy? (based on dailyfx article)
The term scalping elicits different preconceived connotations to
different traders. Despite what you may already think, scalping can be a
viable short term trading methodology for anyone. So today we will look
at what exactly is scalping, and who can be successful with a scalping
What is a Scalper?
So you’re interested in scalping? 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
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 misconception 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.
This also falls in line with one of the benefits of the Forex market.
Due to the 24Hr trading structure of Forex, you can scalp the market at
your convenience. Take advantage of the quiet Asia trading session, or
the volatile New York – London overlap. Trade as much or as little as
you like. As a scalper the choice is ultimately yours to make!
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
There are other misconceptions that scalpers are very aggressive traders
prone to large losses. One way to help combat this is to make scalping a
mechanical process. This means that all of your decisions regarding
entries, exits, trade size, leverage and other factors should be written
down and finalized before approaching the charts. Most scalpers look to
risk 1% or even less of their account balance on any one position
Who can Scalp?
So this brings us to the final question. Who can be a scalper? The
answer is anyone with the dedication to develop a trading strategy and
the time to implement that strategy on any given trading day.
GoMarkets broker, initial deposit is 1,000
Alpari UK broker initial deposit is 1,000
RoboForex broker initial deposit is 1,000
Chart Patterns & Trend Action for Forex, CFD and Stock Trading
Learn how to read patterns in your trading trading charts and to understand what they are trying to tell you. Trend patterns and chart patterns such as rectangles, head and shoulders, triangles are the ultimate key to price action. Breakouts, Reversals and Continuation of trends will also help forecast the markets.
How to Use Your iPad as a Laptop Second Monitor for Forex Trading
This video will show you a great way to get a laptop second monitor for your Forex trading, by using something you probably have anyway...an iPad. Just by buying a simple iOS app for about $15, you can turn your iPad into an external monitor and run any Mac or PC application on the second screen. This can help reduce what you travel with, while giving you some extra screen real estate, which is helpful for doing work, trading multiple markets and more.
Perfecting Trade Exit Strategies
Trade exit strategies form the part of your trading plan that help your profit management. Buying the correct stock and the correct number of stocks is all to no avail if you do not know when to exit a position. In fact, having a definitive exit strategy is as important as defining your entry.
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