Forex scalping can also be termed as quick trading because it is the process in which traders allow their position to last from seconds to a minute, hardly more than that. According to the scalping rule, if traders hold their position for more than a minute that cannot be considered as scalping but a regular trading. It is the best way to catch to pips quickly. In case you’re not interested in sitting in front of your desk and looking at the chart, this process can bring smile on your face. So basically scalping is the technique where trades are closed in less than a minute. In this article I’m going to discuss about the strategies involved in scalping:
- Efficient scalping
To scalp efficiently you need to remember few things for example, need to determine the direction for the day, for this you can take help of daily analysis chart. It would be great help if utilize candlestick or pivot points before you perform any trade. You should also remember that continuous trading has higher probability for reaching success.
- Scrap it out
while using scalping strategy any time you feel uncomfortable with the trade you have to choice to scrap your trade. Even though you’ve a bit of doubt about the trade you can scarp it. You can use this technique in case your trade is taking quite long to course into your aimed direction.
- You’ve a time to stop
we already said that short term trading has degree of addiction so it is very essential to control while using this technique. Learn to stop would is definitely is one of the most difficult and important skills to grab. Most of the experts’ advice that you should halt your trading if got three losses in a row for the day. It is actually a smart way to save you from losing few more trades within a day.
Factors to look for
while using scalping strategy you need to understand the three main factors which actually act as base of scalp trading. All forex brokers know this because it helps them to make the right decision in their work. So read carefully and keep that in mind while using scalping technique:
- For liquidity
you need to understand that market has more liquidity than the more it looks attractive for the trader. This is the reason why this market can give you more profitable trades in the given time.
- For volatility
you need to learn that only stable market can attract the scalpers, for example, if you’re a scalper, you never wanted to see any big movements in the market. That is the reason why stability gives you a chance to have many small profits which are coming from different trades.
- For time
a smart scalper never wanted to start trading at the beginning of the day. Though it is true that the longer you want to trade then more you could make but still patience is the key. That’s why it would be pointless to scalp if the market conditions are not quite suitable.
Using reliable scalping system can make your scalping very much easier. You have lot of strategies to learn other than scalping. Broker like Liteforex group, gives you complete learning center so that you can learn everything about the Forex market and what all tools are available for you to trade in the market.