There are a lot of people in Forex who are making a very good money. Some of them are professional and others are part time traders. As this market is very risky, it is better for traders if they trade the market for a part time. This article is going to tell you about Forex scalping, a type of strategy which can give you a large amount of money in a very short time that you cannot imagine. There are numerous strategies in Forex and traders are following many of it. Sometimes they use more than one strategy and trade the market for making more profit. Sometimes they use longer time frame strategy to trade the market and keep safe on the long run in the market. Scalping is a strategy which is used by traders and it is short time strategy. We are going to tell you in details about scalping.
What is Scalping?
Scalping is a name of a strategy in Forex. It is a very short time frame strategy and before the market has another movement, you can make your money and exit your trades. Today many people in Singapore are entering the Forex market and they are looking for a short time frame strategy. Scalping is perfect for them as it allows the traders to make money in a very short time. But everything has its two sides and we are also going to tell you if you should really start scalping in Forex.
Scalpers take the largest risks
Traders who scalp the market are called scalpers and they take the largest risks in Forex. You should know that you cannot scalp the market if you have only 10 dollars in your account. Scalping is not for everybody. If you want to make money from scalping, you need to have a very large account where your profit in pips will be large and most importantly you need to trade with a reputed broker like Saxo. This is why when they lose some pips in Forex, their loss is also very large. Not all traders scalp in Forex. Only the professional and experienced trader’s in exchange traded funds community scalps the market. Day traders also take risks like scalpers, but it is nothing to their risks when scalpers trade in Forex. They have to place their trade on market with a large lot size. If their trade is lost, they do not lose only some dollars, they can also lose their account also. This is why scalping is very risky and you should think twice before scalping.
Scalping is only for the experienced professional
Currency pair can be traded in a number of different ways but this doesn’t mean that you will be able to trade with all system. In fact, most of the new traders are losing money due to lower time frame trading. When you do the technical analysis in the lower time frame you are actually participating in high-risk trading. Most of the time the lower time frame generates false trading signals and it’s not possible for the new traders to filter this signals. However, over the period of time, you will gain experience which will help you to master the art of lower time frame trading.
How to become scalper
The first that you need to do is learn a lot about this market. The professional scalpers are the most experienced and knowledgeable person. They easily make a huge amount of money by trading the high impact news releases. Instead of using the indicator based trading system they use the market support and resistance level to trade the price action confirmation signal. But it’s not like that they will always have winning trades. Since losing is part and parcel of the trader’s life, the expert always uses the advance money management technique to save their investment.