Being a trader might be a little bit difficult, including when you play forex. Perhaps you have tried the day trading method and have not got huge profit. Instead of giving up and forget your dream, it is better for you to try the other forex approaches. Here, you can win the battle with Forex scalping. This method is really effective and also fun to do. It enables you to train your intuition and brave.
What is Forex Scalping?
Scalping is a term to describe the skimming of small profits on the market by going in and out of positions several times a day. Scalpers play the game by seeking small profits multiple times in a session. Particularly in Forex scalping, the scalpers search and catch the high-velocity moves which occur on the release of economic data and the other important news. Usually, scalpers try and scalp between five and ten pips from each trade. Furthermore, they repeat the process multiple times throughout the day.
Still confuse about Forex scalping? Here, there is an example for you. Say, a scalper gets five pips on one standard lot, in which the average value of a pip is about $10. Thus, for every five pips of the profit made, a scalper is able to earn $50 at a time. Multiple it ten times a day, then the scalper gets $500. Imagine when the scalper has more sources.
More Information about Forex Scalping
Even though it is not difficult to do Forex scalping, you have to put in your mind that the style is quite different. At first, you are required to have the extra patience. Why? It is because a scalper needs to sit in front of a computer for the entire session. You have to concentrate for every movement and even check the small details.
It needs intense concentration to scalp. In addition, having a great reflex is a must. A scalper must react very quickly. Do not ever let your guard down and do not over-analyzed. When you get the timing, just take it without thinking anymore. Cut the best position and get your profit. Do not ever hesitate or you will lose your moment.
When you want to start Forex scalping, make sure that you have a very reliable access to the market makers. Choose a platform that enables you to do the fast buying or selling. Remember, every second is really precious for the scalper. Usually, the platform has a buy button and a sell button for each currency pairs. The traders only have to hit the right button for entering or exiting a position.
Next, it is important for you to know the direction. Follow the trend is vital in Forex scalping, especially when you are a beginner. You are able to know the trend by setting up a weekly and a daily time chart plus insert the trend lines, Fibonacci levels and the moving averages. The following step is preparing ten minute and one minute chart. The ten-minute chart is functioned to show you the direction of the current market situation while the one-minute chart to enter and exit the trades.