Scalping
Scalping in the forex market consists of an extremely short-term trading strategy which attempts to take advantage of the bid offer spread. In doing so, scalpers act a bit like a market maker, while only holding positions briefly like a day trader.
The basic objective of scalping consists in getting in and out of the market as quickly as possible for a profit. One scalper summed it up well by describing their idea of a long-term investment as holding a position until noon.
Scalping the market can be quite lucrative, although the profits do not come without a pretty steep price in terms of personal time invested. Scalpers must be on alert and completely absorbed in the market throughout trading hours.
In addition, scalping requires the trader’s books to be extremely well organized, leaving no loose ends and keeping perfect track of every lot traded. Like day traders, scalpers typically do not hold overnight positions.
Scalper Trading Technique
Scalpers rely primarily on liquid markets above all to give them opportunities to trade on both sides of the dealing spread. The possibility of entering and exiting a trade profitably with a minimum of effort and time elapsed is the ideal situation for a scalper.
Once the profit on a trade has been realized or the position stopped out, the scalper moves on to the next trade. They might then elect to reposition at a lower price or short at a higher level. Successful scalping involves the trader realizing profits on trades as continuously as possible.
Scalpers use technical analysis primarily to set levels to trade against. Nevertheless, the point of scalping consists of realizing profits quickly and holding positions for the least time possible.
Scalpers tend to make the most money in deep, liquid markets that offer the tightest spreads such as the EUR/USD or the USD/JPY currency pairs. Volatile markets with less liquidity are usually harder to scalp.
I have a free, good Scalping indicator for anyone who want to follow this strategy. Hope this can help
Scalping in the forex market consists of an extremely short-term trading strategy which attempts to take advantage of the bid offer spread. In doing so, scalpers act a bit like a market maker, while only holding positions briefly like a day trader.
The basic objective of scalping consists in getting in and out of the market as quickly as possible for a profit. One scalper summed it up well by describing their idea of a long-term investment as holding a position until noon.
Scalping the market can be quite lucrative, although the profits do not come without a pretty steep price in terms of personal time invested. Scalpers must be on alert and completely absorbed in the market throughout trading hours.
In addition, scalping requires the trader’s books to be extremely well organized, leaving no loose ends and keeping perfect track of every lot traded. Like day traders, scalpers typically do not hold overnight positions.
Scalper Trading Technique
Scalpers rely primarily on liquid markets above all to give them opportunities to trade on both sides of the dealing spread. The possibility of entering and exiting a trade profitably with a minimum of effort and time elapsed is the ideal situation for a scalper.
Once the profit on a trade has been realized or the position stopped out, the scalper moves on to the next trade. They might then elect to reposition at a lower price or short at a higher level. Successful scalping involves the trader realizing profits on trades as continuously as possible.
Scalpers use technical analysis primarily to set levels to trade against. Nevertheless, the point of scalping consists of realizing profits quickly and holding positions for the least time possible.
Scalpers tend to make the most money in deep, liquid markets that offer the tightest spreads such as the EUR/USD or the USD/JPY currency pairs. Volatile markets with less liquidity are usually harder to scalp.
I have a free, good Scalping indicator for anyone who want to follow this strategy. Hope this can help