A variety of strategies in the Forex market is really astounding. One of the most popular ways of trading is called scalping. The method is based on the work of many positions, a big capital and the profit from the small fluctuations in the exchange rate of the currency pair.
Scalping – very short term strategy that is gaining popularity because the trader is able to minimize investment risk. The time intervals are usually 1 minute (1M) and 5 minutes (5M). Some investors also analyze the long-term trend and trying to adapt to it, carrying out daily transactions.
Scalping is a system that is easy to turn into an investment car. Carefully introduced data allow to increase the efficiency of investments and give the trader the opportunity to really get passive income. But, you have to be careful not to fall into the mental trap. The use of the investment strategy should be preceded by proper analysis of profits and losses and its experimental use. Without this, Forex trading can be compared to roulette.
The group of traders who prefer short-term trading, often called scalpers. Their market impact is minimal. Scalperstar earns from 1 to multiple items per transaction, its position available on the market no more than a few minutes. Some advice to beginners who start with a strategy:
- Trade only the most liquid currency pairs and only in the designated sessions. In scalping, low spreads are the key to success. Trade during less liquid sessions may be characterized by unexpected price movements.
- Start with one currency pair and practice. If this works, you can add more pairs. Make sure there's nothing otvlekaet. These are the basics of Forex trading.
- Choose a broker that offers trading in just one click. It's all in the speed, even a fraction of a second can change the spread or price. Remember that the Forex market speed is important!
- Adjust the amount of your transaction in advance and be prepared for anything. Save your goal. Remember that in one transaction you will earn from 1 to several pips determine how much you want to risk capital to achieve the expected profit. Be mentally prepared that you will have to complete some transactions at a loss. For beginners it is difficult to accept, but remember that losses are part of long-term profits.
- Avoid opening positions on correlated pairs. For example, for EUR / USD and GBP / USD. Never sell, or buy both pairs at the same time. If you want to check the correlation, set the MT Supreme.
- Be very careful when trading before the important macroeconomic information. This is the time when price is not logical and chaotic. Even if you predicted what data will be published opposite the projections can push the price in the other direction.