Forex Scalping, Profit Small But Many and Often
There are many styles of trading in the per-forex world and one of the most popular is trading scalping style. Scalping is a unique trading style by taking advantage of small price changes, usually in a short time after the open position is already a profit.
Being a trader with a scalping style, called a scalper, you are required to have a tight exit strategy. Because if there is one big loss it can eliminate many small profits that have been collected. In addition, it will be an advantage if you have the right tools, such as connectivity, direct access and broker support plus stamina for full concentration in order for this scalping strategy to work.
Scalping is based on an assumption that most currency pairs will complete the trend movement (the pair will move in the desired direction within a certain time but at what level is still uncertain). A scalper intends to trade as much as possible by taking small profits, but not impossible to suffer losses.
Actually this scalping trading style is the opposite of the “let the profits run” mindset. A mindset that tries to optimize positive trading results by enlarging profits in each trading.
Scalping can be said to work if more and more number of trading profit (though small). Usually the scalper does not use a large timeframe to achieve positive results. A successful scalper also has a higher profit ratio than losses and keeps the same or greater amount of profit from loss.
Main Scalping Guidelines
The smaller the trading exposure we can limit the risk. If you have an open position then the position does not need to be too long in the market to reduce the risk that leads to the incident direction is not desirable. Have a position does not need to linger.
Finding small movements is easier. The greater imbalance between demand and supply is needed to ensure greater price movements.
Small price changes are more common than large price changes. Even as long as the market is relatively quiet, there are many small movements that a scalper can take advantage of.