Learning Forex Scalping System
Scalper is a term for traders who tend to collect a small amount of profit (scale 5 to 10 Pips) by using the strategy of open and close positions quickly and repeatedly every day, or commonly referred to as scalping techniques / techniques. In contrast to a day trader who may only make two to four open position every day.
Scalper is a term for traders who tend to collect a small amount of profit (5-10 pips scale) by using open and close position strategies quickly and repeatedly every day, and this technique is also called scalping. Unlike a day trader who may only make two to four open position every day, a scalper usually open positions up to tens of times a day for the achievement of predetermined profit targets .
Learn Forex Scalping System
Scalping can not be done by any trader. A scalper needs to continue to sit in front of a computer and they should be able to “enjoy” the pressure in the chart movement. A scalper needs to concentrate on observing the slightest movement of the chart. It takes strong mental and quick reactions to be able to open and close positions when the trade is made to move as you wish or opposite. Scalper should be able to take advantage of three factors in this forex trading transactions:
- The more liquid the market is the better.
- Market volatility to note.
- Busy trading time.Tricks and things that need to be prepared for best forex scalping:
- Choose a broker that fully allows for Scalping. This is worth noting, because there are some brokers who restrict and even prohibit the use of this technique.
- Trading Platform execution speed. Because the speed in this execution will later determine whether your position entered or not (re-quote), then for that you need to test through demo account first if you are not familiar with the broker.
- Choose a currency with a small spread. Choosing a small-sized currency will help you execute your profits. Avoid brokers who apply commissions.
- Choosing a broker using 5 digits. Although not necessarily, but enough can be considered because it will form your profit execution.
- Sufficient Internet connection. In an effort to trade repeatedly, you must ensure that the internet conditions you use are strong and stable. When your internet gets distracted, you must know what you need to do to fix it.
- Supportive power flow. What if a sudden power failure when you open and not yet in-close? this needs to be considered. What is the need to use the power supply? what need stop loss? . Please be prepared and cared for.
- Use 2-3 charts. Using the chart at 15/30 minute time frame to estimate trend movement and use 5 minute time frame to open or close position.
- Choose the right time. Asian markets are suitable for scalpers. But there is also a scalper who is eyeing the time for scalping ie ahead of the opening of the European market (around 12:00 s / d 15:00 pm) and America (around 20:00 s / d 22:00 pm). In those hours the trading volume that occurs in the forex market is quite large. And that became a note, every turn of the market often happens quite extreme price movements.
- Avoid high impact data releases unless you want to install a trap system technique by taking 5-7 pips.
- Pay attention to your health, too long sitting in front of the computer can interfere with your health.
In the best use of scalping techniques that are often encountered today is to use at least 2-3 indicators, and some even use up to 7-10 indicators.
Scalping techniques can be a fun trading strategy. But it can also create stress and fatigue. Make daily profit targets you should accomplish, do not get caught for excessive trading. When trading you experience loss when using this technique, do not even think of revenge for the loss you experience at that time. There is still a tomorrow where you can trade again using this technique.
And slowly you will find whether you are a day trader or a swing trader as a result of your confidence and all the experience you get during using scalping techniques.
Scalping definitions are also sometimes slightly different between traders with one another, some defining scalping is short-term trading, which is closed in less than a few minutes. There are defining scalping is trading that takes pips profit a few pips only, with large lots.
Only, the understanding of scalping according to the investopedia is: “A trading strategy that attempts to make many profits on small price changes” (A trading strategy that tries to make a lot of profits rather than small moving price changes ) .
And in general, scalping is a combination of both. Usually indeed to achieve small pips, it takes a long time (because it is quite a bit motion). If your broker prohibits scalping, you should check the agreement or ask your broker to know the definition of scalping according to them.
The term “Forex Scalping Do” is definitely unknown. Indeed, many traders use this technique with a view to opening up the possibility of doubling profits. But how exactly does this technique work and is really reliable? To be sure, if you like this way of trade, you must be able to manage emotions.
While the main principle in scalping is income in intraday price movements. Just for example, Trading Intraday is similar in the stock market, which is buying something cheaper in the morning when stocks are open and at the end of the day and selling them for a higher price.
Or like a vegetable seller, he buys in the morning, then he should immediately sell it immediately by taking advantage immediately. If not then the vegetable will wither and stale. So the scalper if likened to like a vegetable trader.
While forex market set Scalping is the best way. Why? Scalping allows to trade in forex with the amount of 100-500 times exceeds the deposit that facilitates in generating a lot of profit. Excess, the forex market has a bigger change. On average, the currency moves 50-100 points in one day. This can be calculated if we consider the opening price and the price at the close of the day. However, if we remember that the value of the currency does not constantly rise in a single day, but makes a significant fluctuation, then there will be the conclusion that the currency moves for more points for a day.
The job of the Scalper is to earn money in every micro move. For one day some traders make more than 100 deal, this position period occurs within minutes.For a few minutes, the forex market moves in the right direction with a few pips, which the scalper takes as profit after closing the position. Of course, the profit of this position is small, but it can reach a significant amount if it is tied. Deal is not always profitable and if the market goes in the opposite direction, the position must be closed quickly without regret, otherwise the loss will be great.
One last thing to be aware of is the fact that Forex brokers do not like scalpers. So there are some brokers who are not friendly with this system. Many pros cons on this system, just how we should be clever to condition. We do not need to be a predator of how to trade others, because it is the character of the traders are different. Some like Swap +, some like Martingale and others. Let trader be responsible in its own way.