The Forex Market System Scalping.
Scalping (the Forex system) is a simple trade strategy for the Forex market that consists of arranging a big number of transactions during a short time period with low stop losses and lower take profits. Not every Forex brokers allow traders to scalp, and not all from those brokers who allow do that, match for that. Scalping doesn’t work for all traders too. Personally I do not recommend scalping to anyone. This article describes the simplest variant of scalping on the Forex market.
Special features
* Good profit for traders who are lucky (have a developed intuition).
* A trader does not have to follow the fundamental, technical or any other type of analysis
* Spreads take the largest part of the profit
* Low correlation of the profit to risk
* Not all Forex brokers support scalping
* It takes a lot of time to trade and to monitor charts.
How to trade?
1. Use currency pairs with high volatility within a day and low spreads (EUR/JPY, GBP/USD, EUR/USD and USD/JPY are good examples)
2. A minute (or shorter) time frame is recommended
3. The optimal time for the trade is during crosses of the trade sessions of Europe and the USA, and the USA and Asia
4. Get ready for the trade watching after the market’s activity during 5-15 minutes
5. When it seems to you that you have “caught” the current short-term trend, enter the position.
6. Put stop loss about ten pips.
7. The common rule for the purpose of profit is about one and one and a half size of spread on a pair. Most likely, a broker will not let you to put take profit so close (2-5 pips) that’s why you will have to monitor the market and to close the position manually.
Learn the following examples of using the strategy:
1. You open a position for purchase on EUR/USD with stop loss in 10 pips and goal of 4 pips. Within 20 seconds the position gets 4 pips of profit and you close it.
2. You open a position for sale on GBR/USD with stop loss in 10 pips and goal in 4 pips. Within 3-4 minutes the trend is turning around unexpectedly and the position is closed by stop-loss.
3. You open a position for sale on USD/JPY with stop loss in 10 pips and goal in 3 pips. Within about one minute the position reaches 4 pips of profit and you close it.
4. You open a position for sale on EUR/JPY with stop loss in 10 pips and goal in 5 pips. Within 5 seconds the quotations show the peak and the position gets 12 pips of profit and you close it.
5. In all ten pips of profit for about 6 minutes. Of course this is only in the theory.
As in any other niche of our life foreign exchange market needs some education.
Of course, you can start forex investment and be quite successful in it. But sooner or later the losses will come. This is when you might think “Why did I fail to start with a nice forex trading education?”
That does not mean that after reading even the top materials you will start making money, but this info will save you from many dangers. And even if you make up your mind to get the help of a managed forex account service, still you will make a much wiser decision.
And a final piece of advice – today the online technologies give you a really unique chance to choose what you require for the best price on the market. Funny, but most of the people don’t use this opportunity. In real life it means that you should use all the tools of today to get the info that you need.
Search Google and other search engines. Visit social networks and check the accounts that are relevant to your topic. Go to the niche forums and join the discussion. All this will help you to build up a true vision of this market. Thus, giving you a real opportunity to make a smart and nicely balanced decision.
P.S. And also sign up to the RSS feed on this blog, because we will everything possible to keep this blog tuned up to the day with new publications about Forex market.
Author: arfandia
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