What is scalping

Discussion in 'For novice traders' started by Francmorio, Sep 21, 2017.

  1. Francmorio

    Francmorio Member

    Scalping in the Forex market involves buying and selling of currencies and holding the position for a very short time and closing it for a small profit usually around 5 to 10 pips per trade.Traders who use the scalping strategy do not like holding their trades for long,this trading strategy is suitable for Forex traders who have enough time throughout the day to analyze,execute and monitor a trade.A Forex scalper looks for a large number of trades for a small profit each time.
     
    Nia likes this.
  2. Scalping is a technique that requires a lot of skills and experience. If we lack these attributes then we could suffer fair bit. When we do long term trading, it’s not exactly about the speed and skills, it’s more about knowledge. So, we just got to be wise with our technique selection, as it makes huge difference.
     
  3. andengireng

    andengireng Member

    Scalping benefits : Limit risks. With this short and quick trade this strategy has a small stop loss value and therefore certainly can protect your assets better (that is if the stoploss rules are not violated). Make a profit quickly. With this strategy you can make huge profits in a very short time (if you know what you should do).
     
  4. Roman Rias

    Roman Rias Member

    Scalping is a great way of trading, but it requires a lot of skills and if we want to be successful with it then we need to work it out with proper plans. If that is there then only we will be able to do it successfully.
     
  5. ibm'73

    ibm'73 Active Member

    Scalping definitions are also sometimes slightly different between traders with each other, 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 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).
     
    Nia likes this.
  6. Nia

    Nia Member

    thread is very useful for those who want to trade with scalping
     
  7. NewbieTrader

    NewbieTrader Member

    Yeah, but don't forget about requote. With this, you'll most likely end up with loss when you should be having profits. Choose your broker wisely. Pick those without requote.
     
  8. Tengkorakfx

    Tengkorakfx Member

    No matters the definition about, we have to preparing many things before trade with scalping, to be honest. anyone who loves scalping for trade here? you can share your experience to us. so we can anticipate the worst thing in scalping. my thought.
     
  9. andengireng

    andengireng Member

    There's something you need to know: that although scalping looks like an easy way to print small profits in minutes, it really is not that easy. Although in forex trading scalping known quickly to give results, but forex strategy on this one can only give results only if you can take the right decision in a short time.
     
  10. Tengkorakfx

    Tengkorakfx Member

    I agree with you that we have to underline 'the right decision in a short time' because it's the key. we have to estimate the time when we in and out of the market, when we entry and we close to get the profit.
     
  11. NewbieTrader

    NewbieTrader Member

    that is why it gets so tiring, isn't it? it's like bam bam bam, decision after decision. and when we keep making the wrong ones, it gets frustrating. it is fun when we keep making the right ones though. exhilarating!
     
  12. Tengkorakfx

    Tengkorakfx Member

    yeah, it always fun for who love it and always bored for who hate it. Whatever the style, whatever the indicator, I can say the best way is the way that can bring you the best profit result. :D
     
  13. NewbieTrader

    NewbieTrader Member

    agreed. test whichever indicator that you think is good using demo account or real account with low capital. and then when you feel it suits you, use it. bring it! profit!
     
  14. andengireng

    andengireng Member

    Not all brokers allow scalping techniques because by using this strategy, a trader can close many positions at the same time. This can weigh the broker server work, as well as complicate the broker's risk management.

    The best brokers for scalping must meet several criteria:
    Allow Scalping Techniques
    Non Dealing Desk Broker (NDD)
    Regulated
    Provides Higher Leverage
    Low Spread
     
  15. Tengkorakfx

    Tengkorakfx Member


    Agree, and it's better to use ECN account since scalping requires price accuracy and most of the traders really hate requotes.
     
  16. NewbieTrader

    NewbieTrader Member

    Does everyone here use scalping as their strategy?
    On that note, yes I have been reading about the importance of using ECN account for scalping. price accuracy seems prudent.
     
  17. andengireng

    andengireng Member

    For those of you who have been trading for a long time, you are certainly no stranger to trading techniques called scalping, the simplest and easiest trading technique for beginner traders. But on the journey not only beginner traders use it. There are quite a lot of traders who are already crossing the world of trading still using this one trading technique, this is why finally trading scaping techniques are one of the simplest and simplest trading techniques.
     
  18. NewbieTrader

    NewbieTrader Member

    It's interesting that you mentioned scalping as being popoular among beginner traders. Because i didn't really know about this until after some times. but who knows perhaps i was scalping without realising it :D
     
  19. andengireng

    andengireng Member

    Scalping technique is a method where a trader takes small profits regularly by opening and closing positions several times a day. In this way, traders try to get profit when fast movements occur. Running a Scalping strategy requires agility, price accuracy, and precise execution, because scalpers usually open positions with fairly large lots, but target profits to be obtained in the shortest period of time.
     
  20. broforex

    broforex Member

    In my opinion, 1 Minute Scalping with a Moving Average cannot be used on all currency pairs, but only for currency pairs with large fluctuations in London and New York trading sessions. If it is used in a currency with a calm movement, then the trading signal will be minimal even though this includes the best scalping technique.
     

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