Scalping

tommy0921

Trader
Jan 3, 2011
29
1
17
Scalping
Scalping in the forex market consists of an extremely short-term trading strategy which attempts to take advantage of the bid offer spread. In doing so, scalpers act a bit like a market maker, while only holding positions briefly like a day trader.

The basic objective of scalping consists in getting in and out of the market as quickly as possible for a profit. One scalper summed it up well by describing their idea of a long-term investment as holding a position until noon.

Scalping the market can be quite lucrative, although the profits do not come without a pretty steep price in terms of personal time invested. Scalpers must be on alert and completely absorbed in the market throughout trading hours.

In addition, scalping requires the trader’s books to be extremely well organized, leaving no loose ends and keeping perfect track of every lot traded. Like day traders, scalpers typically do not hold overnight positions.

Scalper Trading Technique

Scalpers rely primarily on liquid markets above all to give them opportunities to trade on both sides of the dealing spread. The possibility of entering and exiting a trade profitably with a minimum of effort and time elapsed is the ideal situation for a scalper.

Once the profit on a trade has been realized or the position stopped out, the scalper moves on to the next trade. They might then elect to reposition at a lower price or short at a higher level. Successful scalping involves the trader realizing profits on trades as continuously as possible.

Scalpers use technical analysis primarily to set levels to trade against. Nevertheless, the point of scalping consists of realizing profits quickly and holding positions for the least time possible.

Scalpers tend to make the most money in deep, liquid markets that offer the tightest spreads such as the EUR/USD or the USD/JPY currency pairs. Volatile markets with less liquidity are usually harder to scalp.

I have a free, good Scalping indicator for anyone who want to follow this strategy. Hope this can help
 

GWest

Trader
May 25, 2012
6
0
12
Scalping
Scalpers tend to make the most money in deep, liquid markets that offer the tightest spreads such as the EUR/USD or the USD/JPY currency pairs. Volatile markets with less liquidity are usually harder to scalp.

nice post, particularly agree with this statement. It does limit the variety of pairs that are suitable for the trade style, and scalping is time intensive, but the rewards can be good.
 

inggo

Banned
Jan 13, 2012
498
12
59
Philippinese
yes, scalpers get the best of the market, though its something not for everyone i guess, given most of us still have our day jobs :) i started as a scalper with hotforex and switched to position trading and swinging :) thanks for sharing the info :)
 

triplet

Active Trader
Oct 7, 2014
101
4
27
scalping is good with lots of advantages that can benefit the trader though the returns is small but when it is frequent is is highly acceptable.
 

koyl

Trader
May 25, 2015
71
2
7
Scalpers need to be experience equip because you need to understand the market for you to easily enter the market the market and make profit in a short time. It is profitable and market liquidity is important.
 

March

Banned
Mar 1, 2015
82
0
0
Scalping is a great strategy for profitable trading, but not all the brokers allow to do it. I know, that, for example, Insta and Iron prohibit to do scalping and just cancel the deals, whereas Fresh, GrandCapital and Teletrade allow scalping.
 

Ary Barroso

Active Trader
Jul 9, 2017
908
70
39
34
Well, I started my trading career as a scalper! Because, when I was a new face on live market then my trading capital was only 100$, so I was unable to set such a long stop loss position for swing and positional trading, by the way now I am using all kind of trading styles in my trading.