Discussion in 'Newbie Questions' started by Ripped, Jul 26, 2011.
What, exactly is Scalping?
Scalping is a kind of trading when you try to profit from the slightest moves of the currency pairs.
To me scalping is about closing 10-20 pips profit and then move out for another entry in again. It is usually done where the market has no clear direction and is ranging only. Correct me if I'm wrong.
scalping is very short term trade .. and trade for only 5-10 pips ..
if u are 100% sure about any trade .. u will play with big lot for some pips ...
scalping always play in 1 minut chart and same trend direction ...
What is Scalping?
Scalping trading tries to take a small amount of pips per trades, within a few seconds or minutes. A scalper is not interested with the long term or large profits- he wants to take advantage of a temporary momentum. They usually get in with larger sizes and take profits of 2-10 pips. Obviously, they have to make dozens of trades a day in order to earn a significant amount of money.
Personally I don’t like this kind of trading, mainly because it will eventually make the trading a casino, and most of the scalpers delete their accounts faster than other. Of course, some scalpers do make money but they are a minority.
Good Luck in your trading!
Well said. This window period of trading may range from a few hours to a week! But the point here is not the time but the kind of profit margin you can scalp out from the maneuvers.
thanks that's a nice explanation.
Scalping is trading very fast .. with profit target 5 - 20 pips
Scalpers make around 10 - 50 scalps a day, sometimes even more
I prefer scalping, becase you hold positions for very short time .. the advantages are higher brokers payments, so you have to choose right broker
Forex scalper, do you use stop-loss for your scalping trades? I've always wondered how scalpers go with SL, because broker won't allow setting stop-loss level to close to open price and setting a distant stop-loss kills the idea of scalping, in my opinion.
not all brokers allow scalping, that's why you need to ask a broker what is their policy on scalping not to risk your account closed
I think that Scalping is for pro traders, I like investing not scalping because I have other things to do. Like work, If you are a full time trader then it would be a good thing to be a scalper
Not all brokers are okay with scalping. So, if you're into scalping [not something I would recommend to anyone] and are okay with taking excessive risk with no strategy basis, then check up with the broker and see if scalping is allowed or not.
Scalping is a frame of mind as well as a technically defineable trading protocol. The scalpers credo being --" My first profit is my best profit" dictates that the trader takes a profit whenever they appear, the sooner the better, whether one pip or three. Caveats on scalping (1) Be aware that the percentages are catastrophically against you, so you best be techinically proficent to a high degree ( that means profitable trades about 90% of the time) (2)Trade with brokers with the narrowest of spreads and little or no slippage(3) have the patience to wait for your opportunities, chart patterns , resistance and support levels, ect. to insure a high % of profitability (4)have the courage to recognize quickly when your analysis is proven wrong by price action and take your small loss before the trade becomes unmanageable and the loss painfully large(5) Remember that forex trading involves an element of luck,random selection that cannot be forcast but can work in the traders favor as well as against us. I have been scalping forex for years and have the scars to prove it.
I'm a scalper, although I started out in the options market and got sick of waiting for profit and also being in a market that I could not access for periods of time due to market closures, hence fx yah! I love fx.
The main thing that attracted me to scalping is not holding onto trades overnight while trying to sleep and I could get away with trading for short periods of time.
I use the 15min, 5min, 3min & 1min charts with 15 & 5 as my trend with 1,3 & 5 min for entry points according to my indicators, which allows me to milk a trend with multi entries and sometimes even allowing me to stay in a trade for over a hour instead of just a few minutes or even seconds.
Scalping is a lot more work/busy compared to position trading and if your just learning I would recommend a slower pass style of trading so you have time to see if your requirements for your trading style match up.
Some perceive scalping as going for 3-5 pips, some call 10-15 scalping...
hard to tell who is right and who is wrong
Scalping is the HIT and RUN technique, where you grab a couple of pips on a short time frame and on profit you close and more to the next trade (or thats how i see it )
Some brokers are anti-scalping and yes, on the SL, they will not allow you to set it close to the open price. And usually, the target is just a few pips, on either side. Do check with your broker for info on whether they allow scalping or not..
If you don't know what scalping is, then you must be a newbie, and you should forget about scalping for now. Start off by learning to trade on longer term charts. Don't even think about scalping until you are an experienced trader.
what do you mean by Scalping? I'm new and just trying to learn
Forget scalping if you're new to the market - read some of the beginner info on Fx markets and after a few dry runs with a demo, check out the info on scalping. I cannot stress this enough, "If you are new to forex trading, you may want to give scaling a miss until you have gained some experience"..
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