New Forex traders face many challenges, including deciding which of the different trading styles to adopt. Choosing between scalping, day trading, swing trading or position trading can be difficult. If you are interested in scalping, here are some great tips to make it profitable. Brief description for Forex traders who are still new to the art of scalping.
Introduction to Scalping Techniques
What is scalping? How does it work? How can traders profit using this strategy? Actually, the concept of scalping is quite simple. The market involves opening and then closing a position within a short period of time (1 minute or 5 minutes or even 15 minutes) with the aim of profiting from small price movements.
With this style of trading, a trader opens and closes their trade when they make a small profit or loss (5 to 10 pips). He then began looking for other business opportunities, hoping that small profits would accumulate over time.
Remember that scalping requires quick decisions and opening several new positions in a short period of time. Also, for a forex trader who wants to generate buy or sell orders quickly, it is worth investing in a trading robot.
Choosing the right currency pair
There are many currency pairs you can take a position. But the most important thing is to focus on only one or two currency pairs. For the simple reason that as a newbie trader you need to gain experience.
When you are trading multiple currencies at the same time, it can be difficult to monitor the technical charts accurately. Additionally, it is easy to lose concentration.
So it is better to choose the pair you want to focus on (EUR/USD, GBP/USD, EUR/GBP, USD/JPY…). This will help you better follow and understand market movements as well as how your scalping strategy is performing.
Use the technical tools at your disposal
Technology has advanced by leaps and bounds. It can also be used to improve your forex trading experience. You can use the chart platform to analyze the market and its trends. This will help you develop a clear strategy, which will lead to quick and accurate decisions on your part.
If you want to automate the trading process and execute it through software, you can use a forex trading robot. It’s easy if you want to completely eliminate emotion from your trading decisions.
Learn scalping with a demo account and virtual currency
As a beginner, it is very natural that you are afraid to invest your own capital, especially when you have no real trading experience. Fortunately, there are many broker platforms that allow you to test forex trading with virtual currency, thanks to a demo account. All free and without obligation.
This means that you can perfect your forex scalping strategy before risking your own funds. Research each online broker platform to see what it has to offer new traders (in-depth tutorials, customer support, trading robots, interactive coaching, etc.).
A trader needs full focus to be successful in scalping
Scalping requires a trader to be very disciplined, especially since it is a very time-consuming forex trading strategy. Be aware that strategies involving long timeframes and small positions allow traders to drift away from their platform.
However, since position entries are few and can be monitored remotely, scalping requires the trader’s full attention. Following this strategy, particularly interesting location entries can appear and disappear very quickly. Therefore, a trader must be connected to his platform and have a high level of concentration.
Also, for people with day jobs and other responsibilities, scalping isn’t necessarily an ideal technique. In this case, long-term trades with high profit targets are more suitable.
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