Forex Scalping


Scalp Forex -Forex Scalping Strategies

Forex scalping is a trading method which involves opening and closing a trading position in a few minutes time frame. Often the liquidation of a position comes in just one minute after it is opened. Many Forex Brokers forbid scalping, some allow it and others allow it under certain policy. The outcome of scalping is either a minor loss or a minor gain. That means a very small exposure to market risks but from the other hand a small profit potential. Of course many trades combined can lead to significant gains or significant losses. Scalping assumes that at the end of the day gains will be greater that losses and trading commissions combined.

Scalping requires patience


A trader that is implementing a scalping strategy needs to be considerably patient. In order to exploit market opportunities you need to select the perfect timing to trade the market. Even Forex Robots need to choose the right timing to trade the market. For example one of the most succesfull Forex Robots in the market which is Forex Megadroid is signaling only a few trades per week.

Of course a typical scalping startegy may involve tens or even hundreds of trades in a daily basis.

Limit your Daily Losses

Successful traders always impose a limit to their daily losses. Some trading days will prove great some other will prove catastrophic, so it is important that each trader has a pre-defined level of maximum daily accepted losses. If that level of losses is reached after some hours of trading or even after some minutes of trading then the trader must be is off for that particular day. By this way trading losses will be minimized and tomorrow can always be a better trading day.

Aren’t all Trading Days the same?


But why should a trader choose his trading days? Aren’t all trading days the same? Of course they aren’t the same. Take for example a trader that implements a scalping strategy which is based on a predefined volatility range. When a currency pair makes an abnormal straightforward movement then the trader opens a quick position in the opposite direction with a stop-loss and a take-profit order. But lets suppose that a particular day the market is incorporating very important news that can strongly differentiate the fundamental outlook of an economy {in a way that the domestic currency will be strongly devaluated against all other currencies}. In that particular day when the market will be news-driven the trader imposing a volatile range scalping strategy can face tremendous losses. So it is better for that trader to quit trading and choose other trading days that can prove much more convenient according to his trading style.


Automated Forex Trading & Automated Forex Trading Systems


Most of the Forex Traders don’t have the time to trade the market in a full-time schedule. That is why Automated Forex Systems have been evolved over time. Automated systems which they don’t even require the availability of your Personal Computer using a VPN Forex Service. But, an automated Forex Scalping Strategy doesn’t have to be full-automated. Sub trading strategies like stop-loss strategy and take-profit strategy may form a semi-automated way of trading.
Forex Scalping
Online Forex (2012)
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