Realjosh254
New Member
"Scalping Trading in the Forex market,"
Having $5.3 trillion daily turnovers is the most lucrative business on earth. However, sadly not everyone is successful in Forex trading. Statistics say that around 80% of traders lose money in Forex Trading. Why do they lose? One of the main reasons is the lack of discipline in trading. In this brief article, I'm going to share some tips on how to trade forex with discipline like a pro.
REQUIREMENTS OF SCALPER TRADERS:-
"NOT SUITABLE FOR EVERYONE...!!!"
Some traders love scalping, using it as their primary trading style. Other traders avoid it for their own personal reasons.
Scalping is very emotionally demanding. If you’re not comfortable to make decisions without any hesitation and you aren’t capable of following your trading system no matter what, then probably scalping isn’t the trading technique for you.
"MORE TRADING OPPORTUNITIES BY 5/15 MINUTES CHART..."
Scalping trading provides an endless stream of possibilities for entering a trade. Did you miss a signal on the 5/15-minute chart? No worries, another one will develop soon.
When scalping you won’t get bored. The market is in a continuous movement and trading opportunities on lower time-frames develop quickly. If you enjoy entering frequent trades, you’ll find that scalping offers you the opportunity to enter the market often.
“SCREEN TIME” IS CONSIDERABLY HIGHER...
Scalper traders must monitor the price action very closely. While longer-term trading styles might only require minimal work each day, scalping requires more time paying attention to charts during a trading session.
"SMALL MARGIN FOR MISTAKE..."
Scalping can be very risky and costly if not executed in the right way. This trading technique can be very difficult because there is a very small margin for error. If you are a beginner or don’t really understand what you are doing, your account will slowly decrease.
Trading with tight stop-losses involves accurate pinpointing of market entries. Even with the perfect setup, we all know that a spike in any direction could happen in seconds.
That’s why many traders avoid scalping, as they believe they don’t have any control over their positions.
"LOW–SPREAD INSTRUMENTS..."
Because of the nature of scalping you need to trade only the instruments with the lowest spread. Why you need low spreads? Because as a scalper trader you open and exit a number of positions in a day. The cost of the trades will become an important factor.
As a scalper, by default you’ll use tighter stop-losses, aiming for small profits. The higher the spread, the lower your stop-loss will become.
For example, if your scalp with a 10 points stop-loss order, a spread of over 3 points will leave room only for 7 more points in order to exit the trade. That’s a small margin. In scalping, every point counts so you need to trade with low-spread instruments.
I personally never scalp an instrument that has a spread higher than 2 points. The risk/reward ratio is not worth it.
My favorite low-spread instruments on which I apply scalping techniques are EUR/USD, GBP/USD, EUR/JPY and USD/JPY.
5 RULES:-
1. Discipline,
Scalping is for disciplined traders. A methodical, even mechanical approach to trading currencies will increase the potential profits of any scalper, and if automation is necessary, there is no logic in delaying it. Acquiring mental discipline may require time and effort, but it benefits in every aspect of life, and nothing will be lost as you put your trading career in order. If a trade must be closed, it must be closed. If losses need to be taken, they must be. Scalping doesn’t allow the trader much time for vacillation or worry, and whining and complaining have no place in this style. Face the realities and act in accordance with success is just around the corner.
2. Patience,
Impatient, or arrogant traders don’t have a stellar future in scalping. Many people have attained great profitability in trading, but only through persistence and determination. It is even more so in scalping, where minuscule profits are expected to combine into sizable gains.
3. Calm,
Scalpers need to remain calm in the face of market turmoil, especially those who want to trade directional, trending markets. Without emotional restraint, trading choices will be confused and arbitrary, and that is the least of what can be afforded by a committed scalper. Get used to losses and mistakes. Accustom yourself to mending the errors. And all should be well.
4. Regular Trade Sizes,
This is always a necessity in trading, but even more so in scalping. Don’t make the mistake of doubling your trade sizes in response to a chance streak of wins. Don’t blur your vision by entering orders arbitrarily. Be disciplined, and ensure that your trades can be analyzed easily by standardizing your order sizes.
5. Concentration,
Scalping can be an intense activity, and a good scalper needs to have a mind that can concentrate effectively on the task at hand for profit. If you’re scalper, make sure that the place and the time period during which you’re active in the market are as peaceful and calm as possible. Have the kids sleep or play, let your spouse tend to her own duties. Ensure that you’re not distracted while scalping the forex market.
Having $5.3 trillion daily turnovers is the most lucrative business on earth. However, sadly not everyone is successful in Forex trading. Statistics say that around 80% of traders lose money in Forex Trading. Why do they lose? One of the main reasons is the lack of discipline in trading. In this brief article, I'm going to share some tips on how to trade forex with discipline like a pro.
REQUIREMENTS OF SCALPER TRADERS:-
- A Scalper Trader must recognize the daily and hourly support and resistance levels.
- Scalpers must recognize chart patterns, in both trending and range-bound markets.
- A Scalper trader must be patient and disciplined. Patience and discipline will help the trader entering the market at the wrong times and turning small losses into bigger losses.
- Scalpers must control their own emotions while entering and exiting trades.
- A Scalper trader must have quick reflexes to react when setups are occurring and he must be skilled at quickly executing the transaction.
- Scalpers should be able to stay focused on their graphs for several hours at a time, paying undivided attention to the scalping setups.
- A Scalper trader should gain profits from the market by diminishing its risk as much as possible. A Scalper Trader must be aware of the balance between risk and reward.
"NOT SUITABLE FOR EVERYONE...!!!"
Some traders love scalping, using it as their primary trading style. Other traders avoid it for their own personal reasons.
Scalping is very emotionally demanding. If you’re not comfortable to make decisions without any hesitation and you aren’t capable of following your trading system no matter what, then probably scalping isn’t the trading technique for you.
"MORE TRADING OPPORTUNITIES BY 5/15 MINUTES CHART..."
Scalping trading provides an endless stream of possibilities for entering a trade. Did you miss a signal on the 5/15-minute chart? No worries, another one will develop soon.
When scalping you won’t get bored. The market is in a continuous movement and trading opportunities on lower time-frames develop quickly. If you enjoy entering frequent trades, you’ll find that scalping offers you the opportunity to enter the market often.
“SCREEN TIME” IS CONSIDERABLY HIGHER...
Scalper traders must monitor the price action very closely. While longer-term trading styles might only require minimal work each day, scalping requires more time paying attention to charts during a trading session.
"SMALL MARGIN FOR MISTAKE..."
Scalping can be very risky and costly if not executed in the right way. This trading technique can be very difficult because there is a very small margin for error. If you are a beginner or don’t really understand what you are doing, your account will slowly decrease.
Trading with tight stop-losses involves accurate pinpointing of market entries. Even with the perfect setup, we all know that a spike in any direction could happen in seconds.
That’s why many traders avoid scalping, as they believe they don’t have any control over their positions.
"LOW–SPREAD INSTRUMENTS..."
Because of the nature of scalping you need to trade only the instruments with the lowest spread. Why you need low spreads? Because as a scalper trader you open and exit a number of positions in a day. The cost of the trades will become an important factor.
As a scalper, by default you’ll use tighter stop-losses, aiming for small profits. The higher the spread, the lower your stop-loss will become.
For example, if your scalp with a 10 points stop-loss order, a spread of over 3 points will leave room only for 7 more points in order to exit the trade. That’s a small margin. In scalping, every point counts so you need to trade with low-spread instruments.
I personally never scalp an instrument that has a spread higher than 2 points. The risk/reward ratio is not worth it.
My favorite low-spread instruments on which I apply scalping techniques are EUR/USD, GBP/USD, EUR/JPY and USD/JPY.
5 RULES:-
1. Discipline,
Scalping is for disciplined traders. A methodical, even mechanical approach to trading currencies will increase the potential profits of any scalper, and if automation is necessary, there is no logic in delaying it. Acquiring mental discipline may require time and effort, but it benefits in every aspect of life, and nothing will be lost as you put your trading career in order. If a trade must be closed, it must be closed. If losses need to be taken, they must be. Scalping doesn’t allow the trader much time for vacillation or worry, and whining and complaining have no place in this style. Face the realities and act in accordance with success is just around the corner.
2. Patience,
Impatient, or arrogant traders don’t have a stellar future in scalping. Many people have attained great profitability in trading, but only through persistence and determination. It is even more so in scalping, where minuscule profits are expected to combine into sizable gains.
3. Calm,
Scalpers need to remain calm in the face of market turmoil, especially those who want to trade directional, trending markets. Without emotional restraint, trading choices will be confused and arbitrary, and that is the least of what can be afforded by a committed scalper. Get used to losses and mistakes. Accustom yourself to mending the errors. And all should be well.
4. Regular Trade Sizes,
This is always a necessity in trading, but even more so in scalping. Don’t make the mistake of doubling your trade sizes in response to a chance streak of wins. Don’t blur your vision by entering orders arbitrarily. Be disciplined, and ensure that your trades can be analyzed easily by standardizing your order sizes.
5. Concentration,
Scalping can be an intense activity, and a good scalper needs to have a mind that can concentrate effectively on the task at hand for profit. If you’re scalper, make sure that the place and the time period during which you’re active in the market are as peaceful and calm as possible. Have the kids sleep or play, let your spouse tend to her own duties. Ensure that you’re not distracted while scalping the forex market.
