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Sunday 18 December 2016

What is scalping and how to do that?

Most of the new traders ask this question that what is scalping and how to do that? actually in my view, it is a way to make money as much quick as possible. In simple words, you trade according to flow of the market and execute the trades frequently, you open trades and close trades within shortest possible time, where the trade is in  profits. 

The scalping can range between 10 pips to 15 pips, some traders do this with only 3 to 4 pips, if it is fixed spread, and if it is not fixed spread, then most of the traders close their trades with only 1 to 2 pips profit. This is the shortest way to make money with the help of scalping. 

SCALPING STRATEGY
In this trading method, what traders do? and what are the circumstances that are good for scalping? Whether it is session changing time or market relaxation time, if the market is fluctuating approx 10 pips then traders may play their game in market easily, only, if they are scalper. The traders who do scalping are normally called as scalper in forex market. 

This is a trading strategy, that most of the new traders do, because they are eager to earn money and they don't know that this is not suitable for those who do not know about market movement and expected movement, and if they do it blindly then it may wash the account within five minutes, it happens with almost 80% of new traders, because they do not know about hedge strategy and that's why they lose their whole amount, some traders earn a handsome amount, while they don't even know about trades execution, that is purely based upon luck, and then trader think that he is king of market and start following this strategy again, but in second time he lose. So, it is my suggestion, whatever you do in forex market, please do some analysis first and then start trading.

Only a few forex brokers allow scalping method in trading, while so many brokers do not accept this kind of trading, because it hurts their interest. But some brokers allow scalping, so whenever you are going to signup for a forex broker, then you shall know whether he allows scalping or not. If not, then search a good forex broker to allow you this trading strategy.

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