abdulla1 Posted April 5, 2011 Share Posted April 5, 2011 The basic idea behind scalping in the FOREX market is that you make several small trades during the course of the day. You find a currency pair that you like to trade, predict which way it is going to move and then place a trade. Instead of waiting around for a big trade like you do with other trading strategies, you just wait for a small movement in the direction you want and close the trade. You are aiming for a small profit target instead of a large one. This strategy usually takes place pretty fast. If you are trading during a high volume part of the trading day, the currency will usually move a few pips in a short period of time. Therefore, you may have your trade open for only 10 minutes or less. Sometimes it takes longer, but many times you can do a trade in only a few minutes. Benefits of Scalping Scalping can be a productive strategy if you know what you are doing. With this strategy, you are not waiting around to hit the big home run. You are just consistently hitting singles throughout the trading day. Even if the market does not move very much throughout the day, you can still net some consistent profits. With this strategy, you can also protect your trading account better. Instead of taking a large trade with a big stop loss, you are taking several trades with a small stop loss. You are just hoping for a few pips, so you do not have to risk as much to have a successful trade as you would if you were taking big trades. Disadvantages of Scalping The big drawback to scalping is that in a short time frame, it is very difficult to predict the direction of the market accurately. The market jumps up and down a lot throughout the day. When you smooth out the data on a larger time frame, you can more easily see the direction of the trend. Another disadvantage is that it is a very high-paced trading strategy. With other trading styles, it is not so crucial to get in and out at the precise second. You can be patient and trade when you want. With this method, you have to get into the market at a second's notice. Quote Link to comment Share on other sites More sharing options...
boniez Posted April 21, 2011 Share Posted April 21, 2011 I do not agree with part of the difficulty of predicting the price, only a fool scalper would do its scalping when at the trend move , of course it makes their accounts quickly get a margin call. please be aware that scalping is more suited to do when at sideways market Quote Link to comment Share on other sites More sharing options...
Nikhil Posted April 22, 2011 Share Posted April 22, 2011 I do not agree with part of the difficulty of predicting the price, only a fool scalper would do its scalping when at the trend move , of course it makes their accounts quickly get a margin call. please be aware that scalping is more suited to do when at sideways market actually i think scalping is always risky but its ture it better to when sideway market . but although it hears not so important but true for this we need very first spreed of internet because before for slow net i lost many my quick pips . so be careful if you preparing scalping. Quote Link to comment Share on other sites More sharing options...
yogeshwartyagi Posted May 1, 2011 Share Posted May 1, 2011 I agree at lest having small target and tighter stop loss we can protect our capital better and if one is able to close bigger number of successful trades then the loosing ones - at last will end up with good profit. Quote Link to comment Share on other sites More sharing options...
boniez Posted May 2, 2011 Share Posted May 2, 2011 sometimes a bit annoying if you do scalping, but wrong prediction, it will usually lead to long-term trading. so we better use the scalping trading when prices move sideways Quote Link to comment Share on other sites More sharing options...
andry777 Posted May 27, 2011 Share Posted May 27, 2011 Forex scalping is style of trading forex which can be chosen by one trader. In this style, you will use high lot size to earn profit in few pips but you can use low lot size too. The most important is you will target few pips only as profit. Quote Link to comment Share on other sites More sharing options...
boniez Posted June 9, 2011 Share Posted June 9, 2011 Forex scalping is style of trading forex which can be chosen by one trader. In this style, you will use high lot size to earn profit in few pips but you can use low lot size too. The most important is you will target few pips only as profit. but most of them using the large lot size to maximize the profit earned. and we also must be good at your preferred time when use scalping andthe important to avoid scalping when the trend is going Quote Link to comment Share on other sites More sharing options...
indieover Posted June 13, 2011 Share Posted June 13, 2011 then it is good to use then during the market is unsure or sideways. i had problem before what strategy to use when the market is going sideways. so i will try to use this scalping for short trading. but i don' tknodw how minutes should trading be to be considered scalping. cause some one said it should not be more than five minutes. i odn't know if that is true though. Quote Link to comment Share on other sites More sharing options...
andry777 Posted July 1, 2011 Share Posted July 1, 2011 @Boniez Sure. Scalping will work well if you did that in sideways and it will be bad if there is news or something which made condition of market became trending. Using high lot size in scalping is okay as long as we could afford losses which we must face when we made mistakes to open positions. Quote Link to comment Share on other sites More sharing options...
winzpc Posted July 25, 2011 Share Posted July 25, 2011 @indieover Scalping is very suitable to be play in sideway market because scalping method only taught to close position as fast as you can with small pips profit. But scalping method not as easy as it seen, it still need learning process to become a good scalper, because scalping have a bad risk and reward ratio and also need much time to monitoring price in front of the computer. Quote Link to comment Share on other sites More sharing options...
hoanglong Posted August 28, 2011 Share Posted August 28, 2011 Scalping is profitable trading strategy but it's not for newbies, newbies must stay aways from this strategy because it can easily wiped out their account in short time. Choose right time to scalp, good entries, tight SL, proper money management and much more... That is all newbies usually lack off. Quote Link to comment Share on other sites More sharing options...
bringpeace Posted August 29, 2011 Share Posted August 29, 2011 Scalping is profitable trading strategy but it's not for newbies, newbies must stay aways from this strategy because it can easily wiped out their account in short time. Choose right time to scalp, good entries, tight SL, proper money management and much more... That is all newbies usually lack off. i scalper trader and for me to scalping i using 15 M TF and also i trading in volatile time, so to get 5 or more pips only need fast time. But like you said, scalping need carefull, because if market volatile and we use big lot, if make false maybe MC will come, so need read the market with carefully Quote Link to comment Share on other sites More sharing options...
hoanglong Posted August 29, 2011 Share Posted August 29, 2011 I am really good scalper and in most time I lose more than win, I prefer analysis the market on high time frame such as H1 or D1 and use low time frame such as M15 to define entries, it's safer than scalping I guess. Quote Link to comment Share on other sites More sharing options...
adnan007 Posted September 9, 2011 Share Posted September 9, 2011 Scalping is a risky way of trading in Forex where traders take their positions by analyzing the 1M and 5M charts and quitting their positions, once they have earn 4-5 pips from their position. The risk ratio in these trades are quite high as compared to the rewards we receive from such type of trades. Quote Link to comment Share on other sites More sharing options...
yogeshwartyagi Posted September 15, 2011 Share Posted September 15, 2011 I dont think scalping really involve big risk, it rather limits risk, as you trade in booking small profit or losses frequently. In scalping traders enter into trade for small profit so they book each move and stop losses are very tight. Stop loss being tighter each trade has limited risk, and we repeat this limited risk several times - so things dont go out of control. Quote Link to comment Share on other sites More sharing options...
riddick09 Posted September 27, 2011 Share Posted September 27, 2011 So forex scalping is within minutes to be done. Looks like that what i did because i always look in the 1M timeframe as i dont know that it is called scalping. I think that risk is really limited as we checked the movement every minute. Quote Link to comment Share on other sites More sharing options...
yogeshwartyagi Posted September 27, 2011 Share Posted September 27, 2011 So forex scalping is within minutes to be done. Looks like that what i did because i always look in the 1M timeframe as i dont know that it is called scalping. I think that risk is really limited as we checked the movement every minute. You are right - while scalping we dont look for big profit but we catchup every small movement, if i have to pay 3 pip spread and now if prices of my trade goes 6-9 pips up i would book it for 3 pips and then will try on the next trade, more profitable trades are key to succeed because in case of stoploss triggering we also has to afford the spread along with downside. Quote Link to comment Share on other sites More sharing options...
adnan007 Posted September 27, 2011 Share Posted September 27, 2011 Scalping is a trading method through which a trader benefits from the smallest of price movement in a particular currency pair. For this type of trading, a trader needs to take a position through charts of 1M or 5M time frames and quit the position as soon as he achieves some green pips on his trade. Quote Link to comment Share on other sites More sharing options...
riddick09 Posted September 27, 2011 Share Posted September 27, 2011 So it will really benefit and great advantage for newbies in forex that using this trading strategy. For me, i only have limited time to offer to have forex trading that is why i think that it is suitable to me. But for now, i got losses and dont have profit and need to learn more in forex scalping. Quote Link to comment Share on other sites More sharing options...
adnan007 Posted September 27, 2011 Share Posted September 27, 2011 So it will really benefit and great advantage for newbies in forex that using this trading strategy. For me, i only have limited time to offer to have forex trading that is why i think that it is suitable to me. But for now, i got losses and dont have profit and need to learn more in forex scalping. Scalping is not as easy of a trading strategy as it sounds. This strategy requires continuous focus on price movment and is a technical based trading stratedy where a members use technical indicators on shorter time frames to take their positions. Quote Link to comment Share on other sites More sharing options...
unbreakable Posted September 30, 2011 Share Posted September 30, 2011 scalping means we have to close our position in minutes with gaining less pips like 4 to 5 pips and for this we need fast server so we can open and close position fast and for this u will not get any good broker except FBS. Quote Link to comment Share on other sites More sharing options...
unbreakable Posted October 1, 2011 Share Posted October 1, 2011 I think those who love to do scalping should always open account with fbs because spread is very low, but remembered one thing dont do scalping in news period because that time spread is too high in fbs. Quote Link to comment Share on other sites More sharing options...
yogeshwartyagi Posted October 10, 2011 Share Posted October 10, 2011 you are right unbreakable it really cost much for scalp trader if spread is high, as we bet for few pips in each trade we cannot afford higher pips as in case of loss they are going to further increase the loss. Quote Link to comment Share on other sites More sharing options...
budado Posted November 29, 2011 Share Posted November 29, 2011 you are right unbreakable it really cost much for scalp trader if spread is high, as we bet for few pips in each trade we cannot afford higher pips as in case of loss they are going to further increase the loss. If you have low spread then what will be your stop loss? Because as you can see if you trade to trade your always in negative pips. Since theirs always a difference between the buy and the sell. So if you add stop loss then you will have a spread that is much and always higher than your spread in profit. For example if your using marketiva. theirs a two pips difference. So you need to earn 3 pips just to break even. While if its goes down one pips you already loss 4 pips. Quote Link to comment Share on other sites More sharing options...
riddick09 Posted December 4, 2011 Share Posted December 4, 2011 I really dont get it is a good way to earn fast or better in forex scalping. Although it is just a matter of time that the position will close immediately after getting profit. Well usually i have used stop loss with atleast 15-20 pips but then i have put the take profit with 10 pips. Quote Link to comment Share on other sites More sharing options...
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