Scalping in forex

Forex “scalping” strategies, are very popular today! That are strategies with 1 to 5 pips income each trade. Usually the scalpers bid much of "little" trades per day, and oftenly work on a very short time frame from 1 sec to at least 1 mn. Should the forex is perfect, scalpers may win or (rarely) lose 1 to 5 pips per trade ;

A disciplined scalper could perfectly double or triple his profits while spending fraction times in a trading day !

Forex Scalping: Good or Bad?

Investors and traders in Forex are more and more interested on Forex scalping. Scalping employs higher risk.

But brokers do not encourage forex scalpers, since scalping takes less than a minute and the broker does not have time to deal the money.

Regular traders aren’t too much affected by scalpings when they stay in a trade for hours or even days, .Scalpers are welcome by brokers as they usaually use automated trading robots: MetaTrader 4 or MT4 is a platforms customized according to scalpers’ strategies and needs.

According to theires strategies, scalpers look for nothing more than a quick 5-15 pips profit.. Demarcation between scalping and short-term trading is very thin in times. When trading for less than a minute the broker shall consider that as scalping and may warn you. But When tha’ s more than few minutes, it can be consideredas short-term trade.

How to find out brokers that allowed scalping strategies

· Let’s say that the “scalping” strategies, are very popular today and are strategies with an income of 2-3 pips. But in my opinion you have to ask broker whether he allows forex scalping strategies or not, and which the ones that refer to such scalpings. The broker will give you a clear definition. The second strategie is that you have to analyze the “spread” on the traded pair in current several days, since statistics, analysies and announcements on the brokers site might be wrongly interpretated and missleading you.. For the “spread” analysis, So the most important for the scalping strategies are :
- authorization of a broker
- “spread” on the traded pair.
Tips for forex scalping :

· You should use a forex system that is tested and simple to use.

· The best time for scalping is when the market is consolidating and ranging . Ranging means there is no significant price movements or volatility. Like when between the close of the US market and the open of the European markets, forex markets tend to range for hours without much movement. This is the time when scalpers like to trade.

· Scalpers have to make more pips per trade than the pip spread offered by brokers in order to break even. If the broker is spreading 4 pips to you than you have to make more than 4 pips per trade to start making profits. Dont forget the spread is your cost of trading.

· when between the close of Scalping takes advantage of the fact that most of the time the market is ranging. Ranging means there is no significant price movements or volatility. The aim of a scalper is to make 2-5 pips per trade.

· Since scalping means a few pips per trade , than in order to make 20-50 pips per day, you will have to trade many times.So don’t forget these 20-50 pips are after you have subtracted the trading costs .

· Since by scalping you’ll make few pips per trade, you will have to use high leverage in order to earn for decent profits. What about leverage?

Leverage is dangerous that helps you if the market favors you but it will destroy you if the market does not favor you. So beware of using too much leverage while trading..