I have also opened an ECN account specially for scalping. Dposited $300. The impression is positive so far. I especially appreciate the fact that it doesn’t charge a commission on its ECN accounts.
As for scalping as a trading style, I agree that it’s very personal. Some folks can be scalpers, others not. For example, I have been scalping for two years and I can’t trade in the long term because it’s not my trading style.
I think I should pay more attention to pending orders. For most of the time I trade manually. So, I open and close trades on my own and constantly control my open trades. However, I noticed that volatility greatly increased for the last time. Perhaps, you have also noticed how fast candlesticks grow.
Yeah, candlesticks started growing faster on news. On the other hand, that may be just an illusion and it has always been like this. There were always periods with high volatility.
I’m not afraid of fast growing candlesticks. I favor them as a scalper. It gives me a thrill. I like to scalp with this broker.
I think that market participants are nervous because inflation in the United States keeps rising while the Federal Reserves still ignores the problem. Traders feel a sudden interest rate hike. You know that it’s not good when an interest rate is increased suddenly when financial markets are not prepared for this. It may provoke strong sell-offs. When the major bank warns market participants in advance, everything goes smoothly because investors have enough time to prepare for this. I hope the Fed will find a good way out.
As for pending orders, they are a great tool. However, you can’t just leave them alone. You also need to control them as you do with manual trading. I strongly advise you to practice trading with pending orders on a demo account. Thus, you can avoid fatal mistakes.
Despite I’m mostly a scalper from time to time I have a desire to hold trades a bit longer, even for the whole day, if it makes sense, of course.
By the way, when scalping, I never use technical indicators. I have always believed that they are worthless, they are always late and so on. You know scalping is the thing where you need to react on the market situation at light speed. You don’t have enough time to think. However, when I shift to long-term trading, I want to use indicators.
Yesterday, I occasionally found out that indicators work, but I don’t know whether they work all the time or under certain circumstance.
So, I just read about Awesome Oscillator and decided to try it, in particular its divergence signals and they worked.
The use of indicators is one of the most discussed topics in trading. Some folks heavily rely on indicators, while others can’t stand them. I can’t say that I put much value on indicators, but I recognize that in some situation they can help. As for divergence, this usually works.
What’s divergence? It’s often mentioned in technical analysis reviews.
Divergence is a situation when a chart and and an indicator show different lows and highs. For example, on the chart, you may see that a left high is lower than the right one, while on your indicator, the left high can be higher.
That’s right. You can see the divergence on my screen. I used Awesome Oscillator and it helped me to timely spot a powerful ascend on EUR/USD. You see on the chart, I underlined that stuff. You see that lows and highs on the price chart and AO are positioned differently. Awesome Oscillator, which is below, gave me a good prompt. In this case, the indicator shows the right direction. You can use divergence on AO with any broker and with AAFX, of course, as I did.
A thought came to my mind and I decided to check whether it’s true or not. I think that I should be neither a scalper nor a long-term trader. I mean that I should combine these two popular approaches. I tried this new approach for me and I like the outcomes. I increased my ECN depo to 347 for less than a week.
In scalping my average trade lasts from a minute to no more fifteen. Other trades of mine are long-term and I can hold them for a relatively long period. By the way, by scalping from at least a minute I mean the broker’s requirement of holding a trade for at least 60 seconds. It suits the broker and me.
How long did you hold your trade?
Once I was holding a trade for 8 hours. As a rule, I don’t have so much patience for this. That time I simply forgot about it and it luckily stayed in the green all the time.
That’s a rational thing to combine long-term trading and scalping. You have finally come to what professional traders do. They often combine these popular approaches to trading and it’s a good thing that you have discovered it. It shows that you are demonstrating progress.
I think that it makes sense to gradually drift from traditional assets such as currencies and indices to cryptocurrency. My belief in it is getting stronger.
Why do you think so?
I’m not an expert, but nevertheless, it’s clear to me that there’s something wrong with the global economy. I don’t think that the US inflation may go down a lot in the near future. What’s more, there’s a huge uncertainty about the American debt. I really wonder what the US government may do with it. I see a big uncertainty on the market generated by the Federal Reserve. It feels like the major US bank has no idea what to do with inflation and the scary debt. I don’t see signs of a confident emerging trend on any major pair. Instead, I see everlasting cunning ranges.
That’s why I think that cryptos are more promising. These are assets of a new generation that don’t have to do with inflation associated with fiat money first.
Don’t bother your head with the American debt. It’s the US problem. It’s up to them to handle this issue. Your task here is to earn on anything you can. Market makers will be so kind to let you earn money if you are attentive enough to timely discern where they intend to do and where they want to send that foolish crowd. As for cryptos, we still don’t know the truth. They may be another bubble that may burst out soon. I don’t want to say that you shouldn’t earn on cryptos, but avoid investing all of your money in them. Diversify your capital and don’t give up traditional assets. It’s still possible to earn on them.
I no longer hesitate in cryptocurrency. I’m already 100% assured that these are assets of the future. Perhaps, they will not entirely replace traditional fiat systems, but I think they will exist alongside.
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The recent impressive tumble of Bitcoin that deprived many of traders of 4 billion gives me more grounds to ascertain that it’s just another speculative bubble. They say it’s just a correction. How on earth could be like this? It’s over manipulative and speculative “asset”.