Thank you for your advice. Perhaps, I will try it later. Now I’m going to continue using my updated channel system with AAFX. Afterall, I already see improvements.
I have decided to make a pause. I just want to change my attitude to trading. Despite my channels combined with Bollinger Bands and Linear Regression work, I realize I can’t always rely on it. Sometimes it doesn’t work. So, I’m going to open one more account with the broker and trade differently on it.
I think I should open an ECN account with this brokerage service. By the way, this broker doesn’t charge a commission for trading on this account with tight spreads. I heard that all brokers charge a fee for their ECN accounts. So, it’s a very pleasant thing that AAFX positively differs in this regard.
Yeah, this broker doesn’t charge a commission on its ECN account.
Undoubtedly, it would be a great advantage for scalpers. How are you going to trade on your ECN account?
Well, since ECN accounts are often used for scalping as I recently learned, I am going to use it for this purpose. I’m tired of all those indicators and channels and want to try scalping. Of course, I’m not going to give up trading with channels and indicators on my major account. I will work on it from time to time. I guess I should use it for long-term trades, while the ECN account will be used for active trading throughout the day. I want to trade on it every day.
I read a lot about scalping and it intrigues me a lot. I want to see how it works and how it feels. I hope I will not be scared. Afterall, I already have some trading experience.
I keep trading on my first trading account. Using my channel strategy with those indicators mentioned above, I increased my depo to $340. Well, at first sight, you might think that things are not so bad, but I’m completely dissatisfied with this dynamics. I find it very slow. I would like to speed up it a lot.
For this purpose, I opened an ECN account with this broker as I intended to do. I deposited $250. So, I’m making my first steps in scalping. I have quite controversial results. I can’t say that scalping is easier than my channel trading throughout the day. On the other hand, it greatly absorbs me and I still have no complaints about the quality of services provided.
You don’t need to speed up this. Don’t confuse Forex with a typical full-time job where you can earn more if you work harder. Of course, you can earn more if you start trading more intensively, but in this case there’s a high risk of making a fatal error. So, I strongly advise you not to rush into anything until you calm down and take some time to ponder over what you are going to do on the platform.
I understand what you feel now. You are just getting involved in trading deeper and you naturally want to try everything having to do with trading.
Of course, you can try but be cautious and don’t let emotions take over you. Scalping requires steel nerves. Perhaps, it’s not your trading style and it makes sense to keep trading between channels.
You won’t get to know about a broker by merely reading about it. Demo trade with it to make the right moves in the market.
Good advice, but you don’t always get the feel of a broker without testing its real account. Executions will be very different on a demo and live account.
I tried to scalp the whole day long. I tried scalping 0,01 and 0,1 lots. It feels like that 0,1 lots are better not only in terms of higher gains, but they also make me more disciplined. With 0,01 lots, I often felt indifferent to the outcome of my trade because both losses and profits are ridiculously small here. So, scalping the whole day long, I increased my ECN depo to $265. But it was uneasy to increase it because I often lost and tried to win back. Scalping is very intensive and more exhausting compared to channel trading, which is less stressful.
If it exhausts you too much, perhaps, you don’t need it, really. On the other hand, you may require more practice, but scalping is not for everyone.
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.