Hello traders,
Stepped into Forex just a while ago, keen on knowing this:
Is there a specific strategy bound to work? If there is, why most traders call scalping ineffective.
Also is it true that your pip spreads are augmented by your broker once they know you are scalping?
Not that I’m planning on becoming a full time scalper, just need suggestions on some strategies I could use in case I decide to scalp. Much thanks!
Scalping can be sometimes seen as ineffective due to the poor risk to reward. You have to have tight stops and you have to know what youre doing. I like scalping and it can definitely be profitable
scalping is a trading approach which brings profit very rapidly but honestly speaking most of the time , it causes a huge risk
For scalping, you must use the MT4 trading platform. And use small time frame M1 or M5. I will suggest that you trade only in major pairs and that too with the lowest spreads and during market opening hours. Also, I will suggest you use any Scalping Strategy Indicator for better results. Try to close your trades manually.
If you are using a reputed broker, who doesn’t have a dealing desk, I do not think you will face any issue from broker’s side. It is always suggested to check with your broker beforehand whether they allow scalping or not.
Scalping can very much be profitable, provided there’s some experience to back you up. Using small time frames can be very confusing for any trader and they just dismiss it as an ineffective strategy, but I’m proof enough that that’s not the case. I use EMAs to see the underlying trend by looking at average price over a time period. Looking at current price won’t be much help.
Which brokers are you using?
IG for a long time but found its 8 pound commission charge to be acting against my trades. Trying out Fxview alongside, charges only 2.
8 is a killer rate for scalping. IG is such a good broker, wish its commissions were not such a pinch!
Agree with IG being good with market data and withdrawals. Don’t trust the new ones cropping up!
Scalping is one of the trading strategies which many traders use to grab the smallest amount of profit. Try to use small time frames to make profit but it increases screen time as it requires intense focus and quick thinking. Beware of the spreads though. Double check the liquidity when you are scalping.
@Harleniapeter ad the same view on new brokers. Used demo account of my current broker for 4 months before I deposited any money with them. So far I’m glad with my decision. Been saving slightly more
To be safe it’s best I think to scalp only when the market opens, first 3 hours tops.
Does anyone think spreads are played around with by the broker?
Not at all! There’s commissions and investment fees charged by the brokers and that’s how they make money. Not by increasing pip values. You should know that unlike before, brokers now would profit more by the profits of their clients, not the opposite.
Spreads change repeatedly every day. Its just the way the firms protect themselves against volatility.
Then how in highly volatile times the spreads are lower? I know it’s a noob question, but I am just too curious.
Scalpers like to try and scalp between five and 10 pips from each trade they make and to repeat this process over and over throughout the day. Pip is short for “percentage in point” and is the smallest exchange price movement a currency pair can take.
The opposite. In highly volatile times the spreads are wider. And thus doesn’t just happen when there’s a global war suddenly about to start, its every day as each major market is about to open or close, when important news events are reported, when economic data announcements are about to be made, and just when prices start to move with energy for no reason visible to us.
The only real way to understand how wide spreads can go is to watch the quotes. An increase of even 10 times the normal spread might be visible on some forex pairs at some time any day.
I am wondering what’s the highest pip movement on a good day for a scalper.
thanks, I kind of get the drift.