How to start scalping

I’m Ahmad
I’m new here I start trading I invest $20 and I anlyse the market in the m30 and I risk $2 and sl always take me out of the market before market moving to my direction

Hmmm. :thinking: Maybe it would help if you start with a bigger capital or add to the $20 you initially invested. :open_mouth:

With only $20 accounts deposit sorry for the bad news but this is not a viable investment option for you.
Risking $2 each trade will and such little initial balance very soon you won’t even be able to open a trade due to the initial margin required.

Scalping is a skilled art.
Even practiced full time professionals still sometimes get these trades wrong.
And using a standard 30 minute candlestick chart doesn’t give enough trading edge.

Forex = gambling. Dont gamble with your money like that.

IMO you are choosing the wrong FX trades, with little chance of success. However, if you open the main indices - DAX, & FTSE - at UK opening hours, and NASDAQ & DOW at US opening hours, you have a better chance of making a small profit.

Which means trading at 5 and 1 minute charts. The rationale is that indices offer more opportunities to run with a buying and selling movement.

You have to be very quick, though !!!

Follow tradertom.com

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Do a google search
Read books
Search youtube
Do your own analysis

Try to increase your capital because small investment will take you more time and create more pressure.

You can make 20,000% a month on that $20 just getting a full time job @ $25/hr. :man_shrugging:

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Hi, don’t touch scalping or day trading when you are new on the market. Regards Greg

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Hi my friend. Sorry but I disagree. If the new scalper increases his stakes and is currently losing, that just means he will lose more money faster. I suggest the opposite and first learn how to NOT lose money. That can be done by paper trading. For scalping I suggest about 100 paper trades recording which ones made money and which ones lost money (should be automatically recorded in your paper trading account) then start reading the BabyPips School of Pipsology whilst setting up some basic rules that will dictate how you plan to identify a zone, plan an entry, manage the trade and exit the trade. For that plan to have any meaning, it should be answering a strategy question.

For the sake of clarity, a strategy is a what and why, and a plan is a who, when, where and how that answers the strategy.

So before even trying to trade, the new scalper should ask themselves:
What do I want to achieve, and why.

And before you say “I want to be a successful Forex trader because I want to be rich”, which is what 90% or more of new traders think, do some web research about how to properly define a strategy, and look at other alternatives to achieve life goals. Forex is not the only pursuit in town, and it certainly is not the easiest.

Don’t. Scalping is the hardest and most stressful way to trade, just learn how to swing/day trade. You’re lack of gray hairs in 5 years will thank you for that.

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A colleague said that he was new to trading. And then he does the right thing by trading on a small deposit. After all, without good knowledge, you can quickly lose your deposit, so it’s better to risk little money now. Now you need to not think about the amount of profit, but practice and improve your strategy and trading. And I would advise it is better to open a cent account with these 20 dollars. There you can take risks when trading and accumulate trading statistics. And then experience will show when it will be possible to risk a lot of money in your account.

I disagree; forex becomes gambling when you don’t know what you’re doing. If you thoroughly analyze and have correct risk management, it won’t be gambling. Trading without education and sufficient experience, on the other hand, is indeed gambling.

It depends how you use words.

“Trading” forex by using CFDs is not actually trading at all. Currencies are not exchanged. That’s only a pretence. It’s betting (is that the same as “gambling”?) against a company on the price-movements of the company’s own products which have been artificially created solely for people to bet on them. That much is just fact.

What’s opinion is whether the fact that it’s betting makes it “gambling,” but that depends what you mean by “gambling.”

My definition of “gambling” must be different from yours, then, because I think it’s gambling even when you do.

download

You’re betting on an unknown outcome with a fixed probability, no advantage. An uneducated trader randomly entering a trade with a buy or sell will have the same exact odds as the most educated person on Babypips.

BabyPips (earnforex,forexfactory,myfxbook) to Forex is what a Basic Strategy Card is to Blackjack. Sites like these must attract new gamblers and teach them out to play their client’s game. Where is Winston Klein… does he trade? … same reason you don’t see casino owners playing table games.

so what are you doing here?

Saving someone $20.

scalping is very hard strategy to create and use, with $20 you can buy a coffee not create scalping system. If you think that FX is gambling, what are you doing here?

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You’ll never have better odds than the trade’s Expected Value. Akin to playing roulette with very similar odds. You create expert advisors, so you know this is true. Without trade/risk management, outcome of trades will follow their exact EV.
No more EV for traders with charts and indicators, no less EV for random entries.

Everything what we do in life, trading, investments on every market, no matter which method we choose, discretionary , Algo trading, all is a game of probability.

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