According to me, scalping is not suitable for beginners. As it needs a lot of experience and understanding of the market. Scalpers usually trades on 15 minute charts and it gives lot of false signals which are not easy for new traders to understand.
Making money in this industry does not come up with a manual. So is losing money. Anyhow, money is made and lost. Whether one is trading long term or scalping. It is just a matter of what approach is suitable for the individual in question. Beginner or not, scalping or position trading, you will always have your fair share of stop outs.
Almost every trader would advise new traders to stay away from scalping. Well, depending on one’s definition of the practice and how one views it, it can be the best way to start until the beginner in question has grown confidence to hold positions for a longer period. I understand the concern that it is risky. What isn’t in trading? I mean how many times have you lost a substantial amount of money with the so called low risk swing trading?
What i am trying to put across is that, as a beginner, one does not yet have that “psychology” to let the market retrace, wiping almost all their paper profits, and still be confident to hold on to the trade. Swing trading is for the psychologically mature, who can go through the emotions for days without the temptation to close the trade. (I can still remember how traumatizing it was to see a profitable trade wiping all my profits and end up being a loser just because I was waiting for it to hit my 100 pip target.)
It is easy to scalp 20 pips from the market than it is to make 100 pips. With a scalping strategy, the beginner would hit the target without having to go through the emotional stress of retracements.
As much as everyone agrees that it is highly risky than swing trading, I think swing trading is much riskier because it exposes your account for a longer period. (anything can while you are not watching. e.g market can gap and open on the other side of you SL) .
I scalp the market on a daily basis and I only regret why I did not start sooner. I do not care about risk as most people are concerned. The way I do it is just the same as when I am swing trading. The same setup, and risk management I implement on swing trading applies on my scalping as well. I only trade one pair (both swing and scalping) so analysis is just a matter of a minute max. With the bias from H4, I scalp 20 pips (SL 10 pips) on M5 retracement as the market moves towards my swing target.
Interestingly, I make much more profits from scalping than swing trading. (Don’t tell !! markets trends a lot on lower timeframes than on higher TF )
Fantastic share. And I totally agree with what you have said there! I’m interested to know what your chose pair to scalp is?
A beginner can start with hedging.
I only trade NZDUSD (kiwi /dollar). I am not a fan of crazy volatility and this pair provides me with the most clean and calm price action in both high and lower timeframes
If one has to ( for whatever reason) try hedging as a beginner, they must have a solid knowledge of the strategy. Otherwise they might end up lost in the midst of bunch of trades going in opposite direction. The main question would be "which ones to close or keep? " However, it does work but needs solid discipline. I once tried it and blew an account.
That makes sense, high volatility when scalping can be dangerous of the huge random wicks etc but thanks for the share and best of luck for the future
Yes, having the knowledge is must
Scalping can be full of risk at times, which can have bad trading impact on the newbies. But sure, if any trader is confident about the strategy , there is no harm in giving it a shot. All the Best!
Scalping is a bit risky because it can bring in profit easily but also lead to major loss if not careful. I would suggest newbie to gain enough experience using demo accounts or trade with lower leverage in scalping without taking much risk.
Scalping can be suitable to certain beginners and newbies if they are aware of the risk and can trade carefully without using higher leverage.