Scalping in forex trading means taking advantage of currency pair changes over a short period of time. Forex traders that scalp usually use high leverage and aim for less than 10 pips within a few minutes. Scalping is considered like dangerous practice by professional traders. What do you think about that.
I don’t about the danger in scalping, but its not my thing. Some guys do really well at it while its a nightmare for others.
I am using EA-s to scalp. I also trade manually but I hold those trades much longer.
I tend to scalp from time to time under ranging conditions. I have a few simple rules for scalping… first of all, there must be more than 20 Pips between support and resistance, and no upcoming news or events for the next 6 hours. For me, scalping has become more like a “i am bored” condition, and I scalp with a low leverage. The risk of trades going against you in scalping is much greater than if you daytrade or have long term trades on the line… I do not consider my self as a pure scalper in anyway, I just scalp when the right conditions are set and there is no other logical trades to make at that time OR if I just want something to do while waiting for a setup somewhere else…
Scalping can be pretty challenging so it’s a pretty braincrusher if you hit the one loss after the other…the trick is to know when to give up for the day and ALWAYS tell yourself no matter what that ANY failure is a path towards success
Scalping is risky but rewarding also so it is necessary that trader should practice first properly and develop their scalping skills. For newbies scalping is not easy so it is necessary that newbies should work in demo account to understand well.
All depends on your appetite for risk.
Here’s a quick scalp I made just a few minutes ago on the EURO.
Like scorpius said - “I was bored” …
And, actually used to trade harmonics a bit back in the day.
Some people like to wait a few days to capture 2%, others like to capture 2% in 10 minutes.
The lower the time frame, the more trades you may need to place. IMO, I feel that scalping is more a strategy of probabilities (i.e. if you’re patient, you can be profitable if you take every trade like a robot).
Just wanted to add one thing though - when scalping, I think it’s best to still undestand where price is currently trading in the larger scheme of things.
I.E. I’ll always do a detailed analysis on the H4/H1 and gain support from the D1.
Once I get a “bias” - I’ll usually “only look for shorts” or “only look for longs”, based on the higher timeframe support.