Hi guys, I’m new to posting (my first one). I come on the site everyday and have learned a lot from the school and from the blogs. I like to try scalping the news releases but i’m not very good at it lol . Some trades have worked out well but others are so volatile they hit my stop losses very quickly. So basically i’m wondering do any of you more experienced guys and girls out there have a strategy for scalping? I appreciate any advice and thanks for reading 
1 Like
I would not recommend to scalp during news time. It’s pure gambling. Most news trading EA-s lose eventually. And if there is a big movement then you might lose everything.
I would suggest to scalp during normal trading hours (small impact news are also ok). I think most people trade the news because they want to get rich fast.
My personal opinion is that you should keep away from news trading at least not before when you have a lot of experience in that field.
I am not big on scalping, but in general the best strategy is the one you create for yourself.
I totally agree with all of the above. You’ll never last scalping the news and you should design your own. But that doesn’t mean by yourself, you can ask questions, post theories etc.
First you should define what scalping is to you. I define it as a strategy, but some define it as a label of a trader. To use a scalping strategy is the same as any strategy. You have to define it and the more detailed you do it, the better your chances of putting the balance of probabilities on your side. For example if you agree that all trades have, a trend, momentum, cycle (up or down leg), support and resistance points and you were using a swing trading strategy on daily, weekly and monthly charts, momentum would not be as important to your strategy as if you were scalping strategy on a 30 or 5 minute chart. On the other hand if you were using a scalping strategy on a 30 minute chart or 5 minute chart the part of the cycle the pair is in and the momentum would be much more important than if you were using daily and weekly charts as far as entries are concerned. As far as news or any major announcements goes, they would have much more bearing on shorter term trades than longer term.
No matter what trading strategy and time term you use, you want to put as many probabilities as you can on your side. The shorter your time frame and trading strategy the less unknowns you want to have to deal with. So rather than trading the news, it might be better to avoid the major events especially at first. When I first started trading short term, I never traded 20 minutes before or after major economic announcements, concentrated on 6 currency pairs and only traded Monday to Thursday between the London Close and NY open. Only way I traded Friday’s was if I didn’t take a trade for the week.
Besides above, the only analysis I used was tech. I had trend templates, momentum templates, cycle templates, full of indicators. I confirmed everything on the time frame above and below I was trading on so I could pick my entries, exits and stop loss. Always on the lookout for better ways to pick tops and bottoms. As I got more experienced and knew what to look for and take advantage of certain opportunities, I went from using many many indicators, to 3 maybe 4 on one time frame on a plain candle chart. Entry, take minimum potential profits and stop loss are based on where price has been and where it’s going based on a balance of probabilities and if I’m wrong I don’t hang on to losers; if I’m right I add to winners.
As I said I agree with above, for now stay away from the news and learn how to do your own strategy. There are a lot of free ones on this site you can use for a base and as you understand more take off a little add a little until it fits you and your goals. That way you will be able to take max advantage for when those little nuggets come your way.
Good Luck
Gp
1 Like
Hello Spireofdublin!
I agree with all of the above, especially gp00053…
Have you read the scalping reports by Michael Boutros on DailyFX.com?
I also recommend Walker England’s article from yesterday, which may just be up your street:
Develop a Scalping Strategy in 3 Steps | DailyFX
Good luck!
Hi guys, I didn’t expect such great answers so I really really appreciate the time you took to answer. Especially gp!! I’ll check out those articles now pipmehappy. To a newbie like me I simply see a huge candlestick on the 1 min chart after a news release especially the nfp. So I figured if I set 2 entries it’s easy money. Obviously this is naive and I know it’s gambling as scalptastic said but as I said I’m a newbie and I thought more experienced traders may have a strategy for taking advantage and not getting stopped out by volatility. I’ll continue to research the issue but honestly I prefer a slower trade right now that I think has a good probability of going one way .
In general terms… trading the news is not for noobs. It seems easy but is not. Important thing is not the news but the market reaction to them.
Make a strategy based on TA, backtest it, demo it and only then go live. Follow the baby steps.
Here’s a very simple strategy. Watch the vid as many times as you need to be able to understand it. Practice Practice Practice with a demo account and review the entire vid after a practice session. Each time you do this you will pick up something you missed from the last time you watched it. Down the road when you get a little more experienced and want to trade more your own style, or you want to add to your trading plan, you will have a solid strong foundation no matter how you trade with indicators without, short term, long term. Being able to use this strategy properly will give you a leg up no matter what YouTube
Once you understand the above without question, then watch this. It’s an advance strategy based on the above.
Andrei Knight - Fibonacci... Easy as ABCD Same way: watch, review and practice, watch review and practice.
Good Luck
Gp
The good thing is you are trying new things, the bad thing is you will have to figure it out your scalping strategy by yourself through trading, making mistakes and learning from them. Hopefully any soon you’ll find the best strategy which will work for you in a consistent level.
Good Luck
As a beginner i also try to scalping in forex sometime when i already know scalping never help us become good trader or learn trading proper way. I always follow price action system and my style is long time trading which really be good for my capital and earn profit.
Throughout my trading journey I have traded various strategies but when it comes to scalping it is most trickiest as it involves complete attention and concentration. Till date i have able to develop this basic strategy which definitely helps to start on a good note.
from all trading strategies scalping is most usable in this trading place above all for the traders who are particularly beginners. but it causes sometimes really huge risk.
Nobody scalps during critical news release. Any scalper knows that. besides the market is usually scary at the time.
most of the trading platforms dont allow scalping in their platform , so scalpers always fall a great trouble when choosing a broker , so we scalpers should more careful when choosing a broker in practical.
Generally low spread or ECN brokers are the best choice.
As a beginner in Forex what was the first strategy one should follow, Is the any common strategy that beginners follow when entering into trading for the first time ?
Or do beginner choose their own strategy like minimizing the potential of risk and focusing on learning for the first few months before trading with large capitals ?
I don’t think it’s right to scalp during news time. It’s nothing more than gambling. You might not even make the right decisions.
The strategy I prefer scalping is based totally on using an exponential moving average (EMA) indicators.
It is easy to use, and it shows the underlying effect behind a forex pair by highlighting the average price over a period of time, instead of the current price.
When the ongoing price is above the EMA, it is a signal to sell, and when the price is beneath the EMA, it can be a signal to buy.
I prefer using the Volume and price action strategy for scalping. This strategy uses volume indicators to look for price action.
Technically, the low volume is followed by high volume and then price action in the short term and not necessarily in the long term, which makes it highly useful for forex scalpers.
News trading can be very risky for a new trader. Scalping as such is said to be very intense for a newbie so you can imagine. I would suggest trading hourly charts instead of the smaller ones.