I have been scalping since I was a beginner and still going with it after years of experience. There were times I made a few losses but majorly, it’s been a pretty good journey so far. Using high leverage with some offshore brokers roboforex and fxview to open the trade with a currency pair that’s got low spreads, I aim at the small target in terms of pips. So basically, I compensate for the high risk exposure with a tighter stop loss. Worked for me, try if it does for you too.
Always keep a strict entry and exit strategy.
- trade MAJOR currency pairs, lower spread reduces the risk of scalping
- 1: 100 leverage is a well balanced choice.
- strategy : hourly candle close above mean, GAMBLE next hour bullish (vice versa)
- “scalping might eat up the beginners” are mere URBAN LEGEND
I know some great scalpers here in France. It’s very disturbing because they all have a win rate well above 90% and you start thinking that anyone can do it. The psychological side of this kind of trading is much more important than the technical side of things. They don’t necessarily place trades in hundreds of different areas. Usually they chose zones (S/D or S/R) and they use “mitraillette” (submachine gun) technique meaning they enter multiple times on the same area or with multiple lots. Others just try to go for 20 or 30 pips per day but those are such high probability that they sometimes get long streaks of 100% wins. Beware, all those people are very well experienced and usually have big accounts and they trade underleveraged. Like anything you can get to this point but I think trying to get there without solid experience and capital is very hard, they all shared the same stories of big losses in the past. By the way, for the ones I exchange with they do not trade on forex and focus on indices (Dax, Dow and Nasdaq)
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On the money management side of things they usually have negative RR ! They go for 3 or 5 pips but can leave some 6 or more in risk. And it’s here that the psychological side of it is key. You need to be able to cut your losses fast knowing that will need at least two more trades to be green again. That’s why below 90% winrate it’s almost impossible longterm. As for me I’m a beginner and for now I’m just learning how to daytrade but having these guys around and sharing their knowledge is very motivating. If you want to know more about the techniques involved I’ll try to explain as best as I can.
No, not really. However, you as a scalper need to be familiar with the trading platform your broker is offering. There are hundreds of brokers and most of them will be having different platforms so start with a demo account and practice till the time you’re 100% sure it fits your strategy. It’s important because now that you’ll be scalping markets, you won’t be able to afford any risk.
No doubt fxview is a good pick for scalpers, but their leverage is low (30x) as they are regulated, not offshore.
As a trader, it’s your responsibility to understand the broker’s agreement and your responsibilities. Pay good attention to how much margin will be there and in case the positions will go against you, what will the broker do. There are chances of automatic liquidation of an account if a trader is highly leveraged.
I am learning the use of support and resistance lines more accurately, 21 period moving averages is another thing I’m looking at - for 15 minute time frames.
I am so glad to read your 4th point. Talking about the currencies, I intend to begin with EURUSD and USDCAD. Good choices?
I agree ETFs are less risk prone but I thought of delving that side after a while. I find the volatility of currencies very appealing.
For a successful run in scalping, the best thing to do is learn the use of one lagging and one leading indicator each. This will help you in confirming the signals.
This is really great advice.
Hey Mitchel! Don’t you think coding your own is the best approach?
Yea sure but for a beginner creating their EA ,might be challenging. In that case, indicators like moving average are helpful.
I have seen autochartist with with EMA work with good precision when I use them on the MT4 platform of avatrade and fxview. Which no requote or slippage issue as well, thinks are going good for me as a scalprt.
I think most folks would benefit from learning how to trade “manually”- at least until they can print 7-12 consistent months of profit and small drawdown. And THEN, introduce an algo that is a representation of their manual process.
If you are a beginner, the trading plan has to be very strict for scalping and you should avoid overtrading. Look for a broker that offers micro lots and tight spreads. However, when I was a beginner I was only limited to swing trading.
Good advice