What key things do you recommend for scalping?

Trading Discussion
41

That does seem like the right approach, things can get so overwhelming otherwise, what with so many commercial EAs available

42

Swing trading would give me more sleepless nights than what I am experiencing right now :slight_smile:

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43

One of the best litmus tests as to whether or not you are trading “too big” is exactly this. Can you shut down at one point of the day, and not look at a price until the next morning. If the answer is no, then you are 100% over-leveraged, 100% of the time.

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44

That is right. A scalper has to be careful and should also pay attention to entry and exit.

45

I’ve been scalping for some time and it is definitely not an easy task. Took me a lot of time to understand it and then use this strategy properly. It is only for those who have patience to not lose calm in intense situations.

46

What is your primary strategy to find trades, enter/exit?

47

I agree with this.

When scalping you’re essentially trying to pick tops and bottoms, so your SL is usually pretty tight (depending on your strategy, of course). This is good and bad, your win/loss rate will probably be lower (40-50%), but the rewards can be better (1:3 and up). Then you have to factor in spread costs.

Good luck!

48

You should pay close attention to identifying and following the trend. Try to go with the predominant trend and following the anchor chart will help you get an idea of the trend. You can analyse the Buy and then Sell trade on a five minute chart. Hope this helps a bit.

50

I must admit I am very very far from being a disciplined trader

51

As a scalper, a trader needs to find the most liquid pairs to trade and trade only during the busiest times of the day. Always start with one pair first and then move ahead slowly. There is no need to rush things if you want to prevent losses.

52

For traders who are into scalping, make sure that you adhere to the exit strategy strictly. This way you won’t only make large gains but can also save your money from unnecessary losses.

55

That’s true Kevin, a scalper needs to be good at money management and risk management to be able to make desirable gains in the forex market.

56

I personally don’t think that scalping is for everyone. If you are not ready for worse situations, you cannot make use of scalping. The strategy works great for those who have accepted that they will lose along the way.

57

Depending on the real-time market depth analysis to receive the signals is no more possible for scalpers. Any suggestion on how we can work through this?

58

The problem’s real and very frustrating. So, what I’ve come up with is to use the technical indicators designed specifically for small time frames that match my strategies.

59

What I faced was epic man. Couldn’t scalp currencies because of some dealing desk involved or so said by the support team of the broker. So, I found the entry in the market, but surprise surprise- my broker refused it.

60

my first recommendation is a good broker. the broker with tight spreads and good commission thats where the scalping comes in.

61

You’re lucky that your broker didn’t refuse your exit from the market when you were planning to close the trade. That’s when you would have seen your trading account and efforts go down the drain.

63

Many traders seem to not be in favour of no-commission brokers, what’s your thought?

64

Choosing a broker that allows scalping is the step. Many brokers restricts various trading styles. Then look for tight spreads and user friendly trading platforms since scalping requires quick action.