Like someone else also said, you always have the choice of demo trading before risking your money. There is no better way of judging your strategies other than demo trading. As you won’t be losing anything, there is a huge scope of trying out things.
First of all for scalping i use lower time frames, trade with the most liquid pair and always use support and resistance. And if you want you can try more indicators for scalping such as Bollinger Band,Moving averages and The relative strength index.
You should definitely follow certain guidelines in order to scalp better. Starting from:
Creating a plan
Risk management
Charting platforms
Collecting data
Entry and exit
Aren’t all of these lagging indicators?
I kind of agree with your assessment there. It really is a big risk for a beginner.
Before I started scalping, my friend suggested that I keep a trading journal to analyse some trends and check what strategy works for me. I kind of took that advice seriously and now that I scalp, I always make a note. The brokers I use for scalping include Fxtm and Fxview, low spreads are critical to earn profits. Also, another important tip for this strategy is to know when and where to stop. And using the moving average indicator. If you’re making decent profits, try not to take it as a sign to overtrade.
My brain hurts and I feel physically sick reading the absolute carp that has been spewed forth here. Surely BP’s don’t have there own 50 cent army
Ohkayy!! I think the stuff here is pretty helpful, would you mind sharing your 2 cents then!?
That’s right and overtrading does no good to anyone. I remember how it consumed me a few months back. I had to deliberately take a break from trading in order to get back into the market. Now that I’ve seen what overtrading does, I kind of know my limits.
Yeah taking a break helps. You can also use stop loss and set profit limits to your trade and stick to your trading plan to avoid it entirely.
In my opinion, the focus should be to take a respectable profits or use a 1:2 risk reward ratio.
You gotta be careful when placing take profit orders coz it’s best for short-term traders looking for making profit quick.
The most probable approach of how to use take-profit is indeed the most emotionally and technically complicated aspect of trading.
It beats me down when I have to exit the trade James. Been in here for months and this one aspect is literally screwing my brain and patience.
As a scalper, you have to trade several times in one session using tick charts and one-minute charts. If you can do that, it doesn’t matter whether you are a beginner or a pro trader.
Yes, coupling high leverage with scalp can be a good approach. 1:1000 is the normal leverage chosen by people who scalp. But I don’t go with the extreme high leverage amounts. I generally stay till 1:500.
I have been moving across a lot of threads and I have seen that traders consider even 500x to be a very high leverage to use, guess it’s all subjective then.
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Scalping is undoubtedly an attractive strategy that can get you great profits. But it doesn’t mean that it will work for you. Try using it when the market is a bit kind of locked in a narrow range.
Longer time frames might not show trends at times but with shorter time frames, there are more chances of finding exploitable trends, making scalping a must-try for beginners.
I often purchase a large number of shares that I then sell for a gain on a very small price movement. I keep entering positions over and over again so that I can take advantage of even a small price movement.