Planning to start as an intraday trader. What do I need to take care of in certain aspects? - positions, leverage etc
I didn’t start having success as a scalper until I moved into the London session. Food for thought…
One other piece of advice, make sure, if you are range scalping, that the range is large (over 20 pips wide). Just an idea.
Okay, and lastly, forget 5 min charts— suicide! Spreads are still too wide.
Always remember that the forex market is mostly controlled by the volumes of big financial institutions, banks, investment firms. So any advance predictions or analysis won’t work all the time, keep in mind the uncertainty of the forex market before entering into scalping strategy.
I think risk to reward is key. Leverage if youre going to be trading a lot of positions at once or high lots but if youre just starting i wouldnt recommend that
Scalping is not so easy. Every new trader should gather all the knowledge about this strategy before using it.
You would be requiring a huge account to scoop some pips in multiple trades.
I wouldn’t recommend scalping if you’re new to trading. Its proven to be unsuccessful when used in isolation. Have you considered a longer term approach?
For intraday trading risk management is very important. You also need to monitor your trades. Be specific in your profit target. Don’t change it every now and then. In some days you won’t understand what’s going on in the market. Stay away from trading that time
Don’t agree ! Can be done with low amounts. I have some examples where people started with as little as Euro 300 with low spread brokers like Hotforex, Fxview and gradually took their account to over 2000 in weeks. Yes it was during the pandemic with high volatility situations, still scalping the market gives you opportunity every now and then to enter into trade and gain some significant profit.
Someone with any strategy? In need of a workable one. TIA
Scalping can be very rewarding and at the same point could put you in great loss. No matter what strategy you use, you can’t guarantee getting assured profits because of the volatility of the forex market. Only practice and experience can help push you in scalping.
I so agree with the experience bit. Initially within the same brokers IG and Fxpro I wasn’t able to make the kind of profits I’m making now. Just couldn’t get my way around using M1 and M5 properly.
Keep your stop loss intact, before going for any strategy, learn more about SL. Scalping is like a roller coaster ride can take you anywhere, better to limit yourself before greater loss.
Look for commission charges, as in scalping the number of trades per day is quite high, which compounds commission charges of the broker. If you really wanna try scalping try with brokers having very less commission per trade like ic markets, fxview or fxtm.
Scalping as a new trader is probably a bit of a baptism of fire. High frequency trading and faster markets. Perhaps start off on the higher time frames looking for trends to start as it moves at a slower pace. Can always move on from there.
How do you scalp ranges?
What’s your definition of ‘scalping’? I ‘scalp’ indices (DOW & DAX) on 1M and 5M charts (whilst observing higher timeframes) which is what I’d call ‘scalping’. Although, I’ve known people say they’re scalping when they hold trades for 30-60 minutes and trade on 30M+ charts.
I’d make sure you have a very good understanding of market structure if you’re going to scalp, although I’ve never tried scalping Forex, in my experience, it just doesn’t move enough in a quick enough period of time i.e. DOW can move 50+ points in under 30 seconds, I don’t know any Forex pairs that can do that.
Yeah - I do 1M and 5M DAX been a bit chaotic today !
So chaotic I may be taking a leisurely look at EUR/USD tomorrow,
Evaluate the trend in the longterm charts first and foremost. Once the trend is defined try to scalp using the 1M or 5M timeframe. F.e. you notice the trend goes upwards, then buy when the 1M or 5M chart is going downwards, simply keeping an eye on RSI when its low and buy at that time. Set a low to mediocre profit in your mind and stick with it, sell when you reached the target.
Never scalp in extreme volatile times when some big news is going on as a newbie, this can be used only with more experience in a later stage as it can be very profitable. At first always scalp when the markets are calm and there is no big news, so in a more or less sideways market. Be pleased with small consistent profits, but it will take a lot of your time as you need to keep an eye on it all the time. I usually scalp on gold.
I know this is going to sound a bit simplistic but I buy at support, sell at the resistance, and take profit around the middle. the problem is knowing when you are actually caught in a range. Sometimes it’s not obvious.