Among Forex traders are of the opinion that the most simple and reliable way to profit from trading is scalping.
DefinitionWhat is scalping?
The answer is partly incorporated in the title of this trading strategy: Scalping - is the removal of the top layer, in this case - the top item price. Also, such a principle of trade is called "pipsovaniem." Departing from the metaphor, we can say that scalping - is a trading style, the principle of which is to profit from minor price changes, usually for a short time after entering the market. The practice of scalping
The forex market is very liquid. The cost of most tools are constantly changing, and small movements are much more major. Trader practicing scalping, uses minimal price fluctuations of the asset, and the opening and closing of its trading positions are in no time, even for a few minutes. Of course, the benefits of such operations is often very small, and sometimes laughable - just a few cents. But by the end of the trading day, the trader profits on the Forex scalper may amount is quite a decent amount that does not have to mocking fun. After degloving transactions are made with a very high frequency. Principles of scalpingIn scalping used quantitative principle: the more transactions with a small profit, the larger the size of the resulting profit. Such an approach to the market opposite the well-known principle of trading "to allow income to flow freely", which aims to optimize positive trading results by increasing profit margins.Despite the apparent ease and lightness Scalping trading, scalping can practice haphazardly. Scalping implies the trader has a strategy to enter the market as one big loss could undermine all the progress made earlier.The principles of scalping is based on two theories: Reducing exposure to market reduces the risks. The less motion - the easier to get a profit.Tools scalperScalper uses minute charts as guided by the narrow time frame and must see the most up to date at the moment the situation in the market. For scalper is important to have a broker automatically instant order execution and constant attention. Scalper must always be at the terminal and follow the market, because only then can he catch the slightest movement and short-term, getting your items arrived.When using scalping inevitably arise and complexity. The first deals with limited risk. In case of no such short-term trading strategies, this problem is solved simply - placing orders stop loss. When scalping to accurately calculate your level of stop loss. If this level is too close to the opening price, it will raise the risk of losses in the market, even with a correct forecast direction of price movement. If the trader refuses to use pending orders, the more necessary it all the time at your computer and watch your open positions. Therefore scalping - a tactic that is acceptable for experienced traders who have learned to control their emotions, despite the fatigue, stress and market forex.Another nuance, which must take into account a trader, a scalper, is the fact that the output position in the market is the broker for a while. In case of delays degloving trader can lose money. Also, there are cases when, during scalping resized spread. This usually happens on a very volatile or illiquid currency pairs. For scalping trading strategy to select only liquid instruments and monitor the size of the spread.
Summing-up
Scalping can be as basic or more styles to trade. Scalping tactics can be used to manage risk, to determine trends over short time frames, as well as a way to profit in the volatile, or locked in a narrow range of the market.Practicing scalping, a trader should always consider the features that we have described above and to follow the input signals. In this case, scalping can be very profitable for traders who decide to use it as the main trading strategies, as well as for those who use this method as a supplement.
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