{"id":724,"date":"2016-11-21T11:03:32","date_gmt":"2016-11-21T11:03:32","guid":{"rendered":"http:\/\/www.makemoneytradingreviews.com\/?page_id=724"},"modified":"2020-09-21T06:41:28","modified_gmt":"2020-09-21T06:41:28","slug":"scalping","status":"publish","type":"page","link":"https:\/\/www.makemoneytradingreviews.com\/scalping\/","title":{"rendered":"Forex Scalping"},"content":{"rendered":"Forex is a market where many strategies have to be applied and combined to increase winning odds. All Forex strategies include studying the market closely, and there is not one strategy that covers traders from head to toe, carrying no risk factors. Scalping is one of the most common strategies in the Forex market and it is the subject of this review.<\/p>\n
What is Scalping?<\/h2>\n
Scalping is a trading method used by small-volume traders who edge out a profit out of the small price gaps created by the bid-ask spread. Scalpers go in and out of positions on a daily basis. They buy positions at the ask price and try to sell it at the bid price (similar to market makers), whereby they make a small profit on the spread. The currency values do not even have to move, as long as there are traders who are willing to buy at the quoted bid price. They try to skim multiple small profits in one session. The trades are usually very short and have to be executed very quickly, within minutes or seconds. Scalpers never hold their positions over night. It is similar to day trading whereby traders open and close positions within one trading session. Day traders and scalpers tend to use different charts; day traders use 5 and 30-minute charts, while scalpers stick to 1 minute and tick charts. Scalpers usually look for big news releases that cause movements in the market and try to make use of such events. For scalpers, those are the ideal conditions for making a profit.<\/p>\n
Potential Profitability with Scalping<\/h3>\n
Scalpers or spread hunters try to get from five to ten pips per trade and repeat the same process throughout the day. Scalpers use the available leverage to hunt down profitable trades which can be repeated over the day. Just imagine that the value of 1 pip is around $10 with a standard lot. This would equal to $50 profit if five pips were earned during a trade. Observing it from this perspective, scalping can be very lucrative and brings in real money.<\/p>\n
Small Profit Gains<\/h3>\n
The profits on positions held by scalpers are usually very small. The scalpers make up for it by trading frequently. Scalpers are not great risk takers since they prefer small but secure profits over riskier and more profitable opportunities. They follow the motto: safe, quick, and small – but frequent trades.<\/p>\n
Trading Skills and Discipline<\/h3>\n
Scalping is not a technique suitable for all types of traders. It is designed for traders who have no problems with being stuck with their computers for a whole day\/night. Scalpers are not allowed to lose focus, not even for a moment, when they are hunting spreads, especially on small moves. Scalpers do not have time to think; they have to make the right decision at the right time under huge pressure. Quick decision-making and assessing the right timing are the most important qualities of successful scalpers. For example, being able to cut positions as soon as they move against your favor requires fast decision-making. A lot of self-discipline needs to be exercised when traders want to profit from scalping.<\/p>\n
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