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Scalping strategy
by Evgenia Gencheva Mon Oct 17, 2016 3:25 pm
Scalping
As we know, Day-traders are the traders who usually close all their positions at the end of the day. Daily trading is considered a quick way to profit taking advantage of short-term price movements. Day-traders concentrate on technical analysis and chart analysis and not paying much attention to fundamental analysis. Usually, long-term traders use charts in higher timeframes like daily and weekly, with increased focus on the economy and politics. But long-term trader may have a deal that is open 2-3 days a week or more. Of course, if the deal closes profit will bring a lot of pips, because as we know the candle in the daily chart contains many more pips than a candle with a period of 15 minutes, even when both look the same. This is the reason why long-term traders make more pips from a successful deal than Day-trader. But there are some things that still need to consider: trading at daily charts takes much longer to complete, and the risk that is taken is higher, because you need a wider stop loss (stop loss).
While long-term trader waits to close his deal, the Day-traders can take many more transactions with less risk at every one of them, and thus is able to make more profits than long-term trader.
The amount of deals can be great during the day. This rapid pace of trading is called "scalping" and can bring many profits, but at the same time requires intense concentration and continuous monitoring of the deals. Profits derived from the amount of successful deals, even when the gain of one or two deals is insignificant and therefore the trader must be on the computer.
No need scalpers to be aware of the economic situation or long-term trends, because even if we have a strong uptrend on 4H chart, we can certainly take 3 or 5 pips profit on short deal and schedule a period of 1 minute. Because the movement we see is very little that is likely to occur even when the general mood is against the direction of our deal.
When it comes to a scalping strategy, may be used in the majority of long-term strategies, because the same principles but in a smaller scale. Perhaps settings indicators should be adjusted to provide early signals, but also need to apply appropriate techniques in money management. Of course, if you adapt a strategy to 1H period of 5 minutes, then you have to make some changes.
Anyway scalping is very risky, just like any form of trade in the Forex market.
As we know, Day-traders are the traders who usually close all their positions at the end of the day. Daily trading is considered a quick way to profit taking advantage of short-term price movements. Day-traders concentrate on technical analysis and chart analysis and not paying much attention to fundamental analysis. Usually, long-term traders use charts in higher timeframes like daily and weekly, with increased focus on the economy and politics. But long-term trader may have a deal that is open 2-3 days a week or more. Of course, if the deal closes profit will bring a lot of pips, because as we know the candle in the daily chart contains many more pips than a candle with a period of 15 minutes, even when both look the same. This is the reason why long-term traders make more pips from a successful deal than Day-trader. But there are some things that still need to consider: trading at daily charts takes much longer to complete, and the risk that is taken is higher, because you need a wider stop loss (stop loss).
While long-term trader waits to close his deal, the Day-traders can take many more transactions with less risk at every one of them, and thus is able to make more profits than long-term trader.
The amount of deals can be great during the day. This rapid pace of trading is called "scalping" and can bring many profits, but at the same time requires intense concentration and continuous monitoring of the deals. Profits derived from the amount of successful deals, even when the gain of one or two deals is insignificant and therefore the trader must be on the computer.
No need scalpers to be aware of the economic situation or long-term trends, because even if we have a strong uptrend on 4H chart, we can certainly take 3 or 5 pips profit on short deal and schedule a period of 1 minute. Because the movement we see is very little that is likely to occur even when the general mood is against the direction of our deal.
When it comes to a scalping strategy, may be used in the majority of long-term strategies, because the same principles but in a smaller scale. Perhaps settings indicators should be adjusted to provide early signals, but also need to apply appropriate techniques in money management. Of course, if you adapt a strategy to 1H period of 5 minutes, then you have to make some changes.
Anyway scalping is very risky, just like any form of trade in the Forex market.
Evgenia Gencheva- Administrator
- Posts : 153
Join date : 2016-09-02
Age : 39
Location : Milan, Italy
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