This article will cover the basic aspects of such important forex tool that is very helpful for all traders as scalping forex strategy. There is no agreement of opinion concerning forex scalping, but we can say one thing for sure – people were interested in scalping, they are interested in it now and they will be interested in this approach to forex trading in future. What makes forex scalping so interesting to traders? Probably, the reason is that it is one of a few methods to make money on the forex exchange market quickly and easily.
The main idea of scalping forex is that you earn money on intraday price movement. Intraday trading appeared together with first stock exchanges. Indeed, it is the simple stroke of a genius: you buy something in the morning at a lower price and sell it in the evening at a higher price. At first, intraday trading was a privilege of stock exchange members, because it was necessary to be present on the stock exchange all the time to be able to perform trades quickly and without delay. However, technical progress is unstoppable, and telegraph appeared and then telephone. The necessity to be present on the stock exchange disappeared, and, as a consequence, the number of traders who wanted to perform scalping forex short-term speculations started to increase. Telegraph guaranteed supplies of market rates, and telephone became the way of sending instructions to a broker. People traded in such manner until computers and computer networks appeared.
Internet became generally available, and everyone with enough skills and money could try his hand at trading on different markets, stock exchanges and Forex. Then Forex trading systems and terminals appeared allowing to send rates right to displays of traders’ computers. Trades were performed instantly and intraday trading got second breath.
Forex market is an ideal place for performance of forex scalping operations. Why? There are many reasons. For example you can trade with sums of money that exceed your deposit 100-500 times. It gives you incredible possibilities to make profit. Moreover, scalping forex market has the greatest volatility. As a rule, currencies pass 50-100 points within a day. However, it only happens if you orient on day open and close prices. But if you take into account that prices not only rise and fall within a day, but also slightly fluctuate, it appears that currencies pass much more within a day.
The task of a trader who practices forex scalping is to earn money on each micro movement. Some traders perform more than 100 trades per day. A life cycle of such trades makes about several minutes. Forex market moves in the necessary direction by several points within these several minutes, and scalping forex trader earns these points as a profit after closing a trade. Of course, your profit from a single trade would be insignificant, but as a total it could be quite significant.
Forex scalping trades are not always profitable, and in case of reversal movement of the market you should close a trade as fast as possible and without regret or your losses would be high. Fully Automated Forex Scalping Strategies
Scalping Strategy – Part 1
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Wednesday, March 9, 2016 10:10:00 AM America/New_York
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