Forex scalping, as I have mentioned before, evoke interest among forex traders who are not willing to expose themselves to much risks in forex trading. In order to make use of forex scalping, scalpers go in and out of trades frequently to make profit. Some scalpers are successful while some others fail. What are the reasons? We all know that forex scalping is not simply buying and selling. The following are some tips summarized for forex traders.
Trading during the busiest time of day is important in forex scalping
Forex scalping should be done during the busiest time of day. Then when is the busiest time?
According to survey, turnover of 2:00 am to 4:00 am and from 8:00 am to 12:00 noon Eastern Time (EST) are usually bigger. Most forex scalpers like to trade during these time period.
Trading the most liquid currency pairs is central to forex scalping
As we all know, forex scalping can be finished within a minute or seconds, which requires most liquid currency pairs in forex scalping. The most liquid currency pairs tend to produce higher trading volume.
Avoiding trading around great news is vital to forex scalping
When there is great news, market trend tend to be volatile and unpredictable. So it is better for scalpers not to trade around news that may influence market trend. It is better to wait until the market trend is clear.
Keeping an eye on current affairs is essential in forex scalping
Some major political, economic and military affairs tend to influence market trend greatly. So scalpers should keep an eye on what happens recently and analyze the potential influence on the forex market.
Paying close attention to government statistics is important to forex scalping
Government statistics are reliable indicators for the health or weakness of economy. Those indicators include GDP, unemployment rate, inflation, trading balance report etc., which plays a part in changing exchange rate. So scalpers should pay close attention to the release of those numbers.
Choosing the best forex broker is imperative in forex scalping
Apart from all I mentioned above, choosing the best forex broker allowing forex scalping is the most important step. Only by choosing a broker that supports forex scalping, can scalpers have the platform to get profit. But choosing a best forex broker is not so easy because not every broker allows forex scalping. Moreover, it makes it harder to find out a respectable and reliable broker who allows forex scalping. IKON is a good choice for forex scalping.
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