What Forex Traders Should Know about Forex Scalping

What is forex scalping?

Forex scalping involves opening and closing a position in seconds or minutes for a few pips of profit. Every forex scalping can be done within a single minute or even several seconds. Scalpers do not seek to make lots of money on any given trade. However, they seek to make as little as several pips per trade. Their aim is to make these small profits so frequently that they end up with a significant amount of profit by end of the day.

Why does forex scalping gain attention among forex traders?

What makes forex scalping so popular? The answers from scalpers are almost unanimous; they choose forex scalping because their exposure to risks resulted from strong market moves are much lower than a day trader or a trend follower.

Who are suitable for forex scalping?

It is possible for forex trader to make a significant amount of profit by combining every minor profit, but forex scalping is not suitable for every trader for its typical characteristics. So before forex scalping, traders had better do a quick test to see if they are appropriate for forex scalping. The following is the quick test:

1. Quick-minded and able to respond to changes quickly.
2. Decisive and not prone to change minds.
3. Patient enough to go in and out of scalping frequently
4. Diligent enough to trade time to time
5. Attentive and intent to focus on a single currency pair or chart for several hours

If all answers to the above questions are positive, forex traders possess potential ability to try forex scalping.

How to make money in forex scalping?

1. Choosing the right broker: not every broker is accommodative to forex scalping, finding out a respectable broker who allows forex scalping is an unprecedented step. As I know, IKON is a reliable broker happens to allowforex scalping.
2. Trading the most liquid currency pairs such as the EUR/USD, GBP/USD, USD/CHF and USD/JPY because of the tightest spreads and highest trading volume.
3. Trying to work on one certain currency pair when first trading. Forex scalping needs much attention. If scalpers trade on several currency pairsat the same time when they first doing forex scalping, they tend to lose. The better choice is focusing on one currency pair first and then adds another pairs according to personal capability.

Penulis : Unknown ~ Sebuah blog yang menyediakan berbagai macam informasi

Artikel What Forex Traders Should Know about Forex Scalping ini dipublish oleh Unknown pada hari Tuesday, 29 October 2013. Semoga artikel ini dapat bermanfaat.Terimakasih atas kunjungan Anda silahkan tinggalkan komentar.sudah ada 1comments: di postingan What Forex Traders Should Know about Forex Scalping