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Let’s begin with the basics and talk about what scalping is, and how the Forex scalper must adjust their trading to the demands of scalping. We want to set you up for success as a trader and that means giving you a strong foundation to your trading.
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You may have heard of a type of trading called “Scalping”.
The Forex scalper takes very small bites out of the market, entering and exiting trades in only seconds or minutes at the most. That sounds surgical and it’s no coincidence that the word Scalping is used to describe this type of trading. It is a very precise way to extract profits from the market.
In Forex, if your profit target is less than 10 pips, you are considered to be Scalping. Because the trades are very short-term, traders who Scalp the markets, or Scalpers as they are known, will often take dozens of trades in a single day.
Scalping sounds great in theory. Who doesn’t want their profits quickly? And who doesn’t want a lot of trades? Getting in and out of trades quickly means there is less waiting around. And having more trades means you can potentially build your account quicker, especially through “compounding”.
But Scalping comes with its own set of challenges and it may not be the right strategy for everyone.
In this module, we are going to put scalping under the magnifying glass to help you decide if it is for you.
What makes Scalping different from managing longer-term trades?
Scalping means faster entry entries and exits, and a smaller number of pips taken on each trade. That will affect every aspect of your trading.
Some trading strategies cannot be used by scalpers.
Some Forex pairs are good for Scalping whilst others are not suitable at all.
Some brokers actively turn away Scalpers because it doesn’t suit their platforms., or because they are market-makers and they feel it is too great an edge against them.
Some traders cannot simply handle thinking in seconds to make trading decisions.
Even some computer setups are not good enough for Scalping.
Scalping affects many different parts of your trading. If you want to be a Scalper, and of course if you want to be successful at it and make money, you must be certain all these parts are properly considered.
Check out the rest of the lessons in this course to learn how to scalp successfully and to see if scalping is right for you.
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