Techniques and Tips for Forex Scalping

If you pay attention to trading techniques, then you probably have heard of a little thing we like to call Forex scalping .But there are several things that newer Forex scalpers must take into consideration.

1. Always ask if it's allowed.

This is the first and biggest thing that you need to do when scalping Forex. Many users try this technique and make huge sums of money only to find that their account has been deleted! This is because many brokers tend to look down upon Forex scalping. But why you ask? To know the answer to this question, you need to know a little more about how a brokerage ultimately works. Most brokers trade against their customers. Some of the bigger companies have workers that do nothing except taking positions against their traders. This hedging allows the company to easily triple or quadruple their profits. When a persons scalps Forex, the person on the other side can't take the correct position in time. Along with the fact that many scalpers trade with a 95% accuracy. This severly hampers their profits. So many call it cheating the market. Even though we all know that it is virtually impossible to do so. So always make sure your brokerage allows you to trade with this amazing style! I like to call and talk to a manager or someone important. I have asked people on the chat if scalping forex was allowed, they all said that it was. Then when I traded, I had emails telling me to either slow down or be kicked out. So give them a call, it was well worth it.

2. Scalping in numbers is the secret!

Remember earlier when I told you that scalping a single pair won't make you much money? Have you ever heard of the saying, "There's power in numbers?" Well this is a scientific fact, that has been proven over and over again. When you scalp a pair make sure that you purchase a high amount. This is to maximize your profits. So if your trade makes 2 pips you can make upwards of a couple hundred to a couple thousand dollars.

3. Be careful.

This is probably going to be one of the most important tips ever. Along with the quick profits, you can and most likely will come across a couple big losses on this magical Forex scalping journey! This is why you have to be able to accept these losses. Trading on a small scale can be easier for some. I always suggest that newer traders should really try to scalp on a demo account. Get comfortable with trading on a short term scale. I would advise that you should only scalp on a live account when you feel 100% comfortable with every trade. Imagine the demo account being your money. Imagine taking a huge loss in real life when you make a mistake. When you feel fully comfortable with everything even after a big loss, then you are ready grasshopper.

4. Scalp the Forex market with a plan!

This is the best way to avoid losses during your adventure. Use that demo account that we talked about earlier to find a suitable set of indicators or oscillators or even both! The demo account allows you to trade in a real time setting while trying out different systems. This can greatly increase your odds of making a good profit. Try every single combination of technical indicators. Do this until you find a pair that you like. Once you find one then you will truly be on your Forex scalping journey.