{"id":9928,"date":"2022-10-14T06:41:57","date_gmt":"2022-10-14T06:41:57","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=9928"},"modified":"2022-10-14T06:41:57","modified_gmt":"2022-10-14T06:41:57","slug":"scalping-2","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/14\/scalping-2\/","title":{"rendered":"Scalping"},"content":{"rendered":"\n

Scalping<\/strong> is like those high-action thriller movies that keep you on the edge of your seat. It\u2019s fast-paced, exciting, and mind-rattling all at once.<\/p>\n\n\n\n

Scalp trading<\/strong>, also known as scalping<\/strong>, is a popular trading strategy characterized by relatively short time periods between the opening and closing of a trade.<\/p>\n\n\n\n

These types of trades are usually only held onto for a few seconds to a few minutes at the most!<\/p>\n\n\n\n

\"Forex<\/figure>\n\n\n\n

The main objective for forex scalpers is to grab very small amounts of pips as many times as they can throughout the busiest times of the day.<\/strong><\/p>\n\n\n\n

Its name is derived from the way its goals are achieved. A trader is literally trying to \u201cscalp\u201d lots of small profits from a huge number of trades throughout the day.<\/p>\n\n\n\n

What makes scalping so attractive to traders?<\/p>\n\n\n\n

Smaller moves happen more frequently than larger ones, even in relatively calm markets. This means that there are many small movements from which a scalper can benefit.<\/p>\n\n\n\n

Scalpers can place up to a few hundred trades in a single day<\/strong>, seeking small profits.<\/p>\n\n\n\n

All positions are closed at the end of the trading day.<\/p>\n\n\n\n

Because scalpers basically have to be glued to the charts<\/strong>, it is best suited for those who can spend several hours of undivided attention on their trading.<\/p>\n\n\n\n

It requires intense focus and quick thinking to be successful. Not everyone can handle such fast and demanding trading.<\/p>\n\n\n\n

Check out this post by our regular psychologist, Dr. Pipslow, on how to work on your concentration skills.<\/p>\n\n\n\n

It is not for those looking to make big wins all the time, but rather for those who like raking in small profits over the long run to make an overall profit.<\/p>\n\n\n\n

\"Scalping<\/figure>\n\n\n\n

The strategy behind scalping is that lots of small wins can easily morph into large gains<\/strong>.<\/p>\n\n\n\n

These small wins are achieved by trying to profit from quick changes in the bid-ask spread.<\/p>\n\n\n\n

Scalping focuses on larger position sizes<\/strong> for smaller profits in the shortest period of holding time: from a few seconds to minutes.<\/p>\n\n\n\n

The assumption is that price will complete the first stage of a movement in a short span of time so you aim to take advantage of market volatility<\/strong>.<\/p>\n\n\n\n

Market volatility is a scalper\u2019s best friend!<\/p>\n\n\n\n

With high market volatility, scalpers can open a long position, close it quickly, open a short position, close that, go long again\u2026.you get the picture.<\/p>\n\n\n\n

The main goal of scalping is to open a position at the ask or bid price and then quickly close the position a few points higher or lower for a profit.<\/strong><\/p>\n\n\n\n

A scalper wants to quickly \u201ccross the spread<\/strong>\u201c.<\/p>\n\n\n\n

For example, if you go long EUR\/USD, with a bid-ask spread of 2 pips, your position instantly starts with an unrealized loss of 2 pips.<\/p>\n\n\n\n

Remember, when you buy, you buy at the ask price. But in order to exit, you need to sell, which is the bid price.<\/p>\n\n\n\n

A scalper wants that 2-pip loss to turn into a gain as fast as possible. In order to do this, the bid price needs to rise enough so it\u2019s higher than the ask price that the trade initially entered at.<\/p>\n\n\n\n

You might be a forex scalper if:<\/h2>\n\n\n\n
  • You like fast trading and excitement<\/li>
  • You don\u2019t mind being focused on your charts for several hours at a time<\/li>
  • You are an impatient person who doesn\u2019t like to wait for long trades<\/li>
  • You can think fast and change bias, or direction, quickly<\/li>
  • You have fast fingers (put those esports skills to work!)<\/li>
  • You are a surgeon!<\/li><\/ul>\n\n\n\n

    You might NOT be a forex scalper if:<\/h2>\n\n\n\n
    • You easily get stressed in fast-moving environments<\/li>
    • You can\u2019t commit several hours of undivided attention to your charts<\/li>
    • You\u2019d rather make fewer trades with higher profit gains<\/li>
    • You like taking your time to analyze the overall picture of the market<\/li><\/ul>\n\n\n\n

      Some things to consider if you decide to scalp:<\/h2>\n\n\n\n

      Trade only the most liquid pairs<\/h3>\n\n\n\n

      Pairs such as the\u00a0EUR\/USD,\u00a0GBP\/USD,\u00a0USD\/CHF, and\u00a0USD\/JPY\u00a0offer the tightest spreads because they tend to have the highest trading volume.<\/p>\n\n\n\n

      You want your spreads to be as tight as possible since you will be entering the market frequently.<\/p>\n\n\n\n

      Trade only during the busiest times of the day<\/h3>\n\n\n\n

      The most liquid times of the day are during the session overlaps. This is from 2:00 am to 4:00 am and from 8:00 am to 12:00 noon Eastern Time (EST).<\/p>\n\n\n\n

      Make sure to account for the spread<\/h3>\n\n\n\n

      Because you enter the market frequently, spreads will be a big factor in your overall profit.<\/p>\n\n\n\n

      As each trade carries transaction costs, scalping can result in more costs than profits.<\/p>\n\n\n\n

      That\u2019s like working for an hour in a job that pays $5\/hr and then going out and buying a $6 Starbucks Caramel Ribbon Crunch Frappuccino.<\/p>\n\n\n\n

      Be sure your targets are at least double your spread<\/em> so that you can account for the times the market moves against you.<\/p>\n\n\n\n

      Try focusing on one pair first<\/h3>\n\n\n\n

      Scalping is very intense and if you can put all your energy into one pair, you\u2019ll have a better chance of being successful.<\/p>\n\n\n\n

      Trying to scalp multiple pairs simultaneously as a noob will be almost suicidal.<\/p>\n\n\n\n

      If you start to get accustomed to the pace of things, then you can start by adding on another pair and see how it works for you.<\/p>\n\n\n\n

      Make sure you follow good money management<\/h3>\n\n\n\n

      This goes for any type of trading, but since you are making so many trades within a day it is especially important that you are sticking to\u00a0risk\u00a0management\u00a0practices.<\/p>\n\n\n\n

      Major news reports can throw you off<\/h3>\n\n\n\n

      Because of slippage and high volatility, trading around highly anticipated news reports can be very dangerous.<\/p>\n\n\n\n

      It sucks when you unexpectedly see the price jump in the opposite direction of your trade because of a news report!<\/p>\n\n\n\n

      Be prepared and know what\u2019s coming out by checking out the BabyPips.com\u00a0economic calendar.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Scalping is like those high-action thriller movies that keep you on the edge of your seat. It\u2019s fast-paced, exciting, and mind-rattling all at once. Scalp trading, also known as scalping, is a popular trading strategy characterized by relatively short time periods between the opening and closing of a trade. These types of trades are usually only held […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[821],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9928"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9928"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9928\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}