ultra-fast entries & exits | profits on small changes | 10+ trades per day | no holding overnight | risk > reward per trade | trades on technical, news | range trader
Scalpers are generally considered to be those traders who are making big number of trades per day, looking to catch very, very small price changes. In the internet you can find that most of traders believe that scalping is the best way to make money in Forex trading. Also most of the educators propagate this way of trading. This is normal because of two things:
- the scalpaing way promises quick growth of your trading account ( many & fast trades will lead to that );
- no holding overnight ( psychologically ) easy;
Of course, you must know that all things in internet are not 100%. We cannot say that scalping could not work but there many limitations you must understand:
1. In scalping usually risk accepted per trade (your stop) will be bigger than the actual profit you will make. That fact will be compensated to some extend by the fact that you'll have higher % of profit trades, lets say 80. All of this will look like this:
profit profit profit profit big loss profit profit profit profit big loss
so like you see you need to focus yourself on managing those bog losses.
2. huge number of trades per day may lead to increase in your account but do you really believe that there are so many situations during a single day which to be traded? One, two, maybe three might happen but 10, 20,.., 50 not possible. Instruments traded on Forex are with low volatility. That means that to succeed with sclaping you must look for a days with high volatility. That is where you can make a lot of trades with good profit
3. Scalping is very phisically demanding. Sitting all day long, watching the screen with fast moving quotes and to be fully preprared to take action this is not as easy as you might think. Sometimes durring rapid market movements you won't be able to eat or drink anything. This is exhausting!
3. Except phisically exhausting scalping is very much of a psychological battle. Actually it is harder to scalp than to hold ovenight from psychological side of view.
We can offer you all of this with our trading accounts!