Understanding Forex Scalping
If you know much about currency trading, you've probably heard about Forex scalping. Unlike long term investors, Forex scalpers try to profit by rapid deals. They have a different set of skills and attitudes than most standard investors, but above all they must have well-developed self discipline.
Above all, Forex scallpers must not make a deal simply for the sake of making a deal -- a standard pitfall for less disciplined traders. Successful scalpers must wait to be sure a trading situation is ripe for profit. Before any trader becomes involved with the scalping side of Forex trading, they must understand one thing.
The market is usually in a consolidation mode about 60-80% of the time. This is when no changes take place. Hours could go by, before a move is made. A forex scalper, who is well versed will know that this is the right time for business to take place.
Successful Forex traders must be able to spot developing trends in currency markets. Beyond that basic skill, scalpers must recognize key support and resistance levels which ultimately determine currency highs and lows.
Scalpers often use the popular Moving Average Convergence Divergence (MACD) forex to track trading indicators, though they may use customized parameters rather than the standard ones.
By paying attention to the movement of the market and the trading indicators, forex scalpers will know when to have a long entry order and when to have a short entry order. It's also important to look for a wide pip range that is about 20-40 pips, and of course buy low and sell high.
Forex scalping isn't for everyone, though all currency traders must have some of the scalpers' philosophy in tool bag to optimize their trading day.
Traders who are familiar with these strategies so will be able to maximize their profits. - 23200
Above all, Forex scallpers must not make a deal simply for the sake of making a deal -- a standard pitfall for less disciplined traders. Successful scalpers must wait to be sure a trading situation is ripe for profit. Before any trader becomes involved with the scalping side of Forex trading, they must understand one thing.
The market is usually in a consolidation mode about 60-80% of the time. This is when no changes take place. Hours could go by, before a move is made. A forex scalper, who is well versed will know that this is the right time for business to take place.
Successful Forex traders must be able to spot developing trends in currency markets. Beyond that basic skill, scalpers must recognize key support and resistance levels which ultimately determine currency highs and lows.
Scalpers often use the popular Moving Average Convergence Divergence (MACD) forex to track trading indicators, though they may use customized parameters rather than the standard ones.
By paying attention to the movement of the market and the trading indicators, forex scalpers will know when to have a long entry order and when to have a short entry order. It's also important to look for a wide pip range that is about 20-40 pips, and of course buy low and sell high.
Forex scalping isn't for everyone, though all currency traders must have some of the scalpers' philosophy in tool bag to optimize their trading day.
Traders who are familiar with these strategies so will be able to maximize their profits. - 23200
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posted by X - Men @ 12:59 AM
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