Simple scalping on Forex.

The scalping strategy is familiar to any trader working in the Forex market. This trading method allows you to maximize your deposit and achieve significant profits even without sufficient funds. Like any other trading strategy, scalping, also known as pipsing, has a number of advantages and disadvantages.

Therefore, before using this trading method, you should first evaluate whether it's suitable for you and weigh the risk level against the expected profit.
As experience shows, simple scalping on Forex is nothing more than a myth for beginners; successful trading requires considering many important aspects.

In this article, I will discuss the main points of scalping, and also give an example of a simple strategy.

Pros and cons of scalping.

Pros.

1. Maximum trade volume – you can use the highest leverage for trading and open trades with the maximum possible volume. This allows you to do this without worrying about losing your deposit in the event of a pullback, as the strategy allows for immediate trade closure when the trend reverses.

For example, with just $100 in your deposit and using 1:1000 leverage, you can open a trade of up to 0.5 of a standard lot in euros. This means that every 1-point trend movement will earn you $5.

2. Trading without analysis – to trade successfully, you simply need to study the specifics of price movements, and there is no need to make a long-term forecast.

The main thing is to correctly determine the magnitude of the movement in the direction of the main correction and the magnitude of the rollbacks and then play precisely on these indicators.

3. You can trade at any time, regardless of the trend direction or the current market situation, as long as there is price movement.

Cons.

1. High risk – since you're trading with virtually your entire deposit, if your equipment fails or your stop-loss isn't triggered, your account will be instantly wiped out, and you'll simply be unable to reach your manager.

2. Trading with virtually no insurance, since setting a stop loss, let alone a trailing stop, is practically impossible.

3. Limited selection of instruments – when trading using the scalping strategy, you should choose currency pairs with a minimal spread, as during the short time the trade is open, your profit may simply not cover the spread, or a small counter-movement will drain your deposit.

For example, if you took a pair with a spread of 10 pips, when opening a deal with the conditions described above (deposit -100, 1:1000, volume - 0.5), your loss will immediately be $50, and to cover it, the price will need to move at least 10 pips.

4. Heavy workload – you'll have to trade constantly, you won't be able to leave your trade unattended, and you'll need to open dozens of orders per day.

5. Broker penalties – most brokerage firms impose penalties if a trade lasts less than a certain amount of time. This typically ranges from 1 to 5 minutes, but can be longer.

Therefore, if you want to avoid sanctions (deposit blocking), you should only work with scalping brokers . You can find a list of them at this link.

Trading strategy, scalping.

Trading is conducted on the shortest time frame of 1 minute; a higher time frame of 5 minutes is also used to determine the main trend.

We open trades exclusively in the direction of the trend movement on a five-minute time frame.

1. Log into the trading terminal and determine the trend direction on the M5 chart. For example, upward.

2. Switch to M1 and catch the moment when the pullback ends and the price goes up, immediately open a trade.

3. The deal is closed if the profit reaches 5 points, or the loss reaches 3 points.

This is perhaps the simplest scalping on Forex. We choose the EUR/USD pair for trading, as it usually has the lowest spread.