The danger of scalping.

The Scalping strategy has been and remains the most profitable on Forex; in fact, it is a chance to earn quickly and a lot, but in addition to earnings, there is a high probability of being left without your money.

Therefore, before you start using this trading option, you should clearly understand its dangers; this will help you prepare for possible troubles, and even allow you to avoid some of them.

The troubles themselves can be related directly to trading or be of a purely technical nature; let’s move on to a more detailed analysis of them.

First of all, it should be noted that scalping is not just short-term trading, but trading using large leverage, usually its size is 1:200 or more. This factor is the main reason for the increase in risk.

1. Why brokers don’t like scalpers - everything would be fine if this love did not end in blocking the account.

If you carefully read the trading conditions of most brokers, you will come across a clause limiting the minimum time of transactions, usually 3-5 minutes.

If the order is closed earlier, it is simply not read. There are two reasons for this dislike - firstly, the withdrawal of a large number of orders can create purely technical problems for the broker, and secondly, not every broker wants to pay a profit much higher than the trader’s deposit itself.

Therefore, for short-term trading, only scalping brokers , which do not limit the time of transactions.

2. Gap - or price gaps, happen quite often and not always in the right direction, and a jump of 20-30 points on a weakly secured transaction can be quite expensive.

The reason for the gap in quotes from a sharp jump in price can be important news; a stop loss in such cases does not help; you can only protect yourself by stopping trading before the news comes out.

3. Technical failures - once the trading terminal or operating system freezes, you can say goodbye to your deposit.

If you are trading significant amounts, try to duplicate the operation of the terminal on an alternative device, it could be a tablet or just a mobile phone, the main thing is that you can quickly close the deal.

4. Psychological pressure is not the last factor due to which traders lose their deposit, and when scalping, its influence increases significantly.

Imagine that you opened a trade of 2 lots with a deposit of only $1000, and each point of loss is $20.

In such a situation, it is quite difficult to close, everything seems that the price will again go where it should, but this just leads to the loss of the deposit.

Set a clear size at which deals will be closed and always follow it.

Scalping trading is quite dangerous, this strategy should only be used in extreme cases when there is no alternative option.