How not to lose your deposit when trading scalping.
Scalping has become the favorite strategy of most traders because of its maximum profitability; if not for its riskiness, then probably almost all traders would choose this particular option of exchange trading.
The main danger of scalping trading is the loss of the deposit, not drawdown, but the complete loss of all funds when the transaction is closed forcibly with a stop out.
If it were not for the frequent stories about the complete loss of funds, it is unlikely that any of the traders would refuse to earn 1000% profit every month.
It is almost impossible to completely eliminate the possibility of a drain; it can be reduced to a minimum using fairly simple methods. • We never use all available funds in trading; there should be only part of the funds on the account - from 30 to 50 percent. Don’t risk the entire amount, always leave yourself a chance to correct mistakes.
• Do not trade during periods of news releases; the price at this time can move at such a speed that you simply physically cannot close an unsuccessful trade.
• Use one-click trading - this option is available in almost every trader’s terminal; you can get acquainted with its use by reading the article “ One-click trading ”.
• Do not open transactions that exceed the deposit by more than 500 times, that is, if you have $100, the maximum transaction volume is about 0.5 lots or $50,000.
• Stop orders - it is clear that in a hurry it is not always possible to set stop loss and take profit , but there are scripts that can be used to automate this moment.
• Trade using a duplicate device, especially when you work with large sums, how many deposits were lost due to a banal Internet outage.
A tablet or smartphone can be a safety option. • Do not place more than two orders - when pipsing, sometimes you won’t be able to handle even one, so don’t complicate your task.
• Always keep an eye on the spread - its expansion may become an unpleasant surprise for you, here it was only 1 point, and here it’s already as much as 10, this happens, and when scalping, every point is important.
You shouldn’t be afraid of scalping , you just need to approach its organization correctly; if this strategy were 100% unprofitable, then it wouldn’t be used by thousands of traders around the world.