The main points of organizing scalping
Forex scalping is an excellent strategy for those who want to make a lot of money quickly and are not afraid of risk and hard work.
Many beginners think that scalping can be a fairly simple activity, because it does not require careful market analysis and long-term forecasts.
The main thing is to open and close short-term transactions on time and withdraw profits, that’s the whole trading strategy.
In fact, short-term trading consists of a mass of important nuances that should be taken into account when organizing the trading process.
In this case, it is the organization of the process that is important, and not the clearly drawn up plan itself, which is quite difficult to implement during scalping.
• First of all, you should decide on the duration of the transaction, since each of the traders understands short-term strategy in their own way.
It is optimal if the transaction lasts at least 3 minutes, since many brokers simply do not count transactions of shorter duration.
At the same time, the maximum duration depends on the market, or more precisely on its corrective movements. You should not delay closing the order too much as the price may begin to roll back.
• Assess the market situation - whether there is a pronounced trend on your time frame or, on the contrary, the price is in a flat. Moreover, sometimes it is the flat that allows you to trade more effectively.
• Controlling the size of the spread is a rather important point, it is so difficult to scalp if you need to compensate for a large broker’s commission during a transaction.
Therefore, it is best to always use the spread indicator - http://time-forex.com/indikators/indikator-spred so you can control the commission before each order opening.
• Indicator for scalping – they often write about scalping on the news, but it is still better to work based on technical analysis.
For these purposes, you can use both the Stochastic indicator and various channel indicators , or you can simply try to catch corrective movements.
• Insurance against loss – when scalping, despite the speed of trading, you should also not forget about setting a stop loss.
Only this will avoid losing your deposit. It is quite difficult to do this manually, so for these purposes it is best to use scripts that force a stop loss when opening each new order.
The stop value is set in points depending on how much you are willing to lose on each trade.
Trading using the scalping strategy is difficult to plan, but you can properly organize the trading process, reducing the risk of losses, and therefore improving the final trading result.