Profitable scalping.
Scalping trading contains a lot of features that make it impossible to call it simple; everything is important here, from the time when the trade is carried out to the broker through which it is carried out.
The scalping strategy itself plays a special role, namely the principles on the basis of which entry into the market and completion of transactions is carried out.
At the same time, it is not always possible to adapt any of the usual strategies for scalping; here you need your own approach, taking into account the peculiarities of trading.
Strategic features.
Trading on news is quite applicable in scalping, and there is a certain peculiarity in its use: trades are not opened immediately after the news is released as in the standard version, but while waiting for its release.
In most cases, before the release of important news, the market slows down and enters a narrow price channel, which is exactly what we need.
The width of such a channel rarely exceeds 10-15 points, which is quite enough for scalping. Using levels - this strategy, which works so well in medium-term trading, is practically not applicable in scalping, the only exception is “stomping” at important price levels.
At this time, the pattern of movement necessary for scalping appears. Logic and intuition - you can trade using logical patterns during periods of relative calm; the main conditions for its use are the absence of the possibility of news appearing and a pattern in the movement of the trend.
First, we identify the size of price fluctuations, usually 5-10 points in one direction, after 3-5 in the other, there may be a different pattern. The main thing is that the fluctuations are repeated, then we watch the trend and try to catch our pips.
Technical features.
When trading scalping, you should not forget about such important parameters as the spread size and the minimum transaction time.
A large spread will not allow you to make money; all 0.5 points with a volume of 1 lot turns into 5 dollars, and if you open at least a dozen transactions per day, then into all 50 lost dollars.
Therefore, when trading with scalping, even every tenth of the spread is so important. Limiting the minimum duration of transactions can lead to account blocking; usually brokerage companies consider transactions shorter than 1, 3 or 5 minutes invalid; always read the trading conditions carefully. And, to avoid the latter, trade only with scalping brokers .