Scalping or long-term trades.

Some people claim that you can only make money on Forex by scalping, others claim that this is a guaranteed way to lose your deposit, and that high leverage is evil.

There are many more opponents of scalping than its supporters, the reason for this lies in the frequent failures that await a trader who does not seriously assess the danger of scalping.

Long-term transactions have much less danger, primarily due to the use of minimal leverage; another option simply will not allow you to survive a major trend correction.

Therefore, unlike scalping, the main disadvantage of long-term trading is a large amount of capital; you can make significant money here only with an amount of at least $10,000. Since the profit at best is 5-10 percent per month.

Using scalping, you can trade with an amount of $500, and a couple of hundred percent per month is far from the limit.

That is, the choice of strategy is sometimes influenced not only by the trader’s preferences, but also simply by the amount of funds on deposit.

Last but not least is the complexity of trading; when opening long-term transactions, you only need to spend a few hours on preliminary analysis and calculation of the main indicators of a position, while scalping is a tedious struggle for every point of profit.

And it is much easier to determine a long-term trend than to catch the slightest price fluctuations. You should also not forget about purely technical issues of work; usually brokers react normally if you open one or two transactions a week, but it’s another matter when there are 50 of these transactions per session. And at the same time, the deposit is 10 times larger for replenishing the account. If in the first case almost any broker is suitable, then for short-term trading only brokers for scalping .

What should a trader choose?

The best option is when the bulk of the deposit is used for concluding long-term transactions, and several hundred for scalping trading.

The first option will give you a guaranteed income, and the second part will give you hope for big earnings. After you have worked out your scalping strategy, you can gradually increase the portion of funds intended for scalping. But this is only suitable for a trader who already has substantial capital, or for a beginner who has only a couple of hundred in his account; it is advisable to first practice on cent accounts and scalp with minimal amounts.

You can completely switch to scalping if you managed to get a positive financial result in a month of trading.