Reducing risks in short-term trading.

Scalping has always been considered not only the most profitable, but also the riskiest Forex trading strategy, but the thirst for profit always wins over caution.

Any trader wants to earn as much as possible and as quickly as possible, in order to at least somehow protect themselves from the risk of losing their entire deposit, there are several ways to deal with risks.

Only the right approach to money management will reduce to a minimum the probability of loss during scalping and especially during pipsing.

First of all, these are measures such as diversification, deposit insurance, correct choice of time frame and volumes.

• Diversification in Forex is nothing more than a simple division of the available amount of funds, because, as a rule, when scalping you use your deposit to the maximum, if this does not happen, then such trading is no longer scalping, but simply trading on short time frames.

The deposit can be drained at any minute, so it is better not to deposit all the money into the broker’s account at once, but to divide it into at least two parts.

This simple approach will allow you to recover from a drawdown or even a drain. • Choosing a time frame – I prefer risky scalping with high leverage ( pips ), this trading option allows you to earn a lot quickly and a lot.

Moreover, if you approach the matter correctly, you can always save the profit received. The main thing in this matter is not to hold the deal longer than the trend allows, that is, with a deposit of $100, you can open a position of 0.5 lots, the main thing is to understand.

That the transaction should not last more than a few minutes. And you should close it immediately if the price goes against you. The basic rule is that the shorter the timeframe, the greater the leverage.

• Maintaining profits is the main mistake of most scalpers, this is the acceleration of the deposit , they constantly increase the volume of transactions due to the profits received, without reducing the amount of leverage.

As a result, the deposit, increased tens of times, can be drained within a few hours.

It is the constant withdrawal of profits that allows you to stay afloat, do not be greedy, determine how much you want to earn from the daily amount and try to follow this parameter.

For example, with 1000 dollars when scalping, it is possible to earn 1000 per month, this taking into account possible losses and drawdowns. But such an indicator will be achieved only if, having made a successful transaction, you immediately withdraw your profit, which will then be used to cover the drawdown.