Scalping tactics on Forex.
Unlike trading strategies using a similar scheme, scalping tactics represent a set of universal techniques that can be used in any of the short-term trading options.
It is on tactics that most scalping trading systems are built, so if you decide to scalp, it would be a good idea for you to know all the tactical techniques of this strategy.
Short-term trading is based on the following points and techniques:
1. The maximum applicable leverage is used - that is, the smaller your trading interval, the greater the leverage.
The essence of this rule is as follows. If when trading you plan to close a deal with a loss of no more than 3 points, then you can make calculations from this point.
Your 3 points should be about 3% of the total deposit amount, that is, with a deposit of $100, the loss from one transaction will be $3.
This leads to a transaction size of 0.1 lot; with a deposit of $100, trading with such a volume allows a leverage of 1:100 or more, depending on the currency pair.
But this is for calm scalping; pipsing , for example, may imply greater risk and, accordingly, profit, so the transaction volume can be increased 3 times to 0.3 lots, and the leverage to 1:300 - 1:500.
2. Tactics for maintaining profits - you can lose money when scalping even faster than you can earn, it’s especially disappointing when a tenfold increased deposit is lost in just a couple of hours.
Therefore, when scalping or pipsing, you must always distribute your profits wisely.
Among traders, there are several approaches to solving this problem; in the first option, all profits are withdrawn, in the second, most of them are withdrawn, and the remaining ones are used to increase trading volumes.
That is, regardless of the amount of money in the account, it is never worth risking it all.
You have 1000 dollars, you earned another 500, and you withdrew at least 300. 3. Search for a small spread – the size of the spread, as a rule, directly depends on the trading session and currency pair.
Therefore, trading instruments should be selected depending on the operating time. For example, during the Asian trading session, we trade the Yen, etc. This rule applies to floating spread commission options.
4. One-click trading – when scalping, every second is important, so closing trades in one click sometimes helps to earn an extra point, and since even one point in our case has quite a significant weight, this always has a noticeable impact on the financial result.
Typically, with this option, closing an order is done by clicking the cross next to the open order. 5. Scripts – the use of additional scripts in trading allows you to make trading more efficient and comfortable; download Forex scripts using the link provided.
Forex scalping tactics are a comprehensive application of various techniques to increase trading profitability.