The dangers of scalping.

The scalping strategy has been and remains the most profitable on Forex. It's essentially a chance to make a big profit quickly, but beyond that, there's a high risk of losing your money.

Therefore, before using this trading method, you should clearly understand its risks. This will help you prepare for potential problems and even avoid some of them.

These problems can be directly related to trading or purely technical in nature. Let's analyze them in more detail.

First, it's important to note that scalping isn't just short-term trading; it's trading with high leverage, typically 1:200 or more. This factor is the main reason for the increased risk.

1. Why brokers dislike scalpers - everything would be fine if this dislike didn't end with account blocking.

If you carefully read the trading conditions of most brokers, you'll come across a clause limiting the minimum trading time, usually 3-5 minutes. If an order is closed earlier, it is simply not counted.

There are two reasons for this dislike: firstly, processing a large number of orders can create purely technical problems for the broker, and secondly, not every broker is willing to pay a profit significantly exceeding the trader's deposit.

Therefore, for short-term trading, only scalping brokers that do not limit the trading time should be used.

2. Gaps , or price breaks, occur quite frequently and not always in the desired direction, and a jump of 20-30 pips on a poorly secured trade can be quite costly.

A gap in quotes (a sharp price jump) can be caused by important news; a stop loss in such cases is of no help; the only way to protect yourself is to stop trading before the news release.

3. Technical failures – if the trading terminal or operating system freezes, you can kiss your deposit goodbye.

If you trade large sums, try to duplicate the terminal's functionality on an alternative device, such as a tablet or even a mobile phone. The key is to be able to quickly close a trade.

4. Psychological pressure is not the least important factor in traders losing their deposits, and its impact increases exponentially when scalping.

Imagine opening a 2-lot trade with a deposit of only $1,000, and losing $20 per point.

In such a situation, closing the trade is quite difficult; it seems the price will return to where it should, but this is precisely what leads to the loss of your deposit.

Set a clear closing price and always adhere to it.

Scalping trading is quite dangerous and should only be used in extreme cases where there is no alternative.