Scalping on futures, features of applying the strategy in practice
Almost every novice trader has at least once heard about this style of trading called scalping.
The main distinguishing feature of this trading method is its high profitability, compared to passive investments and long-term earning strategies.
Successful scalping on futures can actually be the key to monthly growth of your initial investment by 15-20%.
However, we should not forget that high risks are an integral part of short-term trading with the fixation of insignificant financial results.
What is scalping in the futures market?
The use of scalping strategies in practice involves working with low chart periods and opening trades with an insignificant financial result recorded.
This factor is a significant obstacle to the correct operation of indicators. Even the use of classical methods technical analysis on low chart periods in most cases it is not justified.
This trading style is applicable to any type of financial instrument.
Peculiarities of scalping futures
There are several rules developed by successful and experienced traders that must be followed when using scalping strategies in everyday trading:
1. Maximum risk control - This requires eliminating questionable loss optimization methods from trading, such as and averaging strategies
The risk per trade should not exceed 0.5% of capital, and placing safety orders is mandatory.
Constantly monitoring the current market situation, even without open trading positions, is essential.
Practical scalping requires extreme concentration and the ability to make quick trading decisions. This is why this trading style is considered the pinnacle of trading mastery.
2Working only with liquid assets, such as futures on currencies, precious metals, or commodities.
The fact is that these assets experience the highest intraday
volatility In a calm market, scalping the futures market is ineffective, as any small profit is eaten up by broker and exchange fees.
3The use of high leverage is mandatory, which will significantly increase profit potential.
The integrated use of indicators is an integral part of short-term strategies, and it is important to combine trend-following analytical tools and oscillators.
Experienced traders also recommend using cluster charts to accurately determine target levels and monitor changes in trading volumes.
Conclusion
: Beginner traders should consider scalping strategies only in demo mode. Otherwise, there is a high risk of losing the entire deposit within the first month.
Effective scalping on exchange futures requires solid trading experience. To gain basic skills in working with financial instruments, only long-term profit strategies .
It is also acceptable to hone short-term trading skills on a demo account. Trading with real funds should only be undertaken after several months of consistent profits. Otherwise, the results will not meet expectations.
