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 trumps caution.

Every trader wants to earn as much as possible and as quickly as possible. To protect themselves from the risk of losing their entire deposit, there are several ways to mitigate risks.

Only the right approach to capital management will minimize the likelihood of losses when scalping and especially when pipsing.

These measures primarily include diversification, deposit insurance, and the correct choice of timeframe and volume.

• 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 timeframes.

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 after a drawdown or even a drain.

• Choice of time frame - I prefer risky scalping with high leverage ( pipsing ), it is this trading option that allows you to earn quickly and a lot. Moreover, if you approach the matter correctly, you can always keep the profit received.

The main thing in this matter is not to hold the transaction 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 it should be closed immediately if the price goes against you.

The basic rule is: the shorter the timeframe, the greater the leverage.

• Preserving profits is the main mistake most scalpers make: overextend their deposits , constantly increasing the volume of trades using the profits they've made, without reducing their leverage.

As a result, a deposit that's been increased tenfold can be wiped out in a matter of hours.

Constantly withdrawing profits is what keeps you afloat. Don't be greedy, determine how much you want to earn per dollar and stick to that.

For example, with $1,000, you can realistically earn $1,000 per month with scalping, taking into account potential losses and drawdowns. However, this figure will only be achieved if, after making a successful trade, you immediately withdraw the profit, which will then be used to cover the drawdown.