Scalping

Scalping (Forex System) - a simple trading strategy for forex market, which consists of an extremely large number of transactions in a short period of time with low stop-loss and a lower take-profit. Not all forex brokers allow traders to scalp, and not all of those that are allowed, suitable for this. Scalping is also not suitable for all traders. Personally, I will not recommend scalping. Here is a very simple version of the strategy Forex scalping.

Features

• Good profit for traders with good fortune (intuition).
• No need to follow the fundamental, technical, or even in any analysis.
• Spreads are eating most of the profits.
• A low ratio of profit to risk.
• Not all Forex brokers support scalping.
• Requires a lot of time to trade and monitor schedules.
  

How to trade?

1. Use the currency pairs with high intraday volatility and low spreads (EUR / JPY, GBP / USD, EUR / USD and USD / JPY - are good examples).
2. It is recommended minute (or shorter) time frame.
3. The optimal time to trade - while crossing the trading session in Europe and the United States and the United States and Asia.
4. Get ready to trade, following the market activity for 5-15 minutes.
5. When you feel that you "catch" the current short-term trend, get in position.
6. Set a stop loss of about 10 points.
7. The general rule for the purpose of profit - is about one-half the size of the spread on the pair. Most likely, the broker will not allow you to set the profit target so close (2-5 pips), so you will need to monitor the market and close a position manually.
   

Example

For this trading system is an example of a graph, since it is not needed. Study the following examples of strategies:

1. You open a buy position in EUR / USD with a stop loss at 10 pips and pip to 4. After 20 seconds, the position is 4 points of profit, and you close it.
2. You open a short position on GBP / USD with a stop loss at 10 pips and pip to 4. After 3-4 minutes, the trend suddenly turns around, and the position is closed by stop-loss.
3. You open a short position on USD / JPY with a stop loss at 10 pips and 3 pips for. After about 1 minute, the position is 4 points of profit, and you close it.
4. You open a buy position in EUR / JPY with a stop loss at 10 pips and to 5 pips. After 5 seconds, the quotations show the peak position and up to 12 pips profit, and you close it.
5. Total - 10 pips profit in less than 6 minutes. Of course, this is all purely hypothetical.

Attention!

Use this strategy at your own risk. EarnForex.com not responsible for any damages that may result to you when using any strategy presented on the site. It is not recommended to use this strategy on a real account without testing it to start a demo account.