Forex Scalping Most Dangerous Strategy For New Comers. Many people smoke, even though they know that smoking is bad for their health. Many senior traders whom we consider to be role models also do scalping without showing off quietly.
Scalping Rules for Forex Scalper
Because scalping makes quick profits. Similarly, the fast account is also zero. Even then, experts may not see much of Loss’s face because they adhere to certain things
There are several categories of Forex traders:
- Scalper – Quick trades, exits with quick profits and is satisfied with 10-20 pips.
- Long Term Trader – Takes a position by analyzing the market. Profit up to 200-500-1000 pips by looking at swing point or price action.
- News Trader – They basically trade during high impact news. And if the news is favorable, it makes a lot of profit.
Now I shared some points from my experience that those who do forex scalping will hopefully do better if follow bellow all rules:
- Not scalping without stopping TP. Lot size must be tolerable in forex trading .
- Looking at the higher timeframe and understanding the position, you just have to stay in the buy or sell. It is safer to buy from overbought and buy from oversold than to buy once, sell once. You can understand that by using RSI.
- No scalping will be done on Friday, but it is better to use Friday in worship from forex trade free. Nothing is possible without God’s mercy. On this day, followers of other religions pay attention to their religious activities. Then the ghost of the trade will not be in the head. Scalping on Fridays can be done by those who trade with stop loss and TP. Because most of the time in forex market unaccepted movement on Friday.
- No scalping 2 hours before or after High Impact forex News.
- In other forex strategies I accept 1: 2 risk rewards but follow 2: 1 in scalping. When I am sure that I can enter the market now. In other words, in swing trade, if I give 100 pip stops, 200 pip tip, then in Forex scalping, I give 20 pip stops and 10 pip tip. However, in that case the risk will be. 50% of the account in 2 trades if 1% loss is trade off for that day. Go hang out. Try again the next day.
- Range Market is safe for scalping. Especially when the market falls 150-200 pips in a forex news impact, I just stay on the buy side to take a retrace and that is at a stage much later in the news when the market is on the sidelines. In that case the stop loss will be 20 pips below the low of that day. And if up, I will be in the same condition in the sell.
- You have to take direction from the higher time frame. In that case RSI will help you.
- When scalping in forex market, trendline will find out whether it is market uptrend or downtrend. Try to get entry from uptrend support to down trend resistance.
- Never trade against the market during volatile time in the hope of retreat. Rather do the scalping when the effect of a news in the forex market is over when it goes to the sideway.
- The biggest thing is to obey money management. Or you will make a profit in 9th trade and zero the account in 10th trade.