You may have heard the word scalping in many places. Most traders in the forex world do scalping. A few minutes of trade is called scalping. This trend may be around 1-20 pips.
What is Scalping?
Literally, if the profit is above 20 pips, it cannot be called scalping. That becomes a normal trend. The market always goes up and down. You can take advantage of this opportunity to grab some pips in a few minutes.
But scalping is but risky. Many people are seen scalping at risk without understanding anything. But scalping should also be analyzed. No trade should be entered without analysis. When scalping, it is better to trade towards the trend. In that case the chances of making a profit in the trade are relatively high.
1 Since scalping is done in less time, we should trade in less timeframe.
There are many rules of scalping:
You can follow M1, M5, M15 timeframes while trending scalping. In that case, scalping should be done by looking at the big time frame and determining the trend. One thing to keep in mind is that if you run the indicator in the sixth time frame, you may not get good results according to the larger time frame. In that case you can do two things.
- One, to give a stop loss nearby, so that if there is a loss, there is six losses.
- Two. Seeing the trend in the big time frame, scalping from the trend according to the trend of that time frame.
There are some brokers who do not support scalping. Again, many brokers have 2 minute rules for scalping. The broker reserves the right to cancel the trade if it closes before 2 minutes.
So before you know if the broker you are trending with has any rules about scalping, remember that scalping is as convenient as it is dangerous. So even if you do scalping, you must keep the size six and trend with stop loss nearby.
Most forex traders do not want to give stop loss. So scalping all day that makes a profit hangs a loss trade at the end of the day and makes more losses than that. If you can’t be an exception to most of those traders then you can’t stay in Forex trading for long. If you have any questions forex Scalping or need any help, you can comment or message on below. This will encourage me to write the next post.