Talk about the scalp trade in foreign exchange trading

Foreign exchange scalping is based on fast trading. No matter what the result (profit or loss), it is usually within 1-2 minutes from the beginning of trading to the end, generally no more than 5-7 minutes.

Foreign exchange scalping is one of the most demanding trading methods, which requires everything to be operated quickly, accurately and in accordance with the most stringent rules. Fund management institutions play an important role. Successful foreign exchange scalpers can make an account of $50-100 to $5000-10000 in 3-4 weeks.

Foreign exchange scalpers are experienced technicians in the industry. It's so difficult to create a system that allows traders to trade effectively, so that many traders, even professionals, usually conclude that the price trend in a small scale chart is random because they can't trade it.

Well, scalping is my friend and it's just an excuse not to trade in a smaller time frame.

Start peeling. What do you need?

At present, you need to create some custom indicators for the scalpel system.

When it comes to trading rules and indicators, I have never seen scalpers only use price patterns, or trend lines, or Fibonacci series, or Gann's theory. All these basic studies can be used by professional traders in a larger time frame, but rarely in the scalpel system. On the contrary, scalpers use a variety of trading indicators, sometimes in the form of K lines, but most of the time, they are indicators.

How to select indicators for scalp peeling?

My friend, I'm afraid you ask me that. Each scalpel initially uses his favorite tool and learns how to trade. The rest is to test and try hundreds of indicators on the 1-minute chart, so as to filter out the bad indicators and leave good ones. Scalpers read thousands of pages of content on forums, websites, anywhere people discuss indicators, and then sit patiently testing the acquired tools every night. This is really an arduous task and is not easy to complete. It may take months, even years, but in the end, many scalpers have done well.

How to simplify the process?

There are several possible solutions:

1. Learn how to write custom metrics to speed up the process. In addition, you can write your own robots to trade for you. Difficulties? That's why this approach is very effective in foreign exchange trading.

2. Ask professionals to write indicators or smart trading systems for you (or pay). It's easier, though you'll probably have to repeat the process many times.

3. Buy ready-made scalpel intelligent trading system, but don't be too excited. Commercialized scalpel to intelligent trading system can rarely make good profits for a long time, and many of them can be identified and banned.

Where to start?

You can find the scalping system online, deploy it on a one minute chart, start analyzing performance, and try to improve the sequence of profitable transactions. If necessary, shorten profit target and stop loss, and solve fund management problems.

Why don't you like scalpel traders?

There is no doubt that scalpers are the least popular customers to hedge against.

Having seen the danger of successful scalping, traders can generate thousands of dollars in profits with initial funds of $50-100 in just a few weeks. This excites us traders, but it's a nightmare for traders, platform brokers! I would add that only real ECN brokers are immune to the dangers of scalping, because ECN brokers don't gamble with their customers, they pass the transaction on to the real interbank market.

Believe me, other brokers take every precaution to protect themselves from the dangers of scalping: they evaluate customer transactions, check how long customers hold positions, how often they trade, how successful short-term transactions are, whether they use intelligent investment systems, etc. Those who can't tolerate scalping refer to scalp stripping rules and restrictions in terms and conditions, but traders seldom read the relevant contents when opening trading accounts. According to the scalping restrictions, brokers can impose penalties on scalpel traders and charge commissions.

It's challenging to be a scalpel trader, but it's also very rewarding. It's a good way to make money in foreign exchange trading.

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