Foreign exchange scalp peeling Guide
Foreign exchange scalp peeling is a popular method, including quick opening and clearing of positions. The term "fast" is not entirely accurate because it usually refers to defining a time period of about 3-5 minutes at most, while most scalping traders have a shorter time than this, usually only one minute.
The popularity of scalp peeling stems from its sense of security as a trading strategy. Many traders believe that the market exposure of short sellers is much lower than that of trend followers or even day traders because they maintain their positions in a short time compared with ordinary traders. Therefore, the risk of huge losses caused by drastic market fluctuations is smaller. In fact, it is possible to claim that the typical scalpel only cares about the spread between the buying and selling points, while the concepts of trend and range are not important to him. Although scalping traders need to ignore these market phenomena, they are not obliged to trade them because they are only concerned about the short-term fluctuations they create.
Is it suitable for you?
Forex scalping is not the right strategy for every trader. In each position, the return generated by scalping traders is usually small, but the total profit will be large if the returns of each closed small position are combined. Scalping doesn't like to take big risks, which means they are willing to give up huge profit opportunities, safe but often with small returns. Therefore, it needs to be a patient and diligent individual who is willing to wait, because the fruits of his labor turn into huge profits over time. It is difficult for a trader with impulsive, excited personality, seeking immediate satisfaction, and aiming to "grow" every successive transaction.
Tips for scalp peeling
Scalping also requires more attention than other trading methods, such as swing trading or trend tracking. A typical scalper will open and close 10 positions on an ordinary trading day, and in some cases, more than 100 positions, because no one position is allowed to suffer huge losses (so we can protect the bottom line), and the scalpel can't be careful and neglect other positions. At first glance, this can be a daunting task, but once traders get used to their habits, scalp peeling can be an attractive and even interesting way to trade. Obviously, concentration skills are necessary for successful scalp peeling. One doesn't need to be born with this talent, but if a trader wants to be a real scalper, then practice and will are essential.
Automated trading system
For those who are not full-time traders, scalp peeling can be time-consuming and laborious. Many of us see trading as an additional source of income rather than spending five or six hours a day practicing. To solve this problem, automated trading systems have been developed, and they are sold on the Internet quite well. We don't recommend that our readers waste their time trying to make these strategies work for them; at best, you'll lose some money, and at the same time, you'll learn some lessons, and you won't trust anyone. However, if you design your own automated trading system (guided by experienced experts and self-education), you may be able to shorten the time you have to work on trading while still using scalp peeling techniques. Automatic Forex scalping does not need to be fully automated. You can pass routine and systematic tasks such as stop loss and profit orders to the automated system, while you do your own analysis. Of course, it's not for everyone, but it's a worthwhile choice.
On the scale of trading and foreign exchange scalping
Finally, scalping should always maintain the importance of consistency in the size of the deal, while using the method they like. Scalping with inconsistent trade sizes is a practice that allows you to sell at any time until you stop practicing scalping. Scalping is based on the principle that profitable trading will make up for lost losses at the right time, but if you randomly choose the size of your position, the probability is that sooner or later an excessive leverage loss will ruin a day's hard work. Therefore, scalping must ensure that he pursues a predetermined strategy, attention, patience and consistent size of the deal. Of course, this is just the beginning, but without a good start, we will reduce our chances of success, or at least our profitability potential.
Now let's take a look at this article and discuss the details, advantages and disadvantages of Forex scalp peeling. We suggest that you read this article carefully and absorb all the information that can benefit you. But if you think you are already familiar with this knowledge, in order to shorten your process, we have given the main points of this article.
1. How to make money by scalping: here, we'll look at the logic behind scalping, and we'll discuss the best conditions and necessary adjustments to achieve a scalpel to make money deal.
2. Choose the right broker for scalping: not every broker can deal with scalping. Sometimes it's the company's policy, and sometimes the brokerage platform creates conditions that can't be done successfully. It's important for novices to know what to look for on the brokerage platform before opening an account. Here we will enlighten you on these important ideas.
3. The best currency for scalping: some pairs of currencies are easy and lucrative, while others are strongly opposed to the strategy. In this section, we will discuss this important topic in detail and provide useful tips for your transaction.
4. The best time: the best time to successfully scalp on has always been controversial. We will come up with different opinions and then give our own conclusions.
5. Strategy: in scalp peeling, the strategy does not need to be very different from other short-term methods. On the other hand, there are some specific price patterns and configurations in which scalping is easier to achieve profitability. We will explore them in depth in this section.
Range skinning: some traders believe that the range market is more suitable for skinning strategy. Here, we will study why and how to scalp under such conditions.
Breaking through the scalp: we will examine news breakthroughs and technological breakthroughs separately, and discuss two appropriate strategies.
Trend skinning: we will study the issue of scalp peeling in the trend market.
6. Trend tracking scalping: the trend is unstable. Many scalpers choose to trade. They are like a trend follower and try to shorten the trading cycle to control market risk. In this section, we will examine the use of Fibonacci extension levels for scalp peeling trends.
7. Disadvantages and criticisms of scalp peeling: scalp peeling is not suitable for everyone, even experienced scalpel traders and those committed to this style will bear in mind the dangers and disadvantages of blindly using the style.