Is scalp trading more profitable?
In foreign exchange trading, I believe many people will often hear of a certain trading method, that is scalp trading. Many people use this fast in and fast out method to trade, which is also commonly known as flash trading. In the face of so many trading modes, scalp peeling is particularly favored by investors. Is it true that scalping is more profitable?
Scalping is the use of trading speed in a very short period of time to buy and sell, is a common small profit transaction, compared with the brush single transaction, the scalp transaction event is shorter. For example, a brush trade may hold a position for more than 10 minutes, or it may be a minute or two. Scalp peeling is more defined as the level of a one minute cycle. Using technology, scalp trading can take place in a second or a few seconds. At the same time, stripping clearly defines the goal of each profit, starting from the pursuit of small profits, through a large number of transactions to accumulate profits.
Scalping requires individual investors or traders to have extremely keen insight and responsiveness to the market. However, in fact, in addition to relying on keen endowments to make profits, it is more dependent on the loopholes of different trading platforms to trade. This is because the quotation of different platforms is not synchronized due to the quotation source, server speed and network speed. Speculators can use this to obtain information on the fast quotation platform and operate on the slow quotation platform.
When using the scalpel trading method, we should also know that the short trading time may increase the difficulty of technical analysis. The shorter the trading time, the greater the market price change, because small investors have been in and out. As a result, only more experienced traders can keep profits in scalping.
It is impossible to give an accurate answer to whether scalp trading is good or bad. To sum up, since beginners do not have too much experience, it is difficult for beginners to make profits in the transaction if they want to use scalpel trading. Scalp peeling trading method is more suitable for experienced investors, and only experienced investors can obtain stable profits in scalp trading.