Forex scalping is a trading system that lets the trader trade by opening forex positions for a few minutes to enable them to make minor profits as fast as possible. When trading with scalping, a trader leaves his or her open position for just around three to five minutes, while at the same time opening a lot of trades of similar nature to last for roughly one minute.
Forex Scalping is well known and utilized trading strategy because it reduces the risk of loss in forex trading to the barest minimum. The standard forex trader concentrates more on things like trends and ranges, while forex scalpers are mostly concerned about the bid-ask spread. The forex market volatility thus has fewer effects on the forex scalper than forex traders that trade by following trends and forex traders who do day trading.
Does forex Scalping suit all types of forex traders?
Forex scalping doesn’t suit their trading styles. Scalping only yields a very minimal profit for the forex traders and for the trader to make sufficient profits he or she may need to open many of such positions instead of winning big at a single time.
While the scalping trading system reduces the trader’s exposure to the risks in the forex market, it also reduces the ability of the trader to win big in the forex market.
A forex scalper needs to be a trader who is not eager to make an instant profit, he or she must be patient enough to work hard while waiting to grow the forex account gradually. An individual who is overly excited and who has impulsive nature is not suitable for a scalping strategy.
Another important feature that a forex scalper must possess is concentration. A scalper needs to always concentrate on his or her open positions all the time and prepare themselves to take instant action as required by the trading circumstances.
Forex scalping is only suitable for full-time traders and is unsuitable for part-time traders because it consumes an enormous amount of the traders’ time. However, a trader can as well make use of automated trading although this comes with its peculiar risks. If you think you want to trade the scalping method but don’t have all the time, you can utilize the automated option.