Some important tips for the scalping and scalper you will find in this article.
Scalping is one of the most popular trading method in forex market due to its quick return and higher gain possibility everyone attracted to scalping in early stage of his trading carrier. Most of them failed to master this method as it is not that easy as it is sound. Every method has some rule and specification most of the newbie trader forget this and they don’t follow the proper rule and as a result they blown up their account. This is one of the toughest method to master but who has master it they made a fortune out of this. Lets see some tips for Scalping and Scalper.
1. Trade with Stop-loss .
2. Small position size.
3. Use higher time frame to determine trend direction and trade only on one direction with the trend.
4. Avoid buy entry on over bought area or major resistance. Avoid sell entry on over sold area or major support.
5. No scalping on Friday. most of the time Friday move anti trend.
6. No trade 2 hour before and after any high impact news.
7. Normally 1:2 risk to reward is suggested but for scalping 1: 0.5 would be enough as you need to have higher winning ratio to be a scalper.
8. Ranging or sideways market is safe for scalping. Normally after high impact news when market give huge movement it goes for retracement and move sideways.
9. Take direction from higher time frame. you can take help from Oscillators (RSI,STOCHASTIC etc)
10. follow proper money management.
11. Use small account for scalping. If you have 10k for trading use 1k in one account.
12. Do not go for many pair. One pair is good enough.
Forex trading is a tough place to survive so never invest money that you can’t afford to loose.