The Joy Of Scalping

Why be a Forex Scalper? Simply put, it is both fun AND profitable! The concepts are easy to learn, easy to do (once you're skilled at it), provides you with an adrenaline rush, and can fatten your bank account.

Personally, I think that of all Forex trading methods that scalping is simply the most fun. The trading style is mentally stimulating, and it's exciting to watch your profits grow.

If you are a chronic trader, someone who enjoys doing frequent trades, you'll find that here you'll have the chance to be "trigger-happy". Day traders often have to wait for hours before a good trading opportunity comes along (sometimes they don't even trade that day if nothing seems to happen), position traders often have to wait for days or even weeks before a suitable trading opportunity presents itself, but a scalper can be joyfully raking in fantastic profits while the other traders are bored out of their minds! For these reasons experienced Forex traders can also add scalping to their trading toolbox; so that they have another tool to work with.

I'll elaborate upon when traders employing other styles of trading might switch to scalping. Generally speaking when a currency pair goes into a tight range or consolidation in the time frame view one is normally looking at, if you were to zoom in even closer it would be apparent that there is plenty of market move on a tiny scale. A trader could then scalp the tiny movements when otherwise they couldn't trade at all.

Often times it is generally best for most Forex traders to restrict trading activity to only the times when two markets overlap (typically 2am to 6am and 8am to 12noon EST (New York time)), however even outside of those times a trader can engage in scalping, thus a scalper can trade virtually at any time 24 hours a day. Because many people are simply part-time traders, trading as a hobby, due to having to go to work at some job, scalping is a method that may allow those people to trade who might not be able to otherwise participate in trading during the optimum times mentioned above.

Scalping professionally sure beats going to work at some J.O.B. (Just Over Broke - ever notice that you're still broke soon after getting paid?) that you hate everyday. As a scalper you can hang around your computer for a few hours, make say 5+ trades, and profit as much or more than you might earn all week going to a job working for a grueling 40 hours. If you have a job then don't despair... after some time your "hobby" of Forex Scalping can possibly save you from a lifetime of being a slave working to make some company rich.

All hype aside, I think that scalping is a useful skill for all traders to have for various reasons. As mentioned above, it allows a trader to trade during times when other styles of trading would make you sit on the sidelines (not trading), so you can engage in profit making activities when you otherwise couldn't. Scalping is best used in conjunction with, as a supplement, to other styles of trading - so keep trading your primary methods and add scalping to your trading toolbox.

The downside of scalping is that it is the most labor-intensive style of trading. Whereas longer-term styles of trading might only require minimal "work" each day (as some of the techniques presented in the eBook "Forex Sailing"), and some kinds of day trading (as taught in the eBook "Forex Surfing") may only require periodic checking of charts during a trading session, scalping however requires that you spend more time paying attention to charts throughout a trading session, and active concentration while engaged in a trade (you can't leave your computer to grab a coffee as easily). Despite the fact that it is the style of trading that most resembles "work" you should still take the time to learn this style regardless of whether you intend to trade it often or sparingly as it is a useful skill that can help improve your other trading methods in a variety of ways.

Remember also that you don't have to scalp everyday, but you can treat it as an occasional sport or game (best "played" in a demo account) for the shear joy, thrill, and instant gratification that this style of trading offers.

Basics Of Forex

Basics Of Forex

Insider Techniques To Profitable Forex Trading. In any business or moneymaking venture, preparation and foreknowledge are the keys to success. Without this sort of insight, the attempt to make a profitable financial decision can only end in disaster and failure, regardless of your level of motivation and determination or the amount of money you plan to invest

Get My Free Ebook


Post a comment