The forex trading becomes more popular in recent years, allowing relatively small players to join the financial markets and touch the life of the real traders. The traders are looking for low spread forex brokers, to improve the efficiency of the deals and raise their revenues, but the technology gives more opportunity for the players. With the development of the foreign exchange market, novice traders have got great opportunities to simplify their trading process and to learn from other live traders, choosing the strategy forex scalping.
Forex scalping is one of the foremost strategies that consists of opening and closing transaction quickly. The “quick” closing of the deals takes into account a timeframe of 3 to 5 minutes, with most scalping deals for less than a minute. The popularity of scalping, as a forex strategy, is based mainly on the understanding that traders are exposed to a much lower risk. Many of them claim that quick opening and closing of orders is far safer than transactions that last for hours, days, weeks, months, and so on.
Before you ask how to do it, you need to be fully prepared to have a chance of success. Unfortunately, just knowing how to do it is not enough. This is because the essence of scalping is fast performance and relatively narrow spreads. If your broker is not able to offer them, you even know what you are doing and do it correctly, you will not be able to scalp profitable. So the first thing you need is a licensed scalping broker who executes transactions quickly without rejecting them because the market is moving fast. After all, finding such a broker is not an easy task.
However, scalping is not a forex strategy suitable for any trader. Typically, the revenue earned from a transaction that is opened for scalping is small, but when you collect the profits from each transaction, over time, they become quite large. Scalpers do not like to take big risks, which means they are willing to give up big profit opportunities in exchange for smaller but more frequent and more secure incomes. Therefore, scalping strategy is for traders who are patient and want their trading profits to increase over time. If you are an impulsive trader who wants to make big profits for a short period of time, then this strategy will only bring you losses and disappointment. Scaling is a forex strategy for patient traders who do not expect big profits for short periods of time.