This time we come to talk about Forex and the central explanation in relation will be How to succeed using scalping.
We have that Forex scalping requires that the trader possess special qualities, they are certainly important characteristics, now if we want to understand how to succeed using scalping, you have all the necessary answers in this regard, so you should pay attention to the following content.
How to succeed using scalping in Forex?
To succeed with this strategy, the following is needed:
- Properly choose the currency pair
- For this trading technique choose an ideal broker
- Be able to choose the right time to operate
- Use appropriate leverage and risk management
- Have a well defined strategy to open and close positions automatically
The development of scalping, it is important that the traders focus maximum on 2 currency pairs, where each of these has specific features, which represents its behavior, is key to understanding how to succeed using Forex scalping that The afternoon is aware of these traits so that it performs the correct operation, success is focused on the knowledge of a currency pair and this will be of greater need than to know of several currency pairs but less in depth.
From the main currencies we must choose, among which are, for example, EUR / USD or GBP / USD, they are the most suitable at the moment so that we can use this technique, since they have greater liquidity, compared to market events these pairs of Currencies present a moderate response, exotic currencies are not suitable for saclping, being so because unpredictable prices are more frequent, making the risk in the orders difficult.
Choose the right broker for forex scalping
To get to understand How to succeed using scalping the choice of a broker will be one of the fundamental steps for the trader to manage to operate with scalping, there are several factors such as spreads and the operation and stability of broker-dependent platforms mainly, To have the idea you have to have the following characteristics:
- The spreads must be low
- Have analysis tools and have stable trading platforms
- The Forex Experience
- Offer low spreads
For the How to succeed using Forex scalping we have that the spreads are sensitive in this strategy, it will not be such an important spread variable as long as the operator opens one or two positions, which will not exist a risk of profitability if the spread It is still a small cost, if it is successful in its operations, in the scalping it is different, it is possible that in this position many positions are opened in a short time, the cost of the spread here will be of impact on the result of the operator specifically in Each operation
Trading platforms and tool analysis
In our strategy in question, in the short periods of time that scalping is used, the technical analysis tools are used, with respect to the pair of special currencies in which it is being traded, will or will not have an effect, being unpredictable at this moment, depending on The platforms that are offered by the broker, you have to bring the analysis tools, even with the graphics of 1-2 minute scales and 1 temporary tick, to know more about How to succeed using Forex scalping, we must continue pending than follows below.
The Forex Experience
A Forex broker is important for such a technical trading method as scalping, which is at the forefront in years. As having success using scalping, this is one of the important steps, in AvaTrade there will be all the features of reference in Forex global broker, in addition, here will be the best trading platforms, 24 hours a day, 5 days a week a technical support service.
What is the best time to operate?
The scalping is of high frequency, where a high liquidity will be essential, in this way the orders that the trader requires at the speed are guaranteed, so it will be executed, in the currency pairs in Forex only the high liquidity is found, in the hours The day is where you can ensure greater liquidity scalping, since at this moment is where the largest volume of negotiation takes place, with the markets of London and New York being open at this time.
Use the right leverage and risk management
As having success using scalping carries many important details, this in question is one of them, where the scalping strategy combines both leverage and risk management, positions represent a small benefit in itself, with leverage it is possible that Increase profitability, but it also increases the losses so you have to carry out an adequate risk management that this merits, to get out of the operations with the lowest possible losses, the stop loss in case the operation does not go well will minimize the losses regardless of loss allowed by the operator.
Have a strategy that automatically allows opening and closing positions
A system that allows to operate automatically is necessary so that the positions can be opened and closed as frequently as it is for scalping in Forex, the speed prevents a deep analysis of each operation, the system must be able to generate confidence, to make them you need short-term graphics, 1 0 2 minutes maximum 5.
We have near the end of everything in relation to how to succeed using scalping in Forex, let's consider the aspects that come to finish, an example of the strategy is called 1 minute scalping
To develop it, at this moment of 1 minute, you have to delimit the temporary maco in the graphics, adding them to the trading scale once we have the indicators to the platform, EMA in periods 100 and 50, in periods 5.3 and 3 stochastic indicator, when meeting these conditions:
The purchase signals will be activated:
Above that of 100 is the moving average of 50, where we have to return the price to the averages and cross at 20 from below the stochastic indicator.
We have to activate sales when:
Below the 100 will be the moving average of 50, return price to the averages when crossing the stochastic indicator at 80 from above and so we have resolved if we want to know how to succeed using scalping, here everything was presented. Finally, it only remains to say that in this content there is talk about Forex and at the same time regarding this the detailed explanation that allows us to understand how to succeed using scalping, we want it to be to your liking and usefulness.
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