This article promises to be interesting for people in the online trading industry. Now, what is scalping? Contextually, Scalping is basically scraping off the bits or top layer of something.
Remember when you were a kid and Mother gave you biscuits, but you loved the creamy sugary part, so you used your teeth to scrape off the creamy part and enjoyed and left the biscuit itself. That is scalping in Context (I emphasize context because the word has many origins and explanations, from Medical to Philosophical).
In trading, Scalping is simply taking advantage of small movements in price to gain large profits. There are many definitions of scalping on the internet, and some will even tell you that scalping no longer exists! It is my duty now to separate fiction from fact. I have been in this industry for a very long time, and I have seen both the spectacular and the disastrous, but what I can tell you is that there are many hidden ways of making money in this Forex and if you are going to survive, knowledge is key.
For you as a beginner, scalping should be a way of successfully extracting a minimum of 5pips to 30pips from the market in a very short period of time. Many will disagree with me here, the reality is that scalpers are potentially the most profitable among forex traders (Only the Union of the Lot Sizers or Super Scalpers can beat scalpers, we shall talk about this later).
While ordinary traders are holding trades into the next days or weeks. There is a very big reason why scalpers can be very profitable. A true scalper who has practiced his art and is now efficient, will get into the market and out very quickly collecting few pips here and a few pips there.
The regular traders are looking to take advantage of potential 100 pips bullish move which could take several days, the true scalper knows that in that 100 pip bullish move, there will be several small pull backs some 5pips, some 10pips, some 20pips, some 30 pips even 50 pips and in that 50 pips pullbacks, price will fluctuate in a 5 to 20pips bull/bear battle before one finally overcomes the other and the pullback may either continue thereby changing trend or stops and main trend continues.
Among the scalpers, there is an elite force in which I will proudly say I was a member for a long period of time; The Super Scalpers. The Super Scalpers not only take advantage of small pip movements in the market, but also are slightly abusive of lot sizes. This is a very dangerous practice and must never be done by a novice. But the trick is knowing a certain chart pattern or sequence of events that always repeat themselves on the forex market.
The Super Scalper’s secret is his ability to know with absolute certainty, that the trade is going his way very quickly! And when the correct set-ups reveal themselves, he then dumps stupendous lot sizes into the markets, often over leveraging his account and small pip movements equated to stupendous profits within the shortest possible time.
Amazingly, this practice was actually common with banks back in the 1980s and early 90s and within a period it takes you to read this message this far, bank traders would make up to $100 000 in profit easy.
There is one thing you should know though, that scalping is not for everyone. All are built psychologically different and there are certain things that some will never be able to handle. This type of trading comes at a high cost of mental fatigue and psychological strain and thus is not for the weak at heart.
To be good at scalping today requires much learning and practice, as a beginner, concentrate on growing your account steadily and patiently, focus on targets of 0.5% to 5% per trade and you will do well in this industry. The key to success as a Super Scalper is simply knowing your ENTRY very well.
Happy Super Scalping!
PS: If you find this helpful, please drop a comment below and share with your loved ones.
Steve Ever
E-Business Consultant
+2347060818784
