Learn The Stock Market And How to Trade

Scalping Forex or Trading Forex?

There are two different trading styles and really shouldn’t be mixed as they require different mentalities. 

A trader looks at the direction of the market and makes his bid based on the direction using key indicators and then monitors his trade on the forex pairs based on changing market conditions. 

The scalper is using market volatility to jump in and out of the market or scalp the market to make consistent, repeated small gains.  While both traders and forex scalpers may use similar indicators and mentalities the time frames are different.  The forex scalper must have is entry, exit, stop loss all planned at the front as the whole exchange may only take seconds.

In order to make a successful living at scalping the Forex your trading platform becomes one of the most critical components.  If there is too much intervention between the broker, market maker and yourself you may find yourself not getting the short term fluctuation you expected.  Unfortunately, these quality real time systems with quality 1- minute history for back testing can be very expensive.

So say you go through all the effort of making 10 or 20 trades a day for a pip or two per trade.  Is it all worth it?  Only with the Forex trading margin it is.  However, it can be difficult with no experience to make good trading decisions, money management decisions, and emotional checks in a very short time frame consistently.  I highly suggest one starts with the Forex basics, learns to swing trade or momentum trade consistently on a longer time frame.  This will give you real life experience in what 9 consecutive losses can do to your bankroll or a unexpected interest rate change.  During this time of long term trading you can be back testing your scalping strategy.

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