Forex is a trading instrument that has many ways, methods, and strategies to generate profits.
Therefore, to become a professional trader, it is necessary to have an in-depth understanding of technical and fundamental matters as a support when trading.
When it comes to professional traders, surely everyone has their own criteria.
There are some people who think that professional traders are traders who managed to get big profits in one transaction, or traders who can consistently make profits even though the amount is small.
Basically, every trader's view must be different, no matter whether they are amateur traders or professional traders.
Likewise, the methods or techniques used by traders will definitely be different from one another.
On this occasion, Benimaru.eu.org will discuss one of the commonly used trading strategies or methods, namely the Forex Scalping Strategy.
A lot of Forex Traders know about this strategy because profits can be obtained quickly using this trading style.
Many traders, including myself, are curious about this strategy, and it is not surprising.
By using this strategy, forex traders aim to generate small profit but do it in a row, making them known as scalpers among other forex traders.
To find out more about the Scalping Strategy, see the discussion below.
What is Scalping Strategy in forex?
For traders, both beginners and professionals, of course, they are already familiar with this technique or method.
Scalping strategy is a trading method or technique based on real-time technical analysis.
In general, scalping aims to open many large trading positions in the hope of making big profits; of the small profits resulting from the position.
In other words, it can also be said that scalping is a trading strategy that is carried out on a low time frame with the aim of making a profit in a short time.
Traders usually prefer to leave their trading positions open for long periods of time, ranging from hours to days.
It aims to get big profits ranging from 20 to 1000 pips.
In contrast to traders who use the Scalping technique (Scalper) who will not leave their trading positions open for a long time.
Therefore, traders who use this technique will get smaller profits in one transaction, which is around 5-15 pips.
Even so, traders with the scalping technique can open and close positions with a frequency of tens to hundreds per day, therefore the profits can be greater if accumulated.
To become a Scalper, you need a high level of concentration and accuracy, because the goal is to make profits in a short time.
So, a scalper must constantly monitor the trading platform to be able to run scalping techniques.
Why are scalping strategies used by many traders? Here is the main reason:
That's the art of forex trading, we can use various ways and tricks to get faster profits and optimal results.
And scalping trading is widely used by traders because in a short time we can make big profits.
Actually, there are many explanations of "The reason why scalping strategies are used by many traders" if we look at the advantages that scalping strategies provide.
The advantages offered by the scalping technique are many for those who are truly passionate.
For me, Trading is an art, in art, there will be processing and processing when scalping is indeed the main attraction, for example, one of the advantages of scalping is that we will not worry about floating position, because scalping will always close positions in a short time and where for some people, floating position is an annoying thing if you don't know exactly which direction the market movements going, because when floating we only have two choices between leaving it alone, with full of hope and anxiety, or we just cut loss.
While scalpers rarely let their trading positions run freely for a long time because they are floating.
When market movements are no longer as expected, at that time a scalper will exit the market/cut loss, because the technique they use is not to predict the long-term market but only to be used as a short-term moneymaker.
The second advantage that makes scalping used by many traders is that we can trade quickly and it doesn't take a long time to trade just to wait for results.
And for myself until now, I really like scalping trading the most, because the results are clear and I can use it to meet the simple needs of my family.
The reason for not using a scalping strategy to trade forex!
After discussing the reasons why many traders use the previous scalping strategy, then I will discuss the reasons for not trade forex using a scalping strategy.
The main disadvantage of this scalping strategy is the amount of risk, not only the results are big, but the risk is also very big, because the lot size that is used is also greater than the swing strategy.
Then, you need to know that most of the boker prohibit the use of scalping. One reason is because it can burden the Forex broker server, as a result of the many orders done in 1-2 minutes by many traders.
Actually brokers are not directly, prohibiting the use of scalping strategies, just in the middle of the trade, there are problems that will be found, from Requote or make it difficult to order.
Because traders with this scalping technique, will do tens up to hundreds of transactions per day, and it takes a lot of time to be in front of the PC.
Then for short-term application, we need to use a large leverage for example 1: 2000 therefore, one or two failed transactions can significantly affect the total funds, therefore scalping techniques must be used with a measured lot size.
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