Selasa, 31 Januari 2012

How To Apply A Forex Scalping Strategy

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Theforex scalping strategy is a high intensity, which is based on short-term exchanges.Scalping forex trading is a technique in which operations are performed in a very short amount of time, usually from a few seconds to a few minutes (10-15).The high volatility of the Forex market that favors short-term trading strategy.

There are different types of approach to Forex scalping, ranging from 'technical analysis to' fundamental analysis of published data.The common denominator of this trading strategy is that the transaction will close quickly.

Like any trading strategy, scalping Forex also has its strengths and weaknesses.

One of the benefits arising out of forex scalping comes from the fact that the trader's risk factor is minimized.It lets you open and close positions quickly, bringing profits consistently, and reducing the possibility of large losses.Forex trading success requires a rigorous risk management (especially for traders with small capital)).With scalping, the risk becomes easier to manage, so many traders rely on just this type of strategy.

During a session of scalping, a trader opens speculative positions on a currency pair in order to achieve a profit after a very short time.It does not matter whether the medium or long term trend is bullish or bearish, because traders generally applies a forex scalping strategy is based on 1 minute charts and speculates on small fluctuations in the market.

One of the disadvantages that instead comes from Forex scalping is cost.For example, a trader buys one lot of EUR / USD 1.302 to 1.304, in the expectation of a strong uptrend.With two pip spreads from Forex Broker, the trader is already in a negative $ 20 when part of the order.So, assuming that there will be really a bullish trend, and the price will rise to 1322-1324, the trader will end up with a profit of 200 pips, the less the spread charged by the broker.The net profit will therefore be 198 pips.

Another trader could open the same position on the EUR / USD, the price going from 1.302 to 1.304.However, this trader could apply a different strategy, so it does not take open positions for more than 25 pips at a time.So, considering the same move of 200 pips, the traders open and close positions for eight times.This means you will have paid 2 pips spread for eight times for a total of 16 pips in the negative.At this point, the net profit will be only 184 pips.

There is therefore a clear trade-off between risk management and maximum profit.The second trader has the advantage of immediate profit and greater flexibility in periods of high volatility in prices.However, the trader pays the most commission, in terms of spread, its forex brokers.

In aggressive scalping is generally open only one position or a few at a time, but within hours they are opened and closed many operations.Forex scalping, if well managed, can lead to big gains thanks to the absence of commissions in the transaction, to the magnificent benefits of leverage, and the immense liquidity of the market that is active for 5 days a week, 24 hours 24.The stop loss is placed near the entry price, so you can minimize losses and close the position even with small profit margins.

To runforex scalping requires a great deal of attention and a trading platform that permits the application of this strategy.So fast and agile platform for entering orders, because small hesitation could undermine the position.During the forex scalping you can also aim at a greater profit when you are sure to be in a favorable trend.

Not all forex brokerslike scalping, indeed, many brokers will not allow it on their own accounts, brokers and others have created special accounts for scalping.In fact, when you choose a trading strategy, your forex broker of choice becomes crucial.


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