When you look at how fast Forex charts move, it's no wonder that a lot of Forex day traders ask the question "How to scalp Forex". If you're not sure what scalping means, it means taking a handful of pips from a trade that's been open for a handful of minutes. The aim is to make a small gain on a large number of trades. The theory is that since your money isn't in the market for long, you're less exposed than you would be if you held your position for, say, a few hours or even longer.
In a nutshell, the answer to the question of how to scalp Forex is to watch for a short term trend in the market, place your trade (probably with a very tight stop loss) and then watch the charts like a hawk until you exit your trade a few minutes later, hopefully for a profit.
Of course, like all things, this can be easier said than done.
You need nerves of steel and a good attention span to be a good Forex scalper. The typical scalper places tens or even hundreds of trades every day. Like every form of Forex trading, scalping should be tested with one of the freely available demo accounts so that you can get used to the pressures without risking any money at first.
Since the aim of Forex scalping is to make a small number of pips a large number of times, the spread offered by your broker. It should be obvious that the bigger the spread the smaller your profits will be from your trading.
Another thing to keep in mind is that you should be consistent in your scalping trades. The best way to do this is to set up as much as possible on auto-pilot in your trading software. Spend some time making sure that all the defaults are set up as close as possible to your liking so that you can place trades quickly, safe in the knowledge that they are within your trading tolerances.
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