BASICS OF SCALPING
Scalping is a term used to denote the "skimming" of small profits on a regular basis, by going in and out of positions several times per day.
It is always helpful to trade with the trend, at least if you are a beginner scalper. To discover the trend, set up a weekly and a daily time chart and insert trend lines , Fibonacci levels, and moving averages. These are your "lines in the sand," so to speak, and will represent support and resistance areas. If your charts show the trend to be in an upward bias (the prices are sloping from the bottom left of your chart to the top right), then you will want to buy at all the support levels should they be reached.
1. Use lower stakes: The common rule is never to risk more than 2% of your initial deposit on a single trade
2. Minimize losses: As a scalper, you will probably make a lot of trades in a day, and the truth is that not even the best traders in the world have a 100% success rate. The key to earning good money with scalping is to minimize your losses, on the losing trades you make.
The holy grail formula for scalping is 2:1 ratio. What does this mean? It means that the setup you're looking for should help you make at least double the amount of potential loss.
3. Master specific strategies: scalping is not meant for amateur traders, but seasoned traders who have tested and mastered specific strategies which have worked out for the best
4. Select the appropriate timeframe: The maximum recommended timeframe for a scalper is the 1-hour chart, but you will make more use of the 1-minute, 5-minute and 15-minute charts
5. Control the number of simultaneous trades
6. Get in an ideal frame of mind: If you are unable to concentrate for any reason, do not scalp. Late nights, illness symptoms, and other distractions may frequently knock you off your game. If you've had a series of losses, you should stop trading and take some time to recover. Do not seek vengeance on the market. Scalping may be enjoyable and difficult, but it can also be frustrating and exhausting. You must be certain that you have the personality to engage in high-stakes activities.
Remember, Scalping is not for everyone. This is a difficult technique that requires the right temperament. Scalpers must enjoy sitting in front of their computers for the duration of the session, as well as the extreme focus required.
It is always helpful to trade with the trend, at least if you are a beginner scalper. To discover the trend, set up a weekly and a daily time chart and insert trend lines , Fibonacci levels, and moving averages. These are your "lines in the sand," so to speak, and will represent support and resistance areas. If your charts show the trend to be in an upward bias (the prices are sloping from the bottom left of your chart to the top right), then you will want to buy at all the support levels should they be reached.
1. Use lower stakes: The common rule is never to risk more than 2% of your initial deposit on a single trade
2. Minimize losses: As a scalper, you will probably make a lot of trades in a day, and the truth is that not even the best traders in the world have a 100% success rate. The key to earning good money with scalping is to minimize your losses, on the losing trades you make.
The holy grail formula for scalping is 2:1 ratio. What does this mean? It means that the setup you're looking for should help you make at least double the amount of potential loss.
3. Master specific strategies: scalping is not meant for amateur traders, but seasoned traders who have tested and mastered specific strategies which have worked out for the best
4. Select the appropriate timeframe: The maximum recommended timeframe for a scalper is the 1-hour chart, but you will make more use of the 1-minute, 5-minute and 15-minute charts
5. Control the number of simultaneous trades
6. Get in an ideal frame of mind: If you are unable to concentrate for any reason, do not scalp. Late nights, illness symptoms, and other distractions may frequently knock you off your game. If you've had a series of losses, you should stop trading and take some time to recover. Do not seek vengeance on the market. Scalping may be enjoyable and difficult, but it can also be frustrating and exhausting. You must be certain that you have the personality to engage in high-stakes activities.
Remember, Scalping is not for everyone. This is a difficult technique that requires the right temperament. Scalpers must enjoy sitting in front of their computers for the duration of the session, as well as the extreme focus required.
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