Many traders' goal is to become a successful forex
scalper. To some, they can't even think about trading in the long term traditional
manner. They prefer the excitement of buying and selling a bunch of times during the day, and
going for a quick 5-10 pips a trade.
The bad news is that many traders have tried to trade
successfully, but many have failed. In fact, approximately, 95% of all forex
scalpers have failed to see any success in their endeavors.
Where did they go wrong?
Well... here are some forex trading instructions:
1) Controlling your emotions: If you are
planning on forex scalping, you better check the emotion at the door. This is
true for regular investing. This is doubly true for scalping. It is not meant
for the weak hearted. If you can't handle the stress of the quick "in and out"
trading that comes with scalping, this is probably not right for you.
2) The importance of money management.
This is when I wish traders really learned how to trade
forex correctly. Newbie scalpers act like they are in roulette table
in Vegas. They act as if scalping is like gambling. They think its all a hunch.
They feel the need to play from the "gut" instead of their mind.
They live for the excitement and the rush they get
from the instant gratification. This is when traders make careless mistakes. Mistakes
like overleveraging your trades, and completely destroying your margin. The next thing you
know they have a margin call, and they are sitting there wondering what in the world
3) Clean your charts. This may not make any
sense. But what I am essentially saying is get rid of the filler (a.ka.
indicators). It's probably the best thing that you can do. After all, what kind
of success can you expect when you are just using lagging indicators to help you trade. Do
you really need to know what has already happened?