Becoming A Forex Scalper - Three Things You Have To Know

 

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 happened.

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?

 Forex-Trading-Education

 

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