Forex Scalping - The Right and Wrong Ways

 

I can safely say that there are no shortage of forex scalpers out there.  It's pretty obvious that there are traders who prefer to go in and out of the market a bunch of times during the day, instead of having the traditional "buy and hold strategy" for weeks on end.

However traders should be aware that when you choose to be a forex scalper, the risk becomes a lot bigger.

In fact, over 95% of scalpers in the forex market end up losing more money than making it.

This is why it's so important to learn how trade the forex market correctly.

instead of just jumping into something you don't know much about.  You have to expect to do some legwork.  This is when learning price analysis is really key.

You see, most new traders don't really spend that much time learning about analyzing the markets.  After all, that's why indicators are around, right?  Wrong!!!  

There is no "magical" indicator.  Traders are always looking for an indicator that does all the work for them.  If that was the case, then there really wouldn't be a need to "analyze" the markets, would there?

This is the kind of mindset that many new traders have, unfortunately.  They think that an indicator will answer any kind of question that you could have about trading.  It doesn't work like that.

Instead of thinking that you need an indicator to tell you when to  buy and sell, you should look within.

For instance, do you actually know how to spot the trend?  You should if you plan on forex scalping. I'll give you a clue.  It has nothing to do with moving averages.  in fact, you could look at a simple bar chart for 2 seconds and be able to spot the trend.

It should have nothing to do with what an indicator is telling you.

Also, what about support and resistance areas.  What do you use? let me guess, you use one of those proprietary indicators based on those generic formulas that everybody uses.

Don't feel bad if you do.  I did when I first started with forex trading classes. But do you really think that TRUE s/r areas can be used with simple, static formulas?  I don't think so.

These support and resistance areas should be able to be seen with the naked eye.  It should be clear as day.

 

 Forex-Trading-Education

 

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