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