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How To Make It Easy? - Forex Scalping Strategy

skrimon

New member
The scalping strategy is a renowned strategy in forex trading. Most forex experts are using this strategy. Because scalping means short-time trade. That's why as a beginner, it can hard to trade. So, here are some easy tips to get it easier for beginners--

  • Choosing Pairs with Lowest Spreads

As mentioned before, FX scalping strategies are not about making massive returns on one or two trades, it operates on small 5 to 15 pip gains. Therefore, large broker spreads can easily eat into those margins and take out significant portions of the trader’s payout.

Consequently, those who are considering how to scalp Forex might be more selective about the Brokers and currencies they wish to trade. For a practical example let us take a look at the Axiory Forex Spreads.

The company offers three types of accounts to customers, each having different spreads. For the sake of simplicity, we will consider the Standard trading account.

  • Picking More Volatile Pairs

Spreads are not the only useful criteria when choosing currency pairs for a scalping trading strategy. Another important factor is volatility. Since this style of trading seeks quick gains the market has to move faster to produce those results.

Less volatile pairs are not that useful for this purpose since it might take much more time for the rates to move. Consequently, instead of a 5 or 10-minute trade, the trader might have to wait for half an hour or more for the pair to reach the desired level.

  • Avoiding Brokers with Dealing Desk

It goes without saying that, when it comes to trading, finding a broker with a good reputation is always important. However, if one uses FX scalping techniques that becomes even more crucial. In this style of trading, every second count.

Therefore the worst scenario for any trader would be if he or she opens positions, achieves 10 or 15 pip gains, but is prevented from closing positions because some Dealing desk rejects to execute orders. This can be especially harmful, if some major announcement or event is taking place, since a trader can lose a significant amount of money, because of that.

  • Using Moving Averages

Moving on to the technical indicators used in the methods of scalping Forex strategy, for many traders the Simple Moving Average (SMA) or Exponential Moving Average (EMA) can be a very helpful tool. Traders can use a 5,10, 50, or even 100 periods SMA or EMA or higher depending on his or her preference.

One way to go about this is to look at the direction of the moving averages and open positions in accordance with them. Obviously, longer-term trades might require much more analysis, but in 1 to 15-minute trades, it might produce some results. This might not be one of the best Forex scalping techniques, but it can work for many traders.

  • Utilizing Bollinger Bands

Bollinger bands can be a very handy Forex scalping indicator. A flat Bollinger Band line suggests that the market is settling down for tight-range trading. The basic strategy here is very simple: a trader can buy a currency pair if it moves close to the lower bound and sell pairs where the price is close to the upper band.

Clearly, this does not guarantee that all positions will succeed, however, this tactic might help traders to win the majority of the trades.

I hope, you have guts now. Just maintain these guides, you can easily use a scalping strategy on your own. Also, I want to share something that recently I am using Pipshunt for getting the right market prediction. Really, it gets me the high deal around the market. And with its reliability, it gets much smoother for me.

So, if you have any concerns about this, just make a decent comment.
 

ellisdelgado

New member
Tried this scalping strategy a few times but it didn't work that well for me. Can see that I have made a mistake by choosing the wrong pair with wide spread. This post is really helpful @skrimon. Will try to follow these tips in my scalping trades.
 
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