Monday, November 3, 2008

Forex Scalping

Forex scalpers can get access to investor capital and trade without dealer intervention

True scalping involves opening and closing a position in seconds or minutes at most. Even though scalping involves the use of leverage and higher leverage means higher risk, the short period of time a forex scalper is in a trade decreases the exposure risk that's inherent in trading or investing due to the holding of a position. If done correctly, scalping provides this additional degree of "risk control" that is not even present in day trading.

who use scalping have as their main trading method the art of looking for any advantage given by very short term trading opportunities.By short term I mean entering and exiting a trade within a minute or two. This is, by using the “scalps” of the natural oscillations occurring in the markets.

When you are “scalping the markets” you are not looking for the big move of the markets that will result you in a big gain, instead you

are looking for tiny moves in your favor that through all your trading session will result in a significant gain without the risks and insecurity involved in waiting for the big move in your favor.

In short; scalpers aim to have several trades a day with the objective of accruing a number of small profits each time that will grow into a respectable daily total. By using this approach to trading the markets losses per trade will be minimal. Every experienced trader knows that a small but profitable scalp is the easiest trade to make. The whole secret is to get in and get out of the market as quickly as possible. Short and small accumulated can make you real money in the markets.

Why don't most brokerage firms like forex scalpers?
Forex Scalping Platforms - the Good, the Bad and the Ugly
Forex Scalping System Trading or Manual Execution?

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