If you ask any trader the essential aspect that keeps them on the game (trading), you’ll simply get similar answers across a plethora of folks you ask. The answer you’ll get your guess is good as mine-profit.
It’s almost certain that by now, you’re aware of the importance of forex signals and what you need now is to go a step further.
To trade forex, as a trader, you need to develop various strategies as well as systems. One such essential strategy is forex scalping.
So, what is Forex Scalping?
Forex scalping is simply a trading strategy whereby a trader performs a plethora of various trades within a single day aiming at capturing some pips per trade.
Forex trading may seem a fast and easy way of making money that you only put on some trade at high leverage then aim for pip and collect money. However, it’s until you lose several times consecutively that you’ll realize that losses are more significant than the wins.
Perhaps, scalping may get you out of the hole, but you’ll need to set sights lower regarding the amount you want per trade and maybe setting the targets higher.
Why Scalpers Require Forex Signals for Scalping
There’re several types of signals starting with the long-term signals meant for position traders, then medium-term for swing trades and the most popular short-term signals for scalpers.
Trades are held for a few minutes to an hour, and hence, scalping trades can help minimize the risk while reaping your benefits when done correctly.
How to Choose the Best Scalping FX Signals
Scalping the market is getting popular, and as a result, several forex trading signals providers are as well entering the internet with full force. You don’t have to be fooled with that first forex signal popping up or hitting your email inbox.
Therefore, you find a signal provider offering clients a free trial so that you can as well forward test and back-test. Also, see testimonials from those who have already used the signals similar to the ones you’re seeking.
Furthermore, you should consider the trading history of the signal provider as well as the past performance data. The trading history should be long enough to learn whether the signals were well useful for traders.
Another thing that you need to be cautious about is the signal providers boasting about past performance. Most of the time, they claim how their scalping FX signals will surely provide substantial returns. Claims of that nature usually show the commercial purpose of a product, and they may not be even traders.
The Fun May Stop When Loses Start Flowing
One someone said that “you can as much try to scalp the FX market, but finally it will scalp you.” One thing for sure, scalping is fun whenever you’re winning, but when you start losing, the fun disappears.
As it is with human nature, always we want to be smarter than the market itself. However, we fail to realize that the market is forever simply the market, and all we can do simply is following it.
Therefore, you can ‘beat’ the market method, and if you scalp, the following rule should be followed:
- First – Trade small. It’s indeed tempting to trade with everything for fast money, but that’s the way to ruins. Make your trade short always while giving yourself room to getting out without being broke in case of a mistake.
- Second – Have stops. Going wrong with scalping is part of the process. Therefore, you should set a halt as your maximum loss, and follow it to the dot-just leave it alone. Once you’re stopped out, accept that loss and move on.
- Third – Learn to trade. As much as it may seem silly, overall, scalping isn’t a viable method of trading. Mostly, it’s used together with some other means and not by itself as a method. Therefore, when scalping, rather than trading, learn how to trade forex.
Forex Scalping Strategies
A plethora of trading strategies do exist, but typically they fall into broad categories. Most of the strategies are simply triggered by the trading signals, which means that a sign or a warning alerting you for a trading opportunity as well as FX scalping signals are not an exception.
Trend strategies involve getting into the direction of the trend and attempting to get hold of a profit as the trend continues.
Countertrend trading is another strategy, although, for a scalper, it can be difficult. It involves taking your position in the opposite direction as the trend. It’s a trade made only when you expect a reverse or a pullback of the pattern.
Also, there are range strategies that identify the support as well as resistance areas. A trader can then attempt to sell near resistance and buy near support. The oscillating price action benefits the trader.
There are also statistical strategies whereby a trader looks for some patterns or anomalies occurring given some specific conditions. They include either buying/selling or holding a position even for a few minutes whenever a particular pattern of the chart appears.
What do Scalping Forex Signal Offer?
By now you may be asking yourself some questions of what scalping forex really offers. Don’t worry, here is what they offer.
- Opportunities during Uncertainties – always scalping signals will offer trading opportunities. The market is always the market and sometimes can get tricky, and hence, trading based mostly on the long-term charts can suffer. During those times of irrationality, scalping gives the opportunity of making pips even without figuring out the market.
- Opportunities in Volatile Markets – volatilities usually happen in the markets and make trading in such a market very difficult. The reason being, you won’t know the effect some fundamentals can have on the FX market or even the direction the pairs can be sent.
Therefore, scalping signals help reduce risks in those market conditions.
- Opportunities in Large-Scale Markets – The long-term trades often take too long and as much as you’re pretty sure of being on the market’s right side, the price doesn’t progress. Usually, it happens during consolidation after a massive move during strong trends. You don’t have to wait for a trade to close hence scalping signals come to the rescue. You increase the balance slowly by buying at the bottom range and also selling at the top.
- Opportunities in Quiet Markets – Nothing is more annoying than a quiet market for any trader. Ideally, it’s like watching paint dry. During calm markets, the movement is barely 5-10 pips. Scalping signals offer an opportunity for you to make trades as well as make pips even if the market is quiet.
Methods of Distributing Scalping Signals
Scalping signals can be utilized only in specific periods as well as in brief ones hence are distributed in several formats. The following are some of them:
- Via Facebook
- Inside various Forex trading platforms
Nevertheless, it is always advisable to get yourself up to date with the necessary information of forex scalping signals just before you set your foot into the market. Not only will it be beneficial but also profitable.