Scalping is one of the most dangerous trading strategies used by the professional Forex traders. Without having years of experience, you are not supposed to trade the market in a lower time. The new traders are often biased because they see the precise trade execution of the professional Singaporean traders in the 1 minute or 5-minute time frame. In lower time frame trading, the margin of error is extremely narrow. Unless you prepare yourself to deal with the frequent loss you should never become a scalper. Does this mean we can’t become a successful scalper? You can, but you must train yourself properly or else you will lose your entire investment. Though there are many techniques used by the professional scalpers, let’s focus on the 4 major technique which can help you to trade the lower time frame.
The majority of the novice scalpers loses money since they don’t know the proper way to filter the best possible trades. They are always executing trades with high risk and a few losing trades make them frustrated. Most of the time, they blame the market. The market is always right. You are the one who is making mistakes and losing money. If you learn multiple time frame analysis, you can easily find the key reason way you have lost trades in lower time frame trading. Learning to do multiple time frame analysis is not easy. You have to open a demo account with premium broker Saxo and demo trade the market in a different time frame. See how the market reacts to different price data and you will be able to avoid the false signals.
Being a scalper, you must learn the use of Japanese candlestick pattern. The pro traders in the options trading industry are executing high-quality trades based on price action confirmation signal. Does this mean you have to learn the price action trading strategy? The answer is yes. To trade the lower time frame, you need to use a tight stop loss. Most of the time the new traders fail to use proper stop loss since they rely on the indicators reading. But if you learn to trade the market with the Japanese candlestick pattern, it won’t take much time to understand how this market works in the lower time frame. Most importantly, you can increase the lot size without increasing the risk factors. The new traders might not understand this statement but there is nothing to worry. Once you learn to trade with a tight stop, you can easily increase the lot size without compromising your risk management policy.
The professional scalpers know the details of fundamental analysis. They never trade the market in the event of high impact news. If you intend to protect your trading capital, it’s better to avoid trading the major news. Most of the time the market exhibits false spike and it hunts the tight stops. You have to find a stable market so that you can easily execute quality trades without having any stress. Make sure you scalp only the major pairs. If you intend to trade the cross pair, the chances are very high that you will have more losers than the winners.
Being a scalper doesn’t mean you will have to trade with a 1:1 risk-reward ratio. No matter which trading strategy you follow, you should always trade the market with 1:2+ risk-reward ratio. This might sound a little bit challenging but if you use your price action trading and multiple time frame analysis skills, it will be really easy to find such trades. If required, take advantage of the demo trading account and see how the market reacts to your trading strategy. Once you feel confident with your trading system, start trading the real market.
Use of multiple time frame analysis[/b]
The majority of the novice scalpers loses money since they don’t know the proper way to filter the best possible trades. They are always executing trades with high risk and a few losing trades make them frustrated. Most of the time, they blame the market. The market is always right. You are the one who is making mistakes and losing money. If you learn multiple time frame analysis, you can easily find the key reason way you have lost trades in lower time frame trading. Learning to do multiple time frame analysis is not easy. You have to open a demo account with premium broker Saxo and demo trade the market in a different time frame. See how the market reacts to different price data and you will be able to avoid the false signals.
Use the Japanese candlestick pattern[/b]
Being a scalper, you must learn the use of Japanese candlestick pattern. The pro traders in the options trading industry are executing high-quality trades based on price action confirmation signal. Does this mean you have to learn the price action trading strategy? The answer is yes. To trade the lower time frame, you need to use a tight stop loss. Most of the time the new traders fail to use proper stop loss since they rely on the indicators reading. But if you learn to trade the market with the Japanese candlestick pattern, it won’t take much time to understand how this market works in the lower time frame. Most importantly, you can increase the lot size without increasing the risk factors. The new traders might not understand this statement but there is nothing to worry. Once you learn to trade with a tight stop, you can easily increase the lot size without compromising your risk management policy.
Avoid trading the major news[/b]
The professional scalpers know the details of fundamental analysis. They never trade the market in the event of high impact news. If you intend to protect your trading capital, it’s better to avoid trading the major news. Most of the time the market exhibits false spike and it hunts the tight stops. You have to find a stable market so that you can easily execute quality trades without having any stress. Make sure you scalp only the major pairs. If you intend to trade the cross pair, the chances are very high that you will have more losers than the winners.
Focus on your risk-reward ratio[/b]
Being a scalper doesn’t mean you will have to trade with a 1:1 risk-reward ratio. No matter which trading strategy you follow, you should always trade the market with 1:2+ risk-reward ratio. This might sound a little bit challenging but if you use your price action trading and multiple time frame analysis skills, it will be really easy to find such trades. If required, take advantage of the demo trading account and see how the market reacts to your trading strategy. Once you feel confident with your trading system, start trading the real market.