Triumph Scalper - Highly Converting Forex Product
forex product

What Is Forex Scalping?
In the investment world, scalping is a term used to denote the "skimming" of small profits on a regular basis, by going in and out of positions several times per day.
Scalping in the forex market involves trading currencies based on a set of real-time analysis. The purpose of scalping is to make a profit by buying or selling currencies and holding the position for a very short time and closing it for a small profit. Many trades are placed throughout the trading day using a system that is usually based on a set of signals derived from technical analysis charting tools. The charting is made up of a multitude of signals, that create a buy or sell decision when they point in the same direction.
A forex scalper looks for a large number of trades for a small profit each time.
KEY TAKEAWAYS
Scalpers enter and exit the market quickly, making several small trades in the hopes of achieving profits from relatively small price changes over and over again.
Scalpers must be highly disciplined, competitive by nature, and decisive decision makers to succeed with these types of trading strategy.
Various technical trading systems exist to aid in scalping, many of which are offered directly by online brokers or exchange platforms.
How Forex Scalping Works
Scalping is not unlike day trading in which a trader will open a position and then close it again during the current trading session, never carrying a position into another trading period or holding a position overnight. However, while a day trader may look to take a position once or twice, or even a few times a day, scalping is much more frenetic and will trade multiple times during a session.
Whereas a day trader may trade off five- and 30-minute charts, scalpers often trade off of tick charts and one-minute charts. In particular, some scalpers like to try to catch the high-velocity moves that happen around the time of the release of economic data and news. Such news includes the announcement of the employment statistics or GDP figures—whatever is high on the trader's economic agenda.
Scalpers like to try and scalp between five and 10 pips from each trade they make and to repeat this process over and over throughout the day. Pip is short for "percentage in point" and is the smallest exchange price movement a currency pair can take. Using high leverage and making trades with just a few pips profit at a time can add up. Scalpers get the best results if their trades are profitable and can be repeated many times over the course of the day.Remember, with one standard lot, the average value of a pip is about $10. So, for every five pips of profit made, the trader can make $50 at a time. Ten times a day, this would equal $500.
Scalping Personality
Scalping, though, is not for everybody. You have to have the temperament for this risky process. Scalpers need to love sitting in front of their computers for the entire session, and they need to enjoy the intense concentration that it takes. You cannot take your eye off the ball when you are trying to scalp a small move, such as five pips at a time.
Even if you think you have the temperament to sit in front of the computer all day—or all night if you are an insomniac—you must be the kind of person who can react very quickly without analyzing your every move. There is no time to think. Being able to "pull the trigger" is a necessary key quality for a scalper. This is especially true in order to cut a position if it should move against you by even two or three pips.
Market-Making vs. Scalping
Scalping is somewhat similar to market-making. When a market maker buys a position they are immediately seeking to offset that position and capture the spread. This form of market-making is not referring to those bank traders who take proprietary positions for the bank.
The difference between a market maker and a scalper, though, is very important to understand. A market maker earns the spread, while a scalper pays the spread. So when a scalper buys on the ask and sells on the bid, they have to wait for the market to move enough to cover the spread they have just paid. In the converse, the market maker sells on the ask and buys on the bid, thus immediately gaining a pip or two as profit for making the market.
Although they are both seeking to be in and out of positions very quickly and very often, the risk of a market maker compared with a scalper, is much lower. Market makers love scalpers because they trade often and they pay the spread, which means that the more the scalper trades, the more the market maker will earn the one or two pips from the spread.
How to Set up for Scalping
Setting up to be a scalper requires that you have very good, reliable access to the market makers with a platform that allows for very fast buying or selling. Usually, the platform will have a buy button and a sell button for each of the currency pairs so that all the trader has to do is hit the appropriate button to either enter or exit a position. In liquid markets, the execution can take place in a fraction of a second.
Picking a Broker
Remember that the forex market is an international market and is largely unregulated, although efforts are being made by governments and the industry to introduce legislation that would regulate over-the-counter (OTC) forex trading to a certain degree.
As a trader, it is up to you to research and understand the broker agreement and just what your responsibilities would be and just what responsibilities the broker has. You must pay attention to how much margin is required and what the broker will do if positions go against you, which might even mean an automatic liquidation of your account if you are too highly leveraged. Ask questions to the broker's representative and make sure you hold onto the agreement documents. Read the small print.




Comments (1)
https://www.digistore24.com/redir/398181/Prasanna13/ link to know more details