Every newbie in the world exchange market chooses his own comfortable type of trading. If you are a beginning trader, you also have to make this difficult choice. Trading types are distinguished by the length of opened orders and can be divided into:
- Long-term trading;
- Medium-term trading;
- Short-term trading.
When the type of trading is selected, a trader determines a certain trading strategy. Some traders have been trying to use all sorts of strategies for years in order to find the most suitable one. Most traders develop their personal strategies for trading in the Forex market according to: the deposit amount, the preferences in trading instruments, and the other factors affecting this really difficult choice. Among the other strategies, scalping is also used. This strategy is used by, the so-called, pip traders.
The types of scalping
Scalping is a separate strategy, however, it also can be divided into several subtypes. However, they are all united by one common feature: each strategy of this kind is based on great amount of open short transactions throughout the day. Regardless of the kind, scalping brings you income in small portions several times a day. That’s why, by the end of the day, you will get a decent profit on your account. To open the scalping transactions, you must select the shortest timeframes. The maximum length of the transaction in this strategy is 15 minutes.
Disadvantages of scalping
With this strategy, you should be ready to devote all your free and not free time to trading. In addition, you must have much knowledge in different types of the market analysis. Be ready to act quickly, observe sharp changes in the market, and choose the most favorable entry/closing points. Moreover, you must have a large deposit to start scalping. This is due to the fact you need to be able to buy large volumes as well as keep a good margin level.
For scalping, it is better to choose a broker with minimal spreads because high spreads can help you lose all your funds. You should pay special attention to this aspect.
The trading tools for scalping
To not spend all your time in front of the monitor, you can choose and download a Forex robot specifically designed for scalping strategy. Each of them can be customized to optimize your trading and bring you the maximum profit. Now, you can download a lot of Forex advisors and choose the most comfortable one. It is better to test it on the demo account. Such account can be opened now in almost any broker.
All in all, we can conclude scalping is a complex strategy, which can be used mostly by the professional traders with a huge trading experience. It should be in the arsenal of each trader. If you are just a beginner, you should gain some experience to use this powerful strategy.