By Jared Mann
Forex Scalping is a trading strategy employed by professionals in banks, hedge funds and other proprietary trading groups.
You could classify all trading strategies into 3 different groups; Scalping, Swing and Position. Each group is defined by the average length of time the trade is held. For Swing trading average trades last between 1-30 days, position trading trades are between 30-180 days, anything longer would be classified as investing, however for scalping, trades can last only minutes to several hours.
Forex scalping involves making lots of small trades each day looking for quick gains. In swing trading we may look for a 1, 2 or 4% moves for example, however in scalping we are only looking for a 0.1, 0.2 or 0.3% move, and since most currencies move on average 1% per day, we can get our scalping profits in a matter of hours or less.
Typically scalping strategies use a large stop loss and a tight profit target, this ensures we give the market a lot of room to hit our profit target, and results in a high win rate. In scalping you want more than 90% of your trades to end in profit, so almost every day is profitable.
Up until several years ago, manual scalping was a viable way of trading, however in recent years that has changed, the market has become more electronic with the majority of volume being done by automated trading systems. Therefore it's necessary to use a automated trading robot to succeed in forex scalping.
If you're looking for a Automated Scalping System then we recommend you visit http://www.freefxtradingrobot.com today and get their highly profitable scalping robot now whilst they still have free copies available.
Written by J. Mann
Article Source: http://EzineArticles.com/?expert=Jared_Mann
You could classify all trading strategies into 3 different groups; Scalping, Swing and Position. Each group is defined by the average length of time the trade is held. For Swing trading average trades last between 1-30 days, position trading trades are between 30-180 days, anything longer would be classified as investing, however for scalping, trades can last only minutes to several hours.
Forex scalping involves making lots of small trades each day looking for quick gains. In swing trading we may look for a 1, 2 or 4% moves for example, however in scalping we are only looking for a 0.1, 0.2 or 0.3% move, and since most currencies move on average 1% per day, we can get our scalping profits in a matter of hours or less.
Typically scalping strategies use a large stop loss and a tight profit target, this ensures we give the market a lot of room to hit our profit target, and results in a high win rate. In scalping you want more than 90% of your trades to end in profit, so almost every day is profitable.
Up until several years ago, manual scalping was a viable way of trading, however in recent years that has changed, the market has become more electronic with the majority of volume being done by automated trading systems. Therefore it's necessary to use a automated trading robot to succeed in forex scalping.
If you're looking for a Automated Scalping System then we recommend you visit http://www.freefxtradingrobot.com today and get their highly profitable scalping robot now whilst they still have free copies available.
Written by J. Mann
Article Source: http://EzineArticles.com/?expert=Jared_Mann
0 comments:
Post a Comment