This is a very important question. Will forex scalping make you rich? Scalping entails making quick trades. Each trade makes 10-20 pips profit. So if you want to make 50 pips daily, you will have to make around 5 scalp trades per day if you make a profit of 10 pips per trade. In order to make these 5 trades, you will have to sit infront of your computer monitor and look at the charts for a number of hours. Entering each trade requires a lot of attention and a quick response by you as the market normally moves pretty fast and a 10-20 pip movement might be over in minutes before you have the time to take notice of it.
So what you need is a highly accurate scalping system. Then you will have to sit in front of your computer to for many hours perhaps in order to spot the right trade setups. Enter into a wrong trade and instead of making pips, you will be losing pips. You must consider these facts before choosing scalping as your main bread and butter strategy. Scalping is not for everyone. It requires quick reflexes. You have to spend hours in front of the charts which can be tiring and fatiguing. So before you become a scalper, you must consider these facts. Watch this video that explains the subtleties involved in scalping in more detail.
But if you really want to become a day trader, you can think about becoming a scalper. Day traders are also known as kings of stress. Swing Trading is the other style of trading that you must consider before you make the final decision. In swing trading, you don’t have to stay glued to the charts for hours especially if you are trading on the higher timeframes like H4 or D1. However if you think scalping is the trading style that you prefer than you should make it a rule that you will only make 50 pips daily. This will help you avoid stress and fatigue over the long haul. The best times for scalping are at the London Open and then at the NY Open. So if you can trade around these two times or even one of these times, it is very much possible for you to make 50 pips daily.
If you are able to make 50 pips per day consistently with a high win rate and the scalping strategy that you are using uses a pretty small stop loss, you are all set to doubling your account in a month. Do the maths! 50 pips daily means around 1000 pips per month. If you use the fixed fractional money management system, you can easily double your account every month by making 50 pips daily. More on this in the next few blog posts.