This is a 37 page PDF named Forex Scalping-Extensive Guide on How To Scalp Forex. This 37 page PDF has been reviewed and recommended by Rita Lasker. If you are new to scalping, you might want to go through this 37 page guide that starts from the very basics of scalping. This is the content of this guide:
1. How Scalpers Make Money?
2. Choosing the Right Broker For Scalping
3. Best Currencies For Scalping
4. Best Times For Scalping
5. Strategies For Scalping
a. Range Scalping
b. Breakout Scalping
c. Trend Scalping
This Forex Scalping Extensive Guide How To Scalp Forex rightly points out that scalping is not for everyone. As we keep on pointing out in all our posts whatever strategy you choose, you should choose carefully as it will ultimately decide whether you become a successful trader or not. The most important factor in the choice of your strategy is your personality style. If you are willing to sit in front of your computer for hours making small scalping trades, only then you should go for this strategy. If you can’t sit in front of your computer for hours, you should not adopt this strategy.
Scalping can be time consuming and tiring. It needs a lot of attention. Just in order to make 50 pips, you might need to make 3-5 trades. Each trade will need to be monitored carefully. You cannot suffer a huge loss in a trade. If you do, you will see all your gains wiped out. Why? Because a scalper goes for small gains by quickly entering and exiting the market. While making small gains if you suffer a huge loss, this will wipe out most of your gains. So you need to be very careful and attentive when you are making a scalping trade. This is something very important for you to understand if you want to become a scalper.
Once you do decide that scalping is going to be your style of trading, the second thing that you need to do is to choose your broker very carefully. Some brokers do allow scalping and others don’t. Check with your broker. The spreads offered by the broker are going to decide whether you are going to be profitable as a scalper in the long run or not. For example, if one broker is offering a spread of 3 pips on EUR/USD pair while the second broker is offering only 1 pip, you might want to choose the second one as the lower the spread, the more profitable you will be as a scalper.
Now there are brokers who offer different spreads for different type of accounts. For example, the spread on EUR/USD pair while trading on a micro account might be 1.3 pips while it can be 1 pip on a mini account and it can be just 0.7 pip on a standard account. So you have to be very careful as a scalper while choosing your broker. Spread is your cost of trading. There are two ways to improve your profits. Cut the cost or increase the revenue. So by cutting your cost of trading, you can improve your profits a lot. At the same time by becoming an expert scalper who makes 9 winning trades out of 10, you can ensure that your account equity grows rapidly.
So the choice of the right broker is essential in success as a scalper. You should also make sure that there are no slippages and misqoutes most of the time when making these trades as well as the trades get executed in time. These factors are very important in your success as a scalper and all three factors are in the hands of your broker. So you should be very careful in the choice of your broker.
You might also want to take a look at the different scalping strategies that have been discussed in this Forex Scalping Extensive Guide. For example, some traders consider a ranging market better for making a scalp trade while other traders think scalping in a trending market can be a good idea. You might also want to know scalping strategies for the news breakout as well as the technical breakouts.
Another thing that is very important is the right choice of the currency pair that you will trade. Some currencies are best suited for scalping while others are not. So you should only choose those currency pairs that have the most liquid market with the lowest spreads. EUR/USD and GBP/USD are the two best currency pairs most suited for scalping. These two pairs are most suited for range scalping strategies while carry pairs like USD/JPY and EUR/JPY are most suited for trend scalping strategies. This is a useful forex scalping guide that you may want to download and go through it if you are really interested in becoming a scalper. There are many useful tips in this guide that will help you understand scalping in a much better manner.