If you’re new to forex trading, you’ll likely have come across several confusing and perhaps complex terms already. However, while seemingly complex, ‘scalping’ can hold a lot of promise for even the most casual traders.
Scalping, crucially, is the act of taking the profits off the top. You are literally scalping short-term profits –
daily, in fact – by buying and selling those forex pairs likely to do well over 24 hours. It can be an intense process, and while many traders prefer to stick to the long-term route, many make profits this way instead.
Is scalping suitable for you? If it is a method you are considering for profit, it’s worth getting prepared. For example, we’d recommend you check out reviews for services and brokers such as the BDSwiss Web Trader. In fact, LeapRate is a brilliant all-around tool for getting an insight into how forex works in real-time.
For now, however, let’s digest a few quick tips on how to get set up with forex scalping in double-quick time.
Consider the risks
Scalping in forex means you’ll need to keep a close eye on the markets constantly. You’ll need access to leading platforms and real-time analysis. If this is something you’re willing to put time and effort into, then great news – fortune favors the scalper who’s willing to put everything into the strategy.
However, do also keep in mind that forex is volatile. Scalping may be simple on the surface, but it is hardly a profitable process for complete newbies to get into. Many trading experts will likely advise that it’s best to give traditional forex trading a try before you start scalping.
What’s more, you’re going to need to do plenty of research. You need a reliable program or app, access to charts that update constantly, and an indicator that helps you grow your money over time.
Scalping is also hardly a good option for those traders who want to make things as passive as possible. What’s more, there’s never any guarantee that a robot advisor or automated trading platform will help you in this respect. It’s easy enough to think that you can just let an AI investor work on your behalf when it comes to scalping – however, scalping often requires human insight.
With all of this in mind – you should go right ahead and see what forex scalping has in store for you!
Find a broker that’s right for you
As mentioned, it’s essential to take on as much research as you can when it comes to setting up apps, programs, and platforms for forex scalping. As you are going to need to keep your eyes on the prize almost constantly, you’re going to need to use a service that is not only easy to manage but one that you’re willing to learn from top to bottom.
Ultimately, we’re not here to offer you a guide to the perfect broker or the best app that will bring you a regular income. However, what we can advise is that you should keep your options open. That’s why it pays to look through experienced review directories – such as LeapRate – so you get plenty of insight before you go ahead and spend any capital.
It’s also worth remembering that different brokers and platforms do different things and have varying strengths. Some brokers and apps are more user-friendly than others, for example. Others will offer you deeper insights than the average. However, you also need to consider the cut that your broker will take. Is it going to be worthwhile getting into scalping if you make a loss?
Therefore, do be willing to put the work in to find a platform that provides for you and not so much the other way around.
Choose the best indicators
The deeper you get into forex, the more you will realize that there are no two same ways of monitoring the markets. That’s why scalpers tend to favor a set of well-established indicators or methods for monitoring real-time financial data.
As with platforms, apps and brokers, there are no ‘right’ or ‘wrong’ answers on which the trading populace can agree. We all have different attitudes to risk and managing our income via trading. Different indicators will work with different averages and patterns. One might seem complex and unnecessary to you, while another will appear more palatable and manageable over the long run.
Some of the most popular indicators used by scalpers and average forex traders alike include the RSI method, the moving average, and the Bollinger Bands. Without getting too far into detail here, these indicators strive to make things simple for anyone who may be looking at real-time forex for the first time. Ultimately, none of us have crystal balls to help us – but when working with indicators, we can at least get a good measure for precedents and what may likely happen in the days and weeks to come.
Again though, there’s no guarantee. You need to accept before you dip anything short of a toe into forex waters, you must understand the risks involved,
Keep an open mind
This carries on from our above points. Too many people start getting into trading with the view to making quick, easy money. It’s even a key reason why many people choose scalping over long-term trading, too.
However, especially in the current global climate, you must keep an open mind. Volatility and risk are guaranteed – there’s no probability about it!
Therefore, the soundest advice anyone looking into scalping on forex can receive is to take it to step by step. You’ll need to look carefully at what experienced traders have to suggest, as well as which platforms offer you the best value.
Scalping on forex can help you make an excellent regular income, but only if you are willing to put in the effort. If passive, robot investing is more your scene, then consider a long-term approach.