Posts Tagged ‘day trading’

Can You Scalp Forex All Day?

Saturday, October 15th, 2011

Sometimes it is easy to get carried away and get so absorbed when scalping forex that you lose track of time, and even your profits (or losses). It’s important that you have realistic limitations to how many trades you can make in a day, what lot sizes you will trade, and so on.

How much forex scalping is too much?

With Logical Forex, we prefer to take one, maybe two, VERY large-lot size trades. We’re comfortable doing that because we are confident in our forex scalping strategy. When forex scalping in a way that you can identify proper trade setups, it’s generally best to just take your “big trade” and then go do something else for the day.

Now, if you just like forex scalping so much that you want to sit at your computer all day, you still need to be sure and take a few breaks, but even more important, reduce your lot sizes. After my “big lot” forex scalp, I typically reduce my lot size to about 10% of what “big lot” scalp. That gives me 10 times I can be wrong while I am being Mr. Frequent Forex Scalper.

Keep in mind, too, that you really only need to be scalping forex a few times during the day: at every market open, and every market close, are generally the best times. I consider New York “noon hour” and sometimes a bit past that as the “close” of the US forex trading session.

So, yes, you can scalp forex all day… but you don’t have to do that unless you just enjoy it. And, if you’re forex scalping for a living, be sure to reduce your lot sizes after your “big lot” trade. You always want to protect your profits, and remain cautious in scalping any more after you have made money. After a while, you’ll begin to enjoy your forex day trading activities, and know that forex scalping is a lot of fun, whether you trade once or multiple times per day.