Posts Tagged ‘forex broker’

How To Clarify Your Forex Scalping Techniques

Friday, October 28th, 2011

Your forex scalping techniques are the most critical aspect of your trading success in the currency markets. You have to be confident in your analysis, swift in your execution, and always have a good perspective of your money management.

Surprisingly, your forex broker also will play a role in how well you do. With a small account, such as $1,000 USD, it can be difficult to apply the proper methods, but it can be done, as long as you have the right tools and techniques.

If you know how to scalp the forex pairs with a style you are comfortable with, then you’re much more likely to be make money faster. A forex scalper must know many special aspects of the foreign exchange market to be successful, but having a scalping technique that works, and works for you is the most critical thing you can do.

Forex Scalping Techniques Identify Trading Setups

When you are scalping, you have to be certain that when you identify your setups that you will be able to take the trade with a calm confidence, while still being prepared to get out with a loss. The issue is, how can you rarely have a loss. I know, that’s not news to you.

As long as you can see on your chart an obvious price movement, where the potential pips are really “there” for you to take, then you can make money. And to be able to do that your forex scalping techniques must be refined to show you what is really happening in the currency market. We’ve found that, although you can scalp almost any trading instrument, pairs such as the EUR/USD and EUR/JPY are the smoothest in price movments, and generally have the best spreads. And, we have found that any session open or session close is a good time to trade. That means you can be scalping the Asian session (Tokyo, Sydney), or the European session (London), or the US session (New York) with much the same profit potential.

You’ll need to make sure you only scalp when there is activity and liquidity in the market, and then you’ll want to make sure that price is really flowing on your charts. Finally, it’s best if you are scalping forex when the banks and other large-equity traders are moving the market. Then, you’ll use your forex scalping techniques you have with Logical Forex to execute your trade, and enjoy the money you have made from the effort you have made to be a superior FX scalper.