The sexiness of scalping in forex is undeniable.
Using a strategy to get in and out of currency trades quickly with small profits, while limiting your downside risk and market exposure.
Ahhhh, traders' nirvana!
All fairytales aside, scalping currencies (or any other asset class) is very challenging and few ever succeed at it.
It requires flawless order entry and management, as well as an intense and continuous immersion in the market, like a hawk with eyes fixated on every twitch of its prey.
Despite the challenges, we are always looking for talented traders who can execute their scalping strategies successfully, especially on the MT4 platform.
Those who can make money scalping, can get capital allocations via our FastTrack program, even though a successful scalper is not a common occurrence (complete our scalpers wanted form if you're a successful scalper who wants to manage capital for our investors).
Scalping Currencies is Difficult, but I Still Want to Do It!
So now you know scalping FX is challenging, but you still want to give it a shot. After all, the select few who can pull it off get rewarded handsomely.
Well, you're in luck!
Due to our vested interest in scalpers, we want to make some basic suggestions to increase your chances of winning the rapid-fire battle against the market; so please read on…
Follow these 3 simple tips to put the odds in your favor:
- Stick to the most liquid currencies. Scalping is all about liquidity or having a constant stream of trading volume moving in and out of the market. The more actively a currency pair is traded, the easier and faster a scalper can get in and out of it. The most liquid pairs are the "majors": EUR/USD, USD/JPY, GBP/USD, etc. – so they are the easiest and safest ones to scalp in terms of liquidity. During certain market hours, some more experienced scalpers might also look at liquid crosses (non-USD pairs) like EURGBP, EURJPY, etc. Sticking to the most liquid currencies will increase a trader's probability of scalping with success.
- Use fast order entry tools. Traders who scalp must be able to get in and out of trades with the lowest amount of latency (time delay) possible. If a scalper has to click 10 different buttons to confirm and execute trades, he could experience significant "slippage" (or an unfavorable price differential) that will eat into his profits. Since scalpers typically make less pips per trade than longer term day traders and swing traders, any slippage could represent a relatively higher percentage of their bottom line. Furthermore, any delays decrease the scalper's degree of control and thereby, increase his market risk (on this blog post, we provide scripts that MT4 traders can use to quickly get in and out of trades – which is useful for scalping).
- Learn How to Scalp the Market from the Pros. Some traders spend a lifetime looking for the "best strategy" in existence. Many also empty their bank accounts while on this futile quest. That is the great risk many novice traders who need training face. Without having to risk a penny, those wishing to learn how scalp currencies can turn to FastTrack. The FastTrack program not only provides an opportunity for pro traders with a successful track record to manage money for our investors. It also provides an excellent, pro-level training that can serve as a great core for new, active day traders and scalpers. The techniques provided in FastTrack can be used on a short term time frame like M1 (1-minute), thereby acting like a scalping strategy.
Please note that step 3 above is only for traders who want to learn how to scalp the FX market; not for a trader who is already experienced in scalping with real money.
Professional scalpers with a real track record can apply directly for a trading position by completing the scalpers wanted form without having to go through our training.
But for those who feel scalping foreign currencies is their true calling, FastTrack provides a very bright ray of hope.
Please add your comments below or any other suggestions you may have for traders that are looking to develop their own scalping strategies.