Currency trading is the action of buy and sale transactions of foreign currencies in the internet. sms lån utan uc Scalping is a trading strategy gives profit from many positions in online market that sometimes last no more than a few minutes.
Thus, unlike the traders who work with large amounts and ready to open positions for a long time to make profit, scalpers can trade with a small investments and gain large number of minute deals. In scalping every position may earn you just few pips. For that reason currency traders must complete as many transactions as possible to have a big profit. For a successful scalping, traders must learn to trade with minimal losses. Lets’ discuss some trading techniques that make scalping less risky.
There are few kinds of scalping trading strategy: time trading, trading with a trend and trading against a trend. Time trading is a trading method where a fifteen minute chart is used. The distinctive feature of this strategy is that the profit is fixed very quickly, but the deal rarely lasts more than a minute. Searching a moment of the breakdown, a trader enters the market on the level of few pips above the maximum or few pips below the minimum of the rate. Once the price reaches your level, you must close it once you have earned 1 pip including spread. Please pay attention that if the spread of this currency pair is 3 pips so your total gain must be 4 pips in order to be in profit.
The next type of scalping trading strategy is called trading against a trend. This online trading is also called gathering cents where a trader is having one-two pips of profit in each trade. Every trend has the fenomina of so called correction – a small wave against the trend. Watch the candlestick chart and look for the bullish and bearish candles in the trend. This technique is recommended to be used during the first and last hours of trading in a specific zone.
The next most popular type of scalping is trading with a trend. This technique of scalping is applied during the trend’s rolling back. When the market is going up, you need to buy when it rolls back down, if the price is downward, then you have to sell on a rollback up. It is better to use the 10 minute candlestick chart for this method and a moving average with a period of 10. You close the position once it reaches 2 pips of profit.
There are many Singapore brokers that allow scalping, though we suggest you to check it with your Forex broker before you start applying scalping. Some Singapore Forex brokers don’t allow scalping and may ask you to close a trading account.