Scalping is one of the most important forex trading strategies for beginners. Employing this strategy does not bring much profit. It also requires from a Forex trader much time and passion.
This is the reason why scalping strategy is usually employed by the beginners. Before starting using it, it is necessary to learn what it is. You can read more about
forex trading strategies for beginners in pdf on Forex webpage.
Basics of scalping strategy
Each trader has to use certain strategy if he wants to get any income from e-commerce. Scalping strategy is characterized by the next features:
- It is based on short period trading. It means an investor has to buy and sell in a very short period of time. One of the most effective to do is to hold market positions for only 1 minute.
- A trader has to put numerous offers. It is impossible to earn big money with scalping strategy. This is the reason why the trader has to make on average 100 transactions per day.
- It is day trading. It means it is more risk than night trading. That is why investors are encouraged to buy and sell assets of small value. They will also get a small income. Though, dozens of transactions per day will result in a good income.
- Scalping investment policy is mainly used to trade currencies. It is important to understand. The market of currencies functions according to its own life. It is good to know that hard currencies usually do not lose value a lot. Soft currencies can get devalued in seconds. It is important to take into account when you invest in currencies.
- Investing rightly with scalping strategy requires continuous market analysis. If a trader does not know how a value of assets changes he will never find a right asset to invest in.
These are the basics each investor should know about scalping strategy. Scalping strategy is a generic term. It also includes different sub-strategies.
One minute scalping strategy
One minute scalping strategy is ideal to use by the beginners. It allows easily to invest and reinvest. Here is what you should know about it:
- A trader puts an offer on the market for seconds or for a minute. Therefore, an investor has to find a right commodity to invest in seconds. This requires from an investor much concentration.
- If you would like to employ this strategy it is better traded on New York or London stock exchanges. They are characterized by a high level of volatility. They are also ones of the biggest stock exchanges in the world.
- You have to cooperate with a broker who accepts small spreads. There are not that many brokers who do that. In the majority of cases, brokers prefer to trade large spreads.
- You have to deposit quite large money to start trading. This is an initial disadvantage of this type of starting. Though, if you are persistent you soon will be able to double your deposit.
These is the basic information you have to know about employing scalping investment policy. If you use it rightly, you will be able to get a good and stable return.