So what is scalping and how does it work? Forex scalpers get in and out of the market at the drop of a hat, they don't chase big swings or trends but rather seek to capitalize on the small intraday fluctuations that occur throughout the day in forex.
Forex Scalping Strategies
If you want to start scalping forex, you're going to need to find a scalping strategy that works. With longer-term trading, a strategy is not quite as important, but when it comes to scalping, the quality of your strategy will largely determine your success. When it comes to selecting a forex scalping strategy there are a couple of options available to you:
The first option is to develop your scalping strategy. Most longer-term strategies can be adapted for scalping with a little tweaking. For example, you could trade trendline breaks, and candlestick patterns or use a range of technical indicators. Generally, you'll want to be looking at 1m or 5m charts, though many people consider the 15m chart great for scalping too. The main thing to remember is you're not usually going for high-reward trades, the idea with scalping is to win more often than not, that is, if you have a choice between taking 2 pips and taking a loss, take the 2 pips.
A great way to start developing your scalping strategy is to start playing around on a demo account, don't worry about blowing the account, just focus on taking lots of quick trades and seeing what works and what doesn't. You can sign up for a free Forex demo account over at the Vantage FX website.
Don't you want to develop your forex strategy? Another option available to you is trading someone else's strategy. Forex forums are a great place to start if you want to trade someone else's strategy. Though most people keep their forex scalping secrets to themselves, there are a surprising number of helpful people out there who share strategies for free on forums. This approach requires a little less legwork, though you will still have to do a fair amount of research.
■ Making Money by Scalping Forex