How to Scalp the Forex Market

Scalping the Forex market is a fairly common technique that involves opening an FX position and then closing within just a short period of time. This is done with the intention of speculating that the prices will move just a bit in favor of your position before closing which in turn nets you a nice little profit. Those who use the Forex scalping technique will typically make many different trades throughout any given week. In fact, it is not uncommon to see some go as high as 100 or more trades each week. Many who attempt to scalp the Forex market fail. This may be because the odds are stacked against them and it could also be that they simply do not know how to scalp the Forex market properly in order to see good results. Scalping is definitely not one of the easier strategies for investors but it can be done and it can be very lucrative if you know what you are doing and how to do it properly.

You will first need to ensure whether or not your broker agrees with scalping. There are a few brokers that simply do not cater to scalpers so you should check with your specific broker or the broker that you plan to use for your investment to see whether or not they have a problem with this strategy. You can simply call them up or check online if they have an online portal and inquire about their views on scalping.

Scalping is very technical and as such will require the use of charts. You can find many charting services for less than $50 per month as well as those that can cost several hundred dollars each month. It may take a bit of research to find the charting service that will work best for your own needs. Spend some time familiarizing yourself with the charts and search for an application that offers a lot of support. You may find some services that cost nothing each month and work just as well as those that are fairly expensive. Research will help you to weed through the many available services and choose the right one for your needs.

Now that you have your charting service you will need to pick your time chart. This is done on your Forex trading platform. Keep in mind that the faster the price action, the faster your scalping trades will be. This also ensures that your trades are safer. Wrong or riskier trades are normally made on hourly or daily charts. If you are using a candlestick chart which is recommended, be certain that the color sequencing is enabled. Red candlesticks indicate falling prices which should prompt you to sell. Green candlesticks indicate rising prices which in turn should prompt you to buy. You can find many demos online that will allow you to learn more about and get a feel for the overall process of scalping.

There are a few things that you should keep in mind when scalping the Forex. Remember to always use a stop loss to minimize your risks. You should also check to see if your broker offers a free practice account and use that account to learn the ropes before you begin risking any real money. It is recommended that you never invest real money until you have a good feel for the scalping process. Finally, you will need to test your internet connection before you begin scalping. Your connection will need to be very stable to ensure that you do not lose connection right in the middle of a scalp or before you have the chance to put in your stop loss. This could cause you to lose a lot of money. Take the time to learn more about Forex scalping and again, check with your specific broker to ensure that this strategy is tolerated by your brokerage firm before you begin.