Learn Forex Online: Scalping Strategy
What is a scalping strategy?
A scalping stretegy is a short term forex strategy. Bascially what it entails is making very short term forex trades, often keeping trades open for only a matter of minute. The goal of this method is to make lots of very small profits, often in the region of only a handful of pips.
as you can imagine, if your only going to make a few pips profit per trade, then you are going to have to have a significant amount of money on the line in order to turn any sort of reasonable profit, and this is where the danger of a scalping strategy comes into play.
If your trading forex at home and want to implement a scalping strategy, you are going to have to trade with a large margin. The larger the margin you have, the more capital you will need in your account to cover the trade if it moves in the wrong direction. If you dont have enough capital, your trade could be automatically closed and you could lose your entire account. not good.
For this reason, scalping strategies are not really recomended to people who have only just begun to learn forex. If you are just starting out, why not try our ultimate guide to forex, which offers a quick overview of how forex markets work.
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