Scalping Strategy in Trading

FXZone

What is Scalping?

Scalping is one of the many techniques that can be done in trading. This technique aims to earn large profits in a short period of time. Traders who use this technique are usually called scalpers. Scalpers usually take advantage of a short timeframe to open, then determine a position and close the market after they have made a sufficient profit.

The short timeframe used by scalpers is usually in the Timeframe range of 1 minute (M1) - 5 minutes (M5). even in some circumstances the timeframe range of 1 hour (H1) - 4 hours (H4), can still be referred to as Scalping Trading.

For scalpers, an aggressive market is a place to make profits. In contrast to traders in general who are more patient waiting for opportunities, scalpers tend to choose to make profits from opportunities even though there are only a few timeframes. Looking at the volatility of an active market to fluctuate, scalpers combine the clues they get from existing indicators with good intuitive skills.

Looking at the huge profits that can be obtained in a short time, this scalping technique also has quite a big risk. By risking this, scalpers must be very observant in choosing the market to trade.

Apart from having to pay attention and focus on one particular market, scalpers are required to understand the many existing indicators. Most scalpers use EMA (Exponential Moving Average) and SMA (Simple Moving Average) in short periods, for example EMA-12 and SMA-5. Or you can use the Ichimoku Indicator as a reference.

The intense market movements make scalpers must be ready to pay close attention to the candlestick movements in the pair they are observing. Take a long time to pay attention to market fluctuations before finally choosing to make a decision. Because scalpers will take advantage of a few opportunities even in a short timeframe.

In the end, scalping is a trading technique that requires high concentration and carefulness in seeing market movements. Apart from that, mature experience is also needed to take into account, as well as make decisions in order to reduce the risk of loss. Because scalping is a technique where traders must be able to take advantage of the smallest opportunities in a short span of time to achieve high returns.

Source: FPG Capital (Fortune Prime Global).

Written by: FPG Capital Team (Fortune Prime Global).
Edited & published by: DFX.