Scalping The Forex Market (pt1)

I will be introducing you to another technique of making it big scalping the Forex market and walk away with mega profits within the shortest trading time. Believe me that I have tested this technique and also want to let you know that 75% traders in Nigeria are scalpers. I really celebrated the New Year thanking God for giving me the courage to develop more on scalping as a trading strategy. 31^st of December 2007, I made 78 pips by scalping the FX market. Just scroll your trading platform to that day and see the market volatility.

What is Scalping? Many traders don’t really understand that simple word. Some even pronounced it wrongly, and if you don’t understand the meaning now, you can not benefit from the mega returns that the strategy is generating in the world’s largest financial market.

Scalping is a focused technique that involves making a minuscule trade to generate profit within a short period of time. This method of trading the FX market is of high probability trades with extremely small risk stops and predefined profit objectives, it is also a means of taking a million trades to make a million dollars.

There are different types of traders; “Position Traders” “Day Traders” and “Scalpers” A position trader could engage in trades that are intended to last for multiple days or months with huge pips target of hundreds to thousands. A day trade could typically engages in trades that might last for less than a day aiming for targets of 20 to 100pips while A Scalper engages in trades that might last for few minutes and the minimum target could be 5+ pips. Pick your calculator now and calculate 5pips on a 2.00 standard lots of 5 trades per day for 20 trading days (5pips x 5 trades x 20 dollars x 20 trading days = $10,000 monthly) If all the scalping techniques are adhered to. Are you saying it’s not possible! Just demo trade this for a month and see what I am saying.

A scalper normally trade higher lots size or volume depending on your account size and risk acceptance. For the fact that this technique requires a maximum Stop Loss of 20pips, you must also maintain a good equity management principle. If you could just sincerely follow the rules that I will be teaching you on this technique, you could rake in more profits to your bank account without stress compared to day or position traders.

Let me sound this warning that if your account can not accommodate the risk involved scalping with higher lots or contract value, please don’t trade higher lots. Simple! Because scalping is more emotional and advanced in nature in the aspect of making a very quick decision and trade execution. Don’t trade without setting your stop loss when scalping. Trading without stop loss could wipe off your account with this strategy. P-L-E-A-S-E, just follow the simple trading rules that I will be sharing with you.

Scalpers often engage in multiple trades per day. Some traders execute several trades and make profits with ease. Don’t worry, I will teach you the technical know-how of scalping the market. Scalps are executed in the direction of the current trend of the Forex market. You can’t run away from the fact that the “trend is your friend” if you don’t know the trend of the market, don’t place any order.

You could also take larger profits as this lesson is getting more technical by applying trailing stop. What is Trailing Stop? Stop Loss is intended for reducing losses where the symbol or currency pair price moves in an unprofitable direction. If the position becomes profitable, stop loss can be manually shifted to a break-even level. To automate this process, Trailing Stop was created. This tool is especially useful when price changes strongly in the same direction or when it is impossible to watch the market continuously for some reason.

The beauty of scalping is that, it allows traders to trade even when other techniques would make you sit with your PC for long without trading. Scalping is best used in conjunction with or as a supplement to other trading techniques – so keep trading your normal strategy that you are used to and add scalping to your trading toolbox.

TYPES OF SCALPING

There are three methods of scalping the Forex market which I will be teaching in this article: You could apply the EMA 4/12/63 to 15 minutes chart of your trading platform and scalp with the strategy. Alternatively, apply the one I will be sharing basically for this technique.

1. Time-sensitive trades: This comes in 2 forms: Firstly, in opening range breakouts, where a quick scalp is taken minutes before the open, in the direction of any market thrust. I revealed an important secret in the previous edition of SDE on the best trading time for the EMA 4/12/63. Meanwhile, if care is not taken, the bull back preceding the breakout of the 7:45am Nigeria time might strike your stop loss. But you can perfectly study the market; and scalp to make profits before the main breakout. And I will advise you always use your Bollinger Bands, preferably on a separate 15mins chart.

Secondly, trading to capitalize on the regular market turnaround time of the New York opening session. Infact, scalping is the best strategy to apply because something must happen. Keep your eyes also on 15 to 30 minutes to the FA release. I bet you that you would have made your target before the news. Then if the news is worth trading, trade and make more profits. Always tie this law on your neck and do not let it depart from you “make 20 or 30pips per day and every other pips shall be added unto thee”

2. Countertrend trades: Scalping when the market is silent or consolidating during the trading day. It could be the Asia session too.

3. Trend continuation trades: These methods focus on entering the market in the direction of a trend AFTER the trend has gone underway. They are also classified as retracement trades.

One of the most liquid, active and electronically accessible market is Online Forex Trading and I feel the scalping method represents the best known chances for picking consistent profits as a trader/scalper.

Expect more details on the scalping technique as I will be including the trading indicators, time frame, target, rules and the setup in the next edition of our wonderful live changing magazine Success Digest Extra.

The lot concluded the design of a lot calculator using EXCEL programming Language and I’m giving it out as a gift to our lovely readers. Interested? Just send an email to forexpips@sendfree.com with subject This will eliminate the stress of calculation pivot point daily. Do you still have any questions on the past articles or you’ve almost lost your account? Kindly forward your questions to me and let see how we can build it back.

See you at the top!!!

But If You Want To Really Make Ridiculous Amounts Of Money From The Forex Market On Complete Autopilot, then click here now.

Hassan Ismail,

Fx trader & coach