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Best Forex Scalping Method
Scalping is different from
casual day trading and tends to cause a lot of problems for brokers due
to a high amount of orders. Some brokers dont allow scalping outright;
others raise the spreads until it becomes unprofitable.To get more news
about WikiFX, you can visit wikifx.com official website.
Most
brokers do not advertise that they do not support scalpers, so you need
to ask their support or scout their websites looking for favorable
conditions. Heres what you need to check for:
· Tight spreads. Some brokers offer Premium accounts with 0 spreads for an additional fee, look out for those.
·
Leverage. If you are confident in your scalping skills, leverage is a
great way to increase your profits. Just learn about the brokers margin
call protocols; sometimes they are not suitable for scalping.
·
Trading platform. You should know your trading platform as the back of
your hand. Also, it should allow for quick order management, ideally —
in a single click.
· Response speed. Slow broker systems may
lead to slippage and sudden losses of otherwise profitable positions.
Always check out how responsive your brokers system is.
·
Reliable support. Sometimes things go wrong, and you need a fast way to
reach out to your broker. Having a number to call or an open chat window
allows to salvage the most out of a bad situation — as long as the
support is competent.
If you dont want to waste time looking
for options, JustForex has pretty decent ECN Zero accounts. The
commission from each trade is not ideal but the spreads are absurdly
tight, and the response speed is stellar. They are also using MetaTrader
4 without any modifications while their support is proactive and
easy-to-reach.
Step 2. Pick a Market
You want to trade
on the markets that have the most liquidity — which pretty much locks
you into the major currency pairs. The best of the bunch are:
·
EUR/USD and GDP/USD. The Brexit conundrum reigns supreme over the
British and European currencies. Almost every day brings more and more
news that sway the market.
· USD/JPY. The disturbances in the
American politics resonate well with this currency pair — even if Japan
is going through a period of relative calmness.
Although, you
can trade on any other currency pair too. The only problem would be the
low number of situations you can take advantage of — however, this might
be less stressful and ultimately beneficial for newcomers.
Step 3. Establish Your Workplace
With
most strategies, you can take a moment to read the news, have a drink
or watch a cartoon. Scalping, however, is a never-ending chain of deals
that demand your constant attention.
If you want to be a
successful scalper, you need to create an environment where you wont be
distracted by the outside world. If you work from home, consider
creating a separate room only for work.
1. Find the
least-trafficked room. Otherwise, either your roommates will distract
you, or you will have to intrude on their lives. If you live alone,
ignore this point.
2. Remove all distractions nearby.While you
might want to read a book on your lunch break, you should do it in a
different room. Without distractions, you will be able to concentrate on
your work and wont be tempted to look away from the charts. You can
make a case for a fidget cube or a hand grip, but everything else has to
go.
3. Get comfortable. You are going to spend at least 8
hours a day in this room, so get a soft chair and a table that fits your
height. A large screen, an ergonomic keyboard, and a vertical mouse
will be a plus.
4. Declutter often. Remove the unnecessary
stuff from both your real and virtual workplaces. All those paper piles,
dirty coffee mugs, and other knick-knacks have to go away before you
begin trading. Same goes for the unused desktop icons, browser toolbars,
and other distractions.
Finally, dont forget to take the eye-breaks every half-an-hour — just closing them for a minute or two will help.
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