Scalping is one of
the easiest ways to secure big profits. The new traders are always pushing
themselves to the edge to earn more money. They want to make a profit like the
skilled Aussie traders without giving the effort. You must educate yourself and
use the demo account before you even expect to protect your capital. Trading
the currency pairs or stock market is not so easy. When it comes to scalping
strategy you should be more careful since you have to filter the false signals.
Though there are many ways to improve your execution process, let’s discuss the
top 4 steps used by the scalpers.
These are –
These are –
1. Multiple time frame analysis
2. Fibonacci trading strategy
3. 100 day SMA trading
4. Chart pattern trading
1.Multiple time frame analysis
We all know the lower
time frame generates too many false
signals. If you want to make a consistent profit, you must learn to
study the different time frame data. Studying the different time frames gives
you a better scope to filter the false signals. For instance, you might find a
reliable bullish price action signals in the 1 minute time frame. But if you
study the 1 hour and 4-hour time frame you might find bearish price action
signal. So, it’s very obvious the 1-minute time frame is giving you false
signals. So ignore the lower period signal and wait for the next trade.
Studying the different time frame gives you more profit-taking opportunity. It
increases the win ratio of the scalpers.
2. Fibonacci trading strategy
You need to use the
Fibonacci trading strategy to scalp the market. Options trading business
is more like dealing with the stock market. You have to very careful with the
trade execution process or else it will be hard to make a big profit. Instead
of trading the different retracement levels, look for the 50% and 61.8%
retracement zone. If you can trade the market on this level, you can change
your life within a year. Though trading is more like finding the perfect
trades, still you need to be prepared for the worst-case scenario. IF you want
to make consistent profit by using the Fibonacci trading strategy, scalp the
important levels only.
3. 100 day SMA trading
Using the 100 day SMA
to scalp the market gives you more profit-taking the opportunity. The 100 day
SMA provides perfect support and resistance level in the major pairs. So, if
you set pending orders at the 100 days SMA, you can make a consistent profit.
Never try to make more money by switching it the 1 hour or lower time frame.
You need to use the 100 days SMA in the
4-hour time frame to the scalp. Some of the traders often use the trailing stop
loss features to maximize the profit factors. But for that, you must learn
about the candlestick pattern strategy.
4. Chart pattern trading strategy
You need to learn
about chart pattern trading strategy to earn more money. But the new traders
might not understand how the chart pattern trading strategy can be used to
scalp the market. If you start looking for the major chart pattern in the
1-minute time frame, you can expect to make a decent profit. Taking too much
risk in each trade is not scalping. Taking a managed risk and looking for big
gains is the actions of the professional scalpers. Learn to act as the
professional scalpers to change your life. Never try to become an aggressive
trader as it increases the risk exposure to a great extent. Focus on rational
logic and try to improve your skills.
Conclusion
Trading the Forex
market is more like dealing with the most complicated industry. If you want to
become a professional scalper, make sure you follow these steps. By following
the tips of this article, you can expect to become a pro scalper in less than a
year. But never forget, losing trades will be very common in the scalping
method.
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