You've probably often heard from the more experienced and skilled traders, terms such as scalping or scalping.
What they mean, and whether these methods to use when working on the Forex market?
Scalping - is a method of stock trading, so you can make a profit, focusing on the price fluctuations during the day.
In this open position and hold it to within a few minutes.
Profit from such transactions can not be considered large or extensive, but someone managed to make a similar way, producing a large number of transactions.
Sometimes traders have to make 200 trades per day.
No need to think, of course, that all of them are profitable. The aim of this work - to get a good overall result of operations.
The stop - loss in this case, you need to stand as close to the price at which you enter the trade. So you will be able to secure a minimum loss if trend starts to move against you.
Forex market - is the most liquid market. Price tends to be cyclical, even during the day. This means that for a whole day at the prices can be observed as a period of decline, and the periods of ups. If the price of the day was able to walk about fifty points, the difference between its minimum and maximum values will be large.
If you will register with some finer changes, then your capital can be increased by an order of magnitude.
That is why such a policy in choosing and many traders.
Add to this, and re-investment, and then you get a great profit.
Of course, fast become a millionaire you can not. This trading system will not give you long-term positive results.
If you set the price too close to stop - loss, the loss you will be at the market noise, even if you correctly guess the movement trends in the trend. You can underestimate the power play in the market bulls and bears.
A mistake you have a lot of options, as you try to determine the direction of each hour. And it is much easier to spot trends that will prevail during the day.
Of course, you can not put a stop - loss. But in this case, you will increase the risk of losing too much money, if the trend begins to move against you. Sometimes it becomes apparent that the price in the next few minutes would not be able to return to their original position, as she had gone too far.
If you involve trading processes much of its deposit, t it and you can lose.
And it is possible in such cases and at all left without a deposit. This situation is called margin call .
There is another reason why you should not abuse the scalping.
This is nothing like your nervous tension, from which you will not be able to leave. Usually try scalping the demo - account where all your tools are virtual, but because you have no fear of losing them.
Therefore play a role, and factors such as the processing of applications, your emotions, nervous tension, which tends to increase as the price increases. Scalping - is a constant presence in the market, so it is definitely for you stress. As you know, under stress any balanced and reasonable solutions, you will not be able to accept.
It is worth adding that brokers do not encourage this kind of work, when done a lot of transactions, so there is a certain limit to the number of applications at a time.
What they mean, and whether these methods to use when working on the Forex market?
Scalping - is a method of stock trading, so you can make a profit, focusing on the price fluctuations during the day.
In this open position and hold it to within a few minutes.
Profit from such transactions can not be considered large or extensive, but someone managed to make a similar way, producing a large number of transactions.
Sometimes traders have to make 200 trades per day.
No need to think, of course, that all of them are profitable. The aim of this work - to get a good overall result of operations.
The stop - loss in this case, you need to stand as close to the price at which you enter the trade. So you will be able to secure a minimum loss if trend starts to move against you.
Forex market - is the most liquid market. Price tends to be cyclical, even during the day. This means that for a whole day at the prices can be observed as a period of decline, and the periods of ups. If the price of the day was able to walk about fifty points, the difference between its minimum and maximum values will be large.
If you will register with some finer changes, then your capital can be increased by an order of magnitude.
That is why such a policy in choosing and many traders.
Add to this, and re-investment, and then you get a great profit.
Of course, fast become a millionaire you can not. This trading system will not give you long-term positive results.
If you set the price too close to stop - loss, the loss you will be at the market noise, even if you correctly guess the movement trends in the trend. You can underestimate the power play in the market bulls and bears.
A mistake you have a lot of options, as you try to determine the direction of each hour. And it is much easier to spot trends that will prevail during the day.
Of course, you can not put a stop - loss. But in this case, you will increase the risk of losing too much money, if the trend begins to move against you. Sometimes it becomes apparent that the price in the next few minutes would not be able to return to their original position, as she had gone too far.
If you involve trading processes much of its deposit, t it and you can lose.
And it is possible in such cases and at all left without a deposit. This situation is called margin call .
There is another reason why you should not abuse the scalping.
This is nothing like your nervous tension, from which you will not be able to leave. Usually try scalping the demo - account where all your tools are virtual, but because you have no fear of losing them.
Therefore play a role, and factors such as the processing of applications, your emotions, nervous tension, which tends to increase as the price increases. Scalping - is a constant presence in the market, so it is definitely for you stress. As you know, under stress any balanced and reasonable solutions, you will not be able to accept.
It is worth adding that brokers do not encourage this kind of work, when done a lot of transactions, so there is a certain limit to the number of applications at a time.