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How to make money on using a scalping strategy?

Many traders who trade on the forex exchange like to use a scalping strategy. Such a strategy involves a series of short-term daily transactions and obtaining small income from one transaction. However, the total profit for the day is formed by a large number of transactions - sometimes up to 500 trades per day. In general, trading time lasts from a few seconds to several minutes.

Scalping is the most highly profitable trading method, which is rightly considered the peak of the trader’s skill. Scalping requires a trader to have a high understanding of many factors: the trading behavior of the used instrument, market expectations, news and statistical background, as well as high concentration and discipline. All this, in turn, requires experience and a certain “technique” for performing scalping deals.

Moreover, scalping strategies themselves are constantly evolving after the market as a whole. But there are also quite simple methods that allow you to extract income from intraday price fluctuations - in fact, which will be discussed in this article.

As for the application of the scalping strategy, heated debate is still ongoing. Some argue that it is better for beginners to apply scalping, because this type of strategy does not require global market technical and fundamental analysis, and its application can be good practice for gaining experience. Others argue that scalping is an advanced strategy and requires certain knowledge and an action plan, as this will determine the right direction and trends in the market. To decide whether a scalping strategy is suitable for you, you need to study its advantages and disadvantages.

The benefits of scalping

Disadvantages of scalping

The scalping strategy can be used not as the main one, but as an auxiliary one, that is, you can trade in long-term positions where the price is stable, and at the same time use scalping and make short-term profit.

Favorable conditions for scalping

In order to start using a scalping strategy, you need to have a set of components that will allow you to successfully trade and make a profit. One of these components is the right choice of broker.

Summing up, we can say that not everyone can use scalping. In order to achieve good results and receive stable profits, a trader must have special qualities. First of all, this is attentiveness, the ability to concentrate and not pay attention to extraneous factors. Secondly, the scalper must have sufficiently strong nerves and self-control - not everyone will be able to watch the working terminal intensively throughout the day and quickly make the right decisions.

However, if you think that you have all these qualities or have sufficient experience, then a scalping strategy can bring you good profit.

Scalping strategies are constantly evolving and changing, not spasmodically, but gradually, allowing traders to adapt their system to these changes. And, in fact, the property of adaptability and the ability to notice micro-changes in the market give in the long run the possibility of increasing scalper earnings.

Author: Kate Solano, Forex-Ratings.com

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