HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%
MultiBank Group information and reviews
MultiBank Group
84%

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

RELATED

How to develop your signature Forex trading strategy

Trading in the Forex market is a complex daily work that requires great strength, knowledge and experience. Before a trader...

Why trading strategies fail?

Imagine you've thoroughly examined a set of rules and an algorithm of actions that should lead you to a profitable trade. You make sure that every...

TOP 3 most profitable forex strategies

The need to have your own trading strategy is written in almost every trading manual. Firstly, the process of creating your trading scheme allows you to bring...

Should I invest aggressively?

Wondering what market execution style you need to follow to get the profit you want? Continue reading today's article to learn more!

FXCC: Intraday trading. Benefits and Drawbacks

Defining the term intraday trading is the concept of selling and buying stocks on the same day, just before the market’s closure. If you somehow fail to do so, the broker will ultimately square off...

Exploring the Efficacy of Forex Hedging Strategies

The world of forex trading is marked by its dynamic nature, offering substantial opportunities along with inherent risks. In an effort to mitigate these risks and protect their investments

Bill Williams' Trading System

Bill Williams is a world famous trader, developer of analytical indicators and creator of Profitunity strategy. In 1987, his first works on trading in the stock...

Best ETF Trading Strategies For Traders To Consider

Exchange-traded Funds (ETFs) offer diversification, low cost and flexibility. They are also well-suited to a variety of trading strategies, ranging from basic to advanced...

Trading with News

In this article, we discuss the role of news and economic data releases in forex trading and how traders can incorporate this information into their trading strategies...

Scalping vs Day Trading: What is the Difference?

Most beginning traders understand the importance of having a good trading strategy. However, it is only after you have a trading strategy that is congruent with your personality...

How To Short Crypto And Risks To Consider

The essence of trading is simple: buy cheap and sell dear. This is the most common earning strategy, but not everyone knows that there are other ways to make money in exchange trading...

What is a Trading Plan?

A trading plan is a comprehensive framework that guides your decision-making in any trading activity you undertake. A trading plan is to forex trading and CFD trading...

Forex trading techniques

The forex market is an incredibly active and highly volatile financial market accessed by millions of traders worldwide. With a daily trading volume exceeding US$6 trillion...

Free Forex trading system that works

Financial markets shouldn't be traded without a sound tried and tested trading system, and the Forex market is no exception. Making the right...

Dancing to different beats: differences between scalping and day trading

Scalping and day trading may seem like twins, but they dance to different rhythms. Let’s uncover their disparities. While both day trading and scalping are short-term trading strategies...

Crafting a Winning Day Trading Strategy: A Comprehensive Guide

Day trading is a popular approach to online earning, involving the buying and selling of various financial assets, such as stocks, commodities, and cryptocurrencies...

Mastering Trend Trading: Strategies and Risk Management for Beginners

Trend trading, a cornerstone of successful financial market navigation, capitalizes on the consistent upward or downward movement of asset prices...

Trading exit strategies: How and when to exit a trade

Imagine being so in control of your exit strategies that you could come out of a losing trade without feeling any emotion and simply move on, unaffected...

Deep Dive into Low-Spread Scalping Strategies for Forex Traders

In the realm of Forex trading, where rapid price movements and market dynamics are the norm, scalping stands out as a popular approach that leverages minute fluctuations....

Best profit taking strategies in trading

Though many traders don't know it, a profit-taking strategy is a crucial part of the trading process. Knowing when to exit a trade when in the green is one of the tougher...

XM information and reviews
XM
82%
FP Markets information and reviews
FP Markets
81%
FXTM information and reviews
FXTM
80%
AMarkets information and reviews
AMarkets
79%
Octa information and reviews
Octa
79%
BlackBull information and reviews
BlackBull
78%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.