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 Forex Scalping Method, 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.
Step 4. Begin Scalping
There are many theories behind scalping but if you want to make money here and now — the easiest one is a so-called “calm river” strategy. Its not as profitable as the full-on scalping but allows for some leniency and will serve as a great introduction.