Forex Scalping - What It's All About

By James Stiller

If you know much about currency trading, you've probably heard about Forex scalping. Unlike long term investors, Forex scalpers try to profit by rapid deals. They have a different set of skills and attitudes than most standard investors, but above all they must have well-developed self discipline.

Successful forex scalpers must exercise restraint when it comes to making trades, and obtain all the necessary information before trading. This is where discipline comes in and why the most successful traders in the world understand this concept. They understand how crucial this is.

It's something all professional traders know, but often forget: a currency market is in consolidation mode about 60-80% of the time, meaning that it might not move for hours, but then a sudden change may occur. Forex scalpers take advantage of this abrupt and seemingly unpredictable move.

A successful forex trader should learn the skill of recognizing when previous highs and lows are taking place.

Scalpers often use the popular Moving Average Convergence Divergence (MACD) forex to track trading indicators, though they may use customized parameters rather than the standard ones.

Skilled Forex scalper use these miniscule hints of impending trends to achieve the goal of all traders: to sell on rallies and buy on dips. They spot consolidation channels with wide pip ranges (20-40), so they can have long entry orders ready when prices bottom out, and short entry orders for when a currency's price reaches a new ceiling.

All traders will benefit from learning the scalpers' strategies and sharpening their own recognition power. You have to be able to make the most out of this.

Traders who are familiar with these strategies so will be able to maximize their profits. - 23217

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