Understanding long-term trade plans can be complicated for newbie Forex traders. This is why many of them resort to a method known as short-term trade called scalping. With the help of the best Forex scalping systems, traders who have just started out can make good profits and keep on with their trading without being discouraged.
Here are some easy to follow scalping strategies:
- New Fades
This is one quick strategy to earn big bucks offs the Forex market. It depends on National and International announcements and how they affect currency.
Imagine, a nation releases its Financial Budget or Gross Domestic Product. Immediately there will be major shifts in the tectonics of the Forex market. It is during this time of high volatility that traders strive to make quick and high profits by scalping.
Scalping is indulging in a short-term trade of anywhere between 15 minutes and 1 minute. During scalping, traders take note of every movement and decide on exits and entries to yield quick and remarkable profits.
- Inside Day Breakout
One of the best scalp system Forex, it works with candlesticks and is easy for new traders to grasp. Understanding an inside day is crucial before delving more into the strategy.
An inside day is a candlestick that comes about when the currency price trades as per the highest and lowest limits of the previous day’s margin.
This is a sign that the market has become less unstable. When inside days repeat themselves for multiple days, it decreases market instability. This makes it an ideal situation to trade and possibly win.
Dealers use this strategy to plan their buying and selling points and generate good profits from the Forex market.
- Automated Scalping
This is one of the best Forex scalping systems. Designed for rookies joining the Forex club this needs the help of automated traders.
How the strategy mainly works is a trader sets ‘take profit’ and ‘stop-loss’ parameters in their trading apps. Then they enter short-term trades of around 15 minutes to 1 minute. Whenever a buy reaches the ‘take profit’ margin, traders have the option to exit their trade with their current profit.
On the other hand, when they experience a down market trade, automated traders exit when trend reaches the ‘stop-loss’ bar.
It is an easy way to encourage more and more new traders to get into short-term Forex trading and make the market more accessible.
Scalping: Things to Avoid
There are often some common mistakes that many beginners make and end up losing money. Here’s how you can avoid those.
Don’t succumb to emotional pressures. Scalping can often tempt people to trade again and again in hope for profit when there is probably no chance. Avoid that happening to you.
Scalping during trends can get tricky because of the market’s volatile nature. Stick to the plan and make hedges and stop losses to minimize risks.
In the end, looking for the best Forex scalping systems may not be hard at all. The one that worked for you is undoubtedly the most profitable.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.