Many traders start out as short term trades in the forex market, before thinking of going long term. This gives them a clear view of what it takes the forex market in a short period of time, and they can go ahead to apply it in their long term trades if need be. This method of trading is called scalping; the main goal is to purchase or sell currencies by holding a position for as short a time as possible and close it off as soon as small profit is made.
There are quite a lot of trading strategies that fall under scalping, the most popular of them being the one minute forex scalping strategy. The key point in this strategy is to open a large amount of trades that last not more than a minute for a little profit from each of them. The profit may not be substantial per se, but when put together, they can add up to something notable for a day.
FOREX ONE MINUTE SCALPING STRATEGY EXPLAINED
You already know that trades set up with this strategy do not last long. Another thing to take not of is that such trades require a high level of concentration. This means being as fast but also as detailed as possible if you must make any profits at all.
This forex one minute strategy is also classified as day trading since it requires that all positions opened in a trade day must be closed out before the end of that business day. Before getting a hold on this trading method, you may see it as overwhelming to open as much as 100 trade positions in a day, monitor them all and make sure you close out on time. Are 100 trades a day not too much? No, it is not. As a matter of fact, the forex one minute strategies can only pay off when the volume of trade is on the high side. For this reason, investors can go ahead and pick brokers that offer the smallest spreads and commissions.
WHAT ARE THE PROS AND CONS OF THE ONE MINUTE SCALPING STRATEGY
The advantages involved in this method of trading include
- Better risk management
- Only small moves are required, which are easy to implement, even for the newbies
- With all things set up right, a trader can make ore profits from scalping because smaller moves occur more frequently than the larger ones
The disadvantages of the one minute scalping strategy are
- It is capital intensive
- It requires a good amount of practice to ensure more profits than losses
- Traders with average speed, instincts, and mathematical skills may not do well with this strategy
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