Scalpers are people who profit from small changes in currency changes in a short time frame. Scalpers implement a sturdy strategy; they execute it without any hesitation and have proficient money and risk management strategies. Employing a worthwhile simple Forex scalping strategy is as crucial as making profits in trading.
Also, it generates a number of advantages and benefits. Here’s looking to those benefits concerning simple forex scalping strategies for traders to follow are –
1. Volatile Markets can’t have adverse effects – Volatile and raging markets can deliver unpredictable results and outcomes on a longer time frame. While EUR/GBP, NZD/USD and EUR/CHF are most of the common least volatile pairs, the EUR/NZD, GBP/AUD, GBP/JPY are the most common volatile pairs (volatility may differ from time to time).
However, a scalper can benefit from this as there are hundreds of pip movements that are generated by the volatility.
2. No need for fundamental and technical analysis – Scalping doesn’t require any fundamental and technical analysis. Therefore the time spent on such analysis can be avoided which can make room for market research. Some may even consider implementing a strong risk and money management.
3. Free market entry – Forex day trading requires opening an account with at least 1000 micro where movement of each pip is worth $0.10. A 10,000 mini lot has a pip worth of $1 and 100,000 standard lot has a pip price of $10.
Unlike day trading a benefit of simple Forex scalping strategy is that it doesn’t have any obstruction for entering the market. Again traders can trade at any time on any trend.
4. Smallholding period – Scalping requires few seconds to minutes of holding period which never exceeds an overnight. So, scalpers don’t need to worry about losing their stock value overnight.
5. An unlimited number of trades – Scalpers can take part in hundreds of trades every day which gives them a large opportunity for making smaller profits. These smaller profits can accumulate to form a large profit over the course of time.
6. Avoid Rollover/Swap – A rollover/swap is interest paid by the trader to hold a position overnight. Scalpers don’t have to deal with rollover/swap which can create a loss of their earnings.
7. Free strategies – A trader needs to have a strategy to make profits and not loses. Many traders purchase these strategies that can cost a sizeable amount. However, scalpers don’t need to purchase these strategies as there are numerous free ones available on the internet.
8. Regular profits – As scalping is a method that takes place regularly, scalpers can bring in numerous profits every day. Compared to other strategies which can take days or even weeks to bear fruits scalping is more frequent profit producer. Scalpers can easily make 10, 20 or even 50 pips per trade from scalping. This is one other prime benefit of implementing simple Forex scalping strategies.
9. Lower Risk per trade – Scalping enables a trader to garner low risk per trade. Scalpers use a low amount compared to the rest of their account. They only are risking a small amount of money every time they trade while also implementing a stop-loss order. Thus this strategy is an excellent way to protect profits and avoid taking significant losses.
These benefits of a simple Forex scalping strategy are some of the reasons why traders choose to be scalpers. If you are also looking to be a scalper, then visit LiteForex for additional information. They have a wide of information about scalpers who are beginners and who are pros.
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.