Before we dive into scalping in Forex…
What is Forex scalping exactly?
The Forex scalping strategy is a type of trading strategy that involves traders making numerous small trades through the day on small movements to get financial gains rather than buying and holding for longer periods of time. Scalping is the same as skimming, so you get whatever is right on top, so those few amount of pips per movement.
Scalping is a trading technique rather than an investment strategy. This is because Forex traders that classify as investors hold positions and movements for longer-term and aim for an overall gain. Scalpers are those that probably fall under some that want to “get rich quick” by making a profit as fast as possible on many small position changes.
These fast movements can move in individual tick marks of time, so even a day trader’s technique of using time intervals of five to thirty minute windows is often too long of a wait to exit after placing an order. Within these time intervals, a successful Forex scalper will aim at a profit of five to ten pips per trade. (remember a pip is .0001, so scalping aims at .0005-.001 as a gain)
As you will be skimming off small movements, there is no guaranteed time structure that other strategies have. This means maybe you exit a minute or two after entering, or…
