This 6 rules of scalper Forex

Over ninety-five percent of professional trader's over the world is a timely scalper.


Scalping for fast small benefits is a very popular Forex trading scheme, requiring immense discipline and focus. True Forex scalpers make between 10 and 100 trades every day. If a trade goes against them they break of quickly instead of holding on and hoping that it will turnround.


The aim of a scalper Forex is to buy or sell a pair of currency at the bid or ask price and then exit the trade quickly when it's in profit by a couple of pips. Using this strategy of taking a small amount of pips out of the market at once, can quickly compound into big gains as long as a strict exit strategy is used to prevent losing trades absorbing all profits.


Generally scalper Forex use the 1 min, 5 min and hourly charts to locate trades that can make them a small profit. Because the scalper Forex is only aiming to make a couple of pips per trade it's essential to use a broker with low spreads and instant execution of trades.


A few things that can improve your chances of being successful as a Forex scalper are:


1. Ensure that you know when news relevant to your currency pair will be released. - Write down the previous days Open, High, Low and Close.


2. Learn some basic candlestick patterns so you can identify them when they occur.


3. Draw in major trend lines, pivot points and support and resistance on both the daily and hourly charts of your currency pair.


4. Determine the major direction for the day, Bullish or Bearish, trading in the longer term direction will help trades to be more successful.


5. Move your stop to break even you are 10 pips in profit.


6. If the trade is taking to long to become profitable or you don't feel comfortable with it, get out.


This 6 rules is very important to all trader's, it doesn't apply to scalpers alone.


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