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(Forex Signals) What is Scalping? - Part 1 of 3

 


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Scalping can have various description depending on whom you ask. Some folks would say that some “Forex Surfing" technique's are considered “Scalps" due to the small size and duration of the trades. Different traders have different techniques for scalping, but one thing that can be universally agreed upon is that scalping involves tiny trades (both in amplitude and duration).

Typically, Scalping is a specialized technique that involves making a tiny trade to capture a very small movement in the market. Whereas a position trader may engage in trades that are intended to last multiple days to months aiming for targets of 100-1000 of pips, and a day trader typically engages in trades that are intended to last for less than a day aiming for targets ranging from 20- 100 pips, a scalper engages in trades that might only last a few minutes aiming for targets of 5 pips.

A scalper typically trades multiple forex lots whether is mini or regular lots depending on the size of the account and risk tolerance, often more lots than one would normally trade if trading as either a day trader or a position trader, simply due to the fact that those styles typically require larger stops thus shrinking the amount of lots one can safely trade according to equity management principles. By trading more lotd a scalper can achieve significant gains comparable to the gains expected by day and postiob trader in the same time span even though the scalper engages in much smaller trades. For example, a scalper that succeed in capturing just 5 pips could have made $500 in under a minute if he traded 10 regular lots.

Dakota Global is the owner of http://www.Signals-4-Forex.com providing information on why only 2% of the traders made money while 98% lose everything. To get Free " Forex Secret Report", go to http://www.Signals-4-Forex.com

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