Fibo Quantum Review
Most of the day traders are short term traders. Day traders love scalping. Fibo Quantum Review A position is opened and closed within minutes making a few pips per trade. Forex scalping is a low risk Forex trading strategy where gains as well losses are both small. Scalping means making 2-5 pips per trade; it is based on the fact that most of the time the markets are consolidating. In other words most of the time there are no significant movement in the markets.
Scalpers look for the period when the market is consolidating and ranging like between the closing of the US currency markets and the opening of the European currency markets. During this period Forex markets tend to range for hours without much movement. This is the time when scalpers like to trade.However the more you trade the higher your trading cost becomes. For example if the broker is giving a 4 pips spread to you than this 4 pips are your trading cost per trade. You will have to make more than 4 pips per trade to start making profits.
You cannot become a successful scalper without understanding technical analysis well. You should have clear concept of over-under brought support and resistance levels trendlines trading channels etc before trading any position.Most of the Forex brokers hate scalpers. Since the brokers are most of the time trading against you a successful scalper can take profits away from the brokers. No doubt many brokers try to ban scalper from trading.
Since scalping means a few pips per trade in order to make 20-50 pips per day you will have to trade many times. Dont forget these 20-50 pips are after you have subtracted the trading cost.Since scalpers are looking for capitalizing on very small gains like a few pips per trade the profits obtained per trade are small. So scalping requires you to use high leverage.
