Special thanks to our friends at Pipsologie, original report in German.
First, a brief definition: scalping is a trading strategy that seeks to achieve small gains in short time periods. Traders who use this method are known as scalpers, and often open about 10 to about 100 trades per day. Main theory or belief is that many small gains are easier to implement than to capture a few big moves.
An important prerequisite for a successful scalping strategy is liquidity. The greatest liquidity in the financial market, we find in the Forex Market, and that is why Forex scalping is just very popular.
I would have thought that scalping is the pinnacle of all trading styles, similar to the downhill skiing the 100-meter sprint. Almost every amateur trader dreams of becoming a scalper, but few are successful. Over 99% of the hobby scalpers loose and so I have a very unpopular job to write articles against scalping:
I recommend that traders who do not act professionally, or less than three years experience to adopt a slightly slower trading style. Try it once with swing trading a 4-hour chart or the daily chart. I have seen many traders make major improvements, as they have opted for slower trading styles, myself included.
brokerage firms brokers capital cfd's execution fibonacci hot forex ibfx lots market analysis mobile trading risk and reward risk reward scalping spreads tradestation trading tips what is forex why do traders loose