how to scalp for effectively

Scalping for small profits is one of the most popular strategies in Forex trading. Scalpers rely on trading regularly and taking consistent small profits. They usually liquidate their trades on the same day. However, the problem with this strategy is that it has the tendency to turn you into a compulsive gambler (especially for beginners). Why did I say that? There are various reasons for leading a new scalper into a compulsive gambler. When a trader turns into a compulsive gambler, he/she will be doom for failure. In this article we will take a quick look at the 2 common reasons for that and discuss on tips to scalp efficiently;
1. Addiction to Random Profits
Most newbie thought that they can make some quick profits by taking small profits in the Forex arena everyday. They enjoy the random rewards from the market, which may turn into an addiction. It is just like teaching your dog to perform a task and randomly rewarding it every time a task is done. In this way, there is no way your dog can know when it will be rewarded. As a result, there is no reason for your dog to quit doing the task, even without being rewarded for doing it.
2. Trading for Revenge
There is a common saying among scalpers; "Trade for today, not yesterday". Many newbie try to recoup their money back after their losses a few hours ago. They cannot swallow a loss or losses and became mesmerized with their fond memories of their past winnings. They keep thinking on how to win back their money, which tends to cloud their judgment on the market. They begin to fantasize opportunities in the market to enter a trade. This will eventually lead to their emotional attempt at revenge that is doomed to failure.
Tips to Scalp Efficiently
1. Determine the direction of the day by first looking at the daily chart.
2. Using candlestick studies, trendline or pivot points to enter a trade in the hourly chart.
3. For the above it must be use together with support and resistance.
4. Trading on continuous trend has a higher probability of success.
5. For contrarian trading, always enter at a better filled price or average your lot size to enter the trade
6. Scrape your trade if you do not feel comfortable after the point of entry or it takes too long for the trade to go in your direction.
7. Stop trading for the day if you have 3 losses in a row
By Sebastian Sim

Forex Trading Success - To Be a Winner You Must Answer This Question Correctly

If you want to enjoy forex trading success and avoid losing your equity and avoid joining the 95% of forex traders who do that – answer this question and think about it:

What’s your trading edge?

Why should you be in the minority of winners what sets you and your forex trading strategy apart and will see you enjoy forex trading success?

Most traders simply can’t answer this question or if they do they have no concept of what it takes to succeed.

If you have bought a system from a vendor and think it will make you win consider this:

If it’s a forex day trading system or scalping system it will ensure you lose as short term price volatility is random.

If you are trading off news stories and think that is your edge and studying fundamentals - you will lose.

If you have don’t understand the logic of the system you are trading you will lose, no matter how good it is.

Maybe you are buying low and selling high into support again, get ready to lose.

Are you a believer in scientific theories and ordered market movement? You have guessed my answer - get ready to lose.

The above are just 5 examples of traders thinking they have an edge when they don’t.

Define Your Edge

To win you must have a specific defined edge (which normally you will have developed and practised) that will help you steer clear of the losing majority and give you the chance to join that elite 5%

Many traders trade forex and never consider what their edge is and are blinded by forex myths and the concept you can buy success – both these views are wrong and will soon see your equity lost to the market.

In forex trading as in everything else in life where the rewards are high involves having a method that gives you an edge and just as importantly the confidence and discipline to apply it.

95% Of Traders Lose - PERIOD

Forex trading requires an edge and a mindset to exploit the edge. Most traders come into forex trading believing that it’s a way to build wealth but they never think of how few people actually win at it or, what it takes to join this winning minority.

Get an Edge and Win Big!

If you don’t know what your edge is and you don’t have rock solid confidence to exploit your edge failure awaits you. Do your homework and be confident about your edge – if you do, you can enjoy currency trading success.

By Kelly Price