Browsing Category: "Forex Sclaping"
PICKING TOPS & BOTTOMS (PART A)
Read this section carefully as the skill presented here is crucial for most of the scalping techniques that will be presented later.
Take a few moments looking at the following chart. Look at the characteristics of the tops & bottoms of the waves.
There are a few main premises of scalping that are useful to keep in mind to understand the logic behind these techniques.
Smaller moves are easier to gain – In my previous eBooks I mentioned that the larger your target pip gain the higher the possibility that the target won’t be reached. I have been known to say that it is easier to catch 20 pips than 200 simply because in the time that it would take to reach that goal the market sentiment could change due to unforeseen circumstances. As a scalper it is reasonably easy to determine a small movement in a particular direction and to capitalize on a few pips before the market will likely reverse.
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Here is a general overview of what scalping is like. I’ll talk in generalities here but will certainly go into specifics later in this eBook. This section is just to give you a taste for how a typical trade goes.
You watch your charts for specific market conditions to occur. Once you see a potential opportunity you begin to watch your charts very closely for the right moment to act. Once the desired circumstance occurs you pounce to enter a trade. Your trade is entered with a stop set at 10 pips below your entry price.
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PRACTICE MAKES WISDOM
Have you ever watched a game of some professional sport such as football, hockey, baseball, soccer or basketball? Surely you would agree that the athletes have spent many hours (actually years) practicing and honing their athletic skills before they ran out onto the field for the big game (the real game). Before you trade with real money you too should practice practice practice with fake money in a “demo trading account”.
By the time you finish reading this eBook you’ll likely feel confident that you can successfully scalp trade. Chances are that you’ll probably be able to, but just because you can do something doesn’t mean you should do something. You really do need to practice to gain proficiency as a scalp trader.
You can read this entire eBook, study all the trading rules and trading set ups presented, however there is simply something that I can’t teach you that you can only learn by your own practicing. Being able to read the charts in real time and being able to decipher & to make the decision whether to trade or exit a trade requires what can seem like intuition. Once you are skilled at scalping you almost appear to be psychic to someone sitting next to you.
The only way to develop this “intuition” is by extensive practicing. Once you’ve watched your real-time charts long enough and have witnessed many micro trends as they happen you’ll begin to get a “feel” for what the market is doing based on the behavior of the real-time price action. Again, this isn’t something I (or anyone) can possibly teach you within a book such as this; you can only cultivate this “intuitive” skill by observing the live market.
