10 Tips on How To Become a Better Forex Scalper

Forex is a great place to make money. If you have the wits and the skill, you can really make something of yourself over here. There are many methods of trading that are employed in Forex and one of these methods is known as scalping. Scalping is basically when a trader exposes his trading account which may contain an amount in euro or dollars to risk for a very short period of time. Indeed, if a ‘scalper’ gets involved in the process for more than a minute or two, it is said to be trading and not scalping.
A general overview
Scalping is one method through which you can make a substantial amount of profit. True, the risks are high but you can earn something like $30-$40 in some seconds. That much money in that short a span of time is certainly something, and to help you out we have some good scalping tips. Read on and find out.
1 – Take a high leverage
When you are scalping, stat with a substantial amount of leverage so that you get good returns; do not think about going for a low leverage even if you are just a beginner at scalping as this is likely to result in disappointment later on.
2 – Make your decisions in advance
You should know what risks you are willing to take. While Forex results in great profits, there are also cases when people make severe losses. So before you start trading, make sure you know how much cost you can incur and what can be the extent of your loss. Make sure that you are mentally prepared for the worst case scenario.
3 – Know the best hours for trading
Forex operates throughout the day, but as a scalper it is important for you to know that not every hour of the day is an ideal hour for scalping, and therefore it is very important to make sure that the timing is perfect.
4 – Do not make a large spread
As a scalper you will have to make pips for your broker before you can make any for yourself, so ensure that the spread is kept low so that you can gain the maximum benefit.
Range of the currency As a scalper you should choose the currency that has a good range and varies throughout the day so that you can make good profits.
5 – Break even
This should be your motive when you are scalping: break even as soon as you can.
6 – Give it your time
This requires a lot of time, devotion and concentration, so make sure you give it time and attention.
7 – Soak up information
Read as much as you can in the press and watch the news for nuggets of information that would suggest any movement in the currency markets. Staying one step ahead in this game is vital for short term success.
8 – Be prepared for the risk
This could result in losses, be prepared for them in advance and you will be able to make a better attempt at scalping.
9 – Only trade with what you can afford to lose
Over stretching yourself with trades can be a slippery slope for most traders and part-time traders. Only play with what you can afford to lose. Minimize your risk by setting stop losses.
10 – Know when to quit
I would recommend only spending 20 minutes a session, as it is such a high intensity activity. Trading for longer than think could give you a lapse in concentration and in turn lose your money that you have gained. The longer you sit at the casino table, the more chance there is of you losing!


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