Forex smart scalper system
Let us begin by saying that a scalping forex strategy is not for everyone. This is a trading system for investors who love adrenalin, who simply cannot live with the boredom of checking forex prices once a day, making small adjustments and allowing the market to take its course. What it involves is trading in a very short time frame, with the smallest possible stop loss. Scalpers often open and close trading positions within a matter of minutes, which is why they usually use one-minute charts to guide their trading decisions.
Every trade comes with a built-in cost and commissions in the form of the spread, which can easily eat up a series of small wins. With scalping it is often not viable to set up take-profit levels, since your target price is simply too close to the entry price.
This is where you will often see a lot of action. Monitor the price of your chosen currency pair for minutes and wait for a trend to emerge. To give yourself at least a reasonable chance of success, set the target profit level to not less than 1. A simple scalping system is to trade on breakouts. One way of determining your entry point is to set it at just below the lowest level of the current candle.
Another possibility is to use Bollinger Bands. In this case, set your entry point at point B, where the price breaks out of the band and exit when the target profit has been realised.
At point A, the red period moving average dropped below both the longer-term averages, which would have been a good entry point in this situation. Once again, the exit level should be as soon as the trader has realised the target profit level. What is clear from the above discussion is that the three systems give a fairly similar reading, at least in this particular example, but this will not always be the case. Using any one of these systems and waiting for confirmation from a second one might be a prudent option, if time allows.
If you have spent any time at all monitoring forex charts , you will undoubtedly be aware of spikes. They are those awful price surges, up or down, that can upset even the most sophisticated of trading systems. You will also have noticed that often, after such a surge, the price gives up much of the former gain and settles at a level very close to where it started.
You simply must have a proven and consistent forex scalping strategies that are easy to understand, easy to implement, and quick to start. If you have these working together for you, then you can continue to build your wealth and your income. You have to be smart about it, AND you must take action.
Unless you have a fairly large account, AND are willing to see some deep draw downs, position trading over several days can cause a lot of stress…especially in the forex. You need a forex scalping system that you can count on, and that causes you little to no stress. You may have started with forex swing trading. A 4x scalping system build on a mechanical trading method is going to be a rough ride for most. At some point, you WILL have drawdowns in you account.
They can be significant. They can empty your trading account. No, your 4x trading plans must be much more realistic, and well-defined. With proper forex trading plans, in particular, a forex scalping system that is proven, is easy to learn and actually DO, your forex trading will be much simpler.