Traders who are scalping the market do not only trade the market to make a quick profit. There are also people in the market who scalps the market to check out this strategy. This strategy is highly rewarding to successful traders in the market who can understand the market trend. If you are a new trader and want to make a lot of money, you can start scalping. It is not a good choice for the new people in forex to scalp as their main strategy. There are many long-term strategies in the market and you should follow these strategies to make a profit in your beginner account. Also, you need to have a lot of money in your account to scalp the market. The professional scalpers at Singapore always trade with a huge trading capital since they know in order to reduce the risk exposure in short time frame trading they will need a decent balance. But a big trading account is not going to ensure your profit factors in this industry. As short time frame trader, you must have a very clear knowledge in this industry.
Why traders scalp in forex?
Most of the traders prefer scalping in the forex trading industry since it allows them to book their profit in the market very quickly. Unlike the long term traders, they don’t wait for days and weeks to lock their profit in the market. They simply execute high lot size trade in the market and within hours they close the trades either with profit or loss. But in order to become a profitable short time frame trader, you must have a very clear understanding of the basic of the forex market or else it will be extremely difficult for you to survive in the long run.
They are greedy: Not all, but most of the traders who scalp the market are greedy. It is not that every trader who uses this strategy are greedy, but most of them are. Many interested people who haven’t opened a Forex account have heard of scalping and how easy it is to make money in Forex. To them, scalping is the only way to become rich in Forex. Out of greed, many traders scalp in forex. However there some expert traders trading CFDs with an extreme level of precision in the short time frame. If you want to become such an expert then you need to learn the fundamental and technical analysis very precisely. A single mistake is enough to wipe your entire trading account in the market.
Think of this strategy as a quick rich scheme: Many traders also want to get rich quickly. They have been looking for a perfect strategy where they can make money quickly in their accounts and do not have to trade all day. Scalping is their answer. They think of this strategy as some quick rich scheme in the market of Forex.
Know the markets: traders who scalp are very experienced. They can understand the market in any second. They trade the market in a very short timeframe and they do not need hours to figure out the market. With experience and knowledge, they can tell where the market will go. They trade the market for this reason to use their experience to make quick money.
Love fast results: if you love fast results, you will love scalping. Traders want to make money quickly in the market. Scalping gives them this opportunity. Though there are risks, the professional traders trade with this strategy. The fast result of scalping is one of the reasons it has become popular among the traders though it has many bad sides in trading.
Summary: Trading is nothing but running a sophisticated business. As a professional trader, you will always have some losing trades but you need to learn to take managed risk in the market. Always try to execute your orders by using rational logic. Last but not the least try to trade in favor of the long-term prevailing trend.