Forex Scalping: The Complete Guide
Forex scalping is a trading strategy focused on capturing small price movements through numerous short-term trades. Scalpers aim to profit from minor ma...
Forex scalping is a trading strategy focused on capturing small price movements through numerous short-term trades. Scalpers aim to profit from minor market fluctuations, typically holding positions for seconds to minutes rather than hours or days. This approach requires quick decision-making, precise execution, and a solid understanding of technical analysis to identify fleeting opportunities. Successful forex scalping demands high concentration and a disciplined approach to risk management. Unlike longer-term strategies, scalping capitalizes on market noise rather than major trends, making it suitable for active traders who can monitor price action continuously. The strategy thrives in liquid markets with tight spreads, where transaction costs won't erode small profits. Key fact: Forex scalpers typically target 5-10 pips per trade, executing 50-100 trades daily to accumulate meaningful profits. Key fact: The most successful scalpers use a 1:2 risk-reward ratio, ensuring that winning trades significantly outweigh losing ones. Key fact: Over 70% of retail traders lose money when attempting forex scalping without proper risk management and a tested strategy.