Scalping the Forex Market - Does it Work?

If you are not familiar with the term Forex scalping it is a strategy used in trading where the profits come from very small changes in the prices. They are normally very short-term strategies that may even be as quick as a blink of the eye.

Many of the Forex traders that use the scalping strategy have targets that are pre-determined as well as placing stops before the actual trade in the market. Keep in mind this type of strategy is very demanding and challenging. You need to be able to constantly monitor prices, have a great deal of concentration and be able to make quick decisions.

In order to use it correctly scalping requires a vast knowledge of trading along with technical analysis skills. The basic way of adding a drastic amount to your account in the least amount of time is by using high leverage. But using only reasonable leverage in the beginning and increasing it as your skills improve is always a good idea. An inflexible stop loss is good to use so you do not blow your entire account within one or two trades.

When you are doing your calculating always do them on the worst possible outcome to evaluate the odds of your account lasting for longer than the first few trades. Most novice scalping traders attempt to increase their profits by using all of the capital at once, however, this also means taking an increased risk.
Scalping can be intimidating for new, inexperienced traders and is best suited for the traders that have solid Forex trading experience and skill.