Foreign exchange scalp trading involves frequent trading by pursuing small profits. Due to the small profit from each transaction, traders need to conduct a large number of transactions to obtain significant returns. Due to the small amount of each transaction, the risk is relatively low.
What is scalp peeling?
Peeling "is a strategy of trading in the shortest possible time, which involves obtaining small profits through several quick transactions. In this article, we will delve into what "scalp peeling" is and its application in the foreign exchange market.
Foreign exchange scalp trading is a method of conducting foreign exchange trading through the shortest line chart. The pace of scalp trading is very fast, and the process may be exciting. It brings benefits, but there are also risks. Please continue reading this article to learn more about foreign exchange scalp trading, its application strategies, and how to carry out efficient risk management.
Let’s take a look at 10 scalping techniques that you can implement immediately.
1. Keep a relaxed attitude when dealing with scalp peeling
The attractive part of scalp trading is the possibility of short-term profits. From a technical perspective, only a very large position can produce such results, and the problem with extreme scalp trading is that few people can control it.
If I trade 5 standard hands within 15 minutes and end up losing $1000, my emotions will change. So I started choosing only small transactions until any loss could keep me calm.
2. Reject all possible distractions
I like to have lunch while playing videos while peeling my scalp. This has led me to constantly make many avoidable mistakes. When I realized this, the mistakes I shouldn't have made in the past had already cost me 30% of my profits.
Now, before scalping for trading, I tend to stay away from all possible distractions: put my phone in flight mode and place it far away; Turn off social networks and email notifications on your computer; Tell the people around you not to disturb them casually.
3. Adhere to a scalp peeling strategy
Hunters do not pursue multiple prey at the same time. If traders use several strategies, their energy will inevitably be dispersed. He will be unable to distinguish whether the signal is good or bad because he is always busy searching for various trading opportunities and neglecting the most fundamental analysis.
4. Focus only on one or two currency pairs
Each pair of currencies has a unique fluctuation pattern, and to find this pattern, traders need to spend a lot of time observing its fluctuations in different situations. Ideally, we would like to observe different currency pairs simultaneously, but it is difficult for the human brain to do so. If multiple currency pairs are traded at the same time, it is easy for traders to forget what market conditions were before.
5. Wait for the opportunity to scalp and appear on your own
If you feel like you need to engage in scalp trading, then you are definitely forcing yourself. The best trade will come to your doorstep. They look very obvious, and the charts seem to urge you not to miss such a good opportunity. You need to learn to wait, and scalp traders don't need to trade every moment.
6. Weekly reflection on one's own transactions
For many traders, scalping is just a game. The best way to distinguish a scalper is to see if he has a trading record. Transaction records are very important, as you can find problems you haven't noticed in your daily life.
7. Do not set daily profit goals
Many foreign exchange scalp traders have set daily profit targets. This is undoubtedly foolish and self destructive. As a scalp trader, your only goal should be not to lose money!
8. Set maximum loss limit
The most important rule in trading is to set a maximum loss limit. If the loss reaches the limit set by oneself today, stop trading immediately and do not trade again today.
9. Learn to analyze the economic fundamentals
When economic fundamentals begin to affect the market, price volatility analysis no longer works. To become a successful scalp trader, you cannot ignore economic fundamentals analysis.
10. Quickly exit and retain profits
Stay an extra second in the transaction and you will have to take on more risk of market reversal. The essence of scalp peeling is to quickly exit the market. If there are two consecutive losses, it means there must be a problem somewhere and trading needs to be stopped.
The key to scalp peeling is to accumulate as many favorable conditions as possible. Most traders only use one method to scalp, which is a big mistake. For scalpers, due to the short trading time and rapid price changes, the market seems to be more than one, and different markets have completely different performances. We must have different strategies to cope with different markets in order to become successful foreign exchange traders.
【 EBC Platform Risk Reminder and Disclaimer 】: There are risks in the market, and investment needs to be cautious. This article does not constitute investment advice.