The Scalping Trader – What Forex Style Suits You?
Forex scalping is trading for small gains, looking to exploit short-term movements in prices. The idea is to take profits quickly, with minimal exposure. Scalpers take positions for short time periods exploiting market discrepancies, exiting trades immediately, particularly during adverse movements. Typical scalpers will be void of any market view.
Famous Forex Scalper :
Paul Rotter (AKA The Flipper)
A trader should have no opinion. The stronger your opinion, the harder it is to get out of a losing position.
Paul Rotter is a trader that has reportedly made $65-78 million per year for 10 years, scalping the most liquid contracts at the biggest futures exchange in the world.
He scalps by placing buy and sell orders simultaneously and making very short term trading decisions due to events in the orderbook. He spreads multiple orders in different markets at the same time, close to the last traded price.
5 Facts About Forex Scalping
1) Get In Get Out
Utilise Take Profit and Stop Loss orders to create predictable gains and losses.
2) High Stress
Scalping is strongly suited to the person who prefers and thrives in a fast paced, high stress environment.
3) Reap What You Sow
Leverage gives scalpers with smaller amounts of resources the ability to reap the benefits and risks of using a larger sum to trade currency.
4) Little By Little
When using leverage, a scalper needs to remember that a small movement is going to result in a much higher gain or loss than without leverage.
5) Know Your Platform
It is integral to develop an in-depth understanding of the platform a scalper is trading on. A scalper does not want to be fumbling with commands in their narrow activity window to try and buy or sell.
Forex Scalping On MahiFX
One style of scalping is to look for short-term moves that indicate a large order is being executed. Here scalpers assume that once the order is completed the price will return towards its starting point. Another scalping style is to trade the short-term ranges. Both scalping styles make heavy use of charting.
This is one of the reasons MahiFX incorporates charts directly into a book. Traders can easily select different horizons, drilling into the 1 minute view and then going out to the 10 minute or 1 hour view to get context on their trade.
In both cases scalpers will want the market to come to them to maximize their edge. MahiFX makes it easy for traders to leave bids and offers at or just behind the market with just two clicks.
Hiding and canceling orders
Since scalpers typically change their minds very quickly, MahiFX makes it easy to cancel orders, keeping them right inside the book. Due to the sheer number of orders usually placed by active traders and scalpers the trade blotter can become cluttered.
MahiFX allows users to hide cancelled and filled orders, enabling users to focus on their live orders. Our history tab filters also provides a convenient way for users to quickly scan the status of their orders.
Position History on the book allows users to keep track of a book and how they built or reduced their position allowing traders to actively monitor their position history in fast moving markets.
Our Upper limit take profits and Lower limit stop losses once set auto re-size to a users position within a book allowing users the piece of mind when markets trade quickly outside of recent ranges. On our Account Activity Tab users can quickly assess the profitability of their trading activities by checking a books realized profits and their account balance.
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The content of this blog post can be seen on our interactive infographic What Forex Trading Style Suits You?
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