There are many different strategies that Forex traders can use, depending on their investment objectives. If you are a trader who wants to make quick profits from reselling, rather than awaiting long-term gains, you should know about scalp trading. With scalp trading, you focus on profiting on small price changes, with the goal of making high volumes from small profits.
How Scalp Trading Works
Successful scalp trading requires a trader to spend time monitoring the trading station, in order to open and close a large number of positions. In general, Forex traders focus on 1-minute, 5-minute or 15-minute price charts, so charting time frames plays a big role in determining when to enter and exit a trade.
To identify extreme moves in the price action, a trader can use different strategies, taking a position in the same or opposite direction. Since this type of trading captures only small moves in the market, traders should open at least 5 trades per day.
Managing Risk in Scalping
Managing your risk is one of the most important focus areas, regardless of your chosen strategy. Since this is true with scalp trading, it is crucial to have active stop-loss orders, which are buy/sell orders placed to limit the losses in case the prices move against your trade.
You can also manage your risk by limiting market exposure. To reduce the chances of running into volatile events, scalp trading coaches advise traders to spend only a couple of minutes in the market
Scalp Trading in a Community
Many traders choose to practice new strategies in live immersion trade rooms, since the best way to learn scalp trading is with practice, ideally with the help of other traders.
Auvoria Prime’s AP LIVE has multiple live Trade Rooms with Expert educators. Trade rooms, which are both in-person and virtual, are communities of traders that come together to trade. As these sessions are led by professional Forex traders, you can use them as a coach as you learn new strategies. These trade rooms help you learn first-hand about new techniques, as you watch experienced Forex traders navigate through their trades. These professionals and the other traders in the room are your support group to help you learn and use scalp trading.