Scalping is one of the most difficult tasks in the trading profession. The new traders always try to scalp the market and eventually to lose their entire investment. Those who are relatively new to the trading profession might not understand what is scalping.
Scalping is nothing but trading the lower time frame with big lots. The pro traders use this technique to earn huge money within a short period. But scalping the market and making profit consistently is a very challenging task. Even the pro traders find it hard to make consistent profit in the lower time frame.
Today, we are going to highlight four cardinal rules which will help you to scalp the market like a pro trader. Unless you master these 4 skills, you will have a tough time in a lower time frame trading strategy.
Trading with price action signals
Learning to trade the market with the price action confirmation signal is one of the most effective ways to make money from this market. You might be a new trader but this doesn’t mean you will have to trade the market with indicators. Indicators are nothing but helping tools.
You can’t find good trades in the lower time frame based on indicators reading. Learn about the most reliable price action confirmation signal and you will slowly understand how to scalp the market in the lower time frame. Being a price action trader, you can easily use tight stops which will help you to increase the lot size in trading.
Trade with the best broker
Being a scalper you must trade with top-class forex broker to ensure a professional trading environment. A small delay in the price feed usually results in heavy loss.
Never try to compromise your trading environment to cut down the trading cost. Forget about the associated cost in trading. Focus on premium tools so that you can find the best possible trades at any market condition.
Being a new trader, you might understand the importance of well-reputed broker but if you ask the pro traders, they will tell you why you should always trade with the high-end broker. Trading the lower time frame with the average class broker is very risky.
You will experience heavy slippage and other technical issues which will dramatically increase the risk factors in trading.
Learn multiple time frame analysis
You must learn multiple time frame analysis to become a professional scalper. Multiple time frame analysis allows you to find the best possible trades.
This is nothing but doing the technical analysis is the different time frame. When you analyze the market data in a different time frame, make sure you give priority to the higher time frame data.
Things might be a little bit confusing at the initial stage but there is nothing to worry. Open a demo account with Rakuten and try to develop your scalping skills. Unless you manage to demo trade the market with the confidence you should never trade with real money.
News trading and emotions
Being a scalper you should never trade the high impact news. Most of the false spike and wild swings are nothing but the results of the major news release. It’s better to stay in the sideline rather than losing money in the unstable market condition. Being a new trader you need to have control over your emotions. If you ever trade the market with emotions, you are bound to blow up the trading account. Being a scalper you might have to lose trades regularly but this doesn’t mean you take a huge risk in trading. Follow the basic rules of investment and trade the market with discipline. Never break your trading rules and look for high-risk reward trade setups. Think like the professional traders and stick to your trading strategy regardless of the outcome of any trade.