The term scalping elicits different preconceived connotations to different traders. Despite what you may already think, scalping can be a viable short term trading methodology for anyone. So today we will look at what exactly is scalping, and who can be successful with a scalping based strategy.

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What is a Scalper? A Forex scalper is considered anyone that takes one or more positions throughout a trading day. Normally these positions are based around short term market fluctuations as price gathers momentum during a particular trading session. Scalpers look to enter the market, and preferably exit positions prior to the market close. Normally scalpers employ technical trading strategies utilizing short term support and resistance levels for entries. High Frequency Trading There is a strong misconception that all scalpers are high frequency traders.

So how many trades a day does it take to be considered a scalper?

Even though high frequency traders ARE scalpers, in order for you to qualify as a scalper you only need to take 1 position a day! That is one of the benefits of scalping. You can trade as much or as little as you like within a giving trading period. This also falls in line with one of the benefits of the Forex market. Due to the 24Hr trading structure of Forex, you can scalp the market at your convenience. Take advantage of the quiet Asia trading session, or the volatile New York — London overlap.

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Trade as much or as little as you like. As a scalper the choice is ultimately yours to make! Risks There are always risks associated with trading. Whether you are a short term, long term, or any kind of trader in between any time you open a position you should work on managing your risk. This is especially true for scalpers. If the market moves against you suddenly due to news or another factor, you need to have a plan of action for limiting your losses.

There are other misconceptions that scalpers are very aggressive traders prone to large losses. One way to help combat this is to make scalping a mechanical process. This means that all of your decisions regarding entries, exits, trade size, leverage and other factors should be written down and finalized before approaching the charts.

So this brings us to the final question. Who can be a scalper?

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The answer is anyone with the dedication to develop a trading strategy and the time to implement that strategy on any given trading day. Share it with friends: To add comments, please log in or register. Trading Strategies 0 1.

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