1. Most scalpers don't figure in the cost of their trade spread in and out because the broker only shows the net profit on their charts.
2. If the average profit is five pips with a 30 pip sl, how many trades will it take to make up one loss? You can't make your stop five pips because it will almost certainly get stopped out just from the normal wobble of the market.
3. retail traders try scalping because it appears to be a way to risk very little money. But over a long term how many trades go bad and the 'house' spread in and out eats you up. It's like a 'friendly' poker game where the house rakes a small percentage off of the antes every hand. The big winner in the game is the host who risks nothing in money.
4/ Most of us started out leaning on some form of crutch like an EA or bought some magic program that was supposed to make us rich without fail. But 90% of us DO fail so you know something is not right in our assessment of the FX market.
5. Most of us also start out without any education in the way the market makers manipulate the market and how to tap into the rules they use to talk to each other. We just want to have a EA to tell us when to push the button. Think about it, all of us would be millionaires several times over.
6. You have to find a legitimate educational site with daily mentoring. It is the cheapest way to be successful in the long term
Scalping is always risky because we never know what the market can do. We are always behind the market steps, but when your stop-loss and take profit is made and the signals are all right scalping can be inzane.
nikky_488 posted: Which time frame is good for scalping ?? And why ??
Can't advise in this as I am a starter in scalping. But most of the mentors are using 5min and 15min timeframes and I am learning also in these timeframes. I am not searching for the ultimate, yous scalp a little before the emotion take control.
This method of trading is actually very good, although I don't stick to one trading style, my trading style is very dynamic with the flow of the market, but I enjoy this method of trading as its parts of my trading strategies.
bungtobing posted: This method of trading is actually very good, although I don't stick to one trading style, my trading style is very dynamic with the flow of the market, but I enjoy this method of trading as its parts of my trading strategies.
Thinking that forex is a simple way to get a lot of money in a shortwhile is the major cause of traders failing and quiting. No one canbet forex is untill they get into it. The ads on youtube will make it seem like a simplse thing like downloading a trading app, creating an account, investing, making predictions, waiting for the trade to end and finally withdrawing the money.
Greed for money is what makes people get into scalping. Who does not want to get money in just a few hours. That idea can be very interesting. Forex is a mind game. if you cannot reason properly then failure is imminent. Desire should be controlled for the safety of everyone. Depression can really kick in when things do not work out as expected.
Forget scalping. The mistake that people make is trading withiut knowledge. hey think that forex is simple and end up losing all their money. This is to the beginners who after watching ads think that they can make a lot of money in forex just like that. Better to learn first then trade later. It pays to be patient.
I am sure that some people did not even understand what scalping is before they opened this thread. If you had no idea what it was then the post is directed to you. You cannot trade without knowledge and expect to get good that do not know better are the ones that do scalping.