subject: Forex Scalping System Important Information [print this page] Are you looking to make money trading the Forex? It's one of the best ways to make money from home. Some have attempted to use a Forex scalping system to do this. But, is this the best way to trade on the Foreign Exchange?
A scalpers goals is to do frequent trades and make very small profits. Typically they try to capture 1 to 5 Pips per trade. If you're lucky, this builds up over time to a lot of Pips. You will need to stare at a screen for a minimum of 8 hours every trading day. It is very draining and should not be attempted if you are tired, sick or overly emotional.
You may have read about scalping on a forum or bought an ebook or course that says this is the best way to trade. The fact is Forex scalping systems do not work. This is the worse type of FX trading you could ever decide to do. It's extremely risky and most people fail trying to master it. There are far easier and more consistent ways to make money trading currency pairs than by using a scalping strategy.
Technical analysis works better the longer the time period. Trend lines and oscillators that are typically used in manual technical analysis trading don't work that well in short time frames like on the one minutes and the five minute charts.
One of the best ways to make big profits in the Forex market is to find the long term trend. You want to trade in this direction. If the weekly and daily charts are showing an up trend, all of your short term trades should be long. When you catch the trend, you want to ride it for big profits. This technique is not possible with scalping.
The best forms of trading the FX market is using a system that does swing trading or long term investing. Swing trades last anywhere from one hour to five days. Long term investing last days to a few weeks. Both of these methods involve finding the trend and letting it ride to capture a lot of pips.
