Many consider scalping to be tiresome and time-consuming. Indeed, not every trader can successfully pull it off. It may really seem that scalping takes the fun out of the best Forex strategy.
On the other hand, it really does work.
If you are on the lookout for a reliable Forex strategy, this might be your safest choice. As a day trader, you will dip in and out of the market once or twice a day and always carry a position into another period. Ideally, the profit will come back.
If you’re a savvy scalper, this process is usually far more frenetic. You will trade in and out of the Forex markets several times per day. The profit margins may appear small but they’re also steady.
The more you scalp, the more you will make.
For example, if you trade EUR/USD pair and the price of either currency jumped up 20 pips, you get a slight profit for taking an action.
The result is a tiny profit, but that is a profit made in a single minute. The amount and consistency of your overall profits depend on your commitment and reflexes.
If scalpers want to truly take advantage of the news releases, they should wait for the most important ones. When you scalp, you need to remember when GDP, unemployment figures and inflation rates are about to be released.
These factors affect trading strategies, particularly in the currency trading market, where scalping can be most profitable.