Best Scalping Strategies for the Smart CFD Traders

Forex scalping is an insanely popular trading method that is used by both the novice and expert traders because it provides a large profit within the small incremental gains. This style is involved with holding trades for few seconds to minutes that means if the market is a favorable position then the trader opens a trade, and if it takes the downtrend then the businessmen close it quickly to minimize the possible losses. This is a technique which is utilized by the investors to attain quick profit within the shortest period.

Proven scalping strategies:

1.     Using proper tools

To execute Scalping, we need 1 min chart, 200-period exponential moving average and the 1000 period exponential moving average. A 200-period indicator will help us based on the short-term trend, and 100 periods will help us based on the medium-term trend.

2.     Good computer with a fast connection

Without a fast internet connection and speedy computer, Scalping is not possible because businessmen need to get the data updated in their charts. An investor having a slow computer cannot get the facility of Scalping in a full fledge way; rather, the possibility of losing will increase at a greater extent. Beginners should use a speedy RAM because it will be very irritating if you see your computer freezes during your business time.

3.     Reliable broker

A good and reliable broker can help newbies to execute their scalping method, but most of the bad Forex traders use dirty tricks to stop scalpers. They utilize stop-loss hunting method by widening the spread. If the market price is near to stop-loss orders, they increase the spread, which causes stop-loss activation. Try to trade with Saxo capital markets pte as they curates the best possible trading environment. In fact, most of the retail traders in Singapore are trading with them.

4.     Having fewer concerns

Scalpers should not think so much about the market because useless concerns may reduce their performance. They don’t have to worry about the market direction because they stay in a very short time in the market. Their pain for losing any trade does not stay longer because when they open trade the sorrow for their previous trade vanishes.

5.     Small margin mistakes

Scalping is regarded as very costly with a heavy risk and beginner do not understand at first what they are doing but taking a small lot can help them to a greater extent by saving their account. Any change in the spikes matters a lot to their business.

6.     Divergence in the direction

Divergence is regarded as one of the most important tools for Scalping, and in this method, experts generally do not use the standard settings of the Oscillator. They try to reduce the market noise as much as possible by turning off some of the indicators, and they trade based on the direction of the trend. If any crossover happens, scalpers abandon the market for a day.

7.     Using Stochastic Oscillator

Stochastic Oscillator helps to find out the divergence in graph during Scalping, and a divergence happens when price action becomes different from the action of the Oscillator. In this way, momentum is not measured in the price, but it can work as an early indicator of price reversal.

8.     Measuring the signals

Finding the long scalping signals and researching on those can help to buy trades based on signals. Based on Stochastic Oscillator, we should analyze the classic and hidden divergence. Beginners must set 15 stop-loss orders to 15 points and take level profit to 25 points to get the best scalping result.

Forex newbies think Scalping is so easy to execute, but the reality is different. Advanced technical and fundamental trading skills needed to get the best from Scalping. Beginners are suggested to keep their chart clean so that they can get the market signals transparently and rapidly to execute their scalping style.