Why be a Forex Scalper? Simply put, it is both fun AND profitable! The
concepts are easy to learn, easy to do (once you’re skilled at it), provides you
with an adrenaline rush, and can fatten your bank account.
Personally, I think that of all Forex trading methods that scalping is simply the
most fun. The trading style is mentally stimulating, and it’s exciting to watch
your profits grow.
If you are a chronic trader, someone who enjoys doing frequent trades, you’ll
find that here you’ll have the chance to be “trigger-happy”. Day traders often
have to wait for hours before a good trading opportunity comes along
(sometimes they don’t even trade that day if nothing seems to happen),
position traders often have to wait for days or even weeks before a suitable
trading opportunity presents itself, but a scalper can be joyfully raking in
fantastic profits while the other traders are bored out of their minds! For these
reasons experienced Forex traders can also add scalping to their trading
toolbox; so that they have another tool to work with.
I’ll elaborate upon when traders employing other styles of trading might
switch to scalping. Generally speaking when a currency pair goes into a tight
range or consolidation in the time frame view one is normally looking at, if
you were to zoom in even closer it would be apparent that there is plenty of
market move on a tiny scale. A trader could then scalp the tiny movements
when otherwise they couldn’t trade at all.
Often times it is generally best for most Forex traders to restrict trading
activity to only the times when two markets overlap (typically 2am to 6am
and 8am to 12noon EST (New York time)), however even outside of those
times a trader can engage in scalping, thus a scalper can trade virtually at any
time 24 hours a day. Because many people are simply part-time traders,
trading as a hobby, due to having to go to work at some job, scalping is a
method that may allow those people to trade who might not be able to
otherwise participate in trading during the optimum times mentioned above.
Scalping professionally sure beats going to work at some J.O.B. (Just Over
Broke – ever notice that you’re still broke soon after getting paid?) that you
hate everyday. As a scalper you can hang around your computer for a few
hours, make say 5+ trades, and profit as much or more than you might earn all
week going to a job working for a grueling 40 hours. If you have a job then
don’t despair… after some time your “hobby” of Forex Scalping can possibly
save you from a lifetime of being a slave working to make some company
rich.
All hype aside, I think that scalping is a useful skill for all traders to have for
various reasons. As mentioned above, it allows a trader to trade during times
when other styles of trading would make you sit on the sidelines (not trading),
so you can engage in profit making activities when you otherwise
couldn’t. Scalping is best used in conjunction with, as a supplement, to other
styles of trading – so keep trading your primary methods and add scalping to
your trading toolbox.
The downside of scalping is that it is the most labor-intensive style of
trading. Whereas longer-term styles of trading might only require minimal
“work” each day (as some of the techniques presented in the eBook “Forex
Sailing”), and some kinds of day trading (as taught in the eBook “Forex
Surfing”) may only require periodic checking of charts during a trading
session, scalping however requires that you spend more time paying attention
to charts throughout a trading session, and active concentration while engaged
in a trade (you can’t leave your computer to grab a coffee as easily). Despite
the fact that it is the style of trading that most resembles “work” you should
still take the time to learn this style regardless of whether you intend to trade it
often or sparingly as it is a useful skill that can help improve your other
trading methods in a variety of ways.
Remember also that you don’t have to scalp everyday, but you can treat it as
an occasional sport or game (best “played” in a demo account) for the shear
joy, thrill, and instant gratification that this style of trading offers.
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