How To Gain The Most Benefits From A Forex Scalping System
Friday, September 3rd, 2010Forex scalping system consists of a number of strategies that enable the trader to execute many trades during the day where every trade is restricted to small profit or loss. Throughout the day, this system is required to secure adequate winning trades to pay for the loss trades and give sufficient profits for the trader. Due to the low capital requirement and the quick potential profit, this method has drawn many first time traders whose money is very limited.
Usually, recommending to use forex scalping system to a new trader is something I won’t do; this is mainly due to its low winning chances and difficulties. Ask this to yourself: “Are you sure that you can score winning trades again and again against the volatile forex market when you just learned forex trading?”. Of course not; that’s why it is better to leave scalping to a pro trader or tireless forex EA.
But if you truly interested in scalping as manual trader, try this strategy:
You will see hardly any movement in the market as the time approach 8:00 AM EST, but soon after 8:00 AM, it will start the first move.
At 8:00 EST in the morning, check your 7:00 AM EST candlestick chart (1 hour timeframe) and place two buy/sell orders: above and below the last candle’s high and low at 8:00 AM. These two orders should be OCO (One Cancels Other), but if the distance between them is too wide, don’t forget to place 10 pips Stop Loss Order.
As the New York market open, aim for 4-5 pips profits, then get out as soon as possible. Note that this tactic depends on morning breakout, so it will works better if a major news announcement is due within the upcoming NY market time since the news will increase breakout possibility.
As you can see in the example above, a manual forex scalping system typically restricted at a particular time when there is higher chance to score a winning trade, but a scalper forex robot can easily operates all day to find profit opportunities on various currency pairs. That is why I recommend every manual trader to stick to long-term trading strategies (read forex trading tips to understand five rules that you should prioritize in manual trading) and let an EA deal with the short-term one. Read the details of the most recommended scalper EA at a review of FAP Turbo. This specific EA even has third party group that focusing solely on enhancing its performance; you can find further info about it at a review of FAP Turbo Expert Guide.
