What is Forex Scalping?
This question seems comes up time and time again so I figured I’d post an answer and hopefully spread the word a little. I’ll provide a quick description and if you specific questions on forex scalping you can leave a comment.
Forex Scalping
A rather straight forward trading strategy based on trying to make large profits on small price changes. The theory is based on the idea of small increases and decreases are much easier to predict than larger ones. The broker or trader places anywhere from 10 to 100 small trades in a single day — and sometimes they succeed.
All in all; trading is trading. Whether you’re trading big or small on the same currency, if it goes down you lose on all 100 small trades. I don’t really see the difference, correct me if I’m wrong.
That’s a good description but, to delve a bit deeper, scalping specifically refers to trades that last under a minute and are usually done on highly leveraged accounts where a single pip movement is worth $10. The idea, as you said, is to to do 10 trades or so a day, each worth $10-$30 and walk away with some profit.
There are some pretty cool scalping forex techniques out there. Check my blog.