How to do Scalping for profit

Scalping is one of the many techniques used by traders to earn bucks in Forex trading. Though I use it rarely, but I know many traders who use it successfully to earn huge profits.

I used it extensively last week, because I ended up losing 200 pips last week, hence I did scalping to recover
as many as I could. I ended up gaining 15 pips by this technique.

I know it sounds a little confusing because if I hardly earned a few pips by Scalping, then what is the point using it as a strategy when it hardly made me gain just a few pips.

So, now I come up with the secret of this strategy. Though scalping involves earning just a few pips, but the deal size is kept on the higher side, which makes one earn huge profits.
 
Basically Scalping involves opening a lot of deals, but closing them at just 1 pip of profit.

I know it sounds too easy and cool, but it makes more sense and profit when the deal size is kept on the higher side.

Now you must be thinking that when it so cool and easy a technique then why I do not practice it myself.

It is because it is a like a double edged sword. Yes, it does give great profits, but it could lead to huge losses if not done correctly.

Come to think of it logically, Scalping is not done with the long term charts in view, hence could prove really harmful and loss inducing if not done with precaution.

Since the deal is of huge size in scalping, therefore it could lead to losses if one has not mastered the logic of Scalping.

Scalping-Chart

So here I list few pointers that could help in using Scalping for profits:

1. Scalp on a pair that you are truly comfortable with, do not use it on a currency pair that you have just started anew.
2. Set a target for scalping, like 10 scalping deals in a day, and stick to the target.
3. Do not delve from that scalping target irrespective of profit or loss.
4. Though the profit is set of 1 pip, but I generally keep a stop loss of 100 pips.
5. I am happy to admit that no scalping deal of mine has never touched the stop loss.
6. The point above is possible because I follow my chart strategy religiously.
7. My chart strategy is to follow 1 minute chart on the Stochastics.
8. The moment Stochastic lines touch an end, I trade to earn 1 pip profits.
9. I generally risk 20% of my equity in scalping, but one should be super careful.
10. Do not scalp at the time when a big news is on its way.  

Hope you also earn a big time Scalping, but as always do not over-do it and practice it well before you go gung ho on it.

Apart from it enjoy your weekend and have a happy trading day from tomorrow.

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