October 26, 2017

Forex Trading strategy: Scalping "1-Minute"

The term scalping online forex trading in the world may have become common terms in forex trading strategy, perhaps even among the newcomers. 

What the heck is actually scalping it?
Scalping is one of the methods or online forex trading strategies based on technical analysis. This method aims to try to grab the opportunity of profit by way of doing transactions in a short time and target that are not too large. That's why most perpetrators of scalping (commonly referred to as the scalper) tend to do a lot of transactions in a day.

Without wide fluctuations, let's learn alongside one of the trading strategy for forex scalping is a fairly popular.

Scalping Forex trading strategies "1-Minute"
This strategy is scalping strategy that is popular and relatively fit used among traders. Even so, it does not mean that this method does not require a high concentration and discipline. The Chief scalping it demands You to provide special time for trading for at least a couple of hours in a day without distraction.
Do dozens of transactions in a day is common in scalping. That's why if this method will apply should you choose a broker with spreads and commissions are fairly low.

The concept of forex trading strategies "1-Minute" is as follows:

forex trading strategies 1 minute
Used for all currency pairs which have spread small
Time-frame: M1 (1 Minute)
Indicator:
Stochastic (5, 3.3)
Exponential Moving Average (EMA) from 50 and 100
The best time to trade sessions: London and New York
Practice!
Before we continue, as alwaysI advise you to do a test run first on this strategy before practiced. How to best perform testing without the worry of loss risk is using a demo account we provide.

Why need to practice?
The first reason is that it is important for you to recognize market movements. By practicing through the demo account you will gain experience of real time market movement. You will be able to identify the shortcomings and weaknesses of the strategies that you will run. You will also know whether the strategy fits in with your character as a trader.

Well, the reason, if it turns out that the forex trading strategy does not fit with your character and the result is negative (a loss), there is no financial risk that befell you.

Rule
Now we will discuss the strategy of entry and exit.

Buy Rules:
EMA 50 must be above 100 EMA
Wait for the correction to the EMA
Wait for confirmation from stochastic buy signal
Place the SL around 20-30 pips below the level of the nearest low swing
Place the TP around 80-120 pips from entry level
Sell: Rules
EMA 50 must be under 100 EMA
Wait for the correction to the EMA
Wait for the confirmation signal a sell of stochastic
Place the SL around 20-30 pips above the level of the nearby high swing
Place the TP around 80-120 pips from entry level
Pros and cons
Any strategy certainly has its disadvantages and advantages. We start from the extended first.

The advantages of forex trading strategies are:
The risk is quite small in terms of capital
Targets identified relatively small so the relatively faster to reach the target
Can take advantage of the narrow range of movement
More opportunities, because the small movement created more often than large movements


Well, now we discussed also the downside of trading strategy forex scalping::
Requires no small capital, because more and more opportunities are created means also more likely to experience losses.
Need a quick reaction, well honed intuition and the ability to make decisions quickly. These things rarely found on the the beginning traders.
Sometimes it's hard enough to deal with the risk to reward ratio is good.
Requires high concentration without distraction.
Less experienced traders may be prone to stress.

Conclusion
Based on the exposure to the above, then it can be inferred that if you decide to be a scalper, you must meet the following qualifications: 

Wait
Meticulous
Not an easy stress
Quick, effective decisions in critical situations
Not emotional in trading
Have adequate knowledge about the various trading methods
Have a "flying hours" high
It has a high concentration of power (focus)
It has a high body endurance
Don't forget: a fast internet connection and stable.
Good luck.

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