Creating a professional scalping strategy is not an easy task. Those who have extensive experience in the retail trading business often find it hard to make a profit using the lower time frame trading method. The pro traders in Hong Kong often say that scalping is the most complicated task. To scalp the market like a pro trader you need to have a valid strategy. Using the traditional trading method is not going to work when you start trading the market. Follow the tips in this article very carefully and you can easily create a perfect strategy.
Learning about the demo environment
Before you start to develop your trading strategy, you need to have access to the demo account. The practice trading account will give you access to the perfect learning environment. Use the demo account to develop your skills so that you can easily learn from your mistakes. Instead of trading the higher period, try to trade the lower period because you will develop a scalping method. Trying to scalp the market using the lower period requires pin perfect execution of your trading plan. At the initial stage, only trade in the demo account to understand how this market works. Read more about it here. Once you are familiar with the price movement it’s time to develop your trading strategy.
Learn to find the key levels
You must learn to find the key levels in the market or it will be nearly impossible to make a profit in the fx trading industry. Things are hard at the initial stage but once you start drawing the horizontal support and resistance level based on the key swings of the market, you can expect to get the best trading zone. But do you think you can scalp the market by using the higher period support and resistance level? The obvious answer is yes. You must use the daily period to find the critical support and resistance level in the price charts. If you trade the minor support you are not going to make a profit by scalping the market. Try to trade scalp the major levels and you will be able to make big profits from this market.
Use the oscillators
When you start scalping the market, make sure you learn to use the oscillators. The oscillators can help you to find the overbought and oversold condition of a trading asset. So, which oscillators should we use to scalp the market? Most of the time, traders use the RSI and stochastic indicator. When you use the stochastic indicator, try to set the period to 5 so that you can make a decent profit without any trouble. Learning to scalp the market with the help of oscillators is a very challenging task. However, you can easily master this skill by using some pro techniques. For instance, try to trade in favor of the trend as it will greatly reduce your risk exposure in trading.
Trade the major news
You should also learn to trade the major news as it will make you a better trader. Thinking about the low impact news is not going to work. Being a currency trader, you should think of this market as a profit-taking opportunity. Start with the high impact news so that you can beat the market without having any issues. Those who are thinking that news trading is just a waste of money are making a big mistake. This is the perfect time to scalp the market. The market becomes volatile and within a few minutes, you can easily secure a big profit. Trading should be done without hassle. Think about your long term goals, so that you can make a big profit. Even though you will scalping the market, you still have to follow the safe path. Stop risking too much in any trade as it will ruin your career. Be smart and learn from the losing orders.