Scalping is a high-frequency trading strategy that is used to amplify profits from a multitude of trades over a short time period. A scalper is a trader who uses such strategies and conducts a lot of trades intraday.
For day traders who are just starting to trade, the Forex scalping trading strategy is considered to be highly risky because the trend is chaotic in the short-term charts (the so-called price noise effect), and therefore, it can be hardly predicted. I, on the contrary, believe that a beginner should train Forex scalping before dealing with middle- and long-term Forex trading strategies. Scalping helps one train attention and reaction speed; it visually shows slippage problems. Although you must be highly concentrated and emotionally stable when using scalping, if you have understood the theory, the Forex scalping strategy is an excellent simulator for practicing these skills.
Rules for successful Forex scalping strategies on trading
1. There must be no restrictions by the broker for employing strategies. There must be no 2. restrictions in the offer concerning the number of trades open and the minimum holding time.
3. Instant execution. It greatly depends on the broker, liquidity providers, internet connection, and the trading platform itself.
4. Big financial leverage. Professional Forex scalpers employ the leverage from 1:500-1:1000 and higher, but according to the rules of European regulators, the maximum financial leverage is 1:50.
5. The instrument must have the best liquidity.