If you have been trading for quite some time, you must have heard about the scalping strategy already. For many seasoned traders, they declare it as one of the most effective strategies ever. The success rate of this technique, according to the experts themselves, is 90%, which means that for a series of 10 trades you will do with scalping, you could lose only once… provided or course that you have studied and understood the charts of yesterday clearly. Experts claim that 90 is just the safest margin. They declare that if you mix up your endeavor with excellent technical analysis, your success rate could be much higher.
Some seasoned traders can attest that with scalping, you can already attain a success rate that high within an hour if you get lucky. But if you have more time to spare, it would be nice to not make it too short, just to keep it safe.
In starting the actual scalping method, the presence of another account which should serve as your “storage account” is recommended. Inside it will be the other account will be the recipient of the ten bucks that will hold the amount that we will use for each element of our trading activity.
In trading, there is this term called “slippage” – a term that describes those damages or wasted portions of our earnings. This can be viewed as those little droplets of the drinks we’re sipping during mealtime or those little grains of rice that got lost during transport if we are a rice trader. Such a scenario is natural. It would be unwise to fail to recognize it.
So to prevent your main account from suffering some damages, it would be wise to deposit an amount into another account so that our main account will not be affected. Once you deposited the $10 already, we can then begin trading.
The Math behind scalping can be easily understood by just looking at the first few wins of your trading series. For instance, if in your first trade, you have a $1 win, your total earnings have just reached $11 as it gets added to your initial capital of ten bucks. If you stake it again for the next trade, it could grow by 10% each time.
Now if you execute the same process 10 times in a row, provided that you win each time, you’d accumulate a total amount of $115.939, that is after you’ve completed the entire series of 10 trades. Once you’ve done that. It would be good to withdraw your earnings, and stake in another 10 bucks for your next series of trades. You repeat the same process, again, and again.
But does this technique always makes you win? No. There is no exact way of accurately predicting chart movements and market direction at a 100% rate. For this reason, experts suggest that if you’ve experienced 2 losses or more losses with scalping, you should stop trading for a moment.
Bear in mind, don’t overtrade. You must constantly remind yourself that greedy traders don’t get too far in the trading business. When there are times that you’re experiencing some losses, it means that the currency pair you’re focusing on could be in a bad situation. In that case, give it a rest and pick another good time to trade. Take some time to analyze what went wrong with your previous efforts so you can formulate better plans and better strategies in the future.
Inspirational Words For The Trading Aspirant
About 5 centuries ago, when the Europeans invested on building ships so they can embark on expeditions that can help them conquer the world, those who were the very first to partake on such an undertaking were declared as either “too ambitious” or “foolish” by people within their social circles. Centuries later though, we consider those people as heroes.
As you embarked on your first trading acts, you might have heard about people who are too dumb to understand what currency exchange is. By now, you could easily prove them wrong because as what you have understood already, trading can be a really profitable kind of business, one thing that can significantly change your life, in ways you never would have thought possible.
Whether or not you will take the habit of trading as a major part of your life is mainly up to you. By reading through lots of the informative articles here, you’ve been shown with the right mindset, the right tools, and the right guidance on how to take your first steps towards it. In addition, you’ve also been given proper directions on which path to take in the future, as you continue the exciting and profitable life as an online trader.
Portals like this one have been a good companion for you. While this might not be a totally complete guide that can make you fully understand the entirety of the currency market, it was a great motivator – for it surely did give you the right kind of ignition… to have that spark needed so you can be an efficient trader today, while there are still ripe trading fruits that you can pick and harvest.
Trends could rise really fast, and could fall even faster. That’s why it is also very important that you remain updated with what’s happening to the world, especially within the currency exchange market. Being well-versed with technology can really be a great help too – it is the ultimate tool that can help any businessman. It would be utterly foolish for anyone to endlessly wish to be rich, yet not planning on investing time to learn about how technology could be leveraged for the augmentation of someone’s wealth.
To proceed further with your trading endeavors, it would be good to tap into the nearly-limitless resource that other, more experienced traders are giving to anyone who has access to online technology. Scour through Youtube, peek through the endless sea of blogs, and you will see multitudes of them. Some of them might not be that friendly, but most of them will surely provide you the help you need so you can become as smart as them, as you grow on your trading efforts.
Study them and listen to them carefully, you could end up just like those people behind them, or even better. It just requires the proper mindset and since you have it already, things should be much easier now.
Hope you’ll have the best of luck as you trek into your trading journey.
Experts' strategy tho 👌❤️