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Thread: Scalping and pipsing

  1. #1
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    Default Scalping and pipsing

    Let us start with the definition of scalping and pipsing. These trading strategies are employed by forex traders for taking profit from intraday price oscillations occurring on the currency market. As a rule, deals remain opened during only several minutes. One position will not bring much profit but these strategies require a huge number of deals.

    A scalper or a pipser can execute about two hundred deals per day. However, no all deals are profitable. The result for a trader is positive summary of deals by the end of a trading day. The stop-loss level set as close to the opening price as possible enables a trader to achieve the positive result. Stop-loss is necessary for minimizing the risks in case a price moves in the opposite direction.

    It is well-known that Forex is the market with the highest liquidity. During the day a price is moving up or down in a certain period of time according to the cycle. If the price passes about 60 pips during the day the difference between high and low points will be much more. Chances of getting profit increase if to trade on the hourly price oscillations. It is the main reason why so many traders decided to employ such trading strategies as scalping or pipsing.

    Newbies may think that scalping or pipsing allows earning huge amount of money and the opportunity of reinvesting may turn it to the enormous sums. However, it is not that simple. There are several disadvantages of such trading methods. They are:

    • Setting the stop-loss level close to the opening price increases the risk of losses even during the insignificant price oscillations. Even if you succeeded to predict further direction of the price movement the possibility of losses are still very high if you incorrectly evaluate the back bullish or bearish force on the market. It is much easier to make a mistake determining the price movement direction for a short period of time (one-two hours) than for the whole day.

    • The decision can be the absence of order but in this case a trader has a risk to lose even more money after the unfavorable price movement when it goes so far that the pullback is impossible in the nearest future.

    • Emotional excitement and nervousness possessed by most traders who work with real money. As a rule all traders start on demo account because it allows testing the strategy with the virtual money. Consequently, trading on real account causes anxiety which is strengthening with every pip in case the market moves in the unfavorable direction.

    In general, scalping and pipsing are for experienced traders. Short-term trading as scalping or pipsing implies interruptive work in front of the screen which increases the risk of stress and leads to the inconsiderate acts.

    There is also one more evident disadvantage for traders – brokers do not like those who accomplish the great number of deals daily. Traders who open deals almost every second are asked to close their accounts or imposed the limits.

  2. #2
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    I thought that scalping is a good strategy for beginner as well, because it doesn't requir knowlede of fundamental analisys at least.

  3. #3
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    I like scalping scalping because then I will be able to get a lot of profit in a short time. However, to scalping then we need to get a broker who is really convenient for scalping so that we will be able scalping with comfortable

  4. #4
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    scalping and pipsing it id very profitable strategy, my broker liteforex allow me to use this strategy

  5. #5
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    In spite of a profitable trading policy, scalping cannot use in a regulated trading broker practically. But, in my trading career, I am very lucky to select MXTrade as my trading broker from where I am able to scalp at any major currency pair devoid of any kinds of restrictions including only one pip lowest trading spreads. so, my trading life is very much profitable.

  6. #6
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    Right now, I am just using swing and positional trading, because I have seen, scalping inspired me for doing over trading. By using scalping trading method I needed to open so many trades in a day for managing my daily trading target! But now I can handle the target very easily, I have so many trading options from TradingBanks broker, even I can use CFDs and Indices instruments.

  7. #7
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    Scalping is a trading policy that is like high action thriller movies that can keep you on the edge of your seat. It’s fast paced, exciting and mind –ratting all at once. It brings profit in a short time. Practically, many brokers don’t allows scalping and hedging in their trading platform.

  8. #8
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    Scalping trading style is my most favorite trading style, because I get handsome money by doing scalping trading so quickly! So, I don’t need to use this financial market as a full time Forex trader, I get enough return within very short time by doing scalping trading!

  9. #9
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    Most of the forex traders like scalping because it increase balance in short time but it has high risk also.Most of the newbie traders love to do scalping but lost their balance . before scalping you have to choose lower time frame and have to choose profitable strategy which has wining ratio more than 60% . also have to choose money management properly.

  10. #10
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    you should not choose how to scalping if even harmful and make a high risk, this way is fast enough to improve the balance but we also have to see the disadvantages. maybe this way is devoted to who already have a high ability

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brokers, demo, forex, hours, intraday, level, low, money, profit, profitable, real, scalper, scalping, simple, stop, strategies, strategy, time, trading

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