Scalping is a special type of trading activity in the financial sector, which involves closing the position in two cases; either with a small loss or with insignificant profits.
For a trader who uses scalping, the most common characteristic is the opening of a fairly large number of transactions in a short period of time.
But for each type of activity their rules are typical. With the help of which it is possible to organize quite good conditions for work. Without them, there is a risk of losing money and an irrational approach to the trading process.
Good rules for scalping should be based on actual practice, taking into account all the most important and unusual situations. For scalping, there is a certain list of rules that allow you to quickly earn on Forex with minimal risks.
Choosing the right leverage
The first rule is to prefer a large leverage. So it is much more profitable to trade than when choosing a lengthy transaction. It’s enough to capture 5 points, which is much easier than taking 50 points.
The scalper must make quite a few transactions in the financial market. After all, the profit, in this case, is based on the number of orders. The more of them, the more profit. In this case, you can open transactions in two directions at once; both in terms of the trend and against its movement.
The main secret of scalping on the stock exchange is based on the use of the slightest fluctuations, even the most insignificant.
The moment before the release of important news is not used.
It is extremely undesirable to open positions before the release of political and economic news (but only important ones). If you do not comply with this rule, then the probability of draining is very high. In order not to become a victim of such an unpleasant situation, it is worth waiting for the market to stabilize. Otherwise, the trader risks losing some of his money.