8 Simple Steps to Scalp the Forex Market

A pure Forex scalper exits a position quickly if the market doesn't go his way. He will make a number of trades a day, between 10 to a couple hundreds, and he doesn't hold on to a losing position hoping or praying that it will turn around!

The main aim of the Forex scalper is to buy (or sell) a particular pair of currency at the bid (or ask) price and then quickly sell them a few pips higher (or lower) for a profit. When the Forex scalper uses this strategy, small profits can be easily compound into large gains if a strict exit strategy is used to prevent accumulating large losses.

Fx Markt Tipps

Most Forex scalper mostly makes use of 1 min, 5 mins or hourly charts to scalp for small profits in the Forex market. Most of the good Forex scalper will choose a brokerage house that provides a reliable platform with instant execution of orders, which is highly crucial to his profits.

I was fortunate enough to know and work with some of the best day traders that scalps for a living. They have shared with me some of the main ingredients, which they use to scalp the market.
In this post, I am going to summarize the scalping strategy which i have incubated, into 8 simple steps;

1st Step

Go to http://www.forexfactory.com to check important data release time

2nd Step

Record the previous day OHLC (Open, High, Low, Close)
for all the 4 major currency in your diary.

3rd Step

Identify candlestick studies(i will reveal more next time) on the daily charts

4th Step

Identify major trendlines, support and resistance on the daily charts

5th Step

Determine the market sentiments (Bullish or Bearish?) for the day.

6th Step

Go to hourly charts and determine the support and resistance

7th Step

Lookout for candlestick (We will talk more about it in our next article) formations on hourly basis.

* For reversal candlestick signal;
- Wait for better signal or staggered your lots
- Enter only near support or resistance level

8th Step

Adjust your risk to entry level when you are 10pips in the money.

* Scalping Risk Reward Ratio
Risk : 10pips
Target Profits : 20pips

I hope you have benefited from my summary above, on the steps to scalp the Forex market. In my next article, I will be focusing more on the Japanese Candlestick Studies.

8 Simple Steps to Scalp the Forex Market

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Best Computer Setup For Day Trading With a Dual Monitor Screens

Many day traders limit their opportunities in the market by using outdated and or poor technology. If the field of Day Trading, where you will spend 6-14 hours a day in front of your computer screens, you can begin to imagine how leading it is to find the best computer set up with it comes to your monitors. Today we'll have a look at installing dual monitors on your Pc to give you the most screen real estate potential and sacrifice eye fatigue.

Buying a new Pc

"daytrading Setups"

You'll find nowadays a new Pc will come as suitable with dual monitor capabilities. All that is required is for you to get a second monitor and really plug it in to the back of your Pc. You may find that the 2nd monitor connector has a Dvi relationship type and all you may wish is a convertor if you don't have that specific plug.

Dual monitor on your laptop?

Most laptop users don't even realise they could be running a second monitor by plainly plugging in a second monitor. All that is required is to get into you display settings and configuring the second monitor and you are up and running. You don't need any extra equipment, just plug that 2nd monitor into the laptop and you'll be up and running with a dual monitor set up.

Upgrading an old Pc

You might have an old Pc that doesn't currently have the option for a 2nd monitor. If this is the case then you'll need to invest in a dual monitor video card. These are commonly no more than -5 and you can get a technician to install it or plug it in yourself. Once again, head into your display settings once installed and configure your 2nd monitor.

If you are a day trader you'll find a dual monitor set up is the best option as you need a clear screen with plentifulness of screen real estate. By using a dual monitor display you can entrance plentifulness of trading tools and drag and position your screens very easily.

Best Computer Setup For Day Trading With a Dual Monitor Screens

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