Many novice traders, seeing for the first time the movements of the price charts and the profits flashing before their eyes, are infected with the idea of making money here and now. They believe that if they make a large number of short-term transactions, i.e. scalping, they will not lose anything and earn good money pretty quickly. However, in reality, such trading leads to quick and rather large losses.
Scalping is a type of speculative intraday trading in which a trader holds short-term positions in the market and closes deals, earning a few points. Most professional traders do not recommend scalping for beginner Forex players. The fact is that many, engaging in this type of trading, open positions without any weighty arguments. In addition, scalping, as a rule, is performed on short time intervals; for this, one-minute charts are used. It is practically impossible to correctly manage your risks and analyze the behavior of such charts without experience, since the rate of change in market conditions is very high. Scalping, when done by non-professionals, is very similar to a casino. Newbies tend to open positions relying more on luck than on signals such as technical analysis. Having made several successful deals in a row, they gain confidence that this is the easiest type of trading, in which it is simply impossible to lose money. However, Forex trading is never a win-win, and it is only a matter of time before losing positions appear. Many novice traders, in order to understand the full danger of scalping, need to lose their deposit several times, only after that they become experts in this type of trading. If you do think that you can profit from scalping, it is recommended that you take some precautions. Never trade large amounts. If you want to try scalping, open a small account that will not be scary to lose in case of unsuccessful trading. Be especially careful when using stop orders, unlike medium and long-term trading, stop orders play a very important role in scalping, unprofitable positions should be closed immediately. Finally, scalping is not a trading strategy in and of itself; chaotic opening of positions will not lead to anything good. Before you start scalping, learn how to do it correctly.
