Forex Scalping Indicators - Is That What You Really Need?

Forex scalping has become increasing popular throughout the years. I definitely see the appeal of it.

Forex scalping has become increasing popular throughout the years. I definitely see the appeal of it.  Scalping does bring a lot more excitement than traditional swing trading. 

You get a pretty big rush jumping in and out of the market.  Since there are no “built-in” commissions in forex, you can take 8 or 9 trades, and not drown in commissions like you would with stocks or futures.

This may sound great, but I do have to warn you that forex scalping is not easy. Most that have tried, have failed.  It’s a really quick way to crash your account if you don’t know what you are doing.

You don’t have to take my word for it.  Just looks at the stats.  They’ll tell you everything you need to know.  5% of all forex traders lose money.  That percentage becomes lower when you factor in only the forex scalpers.  The good news is that the percentages don’t have to be so low.

You just need to know what all the unsuccessful traders and…..well……don’t do that!!

First off, your emotions have got to be under control.  Traditional (buy and hold) trading strategies can be emotional, but when you are talking about forex scalping….whoa nelly!!! You are talking about serious emotions. 

It’s almost impossible when you are first starting out not to be overwhelmed with emotions when your trading 8 or 9 times a day.  That’s a roller coaster of emotions.

If you eventually can’t keep calm when you are scalping the market, then you have NO chance of success.  The stress will get to you.  You could be the greatest trader in the world, and it wouldn’t make any difference.  Eventually you are going to start taking trades based on emotion instead of what your brain is trying to tell you. 

Next, it is imperative that you know about money management.  This really isn’t something that can be taught, because everybody is going to be different.  Everybody has to know their own risk aversion. The only way to do that is to keep on practicing on a demo.

Just pretend it’s real money and take it seriously.  Eventually you will find a money management style that fits with your trading personality. If you are still unsure, you could never get into trouble by playing it too safe.  Remember, in trading we’re here for the long haul.  It’s a marathon, not a sprint.

Finally, LOSE THE INDICATORS.  There are no forex scalping indicators that can do a better job of diagnosing the market than your own eyes.  You need a forex trading system that is based solely on the principles of price action. 

I know this is something you may not be used to, but when you can grasp the market without the help of any indicator, you’ll be light years ahead of the rest of your fellow traders.

The price is always giving you clues as to where it’s going to go.  You just need to know how to spot it.

Learn Forex From Price Action Trading