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Chapter 30, Part II. What Type of Trader Are You? Page 2

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 27, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Scalper continued

    Since scalp trading is so intensive, it demands significantly more rest. In general, intraday trading demands more rest. Scalp trading and extreme concentration, tense, emotional and physical anxieties are the same.

    If we turn to profit objective, this kind of trading is mostly based on large numbers law. Since the amount of trades are large and profit/loss in each trade is small – the major task here is to stay with small profit in day-by-day trading but long-term period profit will be significant.

    Here are some specific issues of scalping:

    - very fast trading and thinking process;

    - close focus without any distraction on charts with some hours, usually 2-4 at the most;

    - For those who has a lack of patience this could be some solution, but not always – if this is a lack of discipline also;

    - Fast mind – trader has to have ability to change view on the market fast and be open-minded to fast market signals;

    - Scalp trading demands outstanding knowledge of market mechanics, speed and sharpness in trades’ execution and order placement;

    - It demands a very good brokerage;

    - Expenditures on software and hardware are greater;

    - Result of trading is accumulation small profit (or loss) mostly according to large numbers law, but not a few trades with significant profits (or loss);

    - Your task will be to grab money from pit traders. You have to be extremely smart to do this;
     
    #1 Sive Morten, Dec 27, 2013
    Lasted edited by : Oct 9, 2016
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