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Chapter 30, Part II. What Type of Trader Are You? Page 3

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

    Aug 28, 2009
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    So, if something here is not suitable for you, then probably it is either too early to become a scalper or this is not quite suitable for you. For instance, if you fall under stress trying to accommodate with fast market moves or you can’t change your mind quickly or you prefer to think and re-think your analysis before pulling the trigger.

    If you’ve studied previous chapters well, you probably will agree with me on the following issues:

    - Since you trade fast and small moves – you need trends on the lowest time frames. That is possible on most liquid pairs and during the most tough trading time. Hence major pairs are preferable for scalp trading, especially during sessions overlapping mostly Europe and US trading sessions;

    - You need the tightest spreads, since you make a lot of trades. That’s why the number of pairs becomes even narrower – EUR/USD, Cable, USD/CHF and USD/JPY are suitable. As we've said earlier it’s better to focus on some single pair first – this will let you to feel the market and understand it’s breath;

    - Spreads and fees become the real force against you. Be sure that your profit is greater than spreads paid at the end of the day;

    - If you’re a scalper, may be it is better to stay out of the market during news and events. Volatility and splashes are extremely strong during this time. Sometimes you even will not be able to enter the trade during a news release, since the context will change very fast. It’s better to wait for a few minutes and continue trading after the release.
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