4 Best Scalping Trading Strategies

Forex scalping once was a heated topic among the investors. Scalping is based on the principle that profitable trades will cover the losses of failing ones in due time, but if you pick position sizes randomly, the rules of probability dictate that sooner or later an oversized, leveraged loss will crash all the hard work of a whole day, if not longer. Be certain to double check even if the broker claims their platform is specifically built for scalpers. By definition, scalp trading works over a very short period of time. I use a combined entry signal that detects likely turning points. The pin bar must be relatively alone- at the top of or bottom of a price movement.

This “trading rush” is not profitable in the long run. But now, let’s see the list of the best brokers for scalping. Leverage is an important part of successful scalping. This method involves holding trades for just a few seconds or minutes, at the most. We've had many requests for the best scalping trading strategy over the years. This is especially true in order to cut a position if it should move against you by even two or three pips. Several trading websites offer economic calendars that provide a list of upcoming news events with a projection of how drastically they can affect a currency pair. Many traders rely on scalping during slow market days.

A scalp trader can look to make money in a variety of ways.

Execution of trades must be timely. Is day-trading profitable? experinces?, by ensuring websites are “secure”, you can ensure you are protecting yourself. The rules of this short-term trend trading strategy are simple. That doesn't work for a scalper that will be making dozens of trades. Scalpers usually look to place trades in line with the trend, often using technical indicators like moving averages, RSI, pivot points etc.

Short term trades are taken on smaller timeframe charts such as M30, M15, M5, and M1. We have discussed numerous trading strategies on the Tradingsim blog. They also stay in touch with the latest economic updates and news, in order to increase their probabilities of winning. Much of the thought that goes into a trade can be eliminated by developing a quality Trading Plan. Scalping aims to profit from extremely small market moves so that there's the potential for profit even if the market is slow or stationary. If you decided to trade this opportunity, you would need to protect your trade with a stop loss order. It is a great tool for scalp trading. If you see a Forex pair bounce from the same trend line for the third time, then we will assume that a trend is likely emerging and look to trade the pair in the direction of the emerging trend impulse.

While this may sound super exciting, in reality, this could expose you to the risk of blowing up your account. While these trades had larger percentage gains due to the increased volatility in Netflix, the average scalp trade on a 5-minute chart will likely generate a profit between 0. The forex exchange market has jurisdictions that strictly prohibit scalping. For this reason, the scalp trader must find a relevant stop loss in order to not become deficient. You do not want to get out too early.

  • After developing that understanding and committing their strategy to heart, one can always look at automated systems to help simplify processes.
  • The scalper realizes profits and losses quickly.
  • Others find it impossible to use.
  • Not getting stuck in a reversal.
  • This system is at the borderline between scalping and day-trading.
  • Trading forex might seem like a fast, easy way to make money.


While most scalpers look to make small gains consistently, other traders use scalping to make huge profits within a matter of seconds by trading significant news events. Sie sollten sicherstellen, all diese Risiken verstanden zu haben. If you come to think of it, scalp trading reflects human nature at its best. The stochastic oscillator and Bollinger bands complement each other as stochastic oscillator helps in starting up of any scalping while Bollinger bands help it on the way. The scalper must be able to find the situations that will provide the greatest chance for a profitable trade. Scalping is not for everyone, and even seasoned scalpers and those committed to the style would do well to keep in mind some of the dangers and disadvantages involved in using the style blindly.

The price does not have to bounce exactly to the pip. This is much harder than it may seem as you are going to need to fight a number of human emotions to accomplish this task. USD in less than 3 hours. Scalping as a trading method is not recommended. The band parameters are adjusted for the chart, so that around 95% of the price high/lows are enclosed inside the bands.

Position traders are not active traders.

Best Brokers for Scalping/Advanced traders:

As humans, we don’t like to wait long for something. Minimise the risks. This is why when scalp trading, you need to have a considerable bankroll to account for the cost of doing business. You would look to hold the trade for a minimum price move equal to the total size of the bullish Harami.

Our philosophy is that there really is no "right" or "wrong" way to trade as long as you are making money. The second type of scalping is: A pair that has reached a significant level of support is going to need strong momentum to break through the number of traders piling in for the reversal. Assuming the gain falls in your target profit range, you'd close the trade, go back to your stock chart and wait for the next scalping opportunity.

These same brokers are often unregulated and considered unsafe. Scalping requires you to predict what's going to happen on a minute-to-minute basis, and this is really tough to do consistently. In the book, Start Day Trading Now:

If it is only one pip further, it represents ten percent of your potential gain.

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The most well-known scalping technique is simply using the market's time and sales to decide where and when to make trades. Better trade execution: Important risk note: Trading is an activity that rewards patience and discipline. As such, a complete professional retail trader will have something from all styles. I enjoy binary options and will continue to trade them at times. While this may be right up your ally, some would strongly argue that they do not wish to stare at a monitor nor do they want to spend a lot of time doing an analysis of the financial markets. Slippage is not an option for scalpers.

So I'm ready, so where's the trade? For all traders, but primarily for scalpers there is a tendency to take very quick profits and most often there is much money still left on the table. Unlike swing traders, you will never wait for your portfolio to regain value after a significant decline. While not for everyone, scalping best suits nimble-minded traders confident enough to take immediate action to get a small profit or take a small loss. Or, based on its volatility. You are in the business of scalping to make a profit, not to boost your adrenalin or feel like you are playing in a casino. Some experts go down with 100 trades in a single day with bigger collective earnings.

The Forex Scalper Mentorship Package

Let’s say, fifty pips per day. This is from 2: This maximizes the number of moves during the day that the scalper can use to make a profit. You can also track stocks breaking out to new daily highs or lows and employ Level II (the order book) to capture as much profit as possible. Though you’re not supposed to hold on to that investment for long.


The take profit amount is also set depending on the volatility. But, at the end, who cares what the reasoning was? In order to receive a confirmation from the Bollinger band indicator, we need the price to cross the red moving average in the middle of the indicator. Scalping may seem easy, but the reality is that it’s an advanced trading style. Scalping represents a technique which involves the opening and closing of trades in a very short period of time, in order to obtain quick profits. Augmenting a trade with leverage carries greater risk and reward since you are effectively inflating the value of the trade. These set of traders buy and sell securities many times in a day with the mindset of making a small percentage of consistent profits out of the market. 75 USD per pip but that makes our risk about $67.

To achieve the best results, scalping requires intense concentration and quick thinking. Accept a tiny profit position – with stock scalping, for instance, a trader might close a trade with a less than 1 percent move. They get to choose their stop loss or take profit orders, as well as their time frame for trading.

What is Scalping? We plot the 2 exponential moving averages and we look at their position at the beginning of the day. The slow stochastic includes a lower level and an upper level. First, we look at the beginning of the trading day at the position of the exponential moving averages. Primexbt, for newbies in the bitcoin industry, learning the ins and outs of this trading bot will be the least of your worries. Traders who use the day trading strategy are called day traders in the market.

The table below gives an example.

What You Need To Know About Scalping

The moment it came, it was a quick twenty pips profit, from overbought to oversold levels. That’s because you often see some decent price moves during the first hour of trading as the overall trend for the day starts to establish itself. Brokers that cater to scalpers specifically will typically make that knowledge available on their front page. The reality is that the market will show the right set ups when the market is ready.

The proper way to trade the spot forex is with a swing trading styles, or longer term position trading style, and the risk reward ratios clearly support this. If you look at the professional traders in the United Kingdom, you will find both types of traders as both of these systems are extremely profitable. My favorite low-spread instruments on which I apply scalping techniques are Dow Jones Index, Dax 30 Index, EUR/USD, GBP/USD, EUR/JPY and USD/JPY. Often referred to as "picking up pennies in front of a steam roller", scalping focuses on identifying fluctuations in price during the extreme short-term. Or, at least potential ones.

Trading requires risking money in pursuit of future gain. Normally this is considered to be too high to scalp comfortably. Using erratic trade sizes while scalping is the safest way to ensure that you will have a wiped-out forex account in no time, unless you stop practicing scalping before the inevitable end. When trading, scalpers want to profit from the changes in an asset's bid-ask spread.

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If the market moves favorably they try to minimize losses by closing positions very quickly. The good thing for us is that the price never breaks the middle moving average of the Bollinger band, so we ignore all of the false signals from the stochastic oscillator. You do not want to enter the market exactly where it would bounce. Scalp trading is ultra-short term and involves trades that can last just minutes. The manual system of trading involves the trader making trade executions while sitting in front of his computer while the automated trading strategy involves the trader setting rules and guidelines on how to use trade signals. Firstly, what makes scalping so attractive to traders? Lets examine one example below. Here we’ll examine why, and how to scalp under such conditions.

In order to be successful while scalping, a high-quality broker must offer instant execution, because scalping trades happen fast, so your execution needs to be done at a very high speed. Figure 1 shows a typical scalp sequence. I looked for a short breakout after a period of consolidation. Mistakes like these can be very costly.

A trader cannot expect to gain more than 10 pips during the process of scalping or losing 7 pips per trade. There are a great number of scalping strategies that exist for a wide range of trading products – stocks, bonds, binary options, commodities, forex and so on. The more removed you are, the wider the spread and the fewer providers you will be able to access. Today we will focus on the short-term trading timeframe and strategies. Firstly, the scalper will sleep well. Over the course of a single day, a market maker may fill orders for hundreds of thousands or millions of shares.


Carry trading pairs a low interest currency with a high interest currency to generate larger profits. What comes to mind when I say scalp trader? The decimal system closed the "teenie" often times to within 1 penny for high volume stocks.

Short term traders aim for relatively small gains but have a large frequency of trades.