Scalping is Risky?

@Scataphagos won three titles in 1994 and I won in Futures in 1992. Yes, they allow over night. It was fun to do, but was concentrating so much on the contest, my other accounts outside of contest suffered. I didn't even hedge back then, LOL

 

Yes, you can but I don’t think you should start scalping as a beginner. In Scalping traders are required to act quickly, trade a large volume of currencies and keep their emotions out, which is not very simple for a new trader.

 

Forex scalping can be risky and wipe out a trader's brokerage account. A trader might not have an exit strategy or a stop-loss trade in which the trade is automatically unwound. If the trade moves adversely, the forex trader can incur frequent and significant losses.

 

Are you not trading your own money?

 

As scalping involves dipping in and out of the market at a much higher frequency, it can be riskier than other strategies.
You can make it profitable by using sound money management techniques, going for lower spread brokers and making sure to have a second line of defence in case you can’t place your orders due to weak internet connection or something.

 

Scalping is a short term trading strategy used to achieve profit from the volumes of trade placed, rather than focus on maximizing capital gains on each trade.

 

For me scalping is not too risky..... You are always watching the chart, so can cut losses quickly. Unless you happen to get caught by a huge black swan, but chances of that are fairly slim

 

Thanks for your reply. What should be a strategy to scalp forex?

 

The 5% rule reminds scalpers to never have more than 5% of their total account balance at risk across all trades. I also recommend this as a final cutoff point for trading.

 

I only trade my funds.

As far as scalping, it was hardest activity to learn in my life to make money and took longest time to master. Now I my 60's, am no where close to being quick enough and recall all the rules I have made to trade nearly perfect. Use to do up to 300 trades in ES a day and now down to 60 trades a day and can't do all the signals. Recently went to larger timeframe of 2 minutes to give me more time. I have always traded live before getting it programmed, this be last time doing scalping system. Once you can scalp one market well, they mostly same in other markets. Forex has same patterns as Indexes.