The term ‘scalping’ surely sounds intimidating to a large number of Forex traders. They think this method of trading is reserved for professional Forex traders only and that it is hard to learn how to use it properly to their advantage. Novice traders are often advised to stay away from it. Surely, 1 minute Forex scalping might seem difficult to some. Yes, it is a bit different than long and short positions since it requires your full attention and plenty of focus but overall, you are still doing the same thing – you are trading in the Forex market.
With that said, if you are too busy and short on your free time, scalping is not for you. But if you are determined and focused, it can be a powerful trading method. Of course, you need to learn how to use it the right way. Scalping will give you an advantage if done correctly and 1 minute Forex scalping strategy might be what you were looking for. So let’s dive in and see what it’s all about.
What exactly is scalping?
When we take a broader look, scalping is not much unlike the day trading. In both methods, a trader closes their positions in a single day and never leaves them unattended overnight. To put it as lightly as possible, scalping means opening and closing a number of trades in a short amount of time. Traders who use scalping aim for small profits, especially through 1 minute Forex scalp and they will surely have more opened and closed positions in a single trading day than the day traders. The day traders check their status a couple of times a day, while traders who use scalping will do it even more frequently.
Scalping is all about speed so scalpers usually trade on one-minute charts using Forex 1 minute scalping strategy. Some of them also try to catch the movement of the market during the big events and the releases of economic data. It is extremely important to know when to scalp and when to stay away.
Aim for liquidity
Forex 1 minute scalping should be done using the most liquid currency pairs in the market such as USD/EUR. You should aim to trade during those sessions. Yes, Forex market is available 24 hours a day, but it is not always moving fast. Some trading sessions are better suited for scalping than the others. The volume of the market always picks up when the markets in London open up and then continue to New York session. This is the best time frame for scalpers since the daily liquidity is at its highest.
1 minute scalping done right
Scalping works only if you enter and exit your position quickly and 1 minute Forex scalping strategy involves exactly that. You have to be focused and ready for action so if you are unable to dedicate your time to it, choose a different method of trading. Once we have cleared that up, you will need following things in order to execute 1 minute Forex scalping properly:
- An account with a direct access to the Forex market.
- A fast trading platform with plenty of trading tools and charts to make scalping easier.
There are many tools which can take the burden off your back and they are sometimes available through your broker’s trading platforms. They are stop loss tools and if you set them up correctly to suit your trading method, they can prevent the loss of funds. Those tools are essential in this trading environment and knowing that you have an exit strategy ready can make you more confident. Your broker’s trading platform should also have tight spreads because they offer you more details and you are opening and closing your positions in a single minute. Wide spreads are of no use here.
So what should be your objective when trading Forex 1 minute scalping strategy? You need to open and close a trade within sixty seconds earning as much profit as possible. It might seem like a tiny step forward but if done successfully over time, the profit will pile up and that will lead you to earning more money in the Forex market. Scalping is fast and you will not have plenty of time to analyse all the data. You should trade almost automatically without overthinking.
When to scalp and when to avoid it
I have mentioned before that liquidity plays a big part when it comes to scalping. Forex 1 minute scalping does not leave too much space for analysis so you should play it safe and stick to the most liquid currency pairs and those are the majors.
On the other hand, if you feel distracted and your mind is not entirely in the game, stay away from scalping. Also, if you are experiencing a losing streak, take a break and recharge. Think about the mistakes you made and try to find the best solution for them. Scalping is fast paced trading and it definitely takes a toll on many traders. It can teach you a lot and once you get bored with it and you feel you need to take a step back, you can still be a great day trader with vast knowledge and plenty of experience because of scalping.
Some traders love scalping while others stay away from it. There is no doubt that it takes more dedication to be a successful scalper, especially when you are opening and closing your position in a single minute. Scalping Forex 1 minute is probably the most demanding method of trading but you will definitely learn a lot from it.
Scalpers have to be mentally prepared for any outcome and their focus should be exceptional. Identifying the right signal in a chart is the priority and you need to seize the opportunity for a successful scalp. So if you are looking for more excitement and you enjoy being completely involved with Forex market, scalping is a great way to go.