What differentiates one Forex trader from another is their techniques and strategies, which differ according to their objectives and exposure to the market. Scalpers, those who practice scalping strategies, are the fastest in the market.
Scalping, whether it is scalping strategies with futures, scalping strategies in Forex, or scalping with stocks, is reserved for a few traders with nerves of steel and who know the right ways to read the indicators and tips given by the market. We could say that scalpers traders are the snipers of the financial markets, and they need great patience, security, and confidence to act at the right time.
Sometimes scalpers have very simple trading systems based on price action. Their strength usually lies in great position management and good financial control.
What is the one-minute scalping strategy?
Scalping is a trading technique also known as Quick Trading, which consists of opening and closing positions in very short periods, which can range from a few seconds to a few minutes.
If we talk about longer periods, we are talking about Day Trading, which is a similar form of Trading but uses long periods.
All these techniques designed for very short periods have the attraction of getting quick profits and, in most cases, quite bulky.
These siren songs are not suitable for any investor profile. It is not easy to be a scalper.
Very short-term trading techniques require high leverage, good knowledge of the market, equipment (at least a couple of them) of high quality, a very fast trading platform, a broker that allows scalping, and very low commissions.
All this, to compete with the high-frequency Trading of the big institutions, which use, on most occasions, automatic systems directed by machines.
Although it does not have to be a losing strategy, Scalping is reserved for a few traders.
What you need to be a scalper
There are several basic needs for Scalping. On the one hand, there are the technical means: computers, Broker. On the other hand, the strategy's needs are: trading system, knowledge, markets.
Being a scalper is not easy. Before you start, think if you really have the attitudes and knowledge necessary to be one.
Scalping Trading System
The trading system for Scalping has to be agile and fast. Most scalpers use price action to make decisions.
They look for reference levels: supports and resistances, study the volume, and decide whether to go long or short.
They usually do not use technical indicators, and if they do, they are usually very personalized indicators based on time and price.
Time frames for Scalping
Scalping takes advantage of fast price movements. For the price to move quickly, volatility is necessary.
The hours of greatest volatility are the openings of the markets, both European and American.
Europe: from 9 am to 11 am.
USA: from 3.30 to 5 in the afternoon, coincides with the American opening and European closing.
It is clear that for Scalping, we need a Broker with low commissions, and it is convenient that offers direct access to the market.
These brokers usually have much tighter commissions, although it will depend on the volatility of the moment since it is not usual to charge commissions, if not spread.
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