For some reason, scalping Forex remains a popular method of attempting to make money from the markets.  The bigger players in the markets don’t scalp because the size of their positions could hinder them making profits.  In essence, their large trading positions can move the market.

Regardless of the scalping strategy you are using for Forex trading, most of them share the following attributes:

• trades are opened and closed in quickly-anywhere from 1 minute up to 10 minutes
• trading time frames are often the smallest time frames like the 1 minute & 5 minute
• lots of trades are taken in a day
• profits are small
• risk are small

For Forex traders with small trading accounts, scalping seems to be the best bang for the buck because:

• You have a smaller stop because strong adverse price action is not something you sit through when scalping
• Smaller stops can equal larger position sizing if you are using the same risk % at all times

Why Would You Scalp Forex?

There are many reasons a Forex trader will use a scalping strategy to make money.

We already covered larger position sizing but here are a few more:

• Forex scalping is perceived to be a safe trading style because you can get into a trade and get out fast quickly.
• Less exposure  in the market because your time in the market is minimized.
• Better trading style compared to a trend follower or even a day trader because risk of large market moves for a trend trader or day trader is greater than a Forex scalper

These are all understandable reasons but let’s remember that no style of trading can be regarded as “safe”.  Whenever you put risk on in the market, you can lose it all.

As well, even if you are in the market a short time, sudden news events can and do happen that can put your trade quickly into trouble.  Included slippage and widening spread costs, you overall risk can be much more than you initially set.

Your Forex broker is probably a retail broker.  They make the market you are trading by taking the risk on your trade.  When volatility in the market spikes, they must offset their risk and often do so by widening spread costs.

Is Scalping Forex Suitable For You As A Trader?

Every Forex trader is different so Forex scalping may not be suitable for some traders.

You should take a personal inventory of your strength and weaknesses to determine if you should involve yourself in the small price blips that happen when scalping.

• Would you like small incremental profits?
• Would you like to keep your risk small? – Trick question.
• Do you like high adrenaline pumping trading action?
• Do you like to pay more spread commissions to your Forex broker? – More trades equals more costs
• Do you have great patience?
• Are you 100% focused on your trading plan?
• Do you enjoy glued to the computer?
• Can you focus on a smaller number of currency pairs?

Can you answer yes to many of these questions?

There are some vital things we should point out:

1. Risk is not small if you are risking a % of your trading account.  2% risk for example is still 2% regardless of stop size in pips.
2. If you do not have a trading plan with set risk protocols, you should consider a different trading style.  Emotional trading is very common in most retail Forex scalper.

If you are an impulsive and excited character looking for instant gratification with aims to make a “killing”  with each consecutive trade you place, then  you will get nowhere.

You are guaranteed to end up in frustration.  You will still take losses as a FX scalper – sometimes many losses in a row.

Because you can trade many times in one trading session, you could end up losing more money through scalping than any other form of trading.

What Type Of Person Should You Be?

There are certain types of people that excel using different Forex trading strategies.

For scalping, here are a few traits you should have as a scalper:

• Be able to commit 100% focus to the charts while in a trade without a lapse in concentration
• Understand your first job is that of a risk manager
• Be fully committed to a trading plan so you are not a victim of emotional trading

Those are just a few things you need to be aware of if scalping will be your approach to Forex trading.

Forex Scalping Robots – Expert Advisers

Forex robots or expert advisers are automated trading systems. There are countless automated systems online today, some for free and some you have to pay.

Because scalping is demanding and it takes a lot of time in front of the computer (anywhere from 5-8 hrs a day), many Forex traders have resorted to using automated trading systems to act on their behalf.

Most of the scalping robots available online are complete garbage.  If you intent on using a FX scalper robot, please just ask me for my Paypal account and send me your money.  You will lose.