Forex trading comes in a variety of styles, different approaches and unique strategies, from a diverse number of traders. There is one model for making money in the Forex market that is very popular and lively – Forex scalping.
What exactly is forex scalping and can it work for you?
Forex scalping is simply a method of earning profits in day trading by earning small amounts of income on a regular basis. In the long run, this will accumulate into a large amount. Usually, it is done through day trading. The problem is that they don’t work. It’s considered by others to be just a big scam.
However, why is it so popular?
Because many people are advertising it online, promising huge returns for minimal effort. They back this up with the impressive track record that appears on their websites. That’s what makes them so popular: marketing agencies promote their sites on search engines, making it appear that a lot of people have profited from them.
Another reason it’s so popular is that many people, driven by greed and easy profits, are naturally attracted to the proposition. Of course, when they join, they lose money. Not only do they lose money when they buy the system, they lose even more when they trade with the wrong strategy. This is what creates the buzz.
Why doesn’t it work? We can simply explain that prices and rates in day trading are very volatile. There is no guarantee that you will make a profit. This is only made possible by the stories of those who want to sell their simulation software and plans. These are just simulations and after-the-fact plans that don’t really happen and, in turn, don’t really make some money.
Scientific theories are just theories. If they have been proven, then they cease to be theories and hypotheses. Experienced traders have learned not to listen to them. Follow the trend and go with it.
Here are some tips to avoid falling into this scam.
- 1. Trade long term and forget about day trading. In the long term, profits are steady. You can also practice short term trading, which is different from day trading in terms of time frame. The key is to understand that the exchange rate fluctuates too much from day to day to put our investments on it.
- 2. Be aware that if it is too easy, then it probably isn’t true. If scalping was effective, then no one would be trying to sell that method, right?
- 3. Be well informed and educated on how Forex trading works. Start with a simulation and try demo trading. Learn and understand how the market works.
Is forex scalping going to fade away in the forex trading market? It may not for a long time. They can repackage systems and presentations to lure in other inexperienced, lazy potential traders. Nevertheless, remember that if you are well trained and understand how the market works, there is no danger of falling into their trap.
The bottom line is, ditch the forex scalping. Forex trading is based on tested principles and a unique strategy of predicting closing prices and keeping a close eye on market flows. It is not some childish market where you can bully your way to success with some scientific theories and fancy software platforms.