Things you must learn as a rookie scalper
Do you know you can develop your scalping strategy in less than a month? Trading the market with your trading strategy is more like creating an art piece. You have to devote yourself and stay focused. Though the traders at Rakuten prefer to use the long term trading strategy, many people have already changed their life by scalping the market. Scalping is not an easy task and it requires hard work and patience. If you want to develop your skills as a currency trader, you can start with the demo account. You can create a perfect scalping strategy in less than one month. Let’s learn the process.
Setting up the mindset
The first thing that you should consider is the mental stability. Without having a stable mindset, it’s really hard to make a consistent profit from this market. You might be new to this market but this should not make your confidence level low. Before you start learning to trade, you must be mentally prepared to overcome all the obstacles. Without having the ability to accept the losing trades, you are going to lose money in the real market. Things might be tough for some of the new traders but once you start to follow the basic traits of the pro traders, you will gradually develop the mindset of the pro traders.
Learning about the lower time frame
Learning about the lower time frame is a very challenging task. The traders often think lower time frame trading is easier and it doesn’t require any extensive skills. But if you use the Forex trading demo account and try to make a profit in the lower period, you will understand why the traders are losing money most of the time. You need to be very precise with your trade execution process or else it will be really hard to make a profit in the lower period. Stop thinking about the outcome in demo trading. Try to develop your basics so that you can learn more about this market. Once you start to correlate the price movement in a lower period, it’s time to develop the trading system.
The key support and resistance level
You should analyze the key support resistance level to develop your scalping strategy. You must learn to find the major support and resistance zone. If you trade the minor support and resistance, you are going to lose most of the trades. Things might be challenging for the new traders, but if you start learning from your mistakes, it won’t take much time to develop your trading skills. Since you will be scalping the major levels, you should also think about the quality of the trade setups. Try to analyze the trend so that you don’t have to end up by taking trades against the trend. Some of you might think trading against the major trend is a very big mistake. This is correct and as a scalper, you should only trade with the trend.
Limiting the risk factors
Limiting the risk factors and finding the perfect trades is more like searching a needle in the hay. Unless you have precise knowledge of support and resistance level trading system you can’t trade the market with low risk. Rely on the price action signals while scalping the market as it will make things better. Forget about the low-quality signals. Though you will be scalping, still you need to focus on the quality of the trade. Never get biased with the concept of high-frequency trading. Just like the position traders, you have to rely on the quality of the trading signals and only then you will be able to change your life. And try to learn the advanced method of risk management policy since it gives you a perfect trading opportunity. Think twice before you increase the lot size while scalping the market. And never start to trade the real market without backtesting your strategy.