Tips for Scalping the Forex Singapore Market

Posted by admin 28/10/2013 Comments are off 777 views

Forex Singapore Scalping

This article looks at the tips you should consider when scalping the forex Singapore market.

There are many traders who consider scalping the forex Singapore market.  If you are considering this you have to consider the tips that you can use to ensure that you make the most out of the strategy.  There are a number of tips that you should know about before you scalp the forex Singapore market.  When you know these tips you could increase the success that you have with the trading that you do.  Of course, not all the tips will actually help you become successful and you need to keep this in mind.

The Currency Pairs You Use

There are many traders who think that it is possible to scalp with any currency pairs.  While this is true in theory it will not work that well in practice.  As with all forex Singapore trading you have to find the right currency pairs to scalp with.  The best currency pairs will be the commonly traded currency pairs.  A currency pair that has the US dollar will be ideal because this is the most commonly traded currency.

You need to use one of these currency pairs because of the liquidity that they offer.  The liquidity of the currency pair needs to be high when you scalp.  If you do not have high liquidity then you could suffer from excessive slippage which will affect the profits that you are able to make on the market.

The Analysis that You Complete

Another tip that you should consider relates to the analysis that you use when you scalp.  Scalping should be done with technical analysis because of the short timeframe you are working in.  Technical analysis will also help you determine the best entry points for your trades.  There are some scalpers who use fundamental analysis, but this is not something you should consider when you start.  Scalping with fundamental analysis is considered harder than the technical scalping.

The Use of Forex Singapore Stop Loss Orders

There are some traders who feel that the short timeframe that you use with scalping does not warrant the use of stop loss orders.  These traders feel that the trade is not open for long enough for you to spend time setting up the stop loss.  Not using a stop loss when you scalp is a very dangerous move and should be avoided at all costs.

The small movements that you look for in the market can swing very quickly.  If you do not have a stop loss in place then you are not going to be able to limit the losses that you make.  It is possible that the loss you make on the trade is much greater than you are able to buffer.

The Capital You Need

There are a lot of trades who think that scalping can be done with very small amounts of capital.  While it is possible to scalp with limited capital it increases the risks that you face.  Scalping is already a risky type of trading and you will not want to increase the risks.  It is best that you have a decent amount of capital when you look at scalping to buffer the risks that you face.

 

 

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