What is Scalping?
Hello, dear Arya Trader followers and investors. We have examined one of the earning techniques, which is frequently mentioned in the financial markets, in all detail for you! This strategy, known as scalping, is a trick for some, but an important technical method for others.
Although some brokerage houses prohibit this technique, which is developed specifically for the person, this method is free in many brokerage companies in the Forex market. Here is scalping in all its details…
In its simplest definition, the profit in sub-sell transactions made by investors in very short time intervals is called scalping. In general, it covers the strategic transactions carried out within the interval starting from a few minutes and not exceeding 15 minutes.
While scalping has been a popular form of trading in the Forex market for many years, it is also used in the cryptocurrency markets today.
Of course, the amount of money invested in the transaction should also be large to provide high profits in scalp transactions, but it should not be forgotten that this situation also raises the risk level. Therefore, good strategy, technical analysis knowledge, emotion management, and discipline are required. People who do this process are called “Scalper”.
For example, on a 5-minute chart, the investor who trades with $10K buys the financial asset X at the price of $5. In a minute or two, the price of this asset will increase to 5.05. Here, the investor’s earnings will be 100 dollars in 1 minute. When a few of these transactions are carried out successfully during the day, the investor will make a good profit and expand his financial assets.
The faster the traded financial asset fluctuates, the more profit is naturally made from the difference. Therefore, the higher the transaction speed, that is, the more money in and out of the financial asset, the higher the chance of making a profit.
However, it should not be forgotten that the risk is equally high in assets where this decline and rise are active. Without having good technical analysis knowledge, without using many indicators at an expert level, and without improving on timing, this method can also cause a lot of damage. First of all, you can create your first assurance by determining Stop Loss.
Investors use indicators that give buy-sell signals, indicating reversals, separately or with double and triple use for confirmation. The main indicators used while scalping are;
- RSI,
- MACD,
- ATR,
- MA,
- Stochastic,
- PSAR,
- And other auxiliary indicators…
If you want to get more information about these indicators, you can find detailed explanations in the Videos section of our Arya Trader Youtube channel.
Currency Pairs Preferred by Scalping Traders in Forex
Some investment assets are more profitable for scalping investors to make high profits in a short time. For this reason, currencies of countries with low-interest rates, and pairs with high volatility called minor parity provide high earnings. However, do not forget that the loss can be high in these currency pairs.
• AUD/JPY
• USD/JPY
• NZD/JPY
• EUR/AUD
• AUD/USD
• Etc. currencies…
In addition, exotic currencies are among the unknown but highly volatile options, but their less liquidity increases the risk.
In addition, in the crypto money market, altcoins are much more preferred for scalping. Because they also have high intraday price volatility.
Considerations While Scalping
- Economic-political developments related to the markets should be followed,
- Must have information about the financial asset to be traded,
- Must have experiences such as graphic reading and technical analysis knowledge,
- Transactions should be made in minimum amounts to generate profit,
- Take profit and stop loss orders should be given for the financial asset to be traded,
- The profit to be obtained from the transaction should be calculated and the commission fee should be subtracted and it should be determined that this amount is at reasonable levels,
- It is necessary to be calm, disciplined, and determined.
In conclusion; It is known that signals over a wide timeframe are safer and easier to interpret for traders. Because it is statistically easier to interpret the graphs in this slice. However, as the time gets shorter and the processing speed increases, it becomes more difficult to calculate the probabilities.
In this case, instead of the human mind, concepts such as machine learning, artificial intelligence, and genetic algorithms have entered the investment world.
The fact that machines process much more data than humans in a very short time has also made it one of the best methods in the investment world today.
Since it is not possible to examine the indicator, dozens of past transactions, and market movements with them in seconds, this process is carried out by artificial intelligence today.
Here, Arya Trader Forex Robots have been developed by using genetic algorithms for investors to protect and grow their financial assets. In the pool of more than 20 thousand robots, successful robots of artificial intelligence stand out and make successful transactions one after the other.
On this subject, you can get detailed information on our Aryatrader.com website and start earning as soon as possible by purchasing our robots.
Visit Arya Trader website for details.
