In the forex faq today, we will be discussing about how to scalp the forex market the right way.
Below is the question:
Is it when the market is quiet? You teach by using PSAR & stochastic to trade scalping, how many pips should we put as stop loss?
There are various ways you can scalp the forex market. In fact, no matter how quiet and volatile the market is, the way you scalp the market remains the same. This is because scalping only allows you to stay in the trade for several minutes, therefore the volatility of the market do not affect you that much.
If you are a student of my forex course or forex scalping course, you should have learned a profitable way to scalp the forex market. That is exactly the same way I scalp the market.
If you are not, then I have a small tips for you. The key to successful scalping lies in the identifying of extremely strong level of support and resistance. When scalping the currency market, we are always waiting for the price to hit a major support or resistance level and then get repelled by it.
If the support and resistance level that you identify is not strong enough, there is a very chance that the price will break through that level and lead to your losses.
Besides using the level as entry point, you will need to have a confluence of other indicators such as what you have stated above, stochastic or PSAR. As long as there are confluence of indicators and level, the trade that you have entered will have a higher chance of making profit.
Since scalping is a short term trade, the stop loss and profit will not be too much. The way you make money in scalping trades lies in your trading volumes. As a scalper, you will get to at least enter 1 to 2 trades per day. For me, I usually set 15 to 20 pips stop loss from the level of strong support and resistance. However this value really depends on your own analysis.
I hope that I have answered your question and do feel free to give your comments below as it will be very helpful to other traders here in this community.