What is the Scalping Trading Strategy - Find out with nextmarkets

Successful scalping relies on you being passionate about what you’re doing and willing to invest time into monitoring the markets and developing the best strategy. This is because you’ll need to wait for the market conditions to give you signals to decide whether to go short or long. Most forex scalping traders work on small timescales such as 15 minute, 5 minute and 1-minute charts when day trading.

To enjoy returns from forex scalping you’ll need to develop the skills to be able to quickly execute orders and close open positions. Gaining an understanding of when to make a move whilst day trading is crucial, too. Choosing the right pairs is also important – lookout for pairs where nextmarkets offer low spreads to make the most of your forex scalping.

To find out what scalping trading strategies work best, it makes sense to choose a trading system and platform that offers help and advice from professionals who specialise in scalp trading and can help you build a trading strategy designed to benefit you. nextmarkets offers CFD trading tutorials, chat monologues and video tutorials to help you better understand how to deploy a strategy. It’s also important to remember that the best strategies when trading require discipline. Price movements can be sudden, and a lack of discipline when trading can cause you to lose small profits.

While some brokers will charge commission for this sort of service, there are a select few apps on the market that will provide this information for free. It’s important to do a little bit of research and read customer reviews to find out which platform will work best for you. Whether you’re a newcomer or an experienced trader, you should download the nextmarkets app that offers help, support and advice to develop your strategy.

As a beginner, it’s only natural that you might be apprehensive about investing your own funds without any real trading experience, after all, trading involves risk. The good news is that there are plenty of platforms that allow you to try forex trading with free virtual currency. Whilst you won’t be able to seize gains of a few successful trades or be able to make any small profits, you will eliminate your own risk of losing any capital.

This means you can perfect your scalping strategy and dip your toe in the forex market before risking any of your own capital. nextmarkets allows you to mirror the trades of the professionals, and with detailed tutorials, you’ll learn the answers to these basic questions and more:

• What is CFD?
• What is forex?
• What is day trading?

The beauty of a short scalping strategy is that there is less exposure to risk. Brief exposure to the forex market and stock market reduces the chances of running into unexpected events – like losing money rapidly. Small profits and movements are easier to achieve, as a larger supply/demand imbalance is required before large price changes occur. The logic behind the 1 minute scalping strategy is that small moves happen much more frequently than big ones during a trading session – even when the markets are relatively quiet and stable, forex scalpers can make money from small moves.

However, large deposits are needed to make decent returns on short scalps. A 1-minute scalper will also need good instincts, mental arithmetic and fast reflexes. Scalping can also be time-consuming and stressful – so consider all your options and skillsets before setting your sights on a 1-minute scalping spree.

If you’re implementing the 15 min scalping strategy, you should consider buying when bullish pressure exists. This can be evidenced when the SMA indicator crosses an EMA or 120 or more on your chart. Generally, if your stochastic indicator is crossing into the “oversold” region at any time, it’s the right time to buy – just remember to place your stop-loss approximately 2 pips below support level.

When it comes to selling, apply the opposite criteria: if the SMA drops below the EMA, act fast to protect your investment from any adverse event. For further information on how to understand charts and graphs (a vital component of scalping), you should consider opening an account with a platform that offers free help, advice and tutorials.

At nextmarkets, we understand that everybody learns in different ways – that’s why we offer tutorial methods to suit all needs. Not everybody wants to sit and read articles, and some people prefer a more dynamic, interactive approach to understanding the markets. That’s why we offer video tutorials and chat monologues from professional traders, so you can gain insights into how to work the markets to your own benefit.

In addition to this, you can expect to benefit from:

• An intuitive, easy-to-use interface
• Competitive spreads as low as 1 pip
• Zero commission on all trades, allowing you to keep more of your returns

When scalping, the best way to ensure your investments are protected is to use a stop-loss. If you trade without stop-loss in place, unexpected market volatility and any adverse event could wipe out your funds. However, it’s also important not to set your stop-loss too tightly, as this could result in a gradual decline in funds which is just as damaging.

To prevent this, you should familiarise yourself with how stop-losses work – it’s good practice to allow plenty of breathing space while ensuring you won’t encounter any major losses. This way, you can enjoy healthy returns when you make the right scalping decision.

Whether you’re a complete newcomer to forex trading and the forex market or you’d simply like to improve upon your existing strategy, there’s never been a better time to try out the UK’s latest and best trading software. With a nextmarkets forex demo account, you’ll benefit from £10,000 in free virtual currency to hone your skills and discover the scalping trading strategies that work best for you before investing for real.

The latest version of the nextmarkets app is available from the App Store (iPhone) and Google Play Store (Android) and all you’ll need to sign up is an email address. Start trading the smart way today, and enjoy a healthy return on your investment.