Shopping Styles Forex: One of the biggest problems for investors to be consistent, is to choose the way of trading, finding your place among the different styles of trading.
Forex is a great market that allows you to earn a lot of money, but also to lose it. Since this business is set up the logical thing is that you are losing money and not that you are making money, you will wonder why.
The reason is simple, the most numerous brokers on the market is Market Maker, they earn money in two ways, with commissions and losses. Nevertheless, there are decent Market Maker Brokers and others who are “blacklisted”.
But leaving Brokers aside, remember that when you win, someone loses. At least 50% of the market is waiting for you to lose.
The reasons that lead you to lose are different. A serious trader knows that part of his trade will be negative and assumes it.
He wants to lose a little and a few times. However, investors who start their business, lose many times and a lot, what fails?
Perfectly many things fail, such as not respecting stop losses, not having the right mind control, but one of the biggest problems is the wrong choice between different styles of trading.
Different trading styles are related to the investor’s preparation (technical and psychological knowledge), as well as to the available time.
A bad combination of these elements of time knowledge is a direct route to disaster.
We select different trading options that you can choose from, along with the time and knowledge requirements.
Scalping is the most demanding option in terms of time and trade knowledge. Interestingly, it is one of the most popular options for beginner traders.
Some have read that one of the biggest trading risks is the market itself, that the longer you stay inside, the more you are exposed to the risk of loss.
Logically, exposing yourself to the market is a risk and as such you have to face the fact that the longer you are in the market, the greater the risk…. but also profits increase in equal proportions.
To become a scalpper you need to have a good knowledge of price performance. Scalpers usually do not use technical indicators, except for volume, price, support for… if they use any type of indicator, it is usually a proprietary indicator, it is rarely a classic MAC or RSI indicator.
You should also be very aware of everything that happens in the market and the news that can change the price (economic calendar). Keep in mind that their mission is to make many operations, very short and that most of them are profitable, any news can move the market a lot in one direction or another, and they must be prepared to use the moves and not be caught on the wrong side.
The level of psychological control and responsiveness must be very high.
Finally, the time needed to be a scalpper is intense. We are dealing with an operator who has to spend several hours a day in front of the computer screen, waiting for the slightest traffic in the market, concentrated and ready.
Do you think that if you come home from work at 15:00, eat something to eat and stand in front of the screen, will you be able to operate?
Skalper, as the trader prepares the sessions.
Before starting a day of market reviews, you are alert to messages that can move assets or assets that you trade, and once all these tasks are done, you are ready to spend at least two hours standing still in front of the screen, motionless and focused.
A trader who starts out can’t and shouldn’t be a scalpper.