What Every Forex Scalper Must Know Scalping is one of the most entertaining forms of trading. You ca...

1. What Every Forex Scalper Must Know
What Every Forex Scalper Must Know
Scalping is one of the most entertaining forms of trading. You can make several hundred and even
thousand dollars in a few minutes but you can also lose that same amount of money within seconds.
This seat of the pants roller coaster style of trading attracts many traders, mostly new traders.
It is easily to get sucked in, especially if you have some early success, but remember failure is right
around the corner. Everyone who has had some immediate success with scalping has always had
several days where they have almost lost their shirt. It's inevitable that this happens and is
extremely likely because new traders use too much leverage and don't use a money management
system.
Not only is scalping hard to be successful at over the long time because it's mostly discretionary
trading on the retail level, retail traders do not have the correct tools or brokers to scalp effectively.
Retail traders do not know this dirty little
secret: Your broker wants you to fail! But
you thought they only earned money on the
spread! Most retail brokers also act as the
market maker for their customers, that means that your broker is on the opposite end of each one of
your trades!
If that wasn't enough dirt, you also do not get to see the market as it actually is! The price feeds on
your retail account lags the major banks currency feeds, so you can't really scalp in real time.
Although the pip fees at most retail Forex brokers isn't too high, it's still too high to truly scalp. I
know have had this thought: I would make a killing if I didn't have to pay so many pips on each
trade. It's a valid thought and it's why professional scalpers don't use retail brokers. Imagine how
much money you could make if your pip spread was under 1 pip? You could truly scalp the market all
day long for micro pips.
Professional scalpers either use an ECN or they have account directly with the major banks. This is
how they are able to truly scalp the currency market and earn those little fractions of pips which
equate to big dollars when you use leverage.
So what should you do? Well you should probably look into trading with an ECN or if you can afford
it get a direct account with a bank feed.
One last thing that you don't get on a retail account are an order flow book. An order flow book will
allow you to know when trades are cz rifle magazines being made and for what amount. This will
allow you to know when a bank is about to pump in a large amount of money to move the market.
There are traders who scalp the order book without using any charts.
As you can see, there are a lot of secrets that your broker is keeping from you. You are missing out
on so many opportunities to get an edge when you trade with a retail broker.