Forex Scalping is one of the very lucrative forms of trading! It is primarily because in scalping you can -

1. have very quick profits..sometimes just in a matter of 2 minutes.
2. Multiple opportunities each day
3. Trade any currency on any timeframe

Needless to say, huge population of Traders is into scalping. Yet, only handful of traders end up making pips by scalping.

Rest of the folks, struggle even though Scalping is fairly straightforward to do.

Why?

Because of 2 serious mistakes that are made by them.

But to be fair to them, it is not their fault!
(I'll tell you in a minute why did I say so)

But 1st, let us look at these mistakes -

1. Poor Trade Management guidelines - Most of the traders carry the misconception that in trading you need to risk 5-10 times of what your profit target is.
So, they'll target to make 10-15 pips per trade by risking 50, 75 pips or even 100 pips per trade.

SUCH FOREX SCALPING STRATEGY CAN NEVER BE SUCCESSFULL!!

But to be fair, this is not a fault of traders.

This mistake is because that is what is told to the traders by all these faulty scalping systems out there!!

Per my opinion, in forex scalping, you should NEVER RISK more than what you intend to earn from that trade!

2. Incorrect Entry and Exit guidelines - In Scalping, you should never have any ambigous guidelines for entring and exiting the trade!

You need to be quick and you need to enter the trade as soon as the conditions are ideal. The same goes for exiting the trade also.

So naturally, the entry and exit criteria need to be precise to a pip to have high number of profitable trades.

That is where most of the other forex scalping system fail. They target to have 5 pips profit per trade by putting 100 pip stop loss. Because when you use such criteria, you can have fuzzy entry and exit guidelines!

So, needless to say, Forex Scalping is very lucrative but requires strong trading guidelines. Like it should have -

1. Precise entry and exit criteria
2. Strong money management principles
3. and can allow traders to make full time income by scalping.

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