The scalpers in forex are also known as a short time frame traders. They have got this name because they place their trades on the market and close it on within a very short period of time. They do not wait for the next day on the market to close their trade. These scalpers take huge risks in Forex and they place their trades on the market with the risks of losing their capital. The scalpers always trade the market in short timeframe. Short timeframe gives the traders more volatility and movement in the market. It is very risky as the traders could not know what is happening in the overall market situation. These traders prefer to trade the market with a short timeframe and it does not make them lose in the trades.
Most of the day traders in forex have a very deep knowledge about the Forex market. They can understand from the glimpse of the chart what is going to be profitable to trade in the market. If you look at the professional scalpers in Australia then you will notice that all of them are executing high lot size trades in their trading platform to make profit in the market. Though long timeframe gives the traders a better view of the market, we are going to tell you why day traders prefer and trade with a short timeframe.
Trading in short timeframe
Market movement:The first reasons they trade the market with short timeframe is because of the market movement. If you are a trader and trading in the long timeframe, you will see that the short timeframe gives more movement. It does not mean the market changes when it is being traded on the short timeframe. It is only changing because every second it is moving with the price level. In higher timeframe, the market moves as the same way but with a slower pace.
Day traders often known as scalper make most of their money on the market movement and this is the reason they always trade in the short time frame. The expert traders in the Australian trading community always trade with the reputed brokers like Saxo since they offer robust trading platform like SaxoTraderGo to their clients. It’s true that if you are relatively new in forex trading than it will be hard for you to execute the high quality trades in the market but once you master the art of trading then you can easily trade the like the professional traders at Australia.
Placing and closing trades on the same day:These traders in the market closes their trades on the same day they have placed trades. They do not wait for the market and they do not use the old trades in the next day. Short timeframe moves more swiftly and they can make their money on the market with the movement. They do not have to wait for the market to move like the higher timeframe.
However when you look for trading signals in the shorter time frame of your trading platform you are actually looking though lots false signals in the market. So you need to be extremely careful or else you will execute the trades using the false signals in the market and thus lose a huge amount of money. But even after doing all the things perfectly you will often have some losing trades in the market so make sure that you trade with proper risk management factors in every single trade.
Conclusion:Scalping is very profitable in Forex. It is also very risky. Only day trades in this market when you are ready. If you truly want to become a successful trader in the forex market then make sure that you trade with extreme level of discipline or else you will not become a successful trader in the long run.