The 1-minute scalping strategy can be broken down to 3 simple steps:
- Open a certain position.
- Make a few pips.
- Close the position after that.
A number like 100 trades a day is normal in this market.
Because you trade a lot, it is important for you to choose the brokers with the lowest spread and commission as possible.
Check out my list of the lowest spread brokers.
With 1-minute scalping, your profit will probably at around 5 pips. Longer time frame, like 5 minutes, can help you gain more, like 10 pips per trade, but do not go longer than that.
When choosing a currency pair for scalping, you should choose the most volatile ones, because that will give you more chances to make money.
Also, the spread of that pair has to be low because the spread usually takes up 10% to 30% of your earnings.
Many traders scalp in manual mode, which means no Stop Loss or Take Profit. If you’re fast when trading, we recommend you do to the opposite.
While others may take up to weeks or months for your gains to return, swing trading only last 5 – 10 days.
You want 20% profit in one month? How about 5% a week? Do the math. Understand now?
Of course you still can lose. Because you gain little by little, a big loss can wipe out all of the progress you made.
My advice is that you should hit Stop Loss at 2 or 3% maximum instead of the common 7-8%. This act will give you a profit to loss ratio at 3:1, which is acceptable.
You should not limit yourself to one or two currency pairs but rather observe as many as possible.
Choose a time frame, then study the volatility of those pair, then work out a pattern of your own.
In what conditions that the price goes up? When will it go down? Make your prediction based on the results you gather.
You open a position at the beginning of the day, predict the trend of that day and monitor your trade based on the events in that day and finally close the position before the end of the day.
Day traders never keep their positions overnight.
To be successful in day trading, first, you will need a large amount of capital.
When you earn, you can earn big time but when you lose, you will also lose a lot. So I suggest that you keep your trades low in size.
Moreover, you will need to have a considerable amount of market knowledge so that you can predict how things will move in which directions.
A professional day trader will pay attention to both fundamental and technical indicators.
The last factor is discipline. You will need to be able to monitor prices for extended periods of time without jumping into conclusion too quickly.
You may think this is easy but actually a lot of people miss big chances just because they can keep their head cold.
Remember this, a missed opportunity is still better than a loss.
- Swing trading: A wealth or income building approach for those who can spend a few hours each day trading.
- Day trading: An income generating approach for those who can spend the whole day in front of the screen.
- Scalping: Making little profit in a short time, helping you practice.