Forex Scalping is a trading method where you look for making quick pips something like 25-50 pips in a few minutes. Forex Scalping requires getting in and out of the market quickly each time making pips. You will have to scalp for a number of times every day if you are using it as your main day trading strategy.
Now, the most important question about forex scalping: Is this the best trading method? As a trader you need to first determine your trading style. Now your trading style and your personality should match if you want a successful career as a trader. There are five trading styles:
1) Guerrilla Trading
3) Day Trading
4) Swing Trading
5) Position Trading
Guerrilla trading requires extremely sharp entry and exit to make a few pips profit something like 10-20 pips per trade. Only professional forex traders can do Guerrilla Trading so if you are beginner, you should forget about it. Not till you have more experience. However, scalping can be a workable trading strategy for a new trader. More on the other trading styles in my next articles!
As a forex scalper you need to use 10 minutes chart to follow the market, 1 hour chart to determine the long term trend and the 5 minutes chart to time your entry and exit for each trade. You should be able to view the overall trend in the market to gauge whether you are trading with the trend or against the trend. Forex scalping is best done when the market is choppy or moving sideways.
However, you need to know another thing if you want to succeed with forex scalping. This is the concept of correlations between the different currency pairs. Correlations is like relationships between the different currency pairs. It can be positive or negative. Forex scalping combined with correlation trading can be a very powerful strategy sure to give you a winner every time.
Jason Fielder is considered to an authority in forex trading. When he talks you only listen. Recently he gave away two very important reports: "The Correlation Code Secret" and "The Correlation Code Cheatsheets". Thousands of traders downloaded these reports and attended the two webinars that Jason held on correlation trading. You need to take look at these two reports if you are really interested in combining forex scalping with correlation trading as your day trading strategy.