Learning to scalp the market is not an easy task. The majority of the naïve traders are losing money since they don’t have the perfect way to find great trades. To find the most profitable trade setups, you must use a valid trading strategy. And when it comes scalping, you can’t afford to make minor mistakes. Many new traders in Singapore have blown up the trading account by trying to scalp the market. To become a professional scalper you must follow four basic rules. These are –
- Trade with the elite broker
- Use the multiple time frame analysis
- Look for the high risk to reward ratio
- Trade with low leverage
Trading with the elite broker
Those who are not trading with the high-end broker are always losing money. The majority of the traders don’t have the perfect skills to develop the perfect trading strategy. Eventually, they blame their strategy and forget the fact, high-end brokers play a great role in their success. On the contrary, those who have access to the best trading strategy often lose money due to a faulty trading environment. Let’s say you are trying to trade the NFP news but all of a sudden you have a freezing platform. So, you won’t be able to execute the trade. And even if you manage to execute the trade, there is no way to set stop loss or take profit level. So, if you want to protect your trading capital from such a disaster, you must learn to trade the market with high-end brokers like Saxo.
Use the multiple time frame analysis
The scalpers have to look for the best signals in the CFD market. If they rely on traditional indicators, they are going to lose most of the trades. For this very reason, successful traders prefer to trade the market after doing multiple time frame analysis. By using the multiple time frame analysis, you can reduce the risk factors in trading to a great extent. For instance, you might have filter a good trade in the USDSGD pair but after analyzing the different time frame signals, you will notice many faults in the signals. So, it’s very obvious you will place the trade. To learn about the multiple time frame analysis so that you can filter out the good signals.
Look for the high risk to reward ratio
Trading the market with the negative risk to reward ratio is one of the key reasons for which the majority of the scalpers are losing money. Being a lower time frame trader, you must use 1:2 risk to reward ratio in each trade. Those who are taking too much risk in each trade to earn more money don’t have the right skills to trade the market. You must learn to trade the market from skilled traders. They will show the right way to analyze the risk factors. Once you start using the perfect risk to reward ratio in each trade, you can expect to make big profits from this market.
Trade with low leverage
Taking too much leverage is a very big mistake. You must open the trading account with low leverage so that you can’t trade with big volume. Some of you might think this might limit the profit factors but if you look at the long term result, it is one of the key reasons for which you be able to secure profit. Following conservative trading, the method is the only way to make a profit. Once you understand the fund associated with a low leverage trading account, you are never going to trade with high leverage. Always follow the safe approach in the trading business as it is the only way to secure big profits. Forget the aggressive methods as they always result in a big loss. Use the low-risk exposure trading strategy to scalp the market.