How to do Scalping for profit

Scalping is one of the many techniques used by traders to earn bucks in Forex trading. Though I use it rarely, but I know many traders who use it successfully to earn huge profits.

I used it extensively last week, because I ended up losing 200 pips last week, hence I did scalping to recover
as many as I could. I ended up gaining 15 pips by this technique.

I know it sounds a little confusing because if I hardly earned a few pips by Scalping, then what is the point using it as a strategy when it hardly made me gain just a few pips.

So, now I come up with the secret of this strategy. Though scalping involves earning just a few pips, but the deal size is kept on the higher side, which makes one earn huge profits.
 
Basically Scalping involves opening a lot of deals, but closing them at just 1 pip of profit.

I know it sounds too easy and cool, but it makes more sense and profit when the deal size is kept on the higher side.

Now you must be thinking that when it so cool and easy a technique then why I do not practice it myself.

It is because it is a like a double edged sword. Yes, it does give great profits, but it could lead to huge losses if not done correctly.

Come to think of it logically, Scalping is not done with the long term charts in view, hence could prove really harmful and loss inducing if not done with precaution.

Since the deal is of huge size in scalping, therefore it could lead to losses if one has not mastered the logic of Scalping.

Scalping-Chart

So here I list few pointers that could help in using Scalping for profits:

1. Scalp on a pair that you are truly comfortable with, do not use it on a currency pair that you have just started anew.
2. Set a target for scalping, like 10 scalping deals in a day, and stick to the target.
3. Do not delve from that scalping target irrespective of profit or loss.
4. Though the profit is set of 1 pip, but I generally keep a stop loss of 100 pips.
5. I am happy to admit that no scalping deal of mine has never touched the stop loss.
6. The point above is possible because I follow my chart strategy religiously.
7. My chart strategy is to follow 1 minute chart on the Stochastics.
8. The moment Stochastic lines touch an end, I trade to earn 1 pip profits.
9. I generally risk 20% of my equity in scalping, but one should be super careful.
10. Do not scalp at the time when a big news is on its way.  

Hope you also earn a big time Scalping, but as always do not over-do it and practice it well before you go gung ho on it.

Apart from it enjoy your weekend and have a happy trading day from tomorrow.

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Trading Signals for Friday, June 28 2013

Hi, 2VBFNBETD2TK

It has just been a mammoth task achieved. My buy order at 1.3049 just got closed with 50 pips right now, hitting its take profit levels.

Hence, as of now I am at a loss of 200 pips in this week.

Because, I gained 100 pips since yesterday, therefore, 200 pips lost instead of 300.

As of now I have not kept any further entry orders, except for I kept 2 days back.

I am steady on them till now. And not keeping any more future orders.

Actually I am waiting for the next week, then I will keep or edit the orders.

Yeah, as I mentioned in my yesterday's update, I am scalping for 1 pip trades in order to recover the lost pips.

Also, I will be updating a tutorial on that this weekend.

So, just stay tuned and keep living.

Trading Signals for Thursday, June 27 2013

Hello,

The things are getting back to normal now.

I have moved my account to a lot of recovery since yesterday, mainly due to scalping.

I promise to talk about this more in this weekend.

But otherwise, there is also a good news otherwise.

One of my Buy deal at 1.2999 closed with the take profit of 50 pips.

That was indeed a savior deal. That was one big deal that ended up in profits.

Now coming to the as of now scenario of my forex account:

I have a Buy deal at 1.3049 open, which is still open in losses.

Otherwise, there is another limit order kept at 1.2949, as suggested on my last update, which I have not altered. 

So, just waiting for the open order at 1.3049 to end in profits.

Will update, once it either ends in profit or losses.

And yeah, will update my scalping strategy by the weekend.

Happy Day ahead....

Trading Signals for Wednesday, June 26 2013

Hi,

I know I am posting late, it is because I was again waiting for my entries to show something definite.

And that happened, my buy entries at 1.3099 and 1.3149 both hit the loss by touching the stop loss levels.

So, I am in a good loss this week.

My accumulated losses for this week now amount to 300 pips. I know that comes as a big one, considering all the profits that I made last 2 weeks, all have been wiped out.

So, the current situation of my account is as follows:

Open buy entry at 1.3049, which is as of now in a loss of 50 pips.

Another buy entry at 1.2999, which has just open.

Now coming to the action plan to recover the losses, I have kept another limit order at 1.2949 with a stop loss of 100 pips and a profit of 50 pips.

But apart from that, I am on with my humble resource of recovery from losses. Scalping.

Will talk about this later this week.

Till then I wish you a happy trading and a happy day ahead...

Trading Signals for Tuesday, June 25 2013

Hello,

Today I am posting late because I was waiting for my open trades to show some action, on the either sides.

And one of the open deals did show. So, I am here with the update.

It is sad because one of the deal, which I was scared of, did turn my scares into real and closed with the stop loss. I am talking of the deal that opened at 1.3199.

That made a 100 pip loss. Though I could have recovered 50 pips had my trade of 1.3099 levels had closed at 1.3151. But sadly the market turned back from 1.3150. That means I lost making 50 pips by just 1 pip mark.

Yeah, I know that is indeed sad.

So, now the summary is 100 pips loss for this week. If my 2 open deals at 1.3149 and 1.3099 close in profits, then my losses would be erased. Else, I will have to try really hard.

Hence, now I am exposed to a loss of 200 pips, or a profit of 100 pips.

Also, I got these few entry deals kept, which could trigger off if reached the desired levels:

Buy Eur/Usd at 1.3049, and Sell at 1.3201. Of course, both have a stop loss of 100 and a profit of 50 pips.

Will update tomorrow on my existing deals, or on the kept limit entry orders.

Good Night and a Happy day ahead !!!

Trading Signals for Monday, June 24 2013

Hello,

I have bent a little from my rule book today.

I have erased the stop loss from the deal at 1.3199 for some time. Else, it would have closed with a stop loss kept at 1.3099. I recall, when I had kept that entry order, I did get an intuition that the market could recede further down, but somehow I went wrong with that one.

So, I am in a little cautious mood to rectify my error. But I am doing this with a little caution too.

Considering the 4H charts, the market is bound to pull back a bit; but when does it start that way, I really do not know.

Hence, I have decided to wait till tonight, if by then I do not get a clear signal of the directions of the market, I would close this deal at whatever price (loss) I get.

So if that happens, it will bring the first loss of this week, and it will eat up 2/3 rds of profit earned from last week.


But nevertheless, there are other 2 orders also open, which could even out this loss; they are:

Buy orders at 1.3149 and 1.3099, both have a stop loss of 100 and a profit of 50 pips.

If these 2 deals end in profits, then this loss(if realised) would even out.

Also, I have kept another buy entry with the same profit and loss levels at 1.3049 levels.

And just rounding up the scenario since I started trading on the 17th of May:

my account is up by 500 pips since then.

Hope yours is too; Happy Trading till I update my posts till tomorrow.

Weekly Roundup on Saturday, Jun 22 2013

Hi,

It is Saturday, the no trading day. On this day I normally come up with the summary of all that I did in trading in the last week.

So to start with following were the entries that I opened last week:

1. Sold Eur/Usd at 1.3351 for a stop loss of 100 pips and a profit of 50 pips.
2. Sold Eur/Usd at 1.3401 for a stop loss of 100 pips and a profit of 50 pips.
3. Bought Eur/Usd at 1.3199 for a stop loss of 100 pips and a profit of 50 pips. (2 times)
4. Bought Eur/Usd at 1.3049 for a stop loss of 100 pips and a profit of 50 pips.

Now all these 5 deals were kept as an entry order considering the momentum of the trend directions at those very particular moments.

Also, all these deals got triggered, and 3 of them even closed in profit.

Now I am left with 2 unclosed deals, the 2 bought orders at 1.3199 and the other at 1.3049 respectively.

If I have come up with a contemplation of all these, then I have 2 things to say.

First that I could have sold another time at 1.3401 and also, I could have avoided buying another one at 1.3199.

I take that as a learning and will try to be more careful in the coming week.

Now in the current scenario, if I end up losing on both the open bought deals, I will lose 200 pips; which will be minus 50 of the current week's earnings.

Therefore, I will initiate another buy order at 1.2999 with the usual 50 pips in profits and 100 in losses so as to get into a no profit no loss scenario with my current week's earnings.

Hope you have a great weekend and a life ahead !!!

Trading Signals for Friday, June 21 2013

Hi,

It is so nice to wake up and post that another entry closed at a profit. Yes, the one that I opened yesterday, closed with the take profit levels that I had imagined.

It is Friday today, the last trading day of the week and with 3 deals closing in profits, I think I had my share of happiness for this week.

But considering the strength of the downward movement, I am still going strong with the trend.

Therefore, following are my entry deal(s) for the day today and further, till I post again:

Buy Eur/Usd at 1.3199 for a stop loss of 100 pips and a profit of 50 pips. 

Till then have a happy trading day and life ahead !!

 

Trading Signals for Thursday, June 20 2013

Hi,

I am so excited to post that the Sell entries that I suggested opening on Monday have closed with a profit.

So, now my forex account is up by 100 pips.

Yesterday, when I updated my blog, I was not sure whether my deals will close that day itself or I had to wait for a few days more to see the profits. But luckily they did end in profits yesterday itself.

Also, to lock in the set and desired profits, I had rolled in the take profit levels by few pips so as to take care of the lost dollars in the broker commissions.

Any way, now the way forward; after witnessing the strong fall yesterday, I am expecting a further fall, hence my signals for the day are as below:

Buy Eur/Usd at 1.3199 for a stop loss of 100 pips and a profit of 50 pips.

And I am excited to know if any of you also made profits like the way I did yesterday. Just leave a comment.

Regards
Aditi

Trading Signals for Wednesday, June 19 2013

Hi,

A little update on the developments on my forex account. Yesterday, when I posted my last update, only a single entry had triggered on my account. But shortly after that, another Sell entry at 1.3401 also got triggered, bringing the current open deals to a count of 2.

And to talk of the current scenario, both the deals are open and none of them have hit the either ends.

Basically the market today remained consolidated, so it did not move the either side much. 1.3413 and  1.3385 were the ranges that the market touched today till this moment now.

The reason for this side-ways moving market should be known to any long term trader, it is because of the soon to be released FOMC statement. 

It comes every now and then and brings about big changes in the market.

Now to come to practical part; if the market goes real up, I will lose 200 pips, but if goes real down, I will earn 100 pips.

As usual, I do not know which ways the market will move, but I am ready to handle both.

Happy Trading, and will update the results tomorrow.

Good Night

Trading Signals for Tuesday, June 18 2013

Hi,

Here comes an update on the yesterday's kept entry orders.

I am happy and sad both.

Happy because the Sell entry order at 1.3351 got triggered; but sad because the one at 1.3401 just missed being triggered by a mere 2 pips.

Had the second cover one at 1.3401 got triggered; then I would have earned my 50 pips for the day,\; making me earn the first 50 pips of the current week.

Now all my eyes are set on the one that is open. It will either shut close with a profit of 50 pips, or if the market goes up, which I feel is quite unlikely right now, then the deal might close with a loss of 100 pips.

I really do not know what would happen next, but I do know what I have done with the open deal.

I have rolled over the profit levels for the same by 2 pips, bringing the profit levels at 1.2999.

Now waiting for the deal to close, will update tomorrow whatever will be the outcome.

Happy Trading and a Happy Day !!!

Trading Signals for Monday, June 17 2013

Hi,

It is the first trading day of the week, and the time to make more profits.

I am viewing the daily, weekly, 4H and 1H charts all at the same time.

And all tell me the same thing, that the market is in for a crash any time soon.

So, to come up with the signals, they are as follows:

Sell Eur/Usd at 1.3351 for a stop loss of 100 pips and a profit of 50 pips.

And to keep a cover :


Sell Eur/Usd at 1.3401 for a stop loss of 100 pips and a profit of 50 pips.

Will update once the deal (s) get triggered any time during the day.

Happy Trading and a Happy day ahead !!!

How to even out the broker commissions from your forex account

Hi,

Today being a non-trading day, I thought of coming up with something that could help in making out maximum from your forex trading account, and also will help in recovering from your loss.

Many a times, the open deals remain open for more than 24 hours. And as any long term term trader would know, any deal that remains open after the EST timings, automatically accounts for additional brokerage charges.

Of course, if you have not achieved the desired profit levels, then your deal will not close at the set take profit levels. That is the reason I generally do not recommend keeping a larger take profit level. It not just increases your risk, but also ends up in taking lesser profits because of the additional brokerage charges deducted by your forex broker for each day the order remains open.

Yeah, I know that many a times I recommend taking longer profit levels, but in all such scenario I suggest increasing the levels of profit in accordance with the number of days the deal has been opened.

Like for example, if a particular deal remains open for 2 more days than its stipulated time, then I simply increase its profit levels by pips in accordance with its deal size. Like for a deal of 10,000 lot, for every extra trading day, I would increase the profit levels by 10 pips. Going by the same ratio, one could figure out the addition pips for all the deal sizes.

Hope this helps you in extracting maximum profits from your long open trades. It makes more sense to get more profits and keeping the losses to the low.

Happy trading and a happy weekend ahead !!!

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Trading Signals for Friday, June 14 2013

hi,

So, the last trading day of the week has also arrived. And if I round up my deals, then it has been a little loss.

The yesterday's deal, it ended up in profits. So, that becomes my second winning deal of the week.

Therefore, my week's loss has been of 200 pips, while a gain of 100 pips.

So, the week's summary comes to 100 pips. But overall in a month's time, it has been a profit of 350 pips.

So, in total it has been a good month.

Awaiting more profits in the week that is about to follow.

Now coming up with the entry orders that are set in my account:

Sell EUR/USD at 1.3401 for 50 pips, with a stop loss of 100 pips
Buy EUR/USD at 1.3249 for 50 pips, with a stop loss of 100 pips

Happy weekend a happy trading plan !!!

Trading Signals for Thursday, June 13 2013

Hi,

Yesterday I missed posting an update, no nothing great, I was just in my lazy lamhe moments yesterday. Though my trading was on. And since I was stuck with my trading signals that I came up with on the Tuesday, so I just skipped my posting job yesterday. LOL

So now coming up on the testing my signals part:

Yes, my sell deal opened at 1.3351 levels, and it is still open.

As a cover entry, I have kept another entry order at 1.3401 for the same, i.e., a profit of 50 pips and a loss of 100 pips.

Will update tomorrow the outcome.

Till then have a happy day !!!

  

Trading Signals for Tuesday, June 11 2013

Hi,

I did not come up with any signals for the day. Also, since the 4H chart went up without triggering the 1.3149 levels, therefore I have deleted that entry now.

Right now looking at the 4H chart, I am a little unsure where to put an entry order; and also not sure whether to go with a long or a short deal. But one thing I am really sure of, and that is that a strong sell trend is on its way. It is just a matter of few days, or at the max few week(s).

I assume that till the weekly stochastic reaches the top firmly, till then little spikes towards top North are obvious.

Now coming to the current signals:

Sell Eur/Usd at 1.3351 for a profit of 50 pips and a loss of 100 pips.

Regards
Aditi

Trading Signals for Monday, June 10 2013

Hi,

It is Monday, the first trading day of the week. As usual, I am on a wait-and-watch mode. I am really on a mission to rectify the few impulsive errors that I made on my last 2 trading days of the past week.

I am not the kind of person who will cry over the spilt milk; and by the way there was no spilt milk at the first place. I mean there were no real losses. I am on a 100% as compared to what I started with last month, it is just that my profits got chopped a bit.

So, moving ahead, everyone is talking about a big fall. I mean a big massive fall, that is about to come. It is estimated by the big daddys of Forex that the Eur/Usd could go down to 1.1 levels. Yeah, that is really freaking.

If I go by the monthly stochastics, yes that is a big possibility. But since you and me are not that longing long term traders, we better stick to the 4H charts. 

And my 4H charts suggest me to keep a long entry at 1.3149 for a profit of 50 pips and a stop loss of 100 pips.

Waiting for the signals to become prominent till tomorrow. Till then have a happy trading and a happier day.

Trading Signals for Friday, June 07 2013

Hi,

Yeah I did a disappearing act with my blog yesterday. Yeah I just wanted to know if there are any real people reading it. And yeah I got to know the truth. Hahha

Guys if anyone of you is following my post updates, and you actually end up profiting from my trading signals, then I request each on of you to come back and just click on any of the google ads displayed on my blog. That will really motivate me to share my trading strategies with everyone. Yeah, a big thanks in advance.

Now coming up to the forex work bit. Yeah as I posted yesterday, I still maintain the same. I am confused.

Yeah yesterday, my long entry at 1.2849 finally closed giving me another +300 pips in profits.

But on the other hand I also had my first losing deal.

Yeah, as you might have noticed, the market went soaring up, and along with it my Sell entry at 1.3051 closed in a loss of 30 pips.

Right now I have not kept any open deal. I will let this non-farm data pass by, and then I will further come up with any trading strategies.

But considering yesterday's trend, I think that is going to be the one for few more days, till the Week's stochastic reaches the top North. Yeah, on the other hand it is stuck since long up there for the 4H chart.

Yeah, I again repeat, I am confused.

Regards

Trading Signals for Thursday, June 06 2013

Wow, another day and another closed deal on a profit.

My long deal on 1.2799 closed with 300+ pips at 1.3119 levels.

Now my cumulatibe profits since last month's 17th are 575 winning pips, and yeah not a single losing pips.

I think that is great.

Now coming to a round up on my open pips.

The long one at 1.2849 is still going strong. I am a little confused on that one, cause I suspect the market to go down now as the US Non-farm payroll data arrives tomorrow; and that could cause the market to behave shaky and unpredictable. Although if I was asked to take a guess, I would have replied, I really do not know. It is so because there seems to be a clash between the 4H and the Day chart and the Week and month charts.

Tomorrow only I would be able to come up with something. Considering my 575 pips gain, now the market is allowed to go anywhere, cause it wont make much of a difference to me. Both the directions will make me gain more. LOL. I really got nothing to lose.

Following are the Entry orders waiting to be triggered:

Buy EUR/USD at 1.2949  and Sell at 1.3151.

Happy Trading....

Trading Signals for Wednesday, June 05 2013

Hi,

I am again happy to post that my sell entry at 1.3051 closed with a 50 pips profit yesterday.

So, since 17th of last month I have earned 250 pips cumulatively.

But I am also sad since the long entry at 1.2799 failed to close in profits by just 6 pips today!!

Had it closed at 1.3119, I would have gained a whooping 300 pips more.

Anyway, looking at the current scenario of the market right now, I am not able to make out which direction it is going to go now. So, I am currently on the wait and watch strategy.

However, my limit entries are still on, which are as follows:

Buy EUR/USD at 1.2949  and Sell at 1.3151. Both the deals have a take profit of 50 pips, and a stop loss of 150.

Also, the open entries are as follows:

Buy Eur/Usd at 1.2799 and 1.2849, whereas, sell at 1.3051

None of them have achieved the take profit levels that I am expecting, so all are still open.

Happy Trading and a Happy Day !!

Trading Signals for Tuesday, June 04 2013

Hi,

Today I am getting straight to business, cause I have an appointment in 2 hours from now and I got to rush things.

Firstly, an update on yesterday's long entry order. No, as you know now that the one long one at 1.2949 did not trigger.

But the market did reach heights yesterday, but none of my long long entries close with a profit.

Though another 2 short short entries at 1.3101 and 1.3051 did open. Although I wanted to delete the entry one at 1.3051, cause I had seen the strong wave of market upswing, but I was late in doing so. Anyway, it is ok. Now that 2 each orders of same strenght in both directions are opened, so I am very very safe. LOL

Now coming to the right now scenario, the market seems to be in for a north direction, so I might get some profits on either or both of my short short deals.

Rest will update tomorrow.

Yeah the long entry order at 1.2949 is still existing.

Happy Trading a happy day ahead !!!

Trading Signals for Monday, June 03 2013

Hi,

It is the first trading day of the month. Therefore, I am here with my post and updates on my trading.

If you have been following my blog for sometime, then you would know that I rarely trade on Mondays.

On the first trading day of the week, I just do a analytical round up on my open deals and gear up for the following days of the week.

Coming to my open trades; 2 of my long deals opened at 1.2849 and 1.2799 respectively are still open.

They might close at a break-even amount each if the market crashes; or might earn 300 pips each if the market grows up.

I have no idea what will happen tomorrow, , but what I do know is that since the morning session, the market has been showing continuous signs of dropping. 

Therefore, I have decided to cash in few pips in the current scenario.

I have kept the following entry order:

Buy EUR/USD at. 1.2949 for a profit of 50 pips and a stop loss of 150 pips.

Will post the outcome tomorrow.

Wish you all a happy week ahead....