Scalping has been the go-to method of short-term retail and institutional traders. This is the case as Scalping maximizes the win-to-loss ratio. The method derives big gains from only one trade. Immediately, Scalping secures small profits and reveals possible losses.
Well-Known and Effective Scalping Strategies
It would do the trader well to orient himself on the various Scalping strategies that are out in the mainstream. To wholly familiarize oneself to the nitty-gritty of each strategy means not mindlessly applying a strategy to trade and hope it would stick. It is in this light that the feature will be narrowing the choice of Scalping Strategies to the “Triple S Simple Scalping Strategy.”
Steps Pertinent to Performing Scalping Strategies:
But before delving into the Triple S Simple Scalping Strategy, we must first consider specific steps. This should be done to scaffold us appropriately into the performing Scalping.
- Define – Technical indicators must be determined first.
- Backtest – Go through historical trading data.
- Paper Trade – Put, this is the actual testing of trade with your choice of the brokerage company.
- Optimize – Improved strategies would render adjusted returns.
- Trade – Through the Scalping strategy, keep tabs on all results.
The Triple S Simple Scalping Strategy
With the steps properly delineated, let us now dive into the Triple S Simple Scalping Strategy. The most viable of Scalping strategies need leverage. Scalpers are recommended to commence trading with huge capital. Opening and closing larger positions permit reduction to trading marginal costs. Detailed below are the steps pertinent to performing the Triple S Simple Scalping Strategy.
Step # 1: Look at Volume
You may use any trading platform that is out in the market. Worthy of note here is that the volume indicator is present at default across all.
Step # 2: Consult an M5 or M15 Time Chart
First and foremost, examine the Volume Indicator for trends, reversals, or stagnation in price action. A drop off in the volume indicator means fewer “ticks.” What should be focused on here are the trends.
Step # 3: Be Attentive
What you have to look for further within the Volume Indicator are healthy Uptrends or Downtrends. Your Scalping strategy should take advantage of pullbacks before the price action carries on with an upward scale.
Step # 4: Make a Decision
Once the Volume spikes, make a decision, which takes a huge consideration to the current price action.
Step # 5: Devise an Entry/Exit Strategy
Opt for 10-20 pips. Hold on to placing a 5-8 pip Stop-Loss. When you increase to 10 pips, move the Stop-Loss to 5 pips. This effectively locks in small profits.
Conclusion
Scalping Strategy has indeed become one of the more popular trading strategies in the market today. It would do a trader well to get familiarized with the Triple S Simple Scalping Strategy’s facets for more profitable trading practices.