Scalping is a forex trading strategy where the traders buy or sell a currency pair quickly within a short time. Example: Opening and Closing the trade within a few minutes or even a few seconds.
In a fraction of seconds, a scalper will place a trade just by simple mouse click and they exit their trade once they made few pips profit through small price movement in the market.
1. What are Forex Scalping Signals?
Forex Scalping signals gives you the suggestion for buy or sell trade opportunities for making quick profits using the smaller Timeframe charts (Example: 1 minute, 5 minutes, 15 minutes chart).
In Forex Trading, Since from beginning most of the new traders start their trading journey by scalp trading. because it looks easy and fast to earn money. But in reality, it’s different.
2. How do Scalping Forex Signals Work?
Scalping signal is a great way to minimize your risk and maximize your reward when done correctly.
Example: If you place a scalp trade with a small stop loss of 20 pip, and take profit of 60 pip. If the market goes against you, you have a chance of losing only 20 pip, but if the market moves in your favour, you will get a 60 pip profit. Your risk is 20 pip and Reward is 60 pips. Your risk: reward ratio is 1:3 for this trade example.
Forex Signal Providers use various strategies, indicators, rules for entering and exiting the trade. There are different types of signals.
1) Long-term signals – For Positional traders and Investors
2) Medium-term signals – For Swing traders
3) Short-term signals – For Scalpers
Scalping on forex helps you to catch a few pips daily. But if you look out medium or long-term trade opportunities, you can’t trade daily. You should wait for the confirmation of a good trade setup to enter into the market.
Look for low risk, high reward signals service who are transparent with their markets strategies with a good track record and detailed information of each position taken by the trader.
3. Are Forex Scalping Signals Worth it?
Yes, of course, Scalping signals is worth only if you use correct scalping strategy with SL.
Scalping in forex is carried out mostly on major currency pairs with very low spread or commissions. Example: EUR USD, USD JPY, GBP USD, XAU USD (Gold), AUDUSD, AUDJPY are all having low spread because of more volume of buyers and sellers available all the time in the markets.
It is worth to check the free trial before paying any money to the Signals provider.
But, please be careful to join with the signal provider who provides you forex signals in exchange of opening a forex trading account with their recommended forex broker.
There are many trading signals provider who sends you a lot of signals every day.
But, Is it really helpful?
A Big No… Why?
Because they focus on sending you more quantity of signals instead of sending high-quality signals.
Forex GDP analyst Abhi says, “It is better to do nothing instead of taking wrong trades“
It’s Absolutely true for a Successful Scalpers.
More Quantity of signals = Less Accuracy
Some signal provider sends you only a few signals, but have good quality like Forex GDP gives signals with chart analysis and excellent advice for safe trading.
4. Opportunities that Forex Scalping Signals hold
Forex market works 24/5. Scalping signals always offer trading opportunities. You can place a trade position at any time as you like. because the forex market always welcomes you to trade for 24 hours.
As a scalper, you are going to make a profit from small price movements. You can always see some small price movements all the time in different markets conditions.
Sometimes the FX markets behave in an unexpected way. It can be tricky for you and it’s hard to predict the direction of the markets during that time.
Scalp trading signal offers you the opportunity to make few pips here and there even if you can’t identify how the markets move next.
By using the proper scalping strategy in forex, you can easily make 5 to 10 pips on a small retracement move or the pull back move. Just keep repeating the same steps, again and again, you will see the growth on your trading account.
NOTE: Always keep using the stop loss (SL) for all your trades position. If you don’t use SL you have a chance of losing more money quickly during the high volatility times like sudden news movements.
The financial trading signals service provide signals with entry, close rate, take profit and SL. Trading signals are offered now in different mediums such as SMS, Email, Telegram, WhatsApp, Facebook, Wechat, Line, Skype and other popular social media.
5. How to choose the right forex scalping signals?
A good scalping forex signal provider should always send you the signal with the technical reason for buying or selling in the market. Example: Sell signal is given due to breakout at the support level. Buy signal is given due to breakout at the resistance level.
There are a lot of ways to confirm the markets move in a smaller timeframe, but if you want to find the consistent winning strategy for scalping, you must have to know the price action trading, Reversal and Breakout confirmation by the candlesticks chart.
Only a Professional trader can provide you with high success rate scalping signals with the technical reason for each trade. This really helps you to follow all the scalp signals with confidence.
The Real Truth behind Free Forex Signals Service
Most of the bad forex signals providers make money from IB commissions” which is the referral commission from the forex broker for referring you to that brokerage company. You may think smart that you are getting free scalping signals, but these signal companies keep making hidden earnings from your referral trading commissions without knowing you.
They keep sending you automated trade alerts given by forex indicators such as Bollinger bands, moving average, support and resistance levels range, trend lines range, Ichimoku scalping, Other tools such as automated trading Expert Advisor (EA), or from other forex signal companies. Please stay away from this type of scam forex signals. They are not professional traders, they just copy signal from somewhere and send it to you.
All Scalpers should never look for longer-term charts, instead focus on one timeframe first.
Take each trades only if you get confidence after confirmation.
SL is used to control your losses, not to lose all your money. Always use SL on your account.
Whether you win or lose continuously, you should not get into an emotional trap. Don’t get excited if you made a profit, don’t get sad if you lose.
Always come up by reviewing your trading strategy well and keep updating as per the market conditions.
One may take a high lot in scalping using high leverage. but you should know the risk range limit for avoiding big financial losses.
Don’t trade all the time, find yourself good opportunities in the financial market for both short-term and longer-term. Whether you do short-term order or long term order, it doesn’t matter. In the end, all types of traders want to earn profits in forex.
There are no trade limits for scalping. you can place unlimited trades at any time during the market hours.
If you keep trading continuously for the whole day, it can easily lead you to overtrading, which burns all your balance on the trading account.
Overtrading is a habit of placing continuous trades in the market without proper strategies for entering and exiting trades in the markets.
A broker who offers less spread and commissions are more suitable for scalping. Before doing scalp trading, please always check how much is the spread or commission charged by your forex broker for your each trades.
Yes, it is profitable only if you trade with SL and review your strategies often depend on market conditions.
5 open trades maximum is safe to hold on your account. You can place one more if any of the existing trades running in profit with an active trailing stop.