Thousands of trading method can be followed to trade the major pairs. But when it comes to style, the traders either use the aggressive or conservative method. The conservative traders relate the price movement in a bigger period and they are extremely careful with the safety of their investment. Usually, they have running trades for more than a day. On the contrary, aggressive traders use the scalping or day trading method. They scalpers use the short time frame and execute trades in retracement and trending movement. Becoming a pro scalper in Singapore depends on your trading skills. Today, we will discuss five golden rules which will help us to a professional’s scalper.
Use a low leverage trading account
The leverage factor is always ignored by the new scalpers. The pro scalpers always trade with low leverage (for example 1:10) account as it limits the lot size. Losing control at trading is very common. The naive scalpers always try to recover the loss by executing aggressive orders. The aggressive orders might help them to recover the loss but do you think this a professional approach? Leverage is more like magnifying tools. It can increase the risk and profit at the same time. So, forgetting to manage the risk is more like catching the risk in the falling knife. Even if you try to catch a falling knife with open eyes, chances of getting yourself hurt are very high. You must practice hard to develop these skills. Just like this, the scalpers need to practice trading in a low-risk environment.
Trade with the best broker
You must trade with the best broker to survive as a scalper. Getting into the options trading industry with the help of an unregulated broker is more like gambling. If the unregulated brokers were safe, no one would have traded with the professional and heavily regulated broker like Saxo. The heavily regulated broker always charges higher initial deposit requirement fees and it helps the retail traders to make some quick decision. As a currency trader, you have to push yourself to the limit. Once you do so, you will never trade with the low-quality brokerage firm.
Use the 200 days SMA
The pro scalpers always use the 200 days SMA, as it gives perfect profit-taking opportunity. If the price tests the 200 days for the first time, you can expect a strong rejection. So, setting pending sell when the market test the 200 days SMA as a resistance zone might help you to make a big profit. However, this strategy should be used only by experienced scalpers. Those who have fear to set the pending orders can trade the live market by using the price action confirmation. But again, devotion is required to learn a price action system.
Forget about the risk-takers
The professional scalpers are not risk-takers. They are often called the game changes. They wait for weeks only to find one good trade. On the other hand, naive scalpers are always placing trades without analyzing the risk factors. We all think the pro scalpers are the biggest risk-takers. But if you carefully analyze their trading pattern, you will consider them as the safest investor in the world. They always rely on the risk-reward ratio as it helps them to recover the loss with a high level of accuracy.
Never try to beat the market
Trying to beat the market and digging a big hole in your boat is pretty similar. You have to stick to the major trend and only then you will get the idea of trend trading strategy. Scalp the market along with the trend and experience the boost in your confidence. Stop creating a complicated trading strategy to deal with the volatile market condition. Use the traditional method in trading and get yourself properly educated. And follow all these tips and become a successful scalper.