Baokun Finance: Interpretation of Scalping Trading Methods

manyforeign exchangeInvestors are interested inForeign exchange transactionsI am very interested in scalp trading, and some people believe that scalp trading can achieve stable profits, but I do not know how to use this method. Now let Baokun Finance take you to explore the basic elements of the mysterious "scalp trading" in the foreign exchange trading market.

Regarding scalp trading, or thin profit trading, it is generally believed to be a position based trading, which means selling short when the market price rises to resistance levels and buying when the market price falls to support levels. In fact, there is an implicit assumption that the market trend is neither upward nor downward. Therefore, thin profit trading, also known as interval trading, is the fundamental premise for recognizing trend trading and does not violate the trend. However, since horizontally developing markets are generally not considered trend markets, our trading premise in such markets is not to go against trends.

The thin profit trading strategy we adopt in actual foreign exchange trading has two elements: firstly, there is a small interest spread value between the two currencies that make up the currency pair or a traditional low volatility currency; Secondly, we conduct such transactions during non active periods in the market. By choosing currency pairs and timing, we can effectively reduce the risk of thin profit trading, thereby obtaining a relatively ideal risk return ratio.

In actual scalp trading, one of the initial confusions we faced was whether to trade based on technical aspects or fundamental aspects, as there are already many forms of trading methods and the variety of trading tools has given us too many choices. We believe you have also encountered the same problem when preparing for thin profit trading. In fact, there is no such thing as the only correct way to trade in the field of thin profit trading. For example, some people can make stable profits by trading at low interest rates based on hourly charts, while others can make stable profits based on hourly charts5Minute charts can also be profitable for thin profit trading.

The key to successful trading is not that we have found a 100% correct trading method, which means there is no trading method that is completely effective at all times. But by increasing your return and win rate, we can do better, not the best, which is also the best state in foreign exchange trading.

Regardless of whether we realize it or not, many traders will first try interval type trading, which is anti market movement trading. Usually, market prices based on class trading are not in line with human nature. Scalping trading is rooted in people's pursuit of buying low and selling high, and thin profit trading satisfies the psychological impulse of traders to timely realize profits. Of course, successful low profit trading requires the same discipline, and more discipline. After all, the key to thin profit trading is to control risk, and only by controlling risk can we provide an ideal rate of return. In low profit trading, the return level has already been locked in, and if the risk is not reduced and the win rate is increased, the result will be catastrophic. It is precisely because of such low profit trading that it is undoubtedly feasible but not feasible for those who cannot use it properly.

After several years of rapid development, Baokun Financial Center has established a team with noble professional ethics, excellent professional skills, and rich practical experience to provide customers with safe, fast, and thoughtful investment trading and management services. The company adheres to the professional, practical, and high-quality service concept, and with excellent professional skills and efficient solutions, has become a long-term trusted partner for customers. We are dedicated to providing and creating the best, most standardized, and innovative platform in China for investors, allowing every investor to trust with confidence. Baokun Finance is dedicated to providing you with world-class professional information services.

The content of this article is provided by Baokun Finance:www.bkcj168.com Organizing completed