Forex scalping

Forex scalping and day trading are more popular than ever but it's simply the best way to wipe out your equity quickly. Here we will give you the facts about forex scalping and why it is based on unsound logic which will see you lose.

First let me ask you a question:
There are millions of traders all around the world from banks to private traders, trading trillions of dollars all with different methods, motivations and diverse opinions.
How is it possible to tell what this huge diverse mass will do in a few hours?
Know the answer?
Well if you do you can make money at forex scalping - but it's obvious that you can't predict what this vast mass will do in a few hours but forex scalpers try. Here are some of the answers you get form vendors selling systems .
1. Support & Resistance is Valid In a Day and can be Traded
Fact: Its not - volatility is totally random, prices can and do go anywhere and support and resistance levels in daily time frames are not tradable.
2. Markets Move Scientifically
Fact: This is absolute rubbish! If there were a scientific theory that worked, everyone would know the market price in advance and their would be no market! Markets move because they are not certain and while human nature is constant it certainly is not logical and predictable with scientific accuracy.
Anyway, if anyone had found a theory that worked all the time they would be to busy making money to bother anyone else.
You will see lots of forex scalping courses on the net, all promising 50 ticks a day, regular incomes and the ability to predict prices in advance - It's a wonder anyone has to go to work! Buy one of these for $100 odd bucks, sit back and earn money for doing nothing - if only it were that easy.

If ever you see a day trading or forex scalping track record it's a simulation - simply look for this disclaimer or a similar one:
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
So there you have it - a vendor can make up any track record he likes in hindsight and of course they do (they have the sense not to trade it themselves) and simply put the above disclaimer on it.
Naïve and greedy traders can't resist it like bees at a honey pot, later they get a sharp lesson in trading reality - a wipeout.
The way To Make Money in FOREX
Is to forget day trading and forex scalping and trade time frames where you can get the odds in your favor and that means forex swing trading or forex trend following. The former looks for trends of a few days to about a week and the latter for weeks or months. Which you choose is up to you but with both methods ,the data is long enough for you to calculate the odds and enjoy currency trading success which is more than can be said for forex scalping.
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Forex Scalping

Forex scalping is a short term method of day trading and forex scalpers are looking to take small profits regularly by timing moves on hourly charts. The idea is to only take small profits but get lots of them, to build profits over time and earn a big consistent income. There are lots of forex scalping systems for sale but how do you pick a winner?

The first thing you need to do, is look at the track record of the scalping system presented to you and check for a disclaimer. If you see the one below ( or one with a similar wording), you need to forget the system and look at others. Here it is read it carefully:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
Basically, the above means the forex scalping system has not been traded and the vendor has simulated the track record in hindsight. A disclaimer like this, tells you nothing about the profitability of the system, as of course if we all knew tomorrow's price today, we would ALL be rich!

Making money in hindsight is easy, but we don't have that advantage in the real world.
Now you may be thinking well that's obvious enough - I Will just find a real time track record of forex scalping profits.
Get ready for a long search then! Why?
Well I have been searching for 25 years and not found a real time track record and the reason is:
Forex scalping doesn't work over the long term, because the logic it is based upon is fundamentally flawed.
The logic is, you can predict where prices will go in just a few hours - but of course you can't do this.

Volatility in short time frames is simply random.

Volatility can go anywhere in a few hours (and does) so, all that happens is stops get hit and you end up with lots of small losses. Because you are not running profits to cover them, you are simply destined to lose.
You can't win long term, as even if you are lucky - luck doesn't last forever!
Vendors know it's a good and appealing story - but that's all it is.
You never see a real time track record of gains and you have to wonder why a vendor if he really believes forex scalping works, doesn't have the track record to prove it.
Why ForexGen?

• Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
• Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
• ForexGen offers Forex trading in the major currency pairs and crosses.
• Low capital start, with $250 as a minimum account size.
• Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
• ForexGen offers a free trial Forex demo account that allows you to test your skills and practice without risking real money.

ForexGen Day Trading

This refers to the practice of buying and selling currencies pairs such that all positions will usually be closed within the same Forex the trading day. The day trading idea comes from stock market. Day traders rapidly buy and sell stocks throughout the day in the hope that their stocks will continue climbing or falling in value for the seconds to minutes they own the stock, allowing them to lock in quick profits. Day trading is extremely risky and can result in substantial financial losses in a very short period of time. Under the rules of NYSE and NASD, customers who are deemed "pattern day traders" must have at least $25,000 in their accounts and can only trade in margin accounts.

But in Forex market, every one can be a day trader to do day trading. Actually, more than day trading, they can do "scalping".

Scalping:

Scalping is a trading style where small price gaps created by the bid-ask spreads are exploited. It normally involves establishing and liquidating a position quickly, usually within minutes or even seconds. It means trying to get a few points (1~3 pips only, no greed, no long term) off the market every time. This strategy is based on a fact: approximately 70 to 80% of the time, the market is in a consolidation pattern. What this means is that for the majority of time the market is not making significant moves. For example, after the USA market is closed and before the Europe market is open, the Forex market tends to range in a consolidation channel for hours at a time before making another significant move in one direction. This kind of market behavior pattern is ideal for Forex scalping. Every time you enter the market, wait 10 or 20 minutes, once you have several pips gain then cash it and go.

Scalping has some features:

1, Lower exposure, lower risks. Scalpers are only exposed in a relatively short period.

2, Smaller moves, easier to obtain. The normal wave of the market will give you several pips easily.

3, Large volume, adding profits up. Since the profit obtained per share or contract is very small due to its target of spread, they need to trade large in order to add up the profits. Scalping is not suitable for small-capital traders.

But be careful, not every broker welcomes this kind of scalping strategy. If you scalp it too quick and thin, let's say you just hit 1 pip every 2 or 3 minutes then run, and repeat it again and again within a day, every day, you must feel high, eh? But the broker may be not happy and bans you. You will be kicked out because of your successful scalping!

Why ForexGen?

1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. ForexGen offers a free trial Forex demo account that allows you to test your skills and practice without risking real money.

ForexGen | a Simple Route to Forex Profits

If you want to get started in currency trading, currency swing trading is ideal. Here is a simple, easy to understand swing trading system to help you trade currencies for profit.

Swing trading is based on sound logic, unlike forex scalping or day trading which is the route a huge amount of traders go and lose.

Forex day trading and scalping doesn't work, because volatility in short term time frames is random, so you can never get the odds on your side.

Currency swing trading though involves using valid data of around 2 - 7 days which is valid and is based on the following logic.

Markets move to the following equation.

Fundamentals + Trader Perception of = Price

It's not the facts that are important; it's how traders perceive them that is.

Traders will always push prices to far away from the fundamentals, when greed and fear take hold.

Prices then become overbought and oversold in the short term and by executing trading signals against these overbought and oversold levels, the trader can make a profit, as prices return to more realistic levels which are in line with the fundamentals.

These price spikes are easy to see on a forex chart.

The trader can use the following method to take advantage of opportunities.

1. Look for a price spike
You are looking for price spikes, that make the market overbought or oversold in the short term and look for a level you think will hold.

2. Use Momentum Oscillators

These will show you when short term prices are overbought or oversold.

We have discussed them fully in our other articles. Some excellent ones to use are - the stochastic, RSI, ADX AND MACD.

These are visual indicators and you don't need to know the calculation, just look at the visual set up.

When currencies become over bought or oversold, you look for a price change in the opposite direction, supported by momentum changing in the direction you wish to trade.

3. Stop and Target

When you get the chance to execute your trading signal, put your stop behind the area of support or resistance you are trading into.

You then need to look to take your profit early if the price moves your way and do it, just before it reaches an important level in the other direction.

You should always take your profit early, before other traders do, as this keeps the odds in your favour.

The above is simple to do and can make big profits.

Currency swing trading is ideal for novices, as it's easy to understand, you get plenty of action and of course, it can be very profitable.

ForexGen Trading

The Foreign Exchange currency market is known as FX. It is the simultaneous buying of one currency and selling another, currencies are traded and exchanged in pairs. Traders are all unified on one goal, making profit. Profits are produced when the prices move in the trader direction.

In the past, Forex markets were accessed only by larger financial institutes, investment banks, large multinational companies, global money managers, international currency dealers, and liquidity providers. Lately, online trading is offering trading platforms for each individual who wants to trade currencies in order to gain profit.

Scalping the Forex Market for Huge Day Trading Profits

Many traders enjoy scalping the forex market and there aim is to accumulate a large number of small profits to build long term profits. Let's look at how to enjoy forex scalping
success...

More novice traders than ever, try forex day trading, by buying systems off the net from vendors. The bad news is, all these systems lose and forex day trading is a road to ruin. Before we look at why, lets see why all the track records of profit you see are not what they seem.

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

So there you have it - there made up paper profits, knowing the closing price history, well that's not hard - the hard bit is trading going forward and not knowing the data!

So all the scalping systems you see have made up track records on paper which have never been traded - check any sold online and you're sure to find the above disclaimer.

So why doesn't it work?

Lets look at the exact reasons why and a better way to make forex profits.
The reason is simple:

There are literally millions of traders, all with different aims, objectives and experience, trading the market and what this vast diverse mass does in a few hours cannot be measured.

All volatility is random and the data cannot be used, you may as well flip a coin.

Even with the above fact in place forex day trading is based on another dumb idea. Taking small losses (wise idea) and cutting profits (dumb idea) of course you need to run your profits to cover your inevitable losses.

When day traders are lucky enough to be sitting on a profit what do they do - Cut it!

So - High percentage of small losses + Small number of small profits = Equity Wipeout

The logic of day trading will see you lose and many vendors know this but it's a good story and sells forex trading systems and that's why you see so many that have never been traded, accompanied by clever enticing copy, don't fall for them.

If you still believe that forex scalping or day trading makes money, try and find a long term track record and you will be in for a long search!

You can make money trading forex - but you must trade the odds and you can't do that within daily time frames.

Look at any long term chart and you will see trends that last for weeks, months or years.

These forex trends are the ones you need to concentrate on. If you get the right forex trading education and learn currency trading the right way - trading the odds, you can enjoy currency trading success.

Customer Agreement
ForexGen presents specialized Forex online trading services. We support trading in variable currency pairs, available services 24 hours a day most of the week. Real time prices are supplied to facilitate the trading and make it more quick and efficient. Our trading terms & conditions are the most competitive trading terms & conditions for various trading kinds which represent our appreciation to every client starting from the smallest customers. ForexGen is re-setting professional trading technology, by a continuously tracing the competence offers and modifying our trading conditions and provided platforms.

Forex Scalping Methods for Big Consistent Profits

Here we are going to look at Forex Scalping methods and how they aim to achieve big consistent profits from day trading
regularly and looking to accumulate small profits each day to build huge profits overtime. Let’s look at forex scalping in more detail.

Forex scalping is more popular than ever and there are numerous forex trading systems
and e-books, which claim it works but none of them work, (we will return to this in a minute) as the logic behind forex scalping is totally incorrect.

Why Forex Scalping Can NEVER work longer term

The reason it doesn’t work and never can is simple to understand if you think about it – you need valid data!

Consider this:

Each day trillions of dollars are traded by millions of forex traders and the total of all these opinions come together and give us the price.

The thought that you can tell what all these millions of people will do, in just a few hours is laughable.

You can’t!

Volatility can and does take prices anywhere in short time periods and support and resistance levels are meaningless. If you have no valid data, you will lose and that’s EXACTLY what happens to people who try forex scalping or day trading.

You may be saying:

I have seen the proof it works and seen track records presented by forex scalpers and yes you have – but their NOT real!
See the standard CFTC disclaimer below and you will see why these track records cannot be trusted:

“Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those show”.

So you simulate a track record, knowing the closing prices – how hard is that?

Anyone can do that even a child.

The problem of course is:

We don’t have the luxury of knowing the prices when we trade (shame but that’s life!) so doing it in the real world is a lot harder and for people forex scalping it’s impossible.

That’s why you never see a real track record but a hypothetical one which is simply not worth the paper it’s written on and in most cases is simply made up by the vendors.

Where Are The Real Track Records?

Don’t be fooled advertising copy with statements such as:

“Pick tops and bottoms scientific accuracy” make “50 pips a day” or “trade with 80% accuracy” – this is just ad copy and has no back up.

If you don’t believe me ask for a forex scalping real time track record and you won’t get one - try it and see.

Forex scalping and day trading is a good story, but that’s all it is and try it and you will lose - as you can never get the odds in your favor.
Keep in Mind

Forex trading is a great way to make money but its not easy and a lot of the people who sell the courses and e-books on forex scalping try and make it appear so.

Traders who believe the above need to get in the real world.

How to Win

To win, you need to do your homework and get a forex trading system that gets the odds on your side. This means avoiding forex scalping and day trading and trading data that covers longer time frames that’s valid and allows you to get the odds in your favor.

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Interested clients who wish to participate in this event shall send an e-mail request on demo.contest@forexgen.com

For more information about our current and future promotions, kindly contact one of our customers support agents at promotions@forexgen.com

Forex scalping - What does Scalping mean?

Scalping is a trading strategy that the trader try to make many small profits with small price changes, the Scalper will place from dozens to hundreds trades in a single day because it’s believed that the small price moves are easier to catch than larger moves.

It based on an observation that the most of the price movements goes in the trader direction for a while of time before it goes in its trend direction!

In the Forex world a lot scalpers say “If I make a 20-25 pips per day by scalping the market and with a proper money management I might double my account balance every month”.
Theoretically, true! but what about the real? what about the risk of scalping the market?

Scalping risk:

While it seems profitable method when scalping the price movements, however the spread you pay when you open a trade makes the risk-reward more risky than the long term trading (trend trading).

For example if your broker charges you 5 pips spread for opening EURUSD position and your target is 10 pips and 10 pips stop loss; the price have to move 15 pips (5 pips of spread + 10 pips your target) to take the profit while it have to move only 5 pips ( 10 pips your stop loss - 5 pips of spread) and stop loss level will be reached.

So, the risk-reward ratio in this case is 2-1 which means a very dangerous and risky method to scalp!

Another risk in the Scalp is that one large loss could eliminate the many small gains that the trader has worked to obtain. So it needs a very good exit strategy to decrease this risk!
Why brokers hate scalping?

The most of brokers will not turn your trades with a market maker

ForexGen Services

Client Services

• Customer Support
• Trading Support

ForexGen Partnership

ForexGen offers three types of business partnerships.

• Introducing Broker
• White Label
• Money Manager

ForexGen Introducing Brokers ,White Label and Money Manager holders are recognized as a strategic business partners. The main focus of our service is to satisfy our partner's needs in order to deal with a qualified service and gain a large income sharing plan.

ForexGen provides appropriate services satisfying the needs of all business partner's specified situation and requirements.