For recognition of scalping and pipsing trade structure, one should, first of all, understand these notions. Scalping and pipsing is a way of trading, serving to gain profit from the intraday currency changing; the open position during scalping lasts only a few minutes. And the profit from every single deal is not significant; the basis for getting yield is a large quantity of deals. Some Forex traders
make about 200 transactions a day, nevertheless, not all of them are successful. The main goal here is the sum, earned at the end of the day from all completed deals. For this purpose, the stop-loss level is situated much closer to the price, at which the position is opened, so that there is minimal loss in case of the unfavorable movement. The phrase, that Forex market is liquid, is known by everyone, who has just started the trade fundamentals research. The intraday charge tends to rise and fall; if the price has passed about 50 pips, the maximum and minimum intraday prices will reach the upper level. If one is able to detect lesser-scale variations within the day, the possibility to enlarge someone's deposit increases by several times. That is why a wish to use this Forex trading strategy widely arises. Plentiful novices consider that this method will boost the sum of capital; however, the faith is wrong. Bellow, we will discuss why this particular strategy will not help to build up the number of zeros on ones account within only a couple of days. First of all, there is a nervous stiffness, which appears at trade with private cash. Repeatedly, scalping is applied to the demo-account at first, in this case the forex trader
has no fear to lose the amount of all deposit, because it is virtual; moreover, the dispensation of all orders is made automatically. Working on a real account, all the reasons are combined together, i.e. the speed of orders processing, plus nervous condition, which rises with every point of the price change in the opposite direction. Pipsing presupposes, that the trader is constantly on the market, which is a great ill feeling; and being under constant pressure, a player is not able to make thoughtful and correct decisions. Secondly, having set a very low stop-loss level, one can get losses at market noise, even when the tendency direction is correct, but the belief of the bulls and bears' contra- strength is not exactly acceptable. Defining the tendency direction movement for the nearest time is much more difficult, than guessing the tendency for the whole day. The simplest way to escape the execution of the order with a risk of loss, is not to have such order, but then, there appears a risk of losing much deposits after the strong movement against you. This happens, when the price moves far and it is not probable to return to its original positions in the nearest future. If the marketplace participant trades the greater part of his deposit, the absence of stop-loss levels can lead to the marginal trade, when a forex agent
will make an opposite transaction after a certain phase of time for the equal deal volume, which means, that one can spend all deposit. Moreover, the majority of dealing corporations do not like the brokers, who make a great quantity of transactions. For those, who can give orders almost every second, many dealers make limitations or even request to close the trading account.
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