Most novice traders thinks that utilize every ups and downs of the market fluctuation will make the most profits out of forex trading and that is fundamentally true if most of the trades goes their way. However that is not the case happening to most people - in fact scalp trading is high dangerous especially with stop losses.
Just remember this - all the technical indicators including MACD, Stochastic, Support / Resistance, Price Actions, etc has its disadvantage at times and it is not always according to what is predicted. In fact the perfect so called forex signal will fail and that's where you should be weary at all time in all time frames.
In high market volatility is where most of the technical indicators will fail as the price swing ups and downs defying all indicators' signal in high volume. Even the ideal support / resistance becoming dynamic and it doesn't all fall at the same place. This is where the market makers will take advantage of the scalpers because they know perfectly how to play your emotions to make it looks unbelievable.
1. Scalpers with stop losses - will fail immediately
2. Scalpers without stop losses will fail miserably as confident wearing out.
Let's analyze why?
The market makers where you trade have all the data about your trading activity at all times - and they will utilize this to take advantage of all the small traders because they know you cannot afford to loose a lot. The scalpers have the habits of winning few pips and close while putting stop losses and they know exactly this behavior.
Scalpers with stop losses will fail immediately when the market goes against their trade and hit the stop losses. This is too easy for the market makers to destroy especially small scale stop losses they could swing once and kill many over and over again until no one dare.
Scalpers without stop losses will fail miserably and confident eventually wearing thin - by the high volume trades against them. The market make easily making the trade looks unbelievable until the great fear starting to kick in. Eventually the these type of scalpers close prematurely in high volume losses and then the market reverses with unimaginable regrets.
Some forex gurus out there suggest to scalp on trending market instead of ranging market. That is not true because the market maker have the money at any landscape of the market direction. For example the is making corrections while on uptrend - so the scalpers expect that the market will definitely goes up. But instead it goes further way down to an unbelievable territories forcing the scalpers to think that it has changed direction. If they wait it will keep further down until close then it will swing back up.
Therefore being a scalpers in forex trading is more to lose than as swing traders - the problem is simple small pips / money are too little for the market maker and small time frame is the perfect territory to execute temporary executions against all the small traders.
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