Do friends who have heard this also feel moved, eager to easily realize their dreams of wealth in this way? But is scalping really so magical? Today, Tianyan Jun will discuss this issue in depth with you.

Forex scalping (Forex Scalping) is a short-term foreign exchange trading strategy, the purpose of which is to make profits by using small price changes through frequent transactions. Scalpers typically look for short-term price swings in the market and place quick buy or sell operations to take advantage of these small swings.

Forex scalping is different from day trading. Day trading establishes a position on a liquid trading object and then closes it, while foreign exchange scalping never holds this position into the next trading cycle or overnight.

While day traders may look at their positions once, twice, or several times a day, scalpers are even crazier, trying to make tiny trading profits by trading multiple times on a single trade.

Day traders may look at 5-minute charts and 30-minute charts, while Forex scalpers often look at 1-minute charts or not at all. Some foreign exchange scalpers try to capture high-speed market changes through the release of some basic economic statistics such as the release of the unemployment rate.

What are the advantages of scalping?

1. Fast profit, reducing the time cost of holding positions. Because scalping is a fast-in and fast-out trading method, the holding time is tens of seconds to a few minutes, and the time cost of holding positions is reduced. It is beneficial to seize more opportunities, enter the market frequently, and obtain profits.

2. Quick transaction. There are more short-term trials and errors, which can accumulate a certain sense of disk.

3. Short-term positions. In scalping trading, since the holding time of each transaction is very short, there is no need to take too much risk in a single transaction.

4. Quick decision. Scalpers need to make quick decisions and execute trades because the market moves quickly and they need to seize opportunities quickly.

Can ordinary people make quick money through scalping and realize their desire to get rich easily? In fact, Tianyan Jun does not recommend ordinary traders to do it, why?

This is mainly because scalping requires a high degree of concentration. You trade dozens or even hundreds of times a day. You need to keep an eye on the market every time you trade. It is easy to trade frequently or even over-trade, which leads to physical and mental exhaustion. Especially office workers, who have already spent a lot of energy on work during the day, and have to concentrate on scalping at night, which will only increase the physical and psychological burden. In the long run, your state will deteriorate, and the probability of losing money will increase.

Another one is that when you operate ultra-short-term for a long time, it is easy to form dependence, and you may not pay attention to learning new trading techniques and improving yourself, and it will be difficult to form a complete trading system in the later stage. At this time, scalping trading has become a stumbling block on our foreign exchange road.

Finally, in the eyes of the platform, scalping is an act of plucking wool, so many platforms explicitly prohibit it. Although some platforms allow this operation, the high spread will increase your transaction costs. Therefore, the benefits of scalping are not as high as before.

In this way, scalping is not suitable for ordinary traders. There are advantages and disadvantages to scalping trading. Although there may be good returns in the short term, it is difficult to make money in the long run. If you want to obtain long-term benefits, you still need to improve your own trading technology and perfect your own trading system through continuous learning.