Millions of people all over the world turn to Forex trading when they wish to make some money. While some are long term players, others don’t mind taking a little more risk in order to make large profits in a short span. Such traders then turn to the famous Forex Scalping technique.

For the total novices, Forex Scalping is a short term trading technique that involves opening a Forex position and closing it in a very short span of time, hoping and speculating that the price change in the duration shall be in your favor. Unlike orthodox Forex traders, people who involve in Forex Scalping make large number of transactions, even up to one hundred within one trading week.

So one would wonder why don’t all the traders behave in this fashion and adopt this strategy to play the market. Well the catch with this technique is that even the slightest unfavorable swings in the market, as low as ten points can cost you heavily.
Different Forex traders use different methods of scalping. Since they are fast movers, the following factors are detrimental in scalping:-

1. Liquidity – Scalpers trade in really liquid markets as this enables them to process large volumes of trades and make small profits on each of them.
2. Volatility – Forex scalpers are most attracted towards markets that are stable. Even if the Forex market does not shift a lot in a day, the traders can still make a lot of profit.
3. Time frame – This has been well emphasized on. Scalping is all about large profits in small time frame.

A simple Forex scalping technique can be marking the essential support and resistance points on your trading chart and following it by putting a limit order at them. The trick then is to keep your eye open and wait for a small bounce. Remember, Forex Scalping is all about knowing when to exit safely.

The result is a complete approach to trading that will allow you to trade confidently in a variety of markets and time frames. Trading today’s markets—including stocks, futures, or Forex—can be a challenging and difficult. But it is possible to achieve consistent success, if you’re plan your trading.

In this book, you’ll discover how the four key factors of dual-time-frame-momentum, pattern, price, and time can guide you down the path to trading profits.

Miner teaches in a practical, step-by-step manner until a complete trading plan is developed. While the ideas found here are essential to trading success, the best way to learn is by example. That’s why Miner has devoted an entire chapter—called “Real Traders, Real Time“—to trade examples submitted by his past students. In it, you’ll see how they apply the strategies taught throughout the book to markets around the world.

Forex spread trading can be a good strategy in your forex trading and has a good potential in giving you profits. Forex spread trading is more useful for the bigger traders compared to smaller traders. There are several spread strategy you can use, but below is my best choice because it is easier to understand.

You will need two account:

• Account 1: Long the EUR/USD  and Short the GBP/USD
• Account 2: Short the EUR/USD and Long the GBP/USD

Every day, I will check my position and close positive account and let the negative account. I then reopen again the account that I closed. I will usually do this several hour after the Japan market opens.

• Set a Stop Loss: Before entering any trade, decide beforehand the amount you are willing to lose and stick to it, set a stop loss on the trade before you enter. I usually set maximum loss of 10%.
• Do not be emotional about a trade, you will lose some and win some – just know it.
• Do not be greedy.
• Stick to your game plan, move your stop loss as the market moves in your favor and let your profits run. My plan is to go for low leverage, minimum $100 entry, and focus on one currency pair mine is EUR/USD.
• Don’t be influenced: You have your own game plan stick to it.
• Draw resistance and support line so you will know when to sell and when to buy.
• Don’t enter vary volatile market where you can see price up or down very fast and the bounce very fast too. This is a situation where you can not predict. This is gambling.
• Trading is a game of probabilities, and over the long run as long as you stick and implement sound strategies and stay consistent.
• Success is much more likely to come. To be a successful trader you should never take a position that puts substantial capital in jeopardy. In actuality you will rarely find successful traders who risk more than 10% of their account in any trade. You might want to start small and increase your trade sizes as your confidence grows.
• Know your risk vs. reward ratio: The minimum ratio you should be using is 2:1, so if you are successful on 50% of your trades you are doing well. For instance, if you are long GBP/USD and you want to earn 30 pips you should not risk more than 15 pips. You should never risk 30 pips in order to make 10 pips.
• Have adequate capital: You should never trade with money that you cannot afford to lose.
• Trending or Neutral: Learn to analyze the market; is it a trending market or a neutral market? In a trending market then follow the trend. in a neutral market buy on lows and sell on highs as long as you use stop-losses you are controlling your risk.
• Although forex is 24/7 not every hour is suitable for trading. If you are looking for volatile, liquid market then I suggest enter when London starts and end their session. London Market Hours: 3:00 am to 12:00 noon EST.
• Don’t fight the trend
• Averaging – don’t do it: One of the most common mistakes traders make is the continuing adding of a losing position. Averaging will be the death of short-term trades.
• Know why you are in the trade: Keep a trading log, and write down why you entered a trade.

Mini Account uses a different leverage calculation than a regular (100k) account. Instead of trading full-size currency lots (100,000 units), you’ll trade in lots that are just 1/10 the size (10,000 currency units), which in turn greatly reduces the amount of money you risk in each trade you enter.

The characteristics of a Forex Mini Account are as follow:

• Minimum required account deposit = $300
• Recommended required account deposit = $2,000
• Traded in 10,000-unit currency lots. There is no maximum trading volume on the Mini trading platform.
• Pips in a Mini Account are worth, on average, $1. Pip is the smallest increment that a currency pair can move. For most currency pairs, a pip is a change in the fourth decimal place of the currency quote. For example, if EUR/USD is quoted at 1.6567 and it moves to 1.6568, it has increased by 1 pip. The value of 1 pip is calculated by the size of the lot that is traded. So, if you buy a standard lot of 100,000 EUR/USD at 1.6567 and it goes to 1.6568, a 1-pip move, then the value of your trade has increased by $10 (or 100,000 x 0.0001). Because Mini Account have smaller contract, the pip value is also smaller that is $1.
• The Mini Forex account offers up to a huge 200:1 leverage, this means that just a $50 margin deposit will allow you to trade lots worth roughly $10,000.
• Default Margin: set at 0.5% ($50 per mini-lot)

There is no downside to trading a Forex mini account, you will be enjoying all the benefits that full-size FX account holders enjoy. This mini accounts are ideal for a beginner forex trader to gain experience.

Beware, trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.