These days, short-term trading is gaining more and more popularity. It is characterised by conducting trades in a short period of time with the purpose to receive profit of a couple of points (pips). Some people call the scheme “lottery”. However, one must mention that many investors gained considerable profit by using this concept of work. The most important thing is to pick effective and convenient scalping indicators and ignore your emotions.
In order to be successful in short-term trading, it is recommended to follow the rules listed below:
Drawing on the above-mentioned principles, many successful traders have picked only a couple of indicators that help them while day trading. Namely:
In scalping, one can and should use various instruments of technical analysis. When doing so, it is important to regard signals not as a direct incencitive to conduct a trade, but rather as a perspective range of conducting transactions.
On the other hand, the smallest price dynamic is important when working in small timeframes, and the indicators are quite often late, which in turn doesn’t allow one to day trade effectively. If you want to nonetheless use the „intraday“option, choose an interval of 5 to 10 minutes. Some trades will be missed, but that will be enough to hone your skills.
These ones will fit day traders the best:
Remember that quick profits attract many traders and produces excitement like gambling. Because of that, this approach to work requires exceptional self-possession and excellent knowledge of the market. The most important thing for a trader is to decide on an optimal number of trades per day and never cross that line. In this case you will be able to gain maximum profits from scalping, not be dependent on major fluctuations on the market and have a stable source of income.