By and large, scalping as a trading method is widely misunderstood. Here are some common opinions on what scalping is:
1. Forex scalpers are usually seen as traders who sit in front of the screen all day, executing trade after trade while trying to play the "spread game" - attempting to profit from the difference between the broker spread and the amount of pips they make per trade.
2. Because the relative small time frame in which scalpers operate, forex scalping strategies are often seen as risky.
3. Finally, scalping is seen as a separate trading system and different from the other trading systems.
These are in most part large misconceptions and illustrate a general lack of understanding by the mainstream trading community about scalping as a trading technique and what it actually offers.
So what is scalping then?
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Wednesday, December 24, 2008
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