What Does it Take to Become a Scalper?

Scalping is a method of trading within a very short time frame of minutes and even seconds. Unlike long-term investments, it is a quick thrilling method of trading, which is both profitable and very stressful. 

Not everyone can handle its stress, but those that do have the mental fortitude, the discipline, and the skill can vastly outperform people who use larger time frames to make trades.

In this guide, we will tell you about both the benefits and the challenges of the scalping trading method. We will introduce you to the FBS trading platform, which makes it a lot easier, and we’ll discuss a popular currency pair that many traders use for it: the EUR/USD live chart.

Benefits of Scalping

Scalping comes with a unique set of benefits that could be viewed as such by people who value speed, fast profits, and excitement. With the right approach, even small price movements can be turned into a profit. 

The brisk rhythm inevitably attracts many traders, no matter if they are just beginning their trading career or have been successfully doing it their whole lives. However, only those with a strong mind have what it takes to succeed. Here are some of the benefits of scalping:

• High Frequency of Trades. Since scalpers are using very small-time frames, a proficient scalper can make several profitable trades within a single day. Unlike regular traders who can wait for days and even weeks to make a good trade, scalpers use minor fluctuations in the market to make a profit.

• Low Risk. The unpredictable movement of the market is negated by the smaller time frames, which makes it more deterministic, where people have to rely on their knowledge of the patterns to make a decision. As a result, stop-losses and take profits are a must when utilizing this method.

• Fast Profits. Traders who operate using small-time frames can make small profits throughout the whole day. The profits aren’t large, but they quickly add up. Moreover, profits that were already made can be further invested, which greatly boosts your earning potential.

Overall, the high number of trades demands the scalpers to be constantly vigilant, allowing them to make a profit off of the smallest movements in price. 

Do You Know?

Although this method is extremely stressful and demanding, the profits made using scalping can very quickly add up to a large sum.

Challenges of Scalping

Not many people are engaged in this, and it’s no surprise. Regular trading is so much more relaxed when compared to this quick method of trading. Even many seasoned traders don’t have what it takes to handle this high-stress environment that demands laser focus and quick decision-making skills. 

The challenges are uniquely their own and can cause many traders to feel discouraged. The most prominent challenges of scalping include

• Extremely High Stress. People who engage in high-frequency trades need to be constantly alert and ready to make a decision. As a result, they need to constantly combat their fear, anxiety, greed, and excitement, which can cloud their judgment and affect their decision-making.
• Market Noise. Identifying patterns and trends on a very small scale can be extremely challenging. The main opponents of human scalpers are bots, who are immune to all stress and make decisions automatically. This places even more stress on regular people who decided to dabble their toes in this art.
• Broker Interference. Scalpers are affected more than anyone by the response time of their brokers and the commissions that they take. This is why trading with a trusted platform like FDS is a sound idea, which is a perfect platform for scalping. Unlike FDS, many brokers outright ban scalpers from trading too frequently.

All in all, the unforgiving environment of scalping forces people to endure high levels of stress, and only those with good mental fortitude can even hope to succeed. As a result, picking the right broker for any scalper is a great investment, since this will allow them to avoid constant interference as well as high transaction fees.

Scalping Tips

Even though it is very challenging to become a professional scalper, it is not impossible. Rigorous training, unwavering commitment, well-planned strategy, and of course patience are the things that will provide the results people are waiting for.

Aside from challenges that are unique to it, the individual who wants to trade using this method has to have the necessary level of adaptability and the capacity to constantly learn. Here are some tips that will help you to become a better trader:

• Choose the Best Strategy. Firstly, you’ll need to choose the best strategy, which will take into account things like trend-following and breakouts.

   You may also need to try out several strategies because the strategy determines how much stress you are going to experience and ultimately handle.

•  Choose the Most Proficient Broker. Any person planning to get involved with it needs to make sure whether their broker offers low spreads, no requites, and fast execution. 

  FBS meets all of those criteria and is also reported to have good customer service and excellent security.

• Choose the Right Account Type and the Best Tools. The account types can be very different and some of them might not be suitable for short-term traders. For example, FBS offers tools such as MetaTrader 4 and 5 allowing traders to find platforms from all over the world. As a result, FBS allows you to decide what you’re looking for.

One of the most important things you can do is pick a scalping strategy that doesn’t clash with your personality and trading habits. Your choice of a broker should be dictated by your trading style, financial goals, and risk tolerance.

Patience and Practice are Keys

Scalping is among the most popular trading styles all across the world. Once you choose the most suitable technology related to it, you will be on your way to becoming a successful trader. All you have to do is register for an account to be able to begin your scalping journey.