Traders of any level are constantly seeking new effective strategies to improve their financial market experience. With so many different tools to choose from, some of the trading styles are not as versatile to meet various tactics and users’ needs. 1 minute scalping strategy is one such technique. Only scalpers will benefit from this concept. It will never work for other trading tactics.
To use the 1 minute Forex trading strategy, we consider that you already understand what scalping is. In this article, we will mainly focus on a range of variable strategies in addition to tips that will let you define the best buy and sell positions as well as lace stop-loss. What’s more, we will compare all the pros and cons of using the Forex 1 minute strategy.
How Scalping Works
We are not going to explain scalping basics. You can learn more about them here. What you do need to understand is how the trading style works. Otherwise, you will not be able to implement the 1 minute scalping strategy properly.
Scalping refers to buying and selling currency pairs. The idea is to hold the asset for a short period to sell it and generate maximum profit. In other words, traders deal with a sort of market speculation, where the main idea is to capture smaller gains (5-10 pips) per single trade. To gain more profits, traders usually tend to increase the position size.
Here are some major scalping features:
- Decreased exposure limit risks, as the chances of getting into an adverse event are pretty low, while the exposure is very small and brief.
- Flexibility is ensured by smaller moves making it easier for traders to obtain them. One would hardly argue that it is easier for an asset to make a $0.1 move rather than $1.
- Increased frequency. If compared to bigger moves, slower ones occur more frequently reserving more chances for the trader to exploit.