Take profits

In general, the target of a trader is to maximise his earnings, while allowing the winning positions to evolve. In English, we are saying "let profit run". This expression means you've got to take care of your winning positions and resist the urge to sell them timely . this idea could seem obvious, because once you are on the proper side of a trend, you'll make big gains on one position. This also has the advantage of minimizing transaction costs.

The problem is, you will not know when the market goes to show around. When prices start to retrace, you cannot tell if this is often day trader Canada pullback or a trend reversal. it's not uncommon to return all or an honest a part of your profits by following the concept of the "let profit run".

Realizing this, the scalper takes a more pragmatic approach. As soon because it is feasible to shut his position with profit, he does so. A scalper can close their position with only 2 points or pips counting on the instrument traded, provided the transaction costs are covered by this small profit.

Small profits that accumulate


The scalper isn't a lover of the let profit run. He takes several small profits by prematurely closing his positions before the worth turns around. This also implies that it's a high success rate on its operations, generally greater than 60%. Earning only 2 to five pips per position might not sound like much. But if you multiply that by 50 or 100 positions, it can constitute a substantial financial gain , especially if you've got substantial capital.

The qualities of an honest scalper, is scalping right for you?
For scalper psychology, speed, discipline, and therefore the ability to adapt are all qualities necessary for profitable scalping.

Scalping is best fitted to active traders, who can make quick decisions and take an edge without hesitation. Impatient people can often observe scalpers, as they will expect their positions to become profitable immediately after opening.

To be an honest scalper, you've got to be focused. it's therefore not a method of trading that's suitable for people that are easily distracted. it's the foremost active and demanding approach to trading.

The rapidity


Scalping requires acting quickly. Usually, an honest trading UK signal becomes invalid after a couple of minutes or maybe seconds. The scalper must be ready to open an edge without hesitation, when the chance arises. Likewise, he must be able to close his position when the conditions to try to to so are met: take profit reached, signal from an indicator (Stochastic, Ichimoku, etc.), price reversal of X points, etc.