Toronto, Canada (PRWEB) March 26, 2009
InvestTechFX the leading MetaTrader4 (MT4) trading platform 1 PIP Forex Co is now fully supporting scalper trading. While other brokers discourage or ban Forex scalping outright, InvestTechFX is offering scalping accounts and catering to traders who rely strongly on scalping techniques.
InvestTechFX the leading MT4 trading platform 1 PIP Forex Co supporting scalping elaborated on the popularity of the Forex market; how it has opened up currency trading to the masses, and how the evolving trading strategies that have developed are as diverse as the traders themselves. Several strategies have emerged, but one of the most popular for committed traders is scalping. The premise of scalping is simple; the trader utilizes time condensed charts executing a large volume of trades, in an attempt to make many small profits that will theoretically add up to a large profit. Scalpers rely on making money through the difference between the asking price and the selling price for an asset, which in the context of Forex trading is currency. This difference in price is generally referred to as the bid-ask spread. A bid price of $50 and an ask price of $55 has a bid ask spread of $5. Liquidity is the defining factor for the size of a spread. For an asset as liquid as currency, there is a tiny bid-ask spread (a fraction of one percent). Successful scalping requires a suitable platform such as Meta Trader 4 along with high-speed trade execution. Scalping relies heavily on the agility of a trader and the efficiency of the communication infrastructure the trader relies on. Be sure to have a system that allows you to get in and out of position with ease and speed.
InvestTechFX the leading worldwide MT4 1 PIP Forex Co supporting scalping concludes that scalping takes a certain amount of trading experience, discipline, and effort to conduct successfully. The trader stays in position (holds onto an asset) for an extremely short time in order to trade the volume necessary to make the strategy profitable. A scalper must maintain a strict exit strategy, as one serious loss can destroy the progress made by several small successful trades. Scalping depends on a philosophy similar to that of a specialist or market maker. While the specialist can deal with a much higher volume of trades than a scalper, the scalper is not governed by the same rules of exchange. Market makers must follow certain rules, often having to post a bid and ask at the same price. Scalpers cannot bluff the market as effectively as market makers, and usually do not have the execution speed of a market maker. Despite this, good scalpers still reach consistent profits if they use discipline.
InvestTechFX the leading worldwide MT4 1 PIP Forex Trading Co. supporting does not endorse or condemn scalping as a trading strategy, and offers information on scalping concepts through their website. InvestTechFX also offers special scalping accounts for traders who prefer to use a scalping strategy. See the following link for a comprehensive list of InvestTechFX's account groups. InvestTechFX is committed to supporting the full diversity of traders and their strategies.
InvestTechFX the leading worldwide MT4 1 PIP Forex Co offering scalping accounts stated that there are multiple strategy variants that rely on the basic scalping philosophies. An "umbrella" variant can have the potential to increase the average profit of a scalping strategy. It involves making several small trades under the "umbrella", or protection, of a larger more long-term trade. Several smaller trades are made in the same direction as the umbrella trade. The size of the profit is dictated by the stop; a trade of $30 with a stop of $29.80 has a risk of 20 cents, a 1 to 1 risk reward at $30.20.
InvestTechFX the leading worldwide MT4 platform 1 PIP Forex Co notes that there are a very wide range of strategies available online and in print. Some are offered for free and others with a price tag. Before adopting a trading strategy, the following personal factors should be considered. Financial Investment: some strategies work better depending on the amount of capital available for trading. Patience: Traders must know their limits in regards to riding out a dive in value. This simple issue can be the determining factor in adopting a trading strategy. Time investment: Strategies like scalping are usually for serious traders. Scalping can work, but it demands real effort and expertise. The profit that successful scalpers earn is not free money- trading in this way takes work. A trading strategy is a template; like a shoe that needs to be molded just right to a particular foot.
InvestTechFX the leading worldwide MT4 platform1 PIP Forex Co supporting scalping encourages traders to experiment extensively with demo accounts. Despite what some "experts" might espouse, no Forex strategy is foolproof.. Trading rules exist for traders, not the other way around. A strategy cannot replace human judgment.
InvestTechFX is the leading 1 PIP MetaTrader4 platform Forex software solutions provider supporting scalping accounts and expert advisors, along with the full diversity of Forex traders. http://www.investtechfx.com