Powerful scalping strategy for the novice traders

The novice traders always love to make money by trading the lower time frame. They don’t have the patience to trade the higher time frame. Trading the lower time frame is often known as scalping and this is one of the riskiest ways to trade the Forex market. The pro traders in Hong Kong often teach novice traders to scalp the market with an extreme level of accuracy. By following the proper guidelines you can easily make a profit by trading the lower time frame. In this article, we will teach you a 30-minute scalping strategy. Make sure you follow all the rules very precisely since a small mistake will cost you a big sum of money.

Setting the trading chart

Scalping can be done in a much different time frame. But we are going to teach you to trade the 30 minute time frame. The price movement of a certain asset in the 30-minute time frame is very extreme. So, make sure you are not trading the cross pairs. This trading strategy only works when you use it in the major pairs. Instead of using the bar chart or line chart, switch to the candlestick chart. The new traders might not have any clear idea about the different formations of the Japanese candlestick pattern but its fine. We will use one candlestick pattern which is known as the pin bar.

What is a pin bar?

A pin bar is a reversal candlestick pattern which has a long tail and small body. Most of the time you spot such a candlestick at the key support and resistance level. To find the very best pin bar you must use a robust trading platform. Feel free to visit https://www.home.saxo/en-hk  to learn more about the professional brokerage firm. Once you have access to the premium trading platform, you have to look for such a candlestick pattern in the key trading zone. Being a new trader you might not be able to spot the critical support and resistance level with an extreme level of accuracy. But there is nothing to worry about. We will give you a simple solution to this problem.

Use of 100 SMA

SMA Stands for the simple moving average and it’s a very powerful indicator to spot the critical support and resistance level. Install the 100 SMA in the 30-minute time frame you will get a liner curve in the chart. The linear curve will act as critical support and resistance level. Look for potential bearish or bullish price action confirmation signal near right at the curve. Once you spot such pattern execute the trade with precise stops. Most of the time retail traders use the tail of the pin bar to set the stop. But never use tight stop-loss since the market might hunt the trade down. Give the trade enough space so that you can make a decent profit from this market.

Risk management policy

By now you know the perfect way to scalp the market in the 30 minute time frame. But what about the associated risk factors in trading. Though the trading strategy is extremely profitable, you should never risk more than1 % of your account balance. If you lose three trades in a row, take the day off. Make sure each trade comes with a 1:3+ risk-reward ratio so that one good trade can cover three losing trades.

As a new scalper, you need to keep yourself tuned with the latest market news. During the major news releases, the market becomes extremely volatile and there is a high chance you will lose the trade. Stop trading the market before the high impact news since the volatility will hunt the tight stops. Does this mean you have to learn fundamental analysis? The answer is yes. Fortunately, learning the basic details about the major news release is a very simple task.