The forex market is a huge market and it has many things to offer to the right candidate. If you are relatively new in forex trading then you might have the dream to become a millionaire within a very short period of time. Most of the novice traders in the financial market loses money in forex trading since they consider it as a get rich quick scheme. But to be honest, forex is just like doing any other business where you need to execute your plan very precisely in order to make consistent profit in trading. Now a day’s many people are trading with high lot size due to the high leverage provided by the professional broker. Leverage can act like double edge sword in them market so when you trade with high lot size make sure that you know your current risk exposure level in the market. In this article, we will discuss an amazing scalping strategy which will help you to make consistent profit in the market.
Draw the key support and resistance level: Most of the professional traders in the forex market prefers the higher time frame to trade the live assets in the market since it greatly reduces the false signals in the market. If you look at the professional trader then you will notice that every single one of them use the higher time frame trade signals to execute their orders in the market. In this system, you need to draw the key support and resistance level in the market in the 4-hour time frame. Once you draw the key support and resistance level in the market you need to find the long-term prevailing trend in the market using the dial time frame. Once you finish both the task then you need to look for trading opportunity in favor of the long-term prevailing trend in the 4 hour time but be sure to look at scalping spread. Since you will be in and out of the position in the market within a short period of time you need to make sure that you are trading with low commissions in the market. All the professional traders execute their orders in the market only if the market commission is extremely low.
Use the pending orders: Most of the novice traders in the financial market fails to achieve success while doing forex scalping only because of they execute their orders in the market too early or too late. To be precise they fail to manage the timing of the trade. If you fail to manage the timing of the trade then you will also be a victim of the scalping spread since most of the time the market exhibit large spread after extreme level of volatility. So how do avoid such circumstances in the forex trading? The answer is pretty simple. All you need to do is to use the pending orders in the market. Once the market hit the desired support and resistance level in the 4 hour time frame the trade will be automatically executed with predefined stop loss and take profit level.
Money management factor: No matter which system you trade it is highly imperative that you execute your orders in the market by using perfect risk management factors. As a professional scalper, you must also look for scalping spread in the market and reassess your risk tolerance level based on the average commission charged by your brokers. If you trade the market than it every obvious that you will often have some losing trades in the market so make sure that all are managed loses.
Summary: Forex trading is an art and it requires pin perfect execution of the trading plan. In this article, we have discussed how to use the pending features of the mt4 platform and execute high-quality trades in the market in the 4-hour time frame. But before you set your pending orders in the market make sure that you are trading in favor of the long-term prevailing trend in the market. As a trader, you should always reduce the risk exposure in the market since it will help you to survive the worse possible conditions in the market.