As a scalper, you love strategies characterized by high-volume trading. These strategies are designed to enter the market frequently, taking small profits each time.
Most scalping strategies employ either indicators (including custom indicators) or price action (including candlestick patterns) or a combination of both. Ideally, the strategies should be employed on the lowest time frames available on the broker’s platform.
The two scalping techniques discussed here—rapid fire and piranha—are developed on the M1 (1-minute) and M5 (5-minute) charts respectively. These two time frames give you ample opportunities to enter in and out of the market several times a day. Although scalping can be very exciting, the constant monitoring of market movements can give rise to fatigue and loss of focus.
Hence, you need to know when to take a break or call it a day. Failure to do so could result in unwarranted mistakes. To overcome this, establish simple guidelines or rules for yourself.
As an example, say: “I will take a break after trading for one hour” or “I will stop trading after I hit my daily target of 20 pips.”
Remember, overtrading does not necessarily yield more profits. As a scalper, your most important tools are a very reliable computer, a high-speed Internet connection, and a pot of coffee to help you stay awake.
The rapid-fire strategy was designed with two criteria in mind: