Scalping for rapid small profits is a popular Forex trading strategy, requiring enormous discipline and focus. Professional Forex scalpers make between 10 and 100 trades every day. If a position goes against them they exit quickly rather than keeping it and hoping that it will turn around. A Forex scalping system aims to make 5-15 pips per trade.

The goal of a Forex scalper is to buy or sell a pair of currency at the bid or ask price and then get out of the trade quickly when they are in profit by a few pips. Using this strategy of extracting a small amount of pips out of the market at a time, can easily compound into big gains as long as a strict exit strategy is used to prevent losing trades absorbing all profits.

Usually Forex scalpers use the 1 min, 5 min and hourly charts to find trades that can earn them a small profit. As the Forex scalper is only interested in making a few pips per trade it is very important to use a broker with low spreads and instant execution of trades.

A few tips to improve your odds of being successful as a Forex scalper are:

- Make sure you know when news that is relevant to your currency pair will be released.
- Record the previous days Open, High, Low and Close.
- Study some basic candlestick patterns so you can recognize them when they occur.
- Draw in major trend lines, pivot points and support and resistance on the daily and hourly charts of your currency pair.
- Determine the major trend for the day, Bullish or Bearish, trading in the longer term trend will gives trades more chance of being successful.
- Adjust your stop to break even you are 10 pips in profit.
- If the trade is taking to long to become profitable or you don't feel comfortable with it, get out.

An advantage of Forex scalping is that the small targets of 5-15 pips are easier to accomplish. One of the difficulties Forex traders have is when the trend reverses during a trade, because Forex scalper's are in trades for only a short period of time this is not as likely to occur. Many people have been successful with Forex scalping, so there is proof that it can be a good Forex trading method. A disadvantage is that the risk to reward ratio can be very low. As the profit per trade is so low, one losing trade can wipe out all the gains for a day. This means it is especially important to set and move a stop loss.

There are several traps that new Forex traders fall into when they start Forex scalping. They may become addicted to making random profits, especially if they are initially successful. This can result in the trader taking increasingly risky trades and not sticking to their plan. Another trap is trying to make up for the losses of yesterday. New traders often think about how they can make back the money they lost a previous day, this tends to cloud their judgment and can result in emotional trades that are doomed for failure.

To learn about the latest Forex Trading Strategy and increase your profits with proper Forex Training, visit http://www.iBlogForex.com

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