| The Internet has made it easier than ever for the | | | | sure of before you start trading is that you know |
| average person to get involved in speculative forms | | | | what you are doing. Scalping is not something you |
| of day trading, like Forex trading. | | | | want to do as a beginner, regardless of whether you |
| In the past, Forex trades had to be carried out by | | | | are doing it intentionally or through sheer |
| calling up your broker's 'dealing desk'. Today, though, | | | | inexperience. |
| carrying out a trade is as simply as pointing and | | | | The second thing you will want to do is develop a |
| clicking from within your online trading account. | | | | long-term investment strategy. Forex is fun to 'play' |
| This is indeed a luxury but, as you may have | | | | with, and online accounts make it easy to jump in the |
| guessed, there is both an upside and a downside to | | | | game just to try it out. It has almost become a fad. |
| the technological ease of online trading. | | | | However, what the sad statistics bear out is that |
| One of the biggest problems is a phenomenon | | | | over half of all new Forex traders lose their money |
| known as 'scalping'. Scalpers are traders who rely on | | | | within a year. The foreign exchange market is seeing |
| the speed of electronic trading (and the ability to | | | | a lot of hype right now, and too many people are |
| bypass the 'dealing desk') to 'scalp' Pips. | | | | signing on in the hopes of making a quick buck. Forex |
| In other words, they trade currencies on the smallest | | | | is simply not that easy, though, and it is certainly not |
| fluctuations in exchange rate. A scalper might trade a | | | | a get rich quick scheme for the average person. So, |
| pair when it moves from 1.3435 to 1.3436, for | | | | before you start trading, make sure you take the |
| example. | | | | time to educate yourself. There is plenty of free |
| There is technically nothing wrong with doing so, | | | | information online, as well as top-notch training |
| except that scalpers executes these types of trades | | | | courses provided by brokers and expert investors. |
| hundreds of times daily. They may exit a trade | | | | Putting the necessary time up front into developing a |
| before the broker even has time to deal with it, and | | | | long-range strategy, and educating yourself on the |
| this results in a loss...for the broker, that is. | | | | marketplace, will go a long way to assuring your |
| Scalping is a risky strategy that is all to easy to | | | | success. |
| perform online. So, the first thing you need to be | | | | |