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Posted by: b2fnow on 2010-02-02, 08:01:46
If you are talking about scalping the bid/ ask spread, that would be a big mistake. Trying to scalp the forex spread would be the most difficult thing you could possibly attempt. Rather than trading the market overall, you would be going head to head with the professional floor traders, brokers, and bankers that run the forex. They are the ones that fix the bid/ ask spread and control it. They have instant access at the source and very low commissions, probably less than a dollar. The bid/ ask spread is THEIR domain, THEIR playground, THEIR office, and they will eat you alive. The bid/ ask spread is THEIR advantage, and your disadvantage. If you are talking about scalping the short-term trend, that is difficult enough, and not many people can accomplish it. Most professionals would agree that you cannot consistently profit from all of the little wiggles and turns in price on the minute-to-minute basis. The fact that 90% of traders lose money confirms that fact. Short-term swing trading is as difficult as you will probably be able to accomplish. Think of the difficulty in determining price one week out or one month out or one year out in time. It is not any easier to guess future price 10 min out, or 1 min out. You may get a lot closer to being correct when your direction is correct, but direction is no easier to predict. Essentially, your question arises out of a fool's game. It's exactly what the major players want you to do -- just try to compete directly with them on their turf so they can take your money. |
