Controversy Surrounding Scalping Strategy in Forex

There is much debate that Day Trading or Swing Trading is more logical and has greater profit potential than Scalping Strategy in forex trading. Although Scalping Strategy remains a choice for some traders, it cannot be denied that this method is not without controversy. Is this true?

Debate on Scalping Strategy

Scalping strategy aims to profit from small price changes in forex currency pairs. Therefore, scalpers typically use very short timeframes, ranging from 1M to 15M. They only maintain their trading positions for a very short time, usually only a few minutes or at most a few hours after the position is opened.

1. Price Movements Unrelated to Deep Analysis

The short timeframe makes long-term fundamental or technical analysis less relevant for Scalping Strategy users. This has led to criticism that price movement analysis becomes "unfounded," merely relying on indicator signals or trader intuition.

2. Profits Only Achievable After Many Trades

The profits obtained from scalping are often small, such as 5, 10, 15 pips, or even lower. Scalpers need to make many successful trades every day to achieve a satisfactory level of profit. The risk-to-reward ratio used by scalpers also tends to be tight, with risk and reward often balanced at 1:1.

3. Not All Brokers or Trading Accounts Allow Scalping Strategy

Although Scalping Strategy is popular among traders, brokers often have varying policies regarding scalping. Some brokers prohibit traders from scalping, while others allow it with trading conditions that are not conducive to scalping.

Is Scalping Truly Unprofitable?

Despite the drawbacks of Scalping Strategy, there are still traders who can succeed with this method. Trading positions held for only a short time reduce the risk of unwanted large price movements, and traders do not need to wait too long to close positions. Success in trading is not only determined by the trading style used but also by the trader's skill, discipline, and knowledge in managing risk and making trading decisions.

Despite the controversy surrounding Scalping Strategy, this method remains a choice for some forex traders. Success in scalping depends on the trader's skills, discipline, and knowledge in managing risk and making trading decisions.

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