Inner Circle Trader - 20 Pip Scalping Method PDF
What does it require to scalp the Forex market consistently and profitably?
- Understand price action theory.
- Firm grasp of key S/R levels (mainly daily & 4 hour).
- Trading higher time frame bias.
- Take profits routinely & often.
- Trade one or two pairs at a maximum.
IT DOES NOT TAKE MUCH TO BUILD AN ACCOUNT UP.
If you have 3 or 4 of these a week and you lose all of them, just catching one of them will offset that whole week. Use this method to help yourself develop into a short-term or swing trader. Do not trail the stop loss tight unless you are against the higher time frame bias. Reverse the diagrams for a sell model.
If you hold onto it for multiple days, you have to be willing to absorb some retracement. You can also trail the stop loss tight if you are approaching the 15:00 GMT time frame. Trade in sync with the swing or short-term flows, then scalping can be easy. When you are looking to scalp in Forex or any asset class be it stocks, futures, or bonds.. there are far greater odds of success when you trade with the tide. Trying to buy, even when scalping, when the market is poised to trade lower, stakes the probabilities against you.
IT DOES NOT TAKE MUCH TO BUILD AN ACCOUNT UP. There is nothing wrong with being uncomfortable with swing trading or short term trading. It just means your personality is not "best suited" for that type of trading. However, if you are comfortable with very short term trading or scalping, 20 pips can still build incredible wealth over time. Imagine making 2-3 profitable scalps that net your account 40-60 pips for the week. This can more than double your equity annually and you wouldn't spend a great deal of time in the market either. Now imagine what the other portion of your trades left to run for the daily range would do for your bottom line in addition.
