Counter trend trading is something we would not advise to beginning traders. It is
often a risky and difficult move to trade against the overall trend. However, once you're more experienced, it is possible to attain some good profits from it. As you
just learned a trade requires the space to breathe, you could potentially become
successful in the counter trend way. Nevertheless, you always have to bear in mind that the risk is
definitely greater! This is because often highs and lows are presented false on the
You need to know about the fact that counter trend trades are often short time. The
overall results from a counter trend trade and its retracement is often based
on the overall timeframe we're trading from. It's essential to be fully aware of the
aggressiveness of the trade, to predict the effect from the counter trend.
We see that traders often eliminate money when trying to execute
trend trades. For example, a lot of counter trend traders want to buy new lows
in a downtrend, to grab the up movement to a new Lower High. This is at least as risky
as selling the new Lower Highs.
Day trading & Scalping
Day trading is defined as the buying and selling of assets within one trading day.
Basically, a day trader executes around 5-10 trades on a daily basis. However, the
market doesn't give a chosen amount of trading opportunities each day. This makes
it a risky trading style, especially for beginning traders who often develop bad trading
habits with it. The majority of the traders get impatient as they wish to take a certain
amount of money from the markets every day.
As a day trader, you would not let any places run overnight. This means
that you need to be quite accurate in placing your take profit and stop loss targets.
Discipline is a key element in trading, however, in day trading it is just a bit more
important. You must be aware that the large liquidity pairs on the Forex market like EUR/USD etc. onlyjump around 60-100 pips a day. It follows that the movement
from the pair can be very limited what makes it even more important to monitor the
position closely so as to make any profit. Later in this class (terminology) we will
go more in depth on many different conditions as "pips" etc..
Loads of day traders tackling a strategy that's a lot different than which was
anticipated by starting traders. In life, we can say that professional traders
usually spend a time with the markets.
As a professional day trader we would advise to take any more than 1-2 high
profitable trade setup's on a daily basis. When placed, it is intelligent to take some time
off from the markets because it is important not to develop any emotions when you are
in the trades.
Scalping is basically the expression used for locking in smallish profits by going out and in several trade set-ups on a daily basis. As a scalper you will be supporting the charts
more frequently. You focussing on jumping in and out trades to gain or lose a small
quantity of pips. Only experienced scalpers often trade without any stop losses or
take profit target. The scalper that DO use it often have shitty risk to reward ratio's as
you're mainly controlling the trade manually!
Scalpels are essentially looking to lock in 5-10 pips a trade, and to do this multiple
times throughout the day. Scalpers frequently use a high leverage to make adequate profits
from your small price changes. This can add up quite fast as you could figure out how to
do this over and over again throughout the day. However, you're constantly taking a
risk! If you prefer to be behind the charts through the day, then scalping may a great
opportunity for you. However, in the event that you rather analyse and think over every trade you
make to decrease the risk, you won't suit scalping to well!