We recently concluded our 4th batch of the Forex Scalping Masterclass (FSM). As always, we started off by introducing the concept of scalping to our students and how as retail traders we should go about scalping currencies. Most of the students had differing preconceived notions about scalping, hence it was important that we gave them the correct concept of scalping right at the very beginning of the class.
In this article, let us address some of the common misconceptions that many retail traders have about scalping.
Misconception 1: Scalping Is Fast And Furious
This is no doubt one of the most commonly misunderstood notions about (retail) scalping. While big funds and institutions can enter and exit the market many times in a trading session, targeting a take profit of just a few pips; this is almost impossible to pull off for retail traders like us.
The big boys are able to do so as they have an edge over the retail scalpers in terms of technology and spread. They have special algorithms programmed to trade at high frequency and low transaction costs arranged with liquidity providers.
As retail traders, our transaction costs in trading range somewhere between 1 to 2 pips in spread or the commission equivalent. If we are capturing 5 to 10 pips from the market, the cost of trading is already 20% of our profits. So you can imagine, it is almost impossible to trade in a sustainable manner using the ‘fast and furious’ method for normal retail traders.
Having said that, there is still a way to scalp currencies for retail traders. A way that is different from how the big boys do their scalping. And we teach exactly that in our masterclass.
Misconception 2: Scalping = More Trading Opportunities + More Profits
Technically this doesn’t only apply to scalpers, but many traders have this misconception too. Having taught hundreds of students throughout our journey as trading coaches, many traders hold on to the belief that the shorter the timeframe they look into -> the more trading opportunities they have -> the more profits they are going to make from the market.
This thought flow isn’t entirely flawed, but what these students do not understand is that the lower the timeframe we trade on, the faster and more frequent price oscillates and thus the harder it is to trade – at least for the less experienced traders.
Hence, while scalping on a lower timeframe technically does provide more trading setups, it does not necessarily mean as a scalper, we will be taking many trades.
We should focus on the quality of the trades to ensure a higher winning probability than the quantity!
In our masterclass, we impart a scalping strategy that does not provide us with many trading setups, but every setup it detects offers a high level of accuracy and profitability.
Misconception 3: Scalping Is Not For Beginners
If you are an experienced trader, you probably have the notion that scalping is difficult. Now imagine how beginners feel.
Yes, we acknowledge that on the surface, scalping as a trading style appears to be really difficult to execute and master. But that is if you think of scalping as being fast and furious, Misconception 1.
If you try to emulate the big boys way of scalping the market, you will find it to be a mission impossible because you simply do not possess the technological and low spread advantages of the big boys.
However, scalping can be made easy. Many of our students can attest to the fact that scalping really doesn’t need to be complicated. In fact, even if you are a complete beginner to trading Forex, we are confident that with the strategy taught in our Forex Scalping Masterclass, you will be able to start scalping the market.
Quoting one of our graduates, Andrew – “The Alpha Play Forex Scalping Masterclass is clear and easy to understand. The instructor makes scalping simple and easy to execute.”
- We can’t scalp like how the big boys do it. But we can do it the retail trader way.
- Scalping isn’t about quantity. it is about quality trades with a high probability of winning.
- Scalping doesn’t need to be difficult. It can be so simple that even beginner traders can pick it up.
If you are committed and serious about being a consistently profitable scalper, come join us in our next batch of the Forex Scalping Masterclass.
What our students say
“The scalping course not only cover scalping method but also addition with fundamental analysis too. The trainer showcased on trading method very well, not only from textbook.” – Chris Lee
“Clear and concise. Showcased what’s reality in scalping.” – Richaard
“Programme is comprehensive.” – Low Kok Keong
“Enjoyed this scalping masterclass very much. Like the live trading session. As I feel that I have better understanding of scalping.” – Angeline Tan
“It is systematic, practical.” – Huang Youyi