Junichi's Scalping Classroom | Episode 9: Building the Scalping Style and Method ① [Junichi FX]

Junichi FX's Profile

Junichi FX. A multifaceted professional active as an FX scalping trader, FX mental advisor, FX coaching, financial planner, insurance agent, and management consultant. Trading with a focus on price action scalping, aiming for 1000 pips per month.

Twitter：https://twitter.com/junichi_fx

※This article is a reprint and revision of an article from FX Tactics.com, June 2019 issue. Please note that the market information stated in the text may differ from current market conditions.

In the 8th installment, we explained the importance of the "mental" aspect in FX—the meaning it has on trading and how to identify and improve your own issues. From this point on, we will introduce how to build a scalping style, how to develop strategies, and the way of thinking behind them.

What Scalping Is

Scalping (scalp-ing) means “to peel back the scalp.” In FX terms, it means taking small profits from the market by peeling away thin margins. Definitions of FX scalping vary, but for me it is a method within day trading that focuses on entering at moments of extreme advantage and exiting when the advantage is high—placing utmost importance on the edge (advantage).

Furthermore, in my scalping, there is virtually no concept of position hold time; I do not define it as “short-term trading.” Sometimes a trade lasts less than a second, and other times I hold a position for several tens of minutes as long as the edge remains.

In general day trading, traders use technicals to decide on entries and exits as the edge increases, but in my definition of scalping, I look ahead to locations where the profit potential is high with a very high probability (the edge), even if the short-term trend is against me (though in the direction of the trend as well), wait for the moment of movement, and adjust lot sizes according to the situation to execute entries and exits.