My thoughts on my scalping method [FX Demon]

Table of Contents

1. There is an edge in scalping methods
2. What is the ultimate edge of scalping methods
3. Time equals risk in the market
4. Trend followers vs. counter-trend followers
5. There is no single correct trading style
6. Recommendation to analyze losing trades

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※ This article is a re-edited version of an article from FX攻略.com, December 2014

There is an edge in scalping methods

I have been trading FX for almost 12 years now, and I have traded across various timeframes.

In the early days, in addition to spreads there were commissions, so it was almost impossible to consistently win with ultra-short-term trades, and I mainly focused on longer timeframes like swing trading. Then, around 2005, brokers offering no commissions appeared, and I shifted to a day-trading-centric style.

Around 2007, FX boomed, and fierce competition among brokers over spreads caused me to shift toward ultra-short-term scalping.

In the world of currency markets, events like the Lehman Shock crash and Bank of Japan interventions during extreme yen strength can be unimaginable. Having experienced many such events, I now feel the edge that scalping methods possess.

There are many different trading logics within scalping, but I have changed my methods according to market changes and the price movements of the moment. Even today, I am constantly seeking changes in price action and continually evolving my trading methods.

In this article, I would like to share my perspective on my scalping approach.