Scalping and Scalping Risks. What are Risks in Forex Markets? Scalping and its Risks: The Path of the Impetuous Trader

Scalping is known as a strategy that is often preferred by those who seek fast gains in the trading world. Basically, we state that the time between opening and closing a position should not exceed 180 seconds, and the pip value obtained during this time is less than 10 is considered scalping. Traders who apply this strategy aim to gain profit by making quick decisions and trading fast.
However, scalping is the opposite of the strategies generally recommended in the forex market. Adopting a hasty and erratic approach can impose serious risks and stress on the trader when done without sufficient knowledge and experience. Therefore, those considering scalping should have a good understanding of the challenges and potential dangers of this method.

Scalping: A Risky Trading Strategy?

Scalping stands out as a controversial strategy among traders. Whether it is harmful or not depends entirely on how the trader applies this method. If scalping is the main strategy in your trading plan, you may be facing serious risks. Even when the markets are rising rapidly, taking a position without predicting when correction movements, trend changes or sudden declines will occur carries great dangers.
The hours and effort you spend implementing this strategy can cost you not only financially but also mentally. Having to be constantly in front of a screen increases the likelihood of stress and headaches. Clearly, scalping forces the trader to take a hasty approach, which is not sustainable in the long run. Nevertheless, it can be considered as a method that can be beneficial from time to time when used correctly.

Why Do We Prefer to Be a Scalper?

Scalping is known as an attractive strategy in the investment world, especially for those looking for quick gains. So, why is such a short-term and risky investment strategy preferred? The main motivation behind being a scalper is the desire to achieve fast and high returns depending on the size of the capital.
The gains that can be achieved with scalping are directly proportional to the amount of capital used in the forex market. That is, an investor who applies this strategy with a large capital can make significant gains even from small price movements in a short time. Especially for investors who can react instantly to market fluctuations and make quick decisions, this strategy can be quite lucrative. However, at this point, knowledge and experience are of great importance. Although scalping may seem simple on the surface, it actually requires a lot of knowledge, analytical skills and market monitoring. If the trader is able to accurately predict price movements and consciously apply this strategy, he or she can make rapidly increasing profits, in line with the nature of forex.
Another advantage of scalping is the possibility to minimise market risk by taking short-term positions. The risk of being affected by sudden market movements that may occur in long-term investments is greatly reduced by scalping. This is an important advantage especially for investors trading in volatile markets.

Ways to Avoid Mistakes in Scalping

Since scalping is a strategy that requires fast and decisive trading, it is prone to errors. However, some of these errors may be caused by systemic problems and in this case, the trader does not need to worry. Because forex brokerage firms take precautions against such problems in advance and protect the trader. Systemic errors, such as platform failures or connection interruptions, can put the trader in a difficult situation during scalping. However, when such technical glitches occur, the responsibility lies entirely with forex brokerage firms. These organisations take the necessary precautions to protect their clients from such risks, and if any problems are detected during scalping transactions, they intervene immediately to prevent any damage to the trader. It’s is a strategy to profit from instant price movements, and traders who perform this transaction are called scalpers. However, it is the responsibility of brokerage houses to prevent errors caused by technical problems and to protect the investor. Therefore, investors can feel safe about such errors.