I have noticed that lots of new traders without a coach start trading with scalping method instead of a swing (long term method). It's quite logical that they wipe out their account. Why?
Scalper is a very experienced trader. Scalper knows how to trade long term trades, but long term trader does not know how to scalp successfully in the long term.
When beginner quits his scalping method and switches to swing trading method he makes a common mistake.
He/she trade with same lot size as with scalping method.
First of all scalping uses large leverage (large lot size). Long term method has larger draw-down and it must be used low leverage (lower lot size).
When scalping price is moving fast and you must react fast while trading long term (swing) it is opposite.
Scalping can fool you! How? You don't need to be experienced to take 3 pips of profit, but you must be experienced to know when it's enough of loosing. How much to risk?
Advantage of scalping is a lower active draw-down! (inverted money management).
Soon I will write about Scalping trading method so put this blog in your bookmark or favorites!!!
Scalping is much better than long term trading method!
Advantages:
-lower draw-down
-larger leverage
-larger profit
-faster
-lower mental pressure
Disadvantages:
-faster - risky
But if you have good equipment and lot of experience it should not be the problem!
