Forex Guide answers:

Whenever a system works, it does so by removing a little of the inefficiencies that allow it to work. The more you use the system and the more widespread the system’s use is, the less likely it is to work. Scalping has been around a long time so any current scalping system would be working on very thin margins on the brink of not working at all which is probably why so many have taken to selling their system rather than exploiting it themselves.

It’s relatively simple to come up with a system that seems to work but once you take into consideration the spread of the trade and the taxes, it’s quite likely there’s no profit and potentially a loss instead. The only mathematically rigourous system would be volatility pumping via Shannon’s Demon, however it would be very rare to find currencies with the volatility needed to overcome the spread and taxes of such frequent trades.

Forex Guide answers:

MACD gives the best results and it is easy to use as well. If the MACD line crosses the signal line it means that it’s good time for entry in the direction the MACD line were going. But remember to look for a short trade if MACD line falls below signal line and if it rises above signal line just go along. Now assuming that the price of the currency pair breaks above resistance or below support after the MACD crosses the signal line, then it would be considered as a signal of a big move indeed happening. Both the upward and downward crosses are explained in the diagram above.

Why wouldn’t MACD work in a range bound market? The problem is that in a range bound market, if you base your market entry points only on the MACD then by the time the indicator catches up to the current price, the price may have risen or fallen terribly to such an extent that making a profitable trade would be near impossible.

The Euro was down on Wednesday as investors continued to price in the likelihood of an interest rate cut from both the European Central Bank and the Bank of England alt on today. The European Central Bank is expected to cut its core rate by half a percentage point to 1.5 percent, and the Bank of England is expected to lower its rate to 0.5 percent on Thursday, also by half a percentage point. Lower interest rates can weaken a currency as investors move funds to where they earn better returns elsewhere.

At 5PM GMT, the Euro was flat versus the dollar at 1.2573, down 1% versus the CAD at 1.61, and up slightly to the Swiss Franc at 1.4796.

Forex Guide answers:

Be careful, you could lose your shirt !

Forex Guide answers:

Never heard of that. Might want to switch to FXCM as your broker, if that’s happening to you.

Here is a site that will help you with your FX trading: http://comefollowme.zulutrade.com/Performance.aspx

It ranks the top 8000 forex strategies.

Forex Guide answers:

The scalping method is usually based on three factors:

Liquidity – The more liquidity in a market then the more attractive it becomes to a Forex scalper as they can make more profitable trades in any given period.

Volatility – Only the most stable of markets are attractive to scalpers as a big movement is not what they are looking for. A stable market offers the chance to gain lots of small profits from many many trades

Time – A successful Forex scalper will not always begin trading at the start of a day. True, the longer they have to trade then the more they can make but patience is the key since it is pointless trying to scalp the Forex if market conditions are not right, for example in a period of large economic uncertainty.

As you can see, providing you have taken the time to learn as much as possible about market conditions then Forex scalping methods are not that difficult to implement. In many ways they are much more secure than other methods and this is why the method is becoming so popular.