Steemit Crypto Academy Season2-Week5 // The Scalp trading style task by @dlioness // for @yohan2on

Hey! Friend's, it's another amazing week and day to try out  something new and beneficial and the crypto academy lessons are one of it,there's no limit to what we can do or learn and the lessons has been mind blowing and escalating into something bigger,I must appreciate the crypto professors  such as @yohan2on @kouba01 @fendit and every  other professors for their immense effort in organising this lessons,I must commend them for their intelligence and selflessness in giving  out free lessons about the crypto world,you guys rocks!....smiles.....

From the lesson on scalp  style of trading  I was able to gain some vital  knowledge which I know will help me answer the given questions by the professor,although I'm already using the scalping style due to my impatient attitude in trading.....smiles....



Before I go on to answer the questions, I would love to put down some sentences on what scalping style is all about, it's advantages and disadvantages so we would know what we are actually dealing on;

What scalping style is: This is a trading strategy  which is based on closing trade in a short period of time with little pips or profit from currency or market  fluctuations,this type of trade is usually on a 1 to 15 minutes  time interval , the highest time can be 1hour ,in these kind of method the analyst or investor  does not basically aim on getting big profits, he or she can decide to close trade in a short time no matter how little the profit or pip  is, and knowing this strategy operates on very tight margins there are things we have to consider  which one of them  is finding a  broker and currency pairs with very small spread,someone like me who is impatient in some trades and was dealt with by fear of missing out(FOMO) would not like to miss a target so I prefered been glued to my phone,I was doing that until it was dawn on me that I began to get addicted to looking into my phone while other things in my life like reading or studying was also lagging behind too, that was when I questioned myself and sorted out for other alternative though still scalping but on a low key....smiles....,from this experience I will be giving us some advantages and disadvantages of the scalping style but before I do that, I would want to share with us some ideas for a successful scalping;

Things to note and do in other to achieve success while using the scalping style  for trading

• Ensure you choose  currency pairs with higher volatility because it can create trading opportunities for the trader
  
  
  
• Indicators are considered necessary so we  would consider utilizing moving averages just as I would set my MT4 or MT5 on a four moving averages,another indicator is the Bollinger bands
  
  
  
• Manual trading is advisable
  
  
  
• Choose currency Pairs with Lowest Spreads since it's a  very short time trade that would make small pips because large spreads can easily partake into those margins and take out some  portions of the trader's  payout,
  
  
  
  
  
• Pick More Volatile currency  Pairs, I don't know if I have mentioned this earlier but it's necessary,
  
  
  
  Advantages
  
  
  
  
• it minimizes loss
  
  
  
• They do More trading and stands the chance of making profits
  
  
  
• market volatility has less effect on them
  
  Disadvantages

• it's can make you loose concentration on other certain things or activities because you would be conscious of checking the trades and by that loose focus in attending to other indoor and outdoor activities
  
  
  
• it strains the eye because you would have your eyes glued or fixed on your phone always
  
  
  
• data consumption, in this part of our country where we don't have the opportunity of free WiFi, our data consumption can really be high and discouraging
  
  
  
• you ensure to Keep track of every running trade,imagine you been an office  worker  or a  business  person how you will cope with keeping track and attending to customers
  
  
  
• The commissions and charges are high

Difference between scalping and other trading styles

• Scalping is a short term trading strategy while
  others such as swing trading strategy are long term

• A scalper holds a trade for just seconds and minutes  whereas a swing trader will hold a trade for a few days and weeks.
  
  
  
• Greediness is minimized in scalping but not in other long term styles
  
  
  
• Scalping involves taking quick decisions while  Swing traders take their time in making trade decisions 

I believe i have been able to make little emphasis on the scalp trading strategy and this would lead me into answering the given questions;

Exercise /homework task

• Demonstrating the scalp trading style on EURUSD and USDY crypto asset pair using the finger-trap scalp trading strategy

Expectations

• Use a demo account for this exercise. You will need to create one using FXTM or any other trading broker of your choice. You may use an MT5, MT4 or trading view to execute your trades.

I expect you to explain the finger-trap trading strategy as you practically demonstrate all its vital elements on at least 2 crypto assets with clear screenshots.

Answers

Using an MT4 demo account

screenshot of my MT4 demo account on a M5 (5mins) trading time

From the above screenshot,i am trading a EURUSD currency pair and as a scalp trader i had to set my trading time to M5 with moving average of 7,14,88 and 200 and also RSI at 14 as indicated in the chart,

The above screenshots are still from my MT4 trading app,from the first screenshot i was able to indicate the time and after the set up, i went long on a market with 1:00 lot that is placing a buy and i monitored it and was able to close with a profit of 2pips in few minutes of the trade;

Trading NZDUSD currency pair in a M1 time interval

As we can see from the screenshot, i did almost same as the eurusd trade but with different time interval, i had to still go long thats placing a buy and closed the trade with 2pips again as profit,

Conclusion: just as some other trades i did , i believe i can get more profit if i had allowed it for a longer time but because of my impatience i ended up getting little profit which might just be taken for charges or commission,

Scalping limits us from making more profit and as a new trader it is not advisable to make use of that style because you can easily get tired of it;

Thanks to the crypto professors @yohan2on , @kouba01 and every other professor for your time in putting these lessons together for the benefit of us.....smiles.......

Written by @dlioness

for @SteemitCryptoAcademy
community