Foreign exchange - Getting 50 Pips Daily

Getting 50 pips daily? 1 pip on a typical lot is equivalent to $10. So making 50 pips on a daily basis means making $500 daily. Critical thing is how can you make 50 pips. The most effective strategy to make 50 pips daily is scalping. Scalping is a strategy that entails entering and exiting the marketplace quickly each time making 30-50 pips.

Scalping is done on shorter timeframes such as 5 minutes as well as 15 minutes. The most effective time for scalping is when their is low volatility in the market and it is moving sideways. When the market is moving sideways, its ranging and the price action is moving up and down between two almost horizontal lines called the support and resistance.

Support is that level where buyers believe the price is attractive so they enter into the marketplace in large numbers. When buyers enter into the marketplace in large numbers, prices start to rise since the demand is more than the supply within the market.

The prices rise till they reach the amount where the sellers start selling in large numbers as they consider that the prices have gone too high and that is the best time to sell. This massive selling in the market drives the prices down. Prices fall till they again hit the support level where buyers again start buying in large numbers thinking that this price is mostly a good buy.

So, that's the perfect time for scalping. You might buy on the support and sell at the resistance and in the process make pips. It will depend on the width of the range, how much pips it is possible to make. If the range is simply 10 pips, then simply don't trade it. Always, use a stop loss when you enter the market. This protects you from obtaining a big loss.

However, if the range are a few things like 30-50 pips, that's one of the best scaling opportunity. Just learn when to enter the marketplace and when to exit. Now, you may as well exploit a scalping robot to automate this process. There are a selection of very good scalping robots that do scalping at times of low volatility in the market and make in Forex 50 Pips daily.

Using this scalping robot will make the process automated for you and you won't need to sit in front of your laptop waiting for the price action to hit the support and then hit the resistance. Just make sure that the robot trades with a good stop loss and not a wide one.Read more in my Forex 50 Pips Review article.