Which one do you like scalping PAMM trader, day PAMM trader, swing PAMM trader, position PAMM trader or mechanical PAMM trader. Check this out carefully from this explanation.
There are many ways to Rome. To become a succesful PAMM manager or PAMM trader, it is very important to understand your own type. Have you known what type of trader suits on you? You need no worry if your friend or your mentor has a different type with you. When a particular type of trading suits on you, it makes you happy. But you have to make practices and sharp your ability day by day so it will be your strenght and you become an expert of it. Thus, you must be succeed to be one of PAMM traders that listed in the PAMM Account Rating.
Now, we will discuss about the scalping type traders. Traders with this type, are they who would only make transactions in a fiew seconds until a fiew minutes and they would take profit for only a fiew pip. They may make some transactions a day and their principle is making profit little by litte until it becomes a hill.
This kind of traders need a high consentration and an ability to stay focus on graphic for couple hours and request a fast thinking ability and skill for trading. If you feel under pressured to stay focus in front of a PC monitor, this type will not suit on you.
There are some notes to be done by this scalping type of PAMM trader in order to accomplish this forex transaction. They are :
Since this type of traders only take a very small profit, they have to select spread or the very small difference between selling and buying prices of the paired currencies traded. Commonly they only focus on the transactions in major pair, which is usually in USD such as EUR/USD, USD/JPY, or GBP/USD. Transactions in major pair are usually done among those currencies traded the most and have a very high liquidity. No wonder if they have a very small spread. For example, a particular trader takes only 5 pips as his profit, so with that spread he’s not allowed to jump over than 5 pips. Even a EUR/USD transaction applies only 0,1 pip until 1 pip.
A small profit will be beaten by the wild forex movement and the very volatile pips . It is usually happened when there is a news related to particular paired currencies traded. This case must be avoided by the scalper type of PAMM trader, moreover if the news is significantly impact the particular pair. But, they still need a quiet significant and continuous movement. That is why they usually choose rush hours in the forex market since there are enough volume within those hours. The overlapping session between Asian and European time and also European and American time are the very good chances for scalping traders.
Since these traders only receive small profit, they make transactions in a quiet big volume. That is why they need a quiet high leverage.
Happy trading in PAMM system !