There are a lot of people who look at trading on the forex market. If you are one of these people then you have to consider the type of currency trading you are going to do. Short-term trading is ideal for a lot of people. There are many different short-term trading strategies and you have to consider which ones are right for your personality and currency trading. Scalping and guerrilla trading are two of the extreme short-term strategies that you can consider. Before you use them you should consider what the differences and similarities are.
Is Scalping and Guerrilla Currency Trading the Same?
There are many traders who feel that scalping and guerrilla trading is the same. This is due to the number of characteristics that are similar. Both of these trading strategies are extreme short-term strategies and they both offer very small profits per trade. However, to get a better idea of how they are different and the same you should compare the characteristics of the two trading strategies.
Scalping and guerrilla trading are both short-term trading strategies that hold a position for less than 5 minutes. However, the average timeframe for a guerrilla trade is generally shorter than the scalping trade. There are some scalpers who hold a position for more than 5 minutes in order to make their target pip profits.
Both of these strategies are not right for everyone. There are a lot of traders who do not feel comfortable with the short timeframes you need to use. These timeframes do increase the stress of trading and make a very fast-paced market.
The Profits You Make
Scalping and guerrilla trading are going to make you very small profits per trade. With scalping most traders are looking to make 20 pips on a single trade. With guerrilla trading you are looking to make 5 to 10 pips on a single trade. There are some scalpers who look at the small pip profits of guerrilla trading. These traders are generally more guerrilla traders than scalpers, but some only know about the scalping designation of their trading.
The Number of Trades
As you are making a small amount of profit per trade you will need to complete more trades. The numbers for guerrilla traders are generally higher than the numbers for scalpers. This is due to the smaller profits that the guerrilla trader is making. There are a number of issues that come from the number of trades that you are going to be completing.
There are a lot of traders who fall into overtrading when they use these strategies. This is easy to do because of the high volume of trades that need to be completed. It is also harder to determine whether you are overtrading or not when you use these strategies.
The Analysis Type
When you look at analysis with these strategies you will find that they are almost identical. Most scalpers and guerrilla traders will use technical analysis as their primary analysis method. However, it is possible to take advantage of the fundamental movements with both of these strategies.