Monday, March 2, 2015

Scalping Trading Strategy

Scalping: traders must have the very strict rules of S.O.P

Scalping is a quick way for a trader to make profit with little price movement. The position taken in large amounts but quickly closed when gaining some profit. The practice of scalping as trading methods as well. It is also exposed to the risk of loss. It requires a trader to have a strict exit strategy because one large loss could eliminate the many small gains that the trader has worked to obtain.
A pure scalper will make a number of trades a day, between five and 10 to hundreds. A scalper will mostly utilize one-minute charts since the time frame is small and he or she needs to see the setups as they shape up as close to real time as possible. Instant execution of orders is crucial to a scalper, so a right strategy and method of trading scalping is the preferred weapon of choice.

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