Scalping is a trading strategy designed to profit from small price movement, with profits on these trades taken quickly and once a trade has become profitable. All strategy of trading require discipline, but because the number of trades is so large, and the profit  from each individual trade so small, a scalper must have a rigid adherence to their trading system, avoiding one big loss that could wipe out successful trades.
Scalpers will take many small profits, and not run any winners, in order to seize gains as and when they appear. The aim is for a successful trading strategy through the large number of winners, rather than a few successful trades with large winning sizes.
Scalping relies on the idea of lower exposure, since the actual time in the market on each trade is small, reducing the risk of an adverse event causing a big move. It takes the view that small moves are easier to get than larger ones, and that small moves are more frequent than large one
Best scalping strategies
- PARABOLIC SAR INDICATOR STRATEGY
- MOVING AVERAGE STRATEGY
- STOCHASTIC OSCILATOR STRATEGY
What you need to know before scalping
Scalping requires discipline, and it is also very demanding in terms of time. Scalping require a trader’s full attention. Unlike longer time frame trading that can be monitored from a distance.
Quickly, a trader must stay put to his platform. For individuals with day jobs and other activities, scalping is not an ideal strategy. Instead, longer-term trades with bigger profit targets are more suitable.
Scalping is a difficult strategy to use successfully. One of the primary reasons is that it requires many trades over short time. Research on this subject shows that more frequently, traders merely lose money more quickly, and have a negative curve. Most traders would find more success, reduce their time commitments to trading, and reduced stress, by looking for long-term trades and avoid scalping
Scalping requires quick responses to market movements and an ability to forgo a trade if the exact moment is gone. Pursuing trades, along with a lack of stop loss discipline, are the key reasons that scalpers are often unsuccessful. The idea of only being in the market for a short period of time sounds attractive, but the chance of being stopped out on a sudden move that quickly reverses is high.
Trading rewards patience and discipline. While those individual successful in scalping do demonstrate these qualities, there are a small number them with scalping quality. Most traders are better off with a longer-term frame trading
.