#TradingTypes101

Scalping is a short-term trading strategy that relies on executing a large number of trades in a single day with the aim of achieving small, repetitive profits from minor price movements. This is commonly used in highly liquid markets such as forex, stocks, or cryptocurrencies.

Advantages:

• Achieving quick and repetitive profits.

• Reducing exposure to long-term risks.

• Ability to trade even in quiet markets.

Disadvantages:

• Requires a lot of time and high concentration.

• Commission or spread costs can eat into profits.

• Psychological pressure or anxiety and mental fatigue are significant.

• Requires fast execution of trades (often using powerful platforms and possibly trading bots).