#ScalpingStrategy Scalping is a short-term trading strategy where traders aim to profit from small price movements, often holding positions for seconds to minutes. The goal is to accumulate numerous small gains that add up over time.
Key Features:
šTimeframe: Uses 1-minute or 5-minute charts.
š Volume & Liquidity: Works best in highly liquid markets (forex, indices, large-cap stocks).
šTight Spreads: Low spreads reduce transaction costs.
š°High Frequency: Multiple trades per day to maximize gains.
Common Techniques:
Breakout Scalping: Entering trades when price breaks key levels.
Market-Making: Profiting from bid-ask spreads.
News Scalping: Capitalizing on volatility after economic releases.
*Pros & Cons:
ā Quick profits, less overnight risk.
ā High stress, requires discipline, broker fees add up.
Scalping suits traders with fast reflexes, strong risk management, and low-latency execution. It demands focus but can be profitable with consistency.