#ScalpingStrategy Scalping is a high-frequency trading strategy where traders aim to profit from very small price changes, typically holding positions for seconds to minutes. Scalpers execute dozens or even hundreds of trades per day to accumulate small gains that add up over time.
Key Characteristics of Scalping
- **Short time frames**: 1-minute or 5-minute charts most common
Small profit targets: Often just a few pips or cents per trade
- High win rate: Typically 50-70% or higher
- Low risk-reward ratios: Often 1:1 or less
- High trading volume: Many trades per session
Risk Management Considerations
Position sizing: Keep small to manage many simultaneous trades
Stop-losses: Essential for every trade (typically 5-10 pips)
Time stops: Exit if trade doesn't move as expected within timeframe
Daily loss limits: Prevent emotional trading after losses.
Scalping requires discipline, quick reflexes, and an understanding of market microstructure. It's not suitable for all traders, but can be profitable for those with the right skills and temperament.
