#ScalpingStrategy

🏎️ How A Scalping Trading Strategy Works 🏎️

Scalping requires a trader to closely monitor the trading station. This is because a trader is essentially required to open/close a large number of positions to make scalping profitable.

Charting time frames also play a critical role in determining when to enter and exit trades. Forex scalpers tend to focus on 1-minute or 5-minute price charts. It’s very rare that a scalper will monitor charting time frames that are longer than 15 minutes.

Most scalping techniques aim to identify extreme moves in price action. Once identified, scalpers take a position in the same direction or in the opposing direction. In order to make scalping works, this type of trader usually opens at least five trades per day. Ultimately, scalpers will hope that multiple positions each day and rely on substantial position sizes in order to drive profitability. This is because traders are only able to capture small moves in the market.

🧊Advantage of Scalping🧊

There are numerous advantages of scalp trading. First, traders are less exposed to trend reversals. Some financial assets tend to trend in one direction and then head in another.

Secondly, the win rate – a percentage of successful trades – will very likely be higher. More experienced traders advice to target a win rate of at least 80% to make scalping work.

Another benefit of scalping is that a trader does not need to know much about the asset in question. Unlike long-term traders who rely on fundamental information, scalpers’ focus is more on technical analysis. 🌪️🌪️