#ScalpingStrategy Core Principles of Scalping:

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Market Pullback: Definition and Strat...

Small Profits, High Volume: Scalpers target tiny price differentials, often just a few pips (in forex) or cents (in stocks) per trade. They compensate for these small profits by executing a large number of trades.

Short Holding Periods: Positions are held for an extremely short duration, from a few seconds to a few minutes. This minimizes exposure to market risk and large adverse price movements.

Emphasis on Liquidity: Scalpers rely heavily on highly liquid markets to ensure quick entry and exit without significant price slippage. Major currency pairs, high-volume stocks, and popular cryptocurrencies are common choices.

Tight Spreads: Low transaction costs are crucial for scalpers, as their profit margins per trade are thin. They look for instruments with narrow bid-ask spreads.

Fast Execution: Speed is paramount. Scalpers often use direct market access (DMA) and low-latency trading platforms to execute trades as quickly as possible