Scalping is a high-speed trading strategy that requires precision, discipline, and the right focus.

1. Use a Trailing Stop Loss

The cryptocurrency market moves fast, and one of the biggest mistakes new scalpers make is not securing profits. A trailing stop loss secures profits while allowing the trade to continue if the price moves in your favor. This way, you avoid significant losses while keeping your profits safe.

2. Enter Immediately

Scalping is all about speed! When a scalp signal appears, you need to enter immediately; hesitation can cost you a profitable trade. Scalping works best when you capitalize on momentum, so set up your trading interface in advance and be ready to execute trades at lightning speed.

3. Take Quick Profits

Unlike swing or position trading, scalping is about making small, consistent gains. Set your take profit (TP) levels realistically: 5%, 10%, or even less. Greed kills scalp trades! Secure small victories and move on to the next opportunity.

4. Use Less Margin – Only 5% of Your Total Portfolio

Risk management is key. Never over-leverage your account; use only 5% of your total portfolio per trade. This way, even if a trade goes wrong, you will still have capital available for the next opportunity. Overtrading with high leverage is a recipe for disaster.

5. Make Multiple Trades

Instead of betting everything on a single trade, make multiple scalp trades. Diversifying your entries across different setups increases your chances of making profits while spreading the risk. Scalping is a game of probabilities; the higher the quality of the setups you trade, the better your overall returns.

6. Use DCA (Dollar-Cost Averaging) Wisely

Sometimes, the market does not move in your favor immediately. That’s where DCA (dollar-cost averaging) comes in. By adding to your position at key support levels, you reduce your average entry price and increase your chances of exiting with profits. However, DCA should be used with caution; only for strong setups where you have confidence in the price recovery. Avoid excessive DCA, as it can lead to unnecessary risks.

Scalping is about discipline, execution, and smart risk management. Together we learn more!