⬅️ It is a strategy in the financial market that aims to make small profits from quick and short price movements. The trader opens and closes many trades within a short period of time, such as minutes or even seconds, to take advantage of small price fluctuations. ✅ Goal: to make small and quick profits on each trade.
What is the best period for scalping trading🤔
⏰ 1-minute time frame: allows you to follow quick movements and repeat trades frequently. It is preferable to use a short-term EMA indicator such as EMA (5) and EMA (21) in this framework.
⏰ 5-minute time frame: It can be suitable if you want to get less frequent but more accurate signals. You can use EMA (5) and EMA (20) or EMA (9) and EMA (21).
⬅️Moving averages are analysis tools used to identify trends in financial markets.
They are simply the average prices of a financial instrument over a certain period of time that help show the general direction of the price
💡Examples of averages that can be used in your strategy: 📊 EMA (5): Allows you to capture rapid changes in trend and helps identify quick entry and exit opportunities.
📊 EMA (21) or EMA (20): Provides context around the most stable trend and helps confirm signals provided by EMA (5).
How do I set a stop loss and profit each trade well?
You need a risk management strategy Step 1: Set a stop loss - Do not risk more than 1-2% of your capital in a single trade. - Example: If your capital is $10,000, set a stop loss between $100-200.
2. Set a target profit: - Target a profit-to-loss ratio between 1:2 and 1:3. - Example: If your stop loss is $100, set a target profit between $200-300.
3. Use technical analysis: - Set support and resistance levels to accurately set your stop loss and target profit.
Most importantly - Set your stop loss below a strong support level to reduce the possibility of it being triggered by non-essential price movements. - Set your target profit at a strong resistance level.
With these steps, you manage risks effectively and increase your chances of achieving sustainable profits.