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Does scalp trading work?

7/7/2021

Experienced traders often use scalping as a complementary trading strategy. They buy and sell several times a day to make a small profit each time.

For some traders scalping works and for others it does not.

It is no surprise that many traders, especially beginners, find scalping confusing.

In layman's terms, scalping is a trading technique in which a trader (scalper) often trades in small sequences in hopes of earning on small price changes.

Whether this trading style works for you depends on your ability to find liquid markets that offer consistent intraday price changes. You cannot scalp if the underlying asset is not liquid.

There are some principles that the scalper lives by:

Small movements occur frequently, even when the market is quiet. A scalper can take advantage of this.
Small movements are easier to trade because a larger profit requires a significant supply and demand imbalance for the price to rise. In comparison, small price moves are much easier to catch.
A shorter exposure limits the risks as it lowers the chances of suffering a larger loss.

As you can see, scalping is basically a simple thing.

But the real advantage of a scalper is the frequency with which you can make these short trades.

What works once can work multiple times.

A big profit in scalping does not come from a single trade, but from many short trades one after the other.

For some scalpers this means 10 scalps a day. For others 100.

It is important to find out what works for you.

Therefore, learn scalping from someone who specializes in it.

Free Scalping Workshop

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Which is better: trading bots or trading yourself?

7/6/2021

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One way to make trading easier is to use so-called trading bots. They are essentially pre-programmed software that automate the entire trading process.

Compared to humans, bots are more efficient. They are also faster.

The trading bot software, also called Expert Advisor, follows a set of instructions to execute trades. This way, you eliminate emotions like greed and fear from your trading experience.

Making money while you sleep, in other words....

But!

Anyone who wants to profit from the market with a trading bot should first make sure that it is a proven and tested product. Scammers like to take advantage of unsuspecting buyers who end up buying a dud.

If you trade as a trader yourself, you have to have your own ideas. You have to make the decision yourself whether to trade or not, and when to exit the trade.

Certainly, if I let a bot trade or scalp for me, I save myself time. Also, my emotions are out of the picture.

But that also means I have to trust my robot 100%.

Can you do that?

Even after five or seven losing trades?

There are no guaranteed profits in trading. Neither if you do it yourself, nor if you let a software trade for you.

My main argument against robots is that you learn a lot about statistics but little about the trading process itself.

And that experience is what matters.

Your learning curve gets shorter the more experience you gain.

Because the best teacher is yourself: namely, the analysis of your losing trades.

You learn the most from your losses.

If you leave it to a bot, it will learn nothing. It will continue to trade according to the parameters it was created with.

Trading robots seem to be the solution for some traders. But basically, with them you bypass the learning process that every trader has to go through.

And you don't want to give up that, do you?

Free Scalping Workshop

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Is scalping illegal?

7/5/2021

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Scalping is perfectly legal in any country, although some brokers do not allow it.

To date, no regulatory body has said that scalping is an illegal way to make money from financial trading.

Scalpers can make substantial profits in a short period of time, which causes a loss for some brokers, which is why they do not allow it.

Some brokers themselves act as liquidity providers. Those brokers do not like successful scalpers because they cause them to lose money.

On the other hand, some brokers allow scalping but make the trading environment unfavorable for scalpers. The scalper then gets high spreads (difference between buy and sell price) and often poor execution (slippage). This confuses some traders, and they begin to believe that scalping is illegal.
The fact is that scalping is simply a trading method like any other method, followed by both private and institutional traders.

Some traders consider scalping as their primary trading method.

Whatever opinion one holds of scalping, it is one of the most profitable strategies in financial trading for which there are no regulatory obligations.

So, if you want to start scalping, you should find a broker that allows or even favors it.

Those brokers do exist.

Free Scalping Workshop

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Does scalp trading work?

Which is better: trading bots or trading yourself?

Is scalping illegal?

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