Does scalp trading work?

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.

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