Scalping is a type of trading strategy that the main objective for the trader is to capture some quick profits in a trade. Normally profit can vary from 5 – 10 pips per trade, which personally it is quite little. But if it is done repeatedly a couple of times by carrying a number of successful trades, the pips sum up to a respectful amount per day. The intention of the scalping trader is to leave the trade open for few minutes for quick profits. Stop losses are also set tight. Mostly used charts are the 1 and / or 5 minutes time frames. Speed, quick thinking and no room for errors are desired skills needed by a trader to scalp the market. Furthermore, scalping traders use high leverage and trade with more than 0.5 lots. Two or three good trades even of 5 pips are enough for the day.
Tip – Brokers
Some brokers do not like the idea of opening a trade for less than a minute. If you scalp the market repeatedly you will get banned by the broker. So it is wise to check with your broker whether scalpers are welcomed.
Also professional traders do not think that scalping is the way to make money in the market. If you think that scalping fits your trading style and personality, just go for it and make sure to find a reliable broker with tight spread!
Tip – Brokers
Some brokers do not like the idea of opening a trade for less than a minute. If you scalp the market repeatedly you will get banned by the broker. So it is wise to check with your broker whether scalpers are welcomed.
Also professional traders do not think that scalping is the way to make money in the market. If you think that scalping fits your trading style and personality, just go for it and make sure to find a reliable broker with tight spread!
