What is Scalping?

Among all the different types of trading strategies, scalping is very aggressive and a very short time frame related trading in the share market. Scalpers are basically the traders that enters into the market and then exit the market very quickly in order to gain profits leveraging them with large quantities and large number of traders over the course of a trading day.

How Does Scalping Work?

In this trading style, a trader look for both buying and short selling opportunities. Our primary focus is to find highly liquid securities with frequent price fluctuations throughout the day. Moreover, scalping cannot be performed if the securities are not liquidated. Liquidity also provides the best price when entering or exiting the market.

For scalpers, making nitty-gritty deals is easier and reduces the risk associated with volatility. In other styles of trading, investors and traders hold positions overnight, or for weeks, waiting and hoping for a huge profit size to appear. Scalp trading is on the other end of the scale and learn how to perform scalping trading. You can learn it from the courses like stock market course for beginners.

Benefits of Scalping trading

1. It is possible to eliminate the possibility of being caught in reversals.

2. Become a successful Scalper, and you will have a trade win ratio of over 80%.

3. Most Scalping trades involve low investment and fewer returns, so you don't need a massive trading capital.

4. Knowledge is the power that will guide you forever, as we discussed previously. It's like playing the hardest level of a game. If you harness it, you can do anything.

Disadvantages of Scalping Trading

1. Those who have traded for a long time tend to prefer scalping trading since it requires a lot of experience.

2. A scalper can be confused by multiple trades at the same time.

3. In scalping trading, traders can make small profits on a single trade, so they must increase their trade volume, which can lead to overtrading.

If you want to know about other trading strategies like Positional trade, BTST, STBT

Conclusion:

Because it primarily relies on technical analysis, scalping trading is preferred by only experienced traders. Managing multiple deals in a day and earning maximum profits requires dedication, sharp thinking, and careful entry & exit strategies. This trading requires on-the-spot decisions, and if you take too long to look for the right asset, you will have a hard time earning profits. But if you know the right strategies and have skills then no doubt you can perform better while trading in this style.

My name is Anubhav and i write articles on multiple topics. Thanks for showing support.