Understanding Scalping Strategy

[shanmugapradeep]

Hello,

The scalping strategy involves opening trades with small take profit (TP) and stop loss (SL) levels and closing them within a few minutes, aiming to gain small profits per trade.

For example, let’s say I make a trade with TP of 1 pip and SL of 1 pip (equal risk), or TP of 1 pip and SL of 2 pips (higher risk), or TP of 2 pips and SL of 1 pip (higher profit).

What guarantees that the market will move in a favorable direction maximum time and hit TP instead of SL? How does this work, and why is scalping one of the most loved trading strategies among traders?

 

[Ethan.ishere]

You take the opportunity and use the gaps that show up in the market. It doesn't necessarily mean small profits as that all depends on the volume and leverage that you are going with. Regardless of all that it needs quick fingers and a sharp mind.

 

[Enivid]

I personally, don't scalp, but most scalpers I talked to don't use SL - they control the trade manually. There is no guarantee that the trade will hit TP before your SL, but if your scalping strategy has an edge, it should hit TP before SL often enough for you to remain profitable.

 

[Lee-me]

I think one needs great control over their mind and stress to go with this strat.

 

[Ara]

The scalping strategy involves opening trades with small take profit (TP) and stop loss (SL) levels and closing them within a few minutes, aiming to gain small profits per trade.

For example, let’s say I make a trade with TP of 1 pip and SL of 1 pip (equal risk), or TP of 1 pip and SL of 2 pips (higher risk), or TP of 2 pips and SL of 1 pip (higher profit).

What guarantees that the market will move in a favorable direction maximum time and hit TP instead of SL? How does this work, and why is scalping one of the most loved trading strategies among traders?

There are no guarantees in scalping that the market will consistently move in favor of hitting the TP over the SL. Actually, it has become more popular because it aims to capture small, frequent profits and requires quick, disciplined trading decisions.

 

[fargana]

Hello,

The scalping strategy involves opening trades with small take profit (TP) and stop loss (SL) levels and closing them within a few minutes, aiming to gain small profits per trade.

For example, let’s say I make a trade with TP of 1 pip and SL of 1 pip (equal risk), or TP of 1 pip and SL of 2 pips (higher risk), or TP of 2 pips and SL of 1 pip (higher profit).

What guarantees that the market will move in a favorable direction maximum time and hit TP instead of SL? How does this work, and why is scalping one of the most loved trading strategies among traders?

Nothing guarantees such outcome. This is the biggest issue of trading - no guarantees, complete uncertainty which can be barely quantitatively measured.

 

[jim_]

Scalping is a trading strategy used by forex traders to make quick and small profits from small price changes. Traders using the scalping strategy aim to enter and exit trades within a short period, usually seconds to minutes, to capitalize on small price movements. This strategy requires high focus, quick decision-making, and the ability to execute trades swiftly. Scalping is like trying to make many small wins throughout the day, rather than waiting for one big win. It's a fast-paced and active trading style that requires a lot of attention to the market. This is just for educational purposes.

 

[fargana]

Hello,

The scalping strategy involves opening trades with small take profit (TP) and stop loss (SL) levels and closing them within a few minutes, aiming to gain small profits per trade.

For example, let’s say I make a trade with TP of 1 pip and SL of 1 pip (equal risk), or TP of 1 pip and SL of 2 pips (higher risk), or TP of 2 pips and SL of 1 pip (higher profit).

What guarantees that the market will move in a favorable direction maximum time and hit TP instead of SL? How does this work, and why is scalping one of the most loved trading strategies among traders?

Scalping relies on the ability to exploit small price movements, with the assumption that frequent trades can accumulate significant profits over time. The strategy works best in highly liquid markets where price movements are relatively predictable and can be captured within short time frames. Scalpers often use technical indicators, such as moving averages or oscillators, to identify entry and exit points and benefit from quick market fluctuations.