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Scalping is called one of the most popular trading systems that gives quick profits. This trading tactic in the financial markets is to make short-term trades for a profit of a few points. Positions are held for a matter of minutes and never remain open until the next trading session. Scalpers create dozens of orders during the day in order to get a good income in total.
Is scalping suitable for beginner traders?
Scalping strategies are attractive for several reasons. They allow you to make a profit within a couple of minutes after opening a transaction. The entry threshold for scalpers is low, it is not necessary to have a large initial deposit, and the initial capital itself grows noticeably with the successful use of the strategy already in the first days. To earn money, scalpers use assets with high volatility and liquidity, they can make a profit in any market trend.
Due to the large number of advantages, this trading system is attractive for beginners. But scalping for beginners can be too difficult. This trading system is characterized by a high psychological load. Traders have to constantly look for signals and profitable entry points to the market, closely monitor open orders and quickly respond to the slightest fluctuations in rates. This is a load on the nervous system, for which you need to be prepared. And scalpers practically do not leave the computers during the trading session.
Special scalping strategy There are no cryptocurrencies for beginners , but a novice trader can try this style of trading with the least stressful options. For example, a conservative type of scalping is holding trades for 15, 20 and even 30 minutes. This tactic reduces the amount of trades you can make per day, but it allows you to learn the method, gain experience, and get into the trade at a comfortable pace to improve later.
Pipsing is the most aggressive scalping option , trades are opened for only a few seconds, a maximum of one minute. Having chosen pipsing , the trader does not have the opportunity to follow the indicators, he has to act intuitively. This option is not suitable for beginners who do not yet know the intricacies of the market and cannot independently predict the course dynamics.
Exchange scalping tips for beginners
The best way to check if a trading system is right for you is to try it out in practice. Even if the first trades are unsuccessful, the scalper will not lose much, since this strategy involves opening trades for small amounts.
A few tips for beginner scalpers :
Transaction value. Each order must be paid, commission exchanges can take away half of the scalper’s profit . The more transactions, the more commissions you will have to pay. It is worthwhile to study the trading conditions on different exchanges in advance and choose the platform with the most profitable ones.
Trend trading. While scalpers can make money by trading with or against the trend, scalping for beginners on Binance or another exchange should start with trend trading . A novice scalper needs to learn how to determine the trend and its change, feel the market impulses to choose a good entry point.
Opening long positions. Novice traders feel more confident on the stock exchange when they open long positions (purchase of an asset in the hope of an increase in the rate and subsequent resale at a higher price). Short positions are riskier. Experienced traders balance between two directions.
Basic concepts of technical analysis. It is almost impossible to survive in the high frequency trading market without understanding technical analysis. Before trading, a beginner should learn at least the basics of this method.
scalping training program for beginners should include an analysis of the most common and profitable strategies, as well as mastering technical and fundamental analysis, working with charts, indicators and other tools. Crypto Traders Crew teach beginners scalping by order book , indicators, chart patterns and other strategies. We will help you master this system quickly and efficiently, so that in a few weeks you can successfully put it into practice.