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Among the many trading strategies, one of the most popular and profitable is scalping . This is a high-frequency type of trading , for the successful use of which it is important to be able to quickly respond to course changes and make decisions instantly. Let’s tell in simple words what is scalping in trading , and what a beginner should know about it.
What is scalping in trading?
Scalping on a crypto exchange is intraday trading , the essence of which is to make a large number of short-term transactions to profit from minor changes in the asset’s rate. Professional scalpers open positions for a few minutes, sometimes for a few seconds, and close the trade after reaching a profit of just a few points. One successful trade brings a barely perceptible income, but the total daily profit is important for scalpers .
What is scalping :
transactions, the duration of which is on average from 1 to 5 minutes;
earnings on one transaction in several points;
trading in one click and the almost complete absence of stops ;
the maximum possible number of transactions within a trading day;
closing all positions at the end of the trading session;
The key to the success of a scalper is the ability to choose the right moment to open a trade. To earn money, traders choose assets with high volatility.
How does scalping help increase profits?
Having learned what scalping is on the stock exchange , beginners are in a hurry to try this type of trading . It is quite complicated, because transactions are held for only a few minutes, the time for analysis and decision making is minimal. Success in scalping is achieved by those who can concentrate on the trading process. At the same time, this is a good strategy for beginners, it helps to gain experience and understand how trading on the stock exchange works. And due to the fact that scalpers open positions for small amounts, potential losses are low, the main thing is to stop in time.
What is scalping in cryptocurrency for a professional trader:
Fast result. A high-frequency trader helps to earn faster, in just a few minutes the player makes a profit, albeit a small one.
Effective trading on fundamental analysis. While other exchange players study statistics and create pending orders, trying to guess the direction of the trend, scalpers earn on the smallest price fluctuations.
Profit with any trend. Having understood the strategy, an experienced scalper makes a profit with any movement of the course.
Important! It is not necessary to have a large deposit to start. The high speed of closing transactions allows you to quickly increase the deposit, thereby increasing the potential profit.
What tools are needed to use scalping strategies?
Know what scalping is cryptocurrencies are not enough to start making money successfully on it. A trader should study technical analysis, which allows you to predict the price movement. Technical analysis is a complex consisting of a variety of charts, such as candlestick and line charts, trend lines, chart patterns, and other tools. Having mastered all this, it is easier for a trader to form an optimal trading strategy for himself.
To assess the state of the market, it is worth studying cluster analysis. This type of analysis helps you filter trades, choosing the most profitable positions for yourself.
important tools for scalpers . These are algorithms that allow you to catch a signal, choose the best time to enter the market and make a profit.
to understand what scalping is , having studied only the theory. Only on their own experience a trader can 100% understand the essence of this strategy, develop a comfortable trading pace for himself . And the listed tools will help him trade more efficiently, reducing risks.
Learn more about scalping cryptocurrencies on the exchange , you can on the Crypto course Crew . Our traders will help you master this style of trading and introduce you to other popular strategies, teach you how to profitably invest in digital assets and earn money on your own by managing risks.