Stock exchange scalping

Stock exchange scalping

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Wanting to make money quickly, traders use scalping – this is one of the most profitable trading strategies that brings income as quickly as possible. Together with that Scalping on the stock exchange is not an easy way to make money, especially for beginners. After all, it involves opening a large number of positions, making transactions quickly, within a few seconds or minutes, in order to profit from the slightest fluctuations in the exchange rate. Let’s talk about what is scalping on the stock exchange , how it happens.

What do scalpers trade?

You can successfully earn on exchange rate fluctuations only if you choose an asset with high volatility and liquidity. High liquidity suggests that the asset can be easily and quickly sold at the first need. Scalping is suitable for trading various assets:

  • cryptocurrency ;

  • stock;

  • precious metals;

  • currency pairs;

  • indices;

  • futures.

In addition to cryptocurrencies, securities are a popular asset among scalpers . Often it is with this asset that traders start trading on the stock exchange. Scalping on the stock exchange is common not only among professional traders, but also among beginners.

Stock exchange scalping trading strategies involve the use of real-time technical analysis. The essence of the strategy is to get a small but frequent profit, which is only a fraction of a percent. In this case, it is not the amount of the transaction that allows you to get a good income, but the frequency of opening positions – the more small transactions, the higher the trader’s earnings.

Types of scalping on the stock exchange

Studying the basics of scalping on the stock exchange , a beginner should understand the types of this style of trading. There are several of them:

  • Pulse. When an impulse appears, which can be any news that affects the course, or another phenomenon that changes the price, the scalper enters into a deal. The task of a trader is to buy an asset cheaper and sell it at the peak of its value.

  • Glass. Analyzing the number of orders in the order book, the scalper can predict in which direction the rate will move, determine a profitable entry point to the market.

  • Hybrid. It combines the two previous types. A trader can take the best of the two methods, using the data obtained for a more detailed analysis. But this method requires more time, so the number of trades opened per trading session decreases.

According to the speed of the transaction, scalping on the exchange is also divided into several types:

  • Pipsovka . The position is held for up to one minute.

  • Medium term. The position is open within 5-10 minutes.

  • Conservative. The transaction may take up to 30 minutes.

Pros and cons of scalping on the stock exchange

In crypto trading Scalping on the stock exchange is an aggressive way to earn money, as it forces the trader to open the maximum possible number of transactions during the trading day. Despite the complexity, it has many advantages:

  • A small amount of investments, you can start trading with a small deposit. Trading with a small deposit will not bring a lot of income, but it will allow you to master the strategy, practice with minimal risks.

  • Fast result. Having understood the strategy in detail, the trader will see a positive result in the first days of trading on the stock exchange. And having learned to choose the right entry points to the market, he will quickly increase the initial deposit.

  • Low risk. Small trades – small losses in case of failure.

The disadvantages of scalping include commissions that you have to pay for each trade, and scalpers open dozens of trades daily. It is worth choosing an exchange with low commissions, as well as using trading bots to increase the number of successful transactions. Another disadvantage is the need to spend a lot of time on the exchange, tracking any changes in the rate. The trader will have to concentrate on trading, learn how to react quickly, and analyze the state of the market using charts and indicators.

You can learn more about scalping on the stock exchange on the Crypto course. Crew . Our team teaches beginners how to earn on crypto effectively and with minimal risk in various ways, using the best trading strategies. Take stock exchange scalping training individually or in a group at an affordable price!