Contents of this article:
Scalping in trading is a short-term trading strategy, which consists in making a small profit from a slight price movement. Each successful trade brings the trader a modest income, but scalpers open dozens of positions during the trading day, so in total they can make a good profit. To use the scalping strategy in trading , they choose assets with high volatility, the price of which is constantly changing.
TOP 3 skills of a successful scalper
scalping in trading especially popular in the cryptocurrency market and Forex , because they trade assets with high volatility. The task of the scalper is to quickly respond to price changes by opening and closing trades on time. Positions with this strategy are held for only a few minutes or even a few seconds. This approach allows you to make a profit quickly, but at the same time it is a difficult and energy-intensive strategy .
A successful trader who chooses scalping should have the following skills:
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Subsequence. Even before the start of trading, it is important to calculate the risks, think over an action plan in order to strictly adhere to it. Improvisation and action on emotions are risks for a trader’s deposit.
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Speed. You need to react to the price movement as quickly as possible, and for this you will have to concentrate on the trading process, not missing even the slightest fluctuations in the exchange rate.
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Ability to work with charts. Despite the short duration of the transaction and the minimum amount of time for analysis, charts and indicators should not be neglected.
With these skills, a trader should choose liquid assets with high volatility in order to use even a minimal price change to make a profit. Successfully mastered the strategy scalping in trading cryptocurrencies , you can get almost instant profit with low risks.
Advantages and disadvantages of scalping in trading
In simple words, scalping in trading is a type of market speculation, which consists in making a large number of transactions during one trading session and making a profit when the rate moves by several points. This strategy has many advantages, which is why it is popular among traders.
Pros:
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The sequence of actions and the speed of reaction pays off with high profits.
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Short positions for small amounts reduce risks, in case of an unsuccessfully closed transaction, losses are minimal.
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With the help of special tools, such as stop loss , the process can be automated.
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A large deposit is not required to enter the market, and the strategy itself allows you to quickly increase it.
Minuses:
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For each transaction, you need to pay a commission to the exchange. By choosing a site with high commissions, a trader risks spending a significant part of the profit on paying them.
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To achieve success, scalpers have to spend a lot of time on the exchange, consistently opening dozens of positions per day.
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It can be difficult for beginners to quickly react to price changes, and the scalping process itself is often exhausting.
What you need to do to start making money on scalping cryptocurrencies from scratch?
Like most trading strategies , scalping is a set of rules that must be strictly followed in order to succeed. If you’re just starting out, don’t be afraid to try and fail. A few rules will help you master the strategy and start trading cryptocurrency effectively:
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Select an asset and currency pairs with high liquidity in advance.
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Decide on the trading platform, study the trading conditions and commissions.
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Use bots. In simple words, scalping in trading is the quick conclusion of short-term transactions, the more of them, the higher the profit. Special programs help to increase the speed of trading , and with it the chances of success.
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Try different types of scalping , they differ in the duration of holding transactions, the indicators used and other parameters.
Get training in scalping in trading at Crypto Crew to effectively use the popular strategy! Our traders will help you learn the necessary skills for profitable trading on the stock exchange. We have created a course not only for beginners, but also for experienced traders who want to improve their trading strategy and earn more.
Author: admin_cryptocrew
