Scalping trading is a day trading strategy that consists of harvesting quick
and tiny gains on the lower time frames (from one-minute to fifteen-minute
period). Though, it sounds easy, only a few traders succeed in scalping
trading or become profitable scalpers.
What It Takes To Become a Superior Scalper
To get the best out of scalping, one ought to adopt a disciplined
trading style. This involves:
Image = a stock chart highlighting a scalping trading
A/ trading only financial instruments one thoroughly understands,
B/ only deploying tested and validated trading methods,
C/ putting in place rigorous money and risk management in place,
D/ trading only during the most favorable periods when financial
markets are liquid,
E/ staying away from any illiquid financial instruments,
F/ securing minimum profit targets,
G/ using a standardized or specific stop loss,
H/ avidly harvesting profit and cutting losses,
I/ and going into the minds of HFT traders.
Obsolete Old Ways Of Scalping Trading
Numerous scalpers still utilize obsolete scalping trading strategies.
Though these methods may work some days, they often fail to deliver
consistent profit in long term. Here are few examples.
Example 1
Buy each time a momentum oscillator (such as the stochastic, RSI or
CCI oscillators) becomes oversold, but sell each time they turn overbought.
Example 2
Buy all bullish moving averages crossovers, and sell all bearish crossovers.
Example 3
Buy when MACD crosses above the signal or zero line, and sell when the
indicator becomes bearish.
Example 4
Sell each time the price is at the upper band of the Bollinger Bands or Keltner
channel, but buy as soon as it reaches the lower band.
Example 5
Buy or sell each time a financial instrument reaches either a Fibonacci
retracement or extensions levels.
Example 6
Buy each time there is a bullish divergence and sell where there is a bearish
Warning: examples one to six illustrate few scalping trading strategies
that require more effort. They may be successful few times, but they are not
recommendable to those who want to scalp trade like a pro.
Watch the playlist about scalping method
for desperate traders
Title: Scalping Trading Strategies For Desperate Traders
Description: Scalping Trading Strategies For Desperate Traders Playlist is a
trading video playlist that shows scalpers how to trade scalping on the
fifteen-minute chart using both trend lines and market geometry to pinpoint
buy or sell trading signals along a bullish or bearish trend line.
Watch, rate and share this scalping video tutorial playlist today.
How To Enhance Scalping Trading?
Apart from the things mentioned before, one can easily improve scalping
trading by executing one of the following:
1/ trade the price action instead of the technical indicators,
2/ use of a top-down trading approach in all scalping strategies,
3/ concentrate only on bullish short term signals on the lower time frames
when the medium term trend is bullish,
4/ and focus only on bearish short term signals on the lower time frames
when the medium term trend is bearish.
Watch the playlist
Title: Scalping Trading How To
Description: "Scalping Trading how to" video playlist teaches active scalpers
and those who are willing to scalp the best scalping trading strategies that
do not violate the basic market principle. One will learn and master scalping
like a pro, and above all begin to adopt the mindset of a professional scalper.
Scalping trading is a day trading strategy that consists of harvesting quick
and tiny gains on the lower time frames (from one-minute to fifteen-minute
period).
Though, it sounds easy, only a few traders succeed in scalping trading or
become profitable scalpers. Now it is possible to start applying scalping
trading how-to. Watch, rate and share this playlist tutorial today.
Explanation Of Scalping Trading Theory
A scalper is beforehand a short term trader. Therefore, if either the medium
or both medium and long term market environment remains bearish, he or
she will prioritize bearish scalping trading signals.
In contrast, if either the medium or both medium and long term market
environment remains bullish he or she will prioritize bullish scalping trading
signals.
One should always think about a scalper as the devoted builders at the
base whose assignment consists of laying the first bricks of a bullish or
bearish trend on the lower time frames.
Check out How To Scalp Trading Like A Pro Part 1
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