Identifying your trading style and technique is a lot like molding your personal wardrobe. Some dress for utility and performance; others tend to keep a low profile by selecting comfort and convenience compared to those who enjoy staying on top of the latest trends.

When it comes to selecting a trading strategy, following your natural personality traits is key. In this case, we’re talking about the world of scalping. Much like fashion trends, scalping is always in a state of change.

What is Scalping?

Scalping is a method of trading that involves entering and exiting trade positions multiple times on a regular basis for small profits. The name of the game is to open and close a large number of trades in a day with the ultimate goal of turning small gains into a pool of profits.

What are the pros & cons?

Pros:

  • Positions are typically held for a short period of time making for a swift transaction. It’s clean and simple allowing a lower chance for the market to reverse.
  • Scalping is a simple entry strategy for new investors, as it requires little Forex knowledge due to the positions requiring less analysis and shorter time frames between 5-15 minutes.
  • Investors can utilize indicators to seek out movements on the fly.

    • Cons:

  • Pips or returns gained are typically smaller as there is less movement.
  • There are certain brokers that do not allow scalping on their platforms, so do check before opting into this strategy.
  • This strategy is one that requires a compilation of setups in a day to achieve financial goals.

    • What do I need to know to get started?

    While intimidating at the start, getting started in the world of scalp trading is fairly simple. Unlike technical trading strategies, this method does not require technical analysis or formal trading of the market.

    If you have the time to keep close watch on the market as well as open and close multiple trades in a day, you’ll be set. This style of trading is more reliant on personality and availability rather than having extensive knowledge of the market.

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