Scalping
Quick trades. Seconds to minutes. Small targets, high frequency.
Scalping is the fastest strategy. Enter, grab profit, exit. Repeat.
What Is Scalping?
| Aspect | Value |
|---|---|
| Holding period | Seconds to minutes |
| Targets | 1-10 ticks/pips |
| Frequency | 10-100+ trades/day |
| Stress | High |
| Focus | Speed, execution |
Best Markets for Scalping
| Market | Why |
|---|---|
| Forex majors | High liquidity, tight spreads |
| Futures (ES, NQ) | High volume, tight spreads |
| Crypto | 24/7, volatile |
Scalping Setup
1. Price Action Scalp
- Watch price action at levels
- Enter on candlestick signal
- Small stop, quick exit
2. Order Block Scalp
- Identify order blocks
- Wait for retest
- Quick entry
3. Trend Line Scalp
- Draw trend lines
- Enter on touch
- Quick profit
Entry Rules
Criteria:
☐ Chart set (M1/M5)
☐ Level identified
☐ Signal formed
☐ Entry trigger ready
Risk Rules
| Rule | Value |
|---|---|
| Max risk per trade | 0.25-0.5% |
| Max daily loss | 2-3% |
| Max trades/day | 20-50 |
Scalping Checklist
☐ Tight spreads
☐ Liquid market
☐ Level ready
☐ Entry signal
☐ Quick exit plan
Common Mistakes
1. Holding Too Long
Problem: “Let me make more.”
Result: Turn into loss.
Fix: Take profit as planned.
2. Wide Stops
Problem: Larger stop = larger losses.
Fix: Tight stops, small targets.
3. Low Liquidity
Problem: Slippage on entries/exits.
Fix: Trade liquid hours only.
Key Takeaways
- Small targets — Quick in, quick out
- Tight stops — Limit risk
- High frequency — Many trades
- High stress — Not for everyone
- Liquid markets — Essential
Related
day-trading.md >>>
automation.md >>>
Fast in. Fast out.