What is Scalping?

Scalp trading, also known as scalping, is a popular trading strategy characterised by super short time periods between the opening and closing of a trade.

It is like the thrillers that are full of action and keep you on the edge of your seat the full time.

It’s exciting, fast-paced, and mind-rattling, all at once.

The main objective of the scalping strategy is to grab very small amounts of pips as many times as they can throughout the busiest times of the day.

Scalpers only hold onto their trades a few seconds, or at most a few minutes.

Fun Fact: The name ’Scalping’ is derived from the way its goals are achieved. Traders can literally place up to a few hundred trades in a single day trying to “scalp” lots of small profits from a huge number of trades.

Because scalpers have to be glued to the charts, it is best suited for people who can dedicate hours of undivided attention to their trading. It requires focus and quick thinking in order to be successful. Not everyone can handle such fast and demanding trading.

Scalping is not for those looking to make big wins all the time, but rather for those who like raking in small profits over the long run to make an overall profit.

You might be a forex scalper if:

• You like a fast-paced environment and excitement.
• You are a fast thinker with fast fingers.
• You are impatient and don’t want to wait for long trades.

You might not be a forex scalper if:

• You get easily stressed in a fast-paced environment.
• You like to take your time to analyse the overall market before placing a trade.
• You’d rather place fewer trades with higher profit gains.