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Scalping is a short-term trading strategy that focuses on making multiple small profits throughout the trading day by exploiting tiny price fluctuations. Unlike long-term investing or even swing trading, scalping involves holding a position for just a few seconds to a few minutes. Traders who use this technique are called scalpers.
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SCALP TRADING Scalping is a short-term trading strategy that focuses on making multiple small profits throughout the trading day by exploiting tiny price fluctuations. Unlike long-term investing or even swing trading, scalping involves holding a position for just a few seconds to a few minutes. Traders who use this technique are called scalpers.
CORE CONCEPT The idea behind scalping is to “scalp” small profits repeatedly. Since these gains are minimal — often just a few paise or cents per trade — the trader typically executes dozens or even hundreds of trades in a single day to accumulate a significant profit. This strategy requires a strict exit plan because even a small loss can wipe out many profitable trades.
HOW DOES SCALPING WORK? Scalping involves reacting quickly to short-term opportunities. A scalper aims to enter a position when the probability of a favorable price move is high, and exit with a small profit before the price has a chance to reverse.
TIME FRAME Scalping involves making dozens—or even hundreds—of trades within a single day. Each trade typically lasts just a few seconds to a few minutes. Scalpers aim to exploit very small price gaps or inefficiencies. Day trading, on the other hand, involves holding positions for several minutes to several hours but always closing them before the market closes.
TRADE FREQUENCY Scalping is high-frequency trading. Scalpers often execute 50 to 100 trades per day. Their goal is quantity—gaining small profits repeatedly. Day trading focuses on quality. Traders wait for higher-probability setups and may only take a few trades each day, typically relying on strong patterns or economic news.
PROFIT PER TRADE Scalpers make very small profits per trade, usually less than 1%. They rely on a high win rate and strict discipline to make these small profits add up.
CONCLUSION Both scalping and day trading offer opportunities for intraday profits, but they require different skill sets and mindsets. Scalping suits traders who are fast, disciplined, and comfortable with constant screen time. Day trading is better for those who prefer slightly longer analysis and can wait for more significant intraday trends. Choosing between them depends on your personality, risk tolerance, and trading goals.
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