Scalping is a trading strategy that aims to make quick and small profits from price movements in the financial markets. Scalpers typically open and close multiple positions throughout the trading day, sometimes holding positions for just a few seconds to a few minutes. The primary goal of scalping is to capitalize on short-term price fluctuations and take advantage of small price movements that occur frequently.
Scalping requires a high level of precision and quick decision-making, as traders need to react swiftly to market changes. This strategy relies on technical analysis, where traders use various indicators and chart patterns to identify potential entry and exit points. Common indicators used in scalping include moving averages, Bollinger Bands, and Relative Strength Index (RSI).
Scalpers often focus on liquid markets with tight spreads, as the cost of executing multiple trades can add up. Forex markets, for example, are popular among scalpers due to their high liquidity and availability for trading 24 hours a day. Similarly, some scalpers focus on stocks, cryptocurrencies, and futures contracts.
The choice of a timeframe is crucial for scalping. Traders typically use very short timeframes, such as 1-minute, 5-minute, or 15-minute charts, as they provide quick insights into price movements. This allows scalpers to identify rapid changes in market sentiment and act accordingly.
Scalping involves a high level of activity and requires intense focus. Traders need to manage their positions carefully, as even a small adverse price movement can result in losses. Risk management is paramount in scalping, and many scalpers use strict stop-loss orders to limit potential losses.
In summary, scalping is a fast-paced trading style that aims to profit from small price movements by executing multiple trades within a short timeframe. It requires quick decision-making, strong analytical skills, and the ability to manage risk effectively. This strategy is not suitable for all traders, as it demands a significant amount of time, attention, and a disciplined approach to trading.
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Performance fee : 10%
Absolute Gain | 20% |
Total Net Profit USC | 3496 USC |
Total Net Profit Pips | 2475 Pips |
Total Deposit | 17500 USC |
Total Withdraw | -21000 USC |
Total Trades | 1255 Trades |
Total Volume | 691.13 Lot |
Last recorded Balance | -4 USC |
Last recorded Equity | -4 USC |
Profit Factor | 1.07% |
Account Age | 515 day(s) |
Worst Equity Drawdown | 74% |
Worst Closed Trade DD | 100% |
Avg Profit/Day | 0% |
Avg Profit/Month | 0% |
Avg Win (Pips) | 25 Pips |
Avg Win (USC) | 58.97 USC |
Avg Loss (Pips) | -63 Pips |
Avg Loss (USC) | -144.15 USC |
Avg Trade (Pips) | 1 Pips |
Avg Trade (USC) | 2.79 USC |
Avg Trade Length | 1144 Minute(s) |
Last 7D Closed Trade | 0 trade(s) |
There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to lose, it is possible that you may lose more than your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss.
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