Scalp Trading Methods
Scalping is one of the most popular day trading strategies. It involves selling a security almost immediately after a profitable return is possible. Day traders utilizing this strategy execute the buy and sell of a trade in minutes or even seconds.
Pros of Scalp Trading
- Using this strategy, you are looking for minimal data from the market.
- With stop losses being very tight, scalping can sometimes curb large losses.
Cons of Scalp Trading
- Requires a large amount of focus (at times a full day’s), which can make the trading day a tense and anxious situation.
Since gains are not always large ones, traders can become restless, leading to ill-informed risks.
(Day Trading Strategies)