You must be very smart to steal anything. Taking advantage of the little movement in the middle of the market trend. This may sound a bit strange, but it is the right way to understand scalping. Taking advantage of the little movement in the middle of the market trend. It’s a fun game. And you have to be sharp to be an expert in this. Do you want to be a trader ? So you must know, What are the things you should keep in mind for scalping, and what are the things you should avoid? One more thing that traders thought is day trading and scalping are the same. but there are heal and haven differences are there.
Scalping vs Intraday trading :-
If seen, then both are done intraday. But the way to do this and the implementation of both of them is very different. Whether it is a matter of time, interruption or profit has come out of it. According to your mind and habits, you have to decide for yourself whether you want to become a scalper or a day trader. Where the day trader wants to catch a long day trend, but the scalper looking for small price movement in predicting direction.
Time of trade :-
When we are not taking trades, then we don’t care how long it takes, we just focus on profit. But when we trade in intraday and that too in option then we understand the value of time in price. Where in the scalping we spend time to analysis and looking at charts for a good trade. But in intraday, after taking a trade, we spend time waiting for the target of profit or stop loss.
Trading strategy :-
For intraday trading, you need some news information and many more thighs to predict stock or any other security price. Even after that, you may still need some other technical tools indicator and candle. But when you are scalping, all you need is price action. You have to catch a breakout. and a quick entry and exit. There are many more investors and traders who don’t know What are stocks and how do they work.
Time frame :-
When we talk about trading, we should know that which time frame will be right for analysis. When we see about intraday trading then we see 1 day, hourly, 15 minutes, and 5-minute candles. But when we talk about sculpting, then we like to look at the time frame of 15 minutes, 5 minutes, and 1 minute.
Target and stop losses :-
In day trading, most traders’ targets are based on the target of the whole day trends super and resistance. But when we talk about scalping, that is what we used to plan a Target Instantly. Both are using stop loss too in the same way. Day traders use support and resistance to stop losses. But the scalper never likes to wait in losses. They always square off their position as soon as they get a negative PnL.
Trading Strategy :-
Swing traders never understands that For day trading you need some good tools, a strategy and with that, you should be aware of the news. Here along with your technical, you also have to keep in mind the fundamental changes of news and events. But in scalping, you have to focus only on the price action. Sometimes some traders like to use some indicators. But in my view volume indicator and price action is enough for scalping. On a clear note, day trading involves 70% of technical analysis and 30% of fundamentals, like news company financial strength or global stock market updates. But in scalping, you should only focus on technical analysis 80% price action and 20% your emotion control. Scalper does not come with any strategy. He is always on the lookout for opportunities. According to that occasion, he used to play strategy.