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AdvancedM1 - M5
Scalping
Quick in-and-out trades capturing small price movements multiple times daily
Expected Win Rate:60-70%
Scalping is a high-frequency trading style that aims to profit from small price changes. Scalpers make dozens or even hundreds of trades per day, holding positions for seconds to minutes.
The Scalping Approach
Scalpers aim to accumulate many small profits that add up to significant gains by the end of the day.
- Target 5-15 pips per trade
- Hold positions for seconds to minutes
- Make 20-100+ trades per day
- Require tight spreads and fast execution
Essential Requirements
Scalping demands specific conditions to be profitable:
- Very tight spreads (0-1 pip)
- Fast, reliable execution
- Low or zero commission
- Stable internet connection
Scalping Techniques
Common approaches used by scalpers:
- Order flow and tape reading
- Quick support/resistance bounces
- Moving average micro-trends
- News spike fading
Risk Management
Strict discipline is essential:
- Use tight stop-losses (5-10 pips)
- Risk only 0.5-1% per trade
- Set daily loss limits
- Take profits quickly - do not get greedy
Advantages
- +Many trading opportunities daily
- +Quick feedback on trades
- +Limited overnight risk
- +High win rate when done correctly
Disadvantages
- -Requires constant screen time
- -High stress and mental fatigue
- -Transaction costs eat into profits
- -Not suitable for all brokers/accounts
Best Suited For
- Full-time traders with dedicated time
- Those who thrive in fast-paced environments
- Traders with access to tight spreads