D-Merits Of Scalping

D-Merits Of Scalping

     Scalping is a popular trading strategy used by many to make a profit, small winnings that pile up slowly to generate a size able amount of profits. But it is a strategy that is more difficult than it may seem at first sight. Scalping is very tricky because it minimizes the risk of losing any trade, it is risky at all because on false trading all days can wipe out profits because the profits are quite small. It takes a lot of consistency, from trading sizes and profit-taking, to stop losing orders, all of which must be completely equal, so they can balance each other instead of potentially wiping out all the other successful ones.

The best conditions for scalping are quiet markets, where activity is quiet and volatility is low, allowing traders to see and use small fluctuations over long periods of time without risk and slowly gaining their profits.So if you scalp during a press release or during high volatile micro trends, a trader will not get anywhere.

A scalper needs to be calm and patient and focused, and to make a significant income from 

scalping by taking small risks that can be very expensive if lost, and that requires a lot of 

emotional control and strong, confident decisions. When a wave of great changes hits a scalper, he will drown him and lose all his winnings.

For Scalper, volatility is not something they can use or exploit, it just does not make good money. A scalper must identify a trend and exploit it with small and numerous orders. He has to make profits and suffer losses that run against time, open and close positions with different scenarios, while paying the commission that is included in the spread for the broker each time.

Brokers are automatically paid over a small percentage of the spread when a position is opened, and if such small profits are made, these gains can easily be compensated with the commission for the broker, which makes them worthless. With many trades - 100 trades per day on average - it opens daily, the broker does more and gets the better end of the deal than the trader, because if a trader loses or wins, he pays the broker.

Scaling Up is a proven successful trading method, but it works best with people who have the 

eye and patience for it. It is also a very popular method for trading robots.