Scalping – Disadvantages and Benefits. Anton Hanzenko.

Scalping is a unique approach to trading, characterized by several basic principles that differ from the principles of classical trading on financial instruments.

Scalping – Basics:

• Positions on scalping strategies are opened during the trader’s working time as a rule and rarely lasted two or three trading sessions. There is no concept of transferring positions to the next day in scalping.
• scalping deals have an average duration from 1 minute to 5-6 hours, but, as a rule, they are limited to a few minutes.
• Scalping targets are usually small and range from 5 to 20 points, but there are exceptions also.
• The number of scalper trades varies from 10 to several dozen per business day, depending on the instrument’s volatility and trading strategy.

As it became clear from items about the number of transactions and goals, scalpires are focused on a large number of transactions with a small profit, and this is a plus. A succession with three or five unsuccessful consecutive transactions will not leak the deposit, because the scalping money management is significantly different from medium-term and long-term trading. As a rule, the ratio of profits to losses is 1 to 3 while scalping. Thus, three unprofitable transactions of 5 percentage points overlap with one profitable 15 percentage points.

With a good scalping strategy, there are virtually no loss-making days, let alone weeks or months. Scalping strategies are focused on deposit increase with relatively low risks.

After analysing benefits of scalping, we return to the disadvantages that may become quickly advantages for you. What is needed for it? Scalping is a process that requires the trader to have a permanent presence near the monitor and full dedication that does not leave free time. The decision to enter the transaction has to be made quickly, because it is actual here and now! Scalpir should have a high level of discipline and self-control in order to make quick and high-quality decisions.

After possessing qualities below – you will develop another advantage – a high stable income!
– unconditionally stick to a profitable strategy;
– do not break money management;
– have a high level of control and discipline!

Check for the updates of the Trader’s Blog, where you will find many tips for successful trading! We are welcome your questions – if you want to see the desired topic in the Blog – write to us – info@esterholdings.com!

Anton Hanzenko