Scalping is a very frantic strategy for short, intraday trades. Based on the openings of many positions, when the earnings potential from a single position is small, but the total earnings potential from a lot of winning positions simultaneously is high.
A Scalping Strategy helps to reduce risks, but its disadvantages are the need for high trading capital and the high number of spreads you will have to pay your brokers.
Vincent Nyagaka is a Professional Trader, Analyst & Author. He has been actively engaged in market analysis for the past 7 years. He has a monthly readership of 100,000+ traders and has taught over 1,000 students since 2014. Vincent is also an experienced instructor and public speaker. Check out Vincent’s Professional Trading Course here.