WHAT IS SCALPING?

Scalping - Scalp or Scalper in Trading is the term used to denote the methods of surfing to get small profits on a regular basis, by entering and exiting orders many times a day.

Scalping is not the same as Day Trading, in that a Trader will open command at a position and then closes the command during the current trading session, in other words, Scalping never holds a command through the next trading session or keeps an order overnight...


While Day Traders can enter orders once or twice, or multiple times a day, Scalpers will be more entry command frantic and try to surf quickly to make small but multiple profits in the same a trading session.

And while a Day Trader can trade on M5 and M30 charts, Scalpers often trade M1 charts, even using tick charts. Specifically, some Scalpers want to try and capture the high-speed price movements that occur during the release of economic news and other important economic events. Such as news releases NFP or GDP if that's what the meeting has important information.

WHY TRADER CHOSE SCALPING?

The scalper is those who try to make a profit of 5 to 10 pips per trade and repeat this action throughout the trading session. They use high leverage and trade with only a few pips profit at a time.
Remember, with one standard lot, the average value of a pip is about 10 dollars. So for every 5 pips of profit, a trader can make $ 50 a time. Ten times a day, this would equate to 500 dollars.


SCALPER PERSONALITY CHARACTERISTICS

Scalping, of course, is not for everyone, and one thing is certain: You must have the personality of a scalper to choose this trading method. These people will enjoy being at the computer all day during trading sessions, and they need to enjoy tremendous concentration as you do scalping.

You can't take your eyes off the screen because you have to surf in small waves at a low time frame, for example, you need a scalp of 5 pips at a time. Even if you think you can afford to watch charts all day or watch charts all night if you are not a person with sleep deprivation, you must be someone who can react quickly to each change small exchange of the market.


There will be no time for you to think. Quick reflexes are a must for a Scalper. This is especially true in case the price goes against you even only 2 to 3 pips.

DIFFERENCE BETWEEN MARKET MAKING AND SCALPING

Scalping is similar to what Market Make trades around spreads. When a market maker does his trades, he makes a profit from the market spread. Scalper, on the other hand, are spread payers.

Distinguishing Scalper from Market Maker is very important. When the Scalper buys the ask price and sells the bid, he has to wait for the market to go his way in order to exceed the spread paid to Market Maker. Market Maker, on the contrary, makes profit immediately at the time Scalper places orders.

Hence, Scalper risks must be higher than that of Market Maker, although both are looking for ways to enter and cut command extremely quickly. Market Maker likes Scalpers because Scalper is spread payers, which means that the more scalper it has, the more Market Maker will make money from the spread.

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