17.07.2024

What is Scalping in Trading (+ 15 Best Scalping Trading Strategies)

Have you heard the saying “One penny is better than none”? If you agree with it, then the scalping strategy will definitely meet your needs in the FX trading.

The main idea of scalping is quite simple: you enter numerous trades within the short period – from some seconds to 1 minute – to take small quick profits on a small price changes. That is the explanation why such way of trading is one of the basic and quite popular one among the beginner traders.

Who may find scalping strategy useful?

It can turn out to be advantageous for both the beginner and professional traders. If you just start your way through the FX trading system, the scalping can give you the impression of the trading along with the relatively small risks within the short amount of time.

Pros:

– Gives the simplified impression on the trading technical aspects and insight of the way things work in FX trading

– Easy for the beginners to use

– Small risks and small losses that won’t definitely win over your wish to trade

– Numerous small profits can overcome the size of the one large gain or loss

– Small but consistent profits

Cons:

– Requires quite tangible amount of time for the market analysis and placing numerous orders

– Smaller amounts of profit for the long-term traders who prefer larger ones

– Requires a flash-like response for taking decisions within some seconds

– Be ready to enter a game with tension that is probably will test your nerves

Please note: you can pick any currency pair for the scalping strategy, but it is recommended to pick the one with the high volatility (within quick trades, it is hard to track the small price changes if the currency has the low volatility).

Although traders can use any of the timeframes between 1 to 15 minutes in the scalping strategy, the most widely used are the 1 and 5-minute timeframes, however we give the examples of the strategies for 15-minutes timeframe as well.

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Useful tips

Maybe you can find this information useful to make your scalping strategies more effective:

– Although Stop Loss and Stop Profit set ups are important for any kind of trader, you should know that for scalping traders they are essential. In order to make sure your small gains will not cause bigger losses, it is highly recommended to establish Stop-loss and Stop-Profit for every order.

– Stay ready to exit the trade if it does not result into profitable one to prevent a larger loss.

Best Scalping Trading Strategies in 2024

Next, we will explore in details some scalping strategies using the most popular indicators among traders.

Please note that we list the scalping strategies not in some special order or distinguish the most simple or profitable ones. You should try all of them to understand which one meets your needs in a better way, which one is easy for you to understand and use for scalping.