Scalping Techniques

Scalping involves taking many small profits throughout the day. It requires discipline, speed, and low spreads.

What is Scalping?


• Quick trades (seconds to minutes)
• Small pip targets (5-15 pips)
• High frequency (multiple per day)
• Requires active management

Requirements for Scalping

Broker Requirements

• Low spreads (crucial)
• Fast execution
• No re-quotes
• ECN/STP preferred

Personal Requirements

• Full attention
• Fast decision making
• Discipline to take profits
• Ability to accept small losses

Scalping Strategies

1. Moving Average Scalp

• Use 8 and 21 EMA on M5
• Trade pullbacks to MAs
• Enter on rejection candle
• Target: 10-15 pips

2. Support/Resistance Scalp

• Mark key levels on M15
• Drop to M1 for entries
• Trade bounces with confirmation
• Tight stops, quick profits

3. Breakout Scalp

• Trade range breaks on M5
• Enter on candle close beyond level
• Quick target: range width
• Trail aggressively

4. News Scalp (Advanced)

• Trade after major news
• Wait for initial spike to settle
• Enter on pullback
• Quick exit before reversal

Risk Management

Position Sizing

• Larger sizes than swing trading
• But still defined risk per trade
• Usually 0.5-1% risk per scalp

Stop Losses

• Tight stops (5-10 pips)
• Must be respected
• No "holding and hoping"

Profit Targets

• Take profits quickly
• Don't get greedy
• R:R of 1:1 to 1:2

Best Times to Scalp

• London open (first 2 hours)
• London-NY overlap
• After major news settles
• When volatility is high

Worst Times to Scalp

• Asian session (usually)
• Low liquidity periods
• Right before major news
• When spread widens

Scalping Mindset

1. Accept many small wins and losses
2. Focus on consistency over big wins
3. Cut losses immediately
4. Don't overtrade
5. Take breaks regularly

Common Mistakes

• Holding losers too long
• Moving stops
• Trading during low volatility
• High spread pairs
• Overtrading after losses

Is Scalping Right for You?

Good for:

• Active traders
• Quick decision makers
• Those with time during sessions
• People who like action

Not for:

• Part-time traders
• Those who need to think
• People with slow execution
• Those with high spreads