Scalping is day trading on steroids! It involves the opening and closing of positions in a very short period of time to realize quick profits.
Day traders who employ scalping techniques can buy a stock and sell it in seconds or minutes. Scalping is not only limited to stocks though. All that a scalper needs is a liquid market and a lightning-fast execution. This means that currencies (or forex) and futures (like the eminis) are fair game.
Risks Involved with Scalping
Does scalping involve risks? Sure it does. All types of day trading or investing involves risk. The advantage of scalping is that it adds an element of risk control that many opponents don’t discuss. Since day traders who scalp are in a position for a very short period of time, they are not exposed to the risk of losing a larger amount per trade that comes from holding a position for hours, days or longer.
A true scalper exists a position quickly if the market doesn’t go his way. He doesn’t hold on to a losing position hoping or praying it turns around!
Day Trading Tutor and Scalping
Running a business and a full-time family does not afford me the time to scalp. Nevertheless, the best day traders I know are scalpers. I work with some and also incubate talented scalping day traders by helping them raise funds. This is also a huge benefit for my investors and for me, since we get access to some great, “undiscovered” traders who are willing to manage our money.
Do you have what it takes?
If you know how to scalp successfully and would like an opportunity to trade for others, please complete our talent form (Oops, I forgot to mention that I can only incubate forex or currency scalpers – not futures or stock day traders).