Understanding Scalping Strategy

shanmugapradeep

Active Trader
Dec 18, 2020
112
5
34
38
Hello,

The scalping strategy involves opening trades with small take profit (TP) and stop loss (SL) levels and closing them within a few minutes, aiming to gain small profits per trade.

For example, let’s say I make a trade with TP of 1 pip and SL of 1 pip (equal risk), or TP of 1 pip and SL of 2 pips (higher risk), or TP of 2 pips and SL of 1 pip (higher profit).

What guarantees that the market will move in a favorable direction maximum time and hit TP instead of SL? How does this work, and why is scalping one of the most loved trading strategies among traders?
 

Ethan.ishere

Newbie
Jan 4, 2024
14
2
4
37
You take the opportunity and use the gaps that show up in the market. It doesn't necessarily mean small profits as that all depends on the volume and leverage that you are going with. Regardless of all that it needs quick fingers and a sharp mind.
 

Enivid

Administrator
Staff member
Nov 30, 2008
18,727
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Odesa
www.earnforex.com
I personally, don't scalp, but most scalpers I talked to don't use SL - they control the trade manually. There is no guarantee that the trade will hit TP before your SL, but if your scalping strategy has an edge, it should hit TP before SL often enough for you to remain profitable.
 

Ara

Active Trader
Apr 24, 2023
121
21
29
34
The scalping strategy involves opening trades with small take profit (TP) and stop loss (SL) levels and closing them within a few minutes, aiming to gain small profits per trade.

For example, let’s say I make a trade with TP of 1 pip and SL of 1 pip (equal risk), or TP of 1 pip and SL of 2 pips (higher risk), or TP of 2 pips and SL of 1 pip (higher profit).

What guarantees that the market will move in a favorable direction maximum time and hit TP instead of SL? How does this work, and why is scalping one of the most loved trading strategies among traders?
There are no guarantees in scalping that the market will consistently move in favor of hitting the TP over the SL. Actually, it has become more popular because it aims to capture small, frequent profits and requires quick, disciplined trading decisions.
 

fargana

Active Trader
Nov 14, 2022
147
22
29
34
Hello,

The scalping strategy involves opening trades with small take profit (TP) and stop loss (SL) levels and closing them within a few minutes, aiming to gain small profits per trade.

For example, let’s say I make a trade with TP of 1 pip and SL of 1 pip (equal risk), or TP of 1 pip and SL of 2 pips (higher risk), or TP of 2 pips and SL of 1 pip (higher profit).

What guarantees that the market will move in a favorable direction maximum time and hit TP instead of SL? How does this work, and why is scalping one of the most loved trading strategies among traders?
Nothing guarantees such outcome. This is the biggest issue of trading - no guarantees, complete uncertainty which can be barely quantitatively measured.