Scalping Strategies
Master the art of quick-profit trading with proven scalping techniques for stocks, forex, and crypto
What is Scalping?
Scalping is an ultra-short-term trading style that aims to profit from small price movements. Scalpers typically hold positions for seconds to a few minutes, executing dozens or even hundreds of trades per day.
The goal is to "scalp" small profits repeatedly. Instead of waiting for big moves, scalpers accumulate many small wins. A successful scalper might target just 5-10 pips in forex or a few cents per share in stocks.
Scalping requires intense focus, fast decision-making, and flawless execution. It's one of the most demanding trading styles but can be profitable for those with the right skills and temperament.
Scalping vs Other Trading Styles
| Aspect | Scalping | Day Trading | Swing Trading |
|---|---|---|---|
| Hold Time | Seconds to minutes | Minutes to hours | Days to weeks |
| Trades/Day | 10-100+ | 3-10 | 0-3 |
| Profit Target | 5-20 pips / $0.05-0.20 | 20-50 pips / 1-3% | 100+ pips / 5-15% |
| Chart Timeframe | 1-minute, tick | 5-15 minute | Daily, 4-hour |
| Stress Level | Very High | High | Moderate |
Requirements for Scalping
Fast Execution
Sub-second order fills are essential. Slippage kills scalping profits.
Low Costs
Tight spreads and low commissions. High costs make scalping unprofitable.
Reliable Platform
Stable, fast trading platform with real-time data. Crashes are costly.
Sufficient Capital
Enough capital to trade proper position sizes while meeting broker requirements.
Intense Focus
Ability to maintain concentration for hours. One distraction = losses.
Level 2 Data
Order book visibility helps identify short-term supply/demand.
Popular Scalping Strategies
Breakout Scalping
Enter on breaks of short-term ranges or levels. Target the initial momentum burst. Exit quickly if the breakout fails. Works best during high-volume periods.
Mean Reversion Scalping
Fade extreme short-term moves back to VWAP or moving averages. Buy oversold, sell overbought. Requires precise timing and quick exits.
Momentum Scalping
Jump on strong momentum moves and ride them for quick profits. Use volume and price action to confirm momentum. Exit before the move exhausts.
Order Flow Scalping
Read the order book to anticipate short-term direction. Follow large orders and institutional flow. Requires Level 2 data and experience.
Optimal Scalping Setup
Chart Setup
- • 1-minute chart for entries
- • 5-minute chart for context
- • 15-minute for trend direction
- • VWAP for mean reversion
- • Volume bars for confirmation
Best Conditions
- • High liquidity periods (market opens)
- • Clear short-term trend or range
- • Moderate volatility (not too wild)
- • Tight bid-ask spreads
- • No major news imminent
Scalping Risk Management
Scalping Pitfalls
Scalping has a high failure rate. Be aware of these common issues:
Frequently Asked Questions
What is scalping in trading?
Scalping is a trading style focused on profiting from small price changes. Scalpers hold positions for seconds to minutes, making many trades daily. They aim for small, consistent profits rather than big wins.
How much can you make scalping?
Scalping profits vary widely. Successful scalpers often target 0.5-2% daily returns. However, most beginners lose money. High costs (spreads, commissions) and stress make scalping difficult for newcomers.
What timeframe is best for scalping?
Most scalpers use 1-minute to 5-minute charts for entries. Some use tick charts or 15-second charts. Higher timeframes (15-minute, hourly) are checked for overall trend direction.
Is scalping profitable?
Scalping can be profitable but has a high failure rate. Success requires fast execution, low costs, strong discipline, and the right personality. It's not suitable for most traders.
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Risk Disclosure: Trading involves substantial risk of loss and is not suitable for all investors. This content is for educational purposes only and does not constitute financial advice.
Last updated: December 2025