scalping

Đánh giá của các nhà môi giới tùy chọn nhị phân tốt nhất:
  • Binarium
    Binarium

    Các nhà môi giới tùy chọn nhị phân tốt nhất! Đào tạo miễn phí và tài khoản demo!
    Đăng ký tiền thưởng!

  • Binomo
    Binomo

    Vị trí thứ 2 trong bảng xếp hạng!

Scalping

What is Scalping

Scalping is a trading strategy geared towards profiting from minor price changes in a stock’s price. Traders who implement this strategy place anywhere from 10 to a few hundred trades in a single day with the belief that small moves in stock price are easier to catch than large ones; traders who implement this strategy are known as scalpers. Many small profits can easily compound into large gains, if a strict exit strategy is used to prevent large losses.

Key Takeaways

  • Scalping is a trading strategy in which traders profit off small price changes for a stock.
  • Scalping relies on technical analysis, such as candlestick charts and MACD, for execution.

Basics of Scalping

Scalping utilizes larger position sizes for smaller price gains in the smallest period of holding time. It is performed intraday. The main goal is to buy or sell a number of shares at the bid — or ask — price and then quickly sell them a few cents higher or lower for a profit. The holding times can vary from seconds to minutes, and in some cases up to several hours. The position is closed before the end of the total market trading session, which can extend to 8 p.m. EST.

Scalping Characteristics

Scalping is a fast-paced activity for nimble traders. It requires precision timing and execution. Scalpers use day trading buying power of four to one margin to maximize profits with the most shares in the shortest amount of holding time. This requires focusing on the smaller time frame interval charts such as the one-minute and five-minute candlestick charts. Momentum indicators such as stochastic, moving average convergence divergence (MACD) and relative strength index (RSI) are commonly used. Price chart indicators such as moving averages, Bollinger bands and pivot points are used as reference points for price support and resistance levels.

Scalping requires account equity to be greater than the minimum $25,000 to avoid the pattern day trader (PDT) rule violation. Margin is required to execute short-sale trades.

Scalpers buy low and sell high, buy high and sell higher, or short high and cover low, or short low and cover lower. They tend to utilize Level 2 and time of sales windows to route orders to the most liquid market makers and ECNs for quick executions. The point-and-click style execution through the Level 2 window or pre-programmed hotkeys are the quickest methods for the speediest order fills. Scalping is purely based on technical analysis and short-term price fluctuations. Due to the extensive use of leverage, scalping is considered a high-risk style of trading.

Some of the common mistakes that scalpers make are poor execution, poor strategy, not taking stop-losses, over-leveraging, late entries, late exits and overtrading. Scalping generates heavy commissions due to the high number of transactions. A per-share commission pricing structure is beneficial to scalpers, especially for those who tend to scale smaller pieces in and out of positions.

Psychology Behind Scalping

Scalpers need to be disciplined and need to stick to their trading regimen very closely. Any decision that needs to be made should be done so with certainty. But scalpers should also be very flexible, because market conditions are very fluid and if a trade isn’t going as expected, they’ll need to fix the situation as quickly as possible without incurring too much of a loss.

Example of Scalping

Suppose a trader employs scalping to profit off price movements for a stock ABC trading for $10. The trader will buy and sell a massive tranche of ABC shares, say 50,000, and sell them during opportune price movements of small amounts. For example, they might choose to buy and sell in price increments of $0.05, making small profits that add up at the end of the day because they are making the purchase and sale in bulk.

Đánh giá của các nhà môi giới tùy chọn nhị phân tốt nhất:
  • Binarium
    Binarium

    Các nhà môi giới tùy chọn nhị phân tốt nhất! Đào tạo miễn phí và tài khoản demo!
    Đăng ký tiền thưởng!

  • Binomo
    Binomo

    Vị trí thứ 2 trong bảng xếp hạng!

Scalping

Scalping, removal of all or part of the scalp, with hair attached, from an enemy’s head. Historical evidence indicates that many cultures have engaged in the removal of body parts from their enemies. Most frequently these were used as trophies, displayed as proof of valour, held for mutilation (often with the implication that the victim’s condition would persist into the afterlife), or treated as supernatural objects. The Greek historian Herodotus reported that in order to receive a share in the spoils of war, Scythian warriors were required to deliver an enemy scalp to the king. Other sources indicate that the Anglo-Saxons and Franks practiced scalping through much of the 9th century ad .

Archaeological evidence for such practices in North America dates to at least the early 14th century; a mass grave from that period, containing nearly 500 victims (some with evidence of scalping), was found near present-day Crow Creek, South Dakota (U.S.). The conflict that killed these individuals is thought to have been precipitated by a prolonged drought, which might have been part of the same climatic cycle that caused the Ancestral Pueblo (Anasazi) to abandon their homes in the Southwest.

Although historical and archaeological records from the 16th and 17th centuries do not clarify how widespread the practice of scalping was in North America before colonial contact, it is clear that bounties on scalps, together with aggression between colonizers and indigenous peoples, increased the level of scalping as North America was colonized by Europeans. For example, Willem Kieft, governor of the Dutch Colony of New Amsterdam, offered bounties to frontiersmen and soldiers for the scalps of enemy Indians.

Scalping varied in importance and practice by region. Native Americans in the Southeast took scalps to achieve the status of warrior and to placate the spirits of the dead, while most members of Northeastern tribes valued the taking of captives over scalps. Among Plains Indians scalps were taken for war honours, often from live victims. As a challenge to their enemies, some Native Americans shaved their heads. The scalp was sometimes offered as a ritual sacrifice or preserved and carried by women in a triumphal scalp dance, later to be retained as a pendant by the warrior, used as tribal medicine, or discarded.

Đánh giá của các nhà môi giới tùy chọn nhị phân tốt nhất:
  • Binarium
    Binarium

    Các nhà môi giới tùy chọn nhị phân tốt nhất! Đào tạo miễn phí và tài khoản demo!
    Đăng ký tiền thưởng!

  • Binomo
    Binomo

    Vị trí thứ 2 trong bảng xếp hạng!

Làm thế nào để kiếm tiền trực tuyến
Trả lời

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: