Online Scalping is often presented as the approach of winning traders, of those who really manage to dominate the market, to exploit even the smallest opportunity. Therefore, there are many beginners who, by rushing through the stages, directly try their hand at this particular way of trading. Well, this is the wrong attitude, a choice that can cost you capital. Scalping, in fact, is anything but child’s play, indeed it is characterized by a very high entry level in terms of technical background.

Scalping is fascinating ... it involves you and immediately takes you into the market

To start trading and making money with online scalping, you must first complete an appropriate training course. But that’s not enough: before even studying Scalping it is necessary to carry out some preliminary steps, which can be summarized with four tips to be followed strictly.

Tip number 1: understand what Scalping really is

Scalping is not just the approach that allows you to take advantage of every single price movement and score multiple winning trades in the space of a day. It is much more. It is an approach, indeed a way of trading that involves, more than any other, mind, body and soul. Or, better said, intellectual abilities, endurance and the psychological sphere. In short, it is all-encompassing.

There can be no doubts about the need to lavish all one’s intellectual abilities: Scalping is difficult, it requires taking quick and effective positions. However, it also involves the body in a certain sense, therefore resistance, as it is an activity … Dense. It forces us to consider even the smallest detail, in an analysis that never stops. In short, Scalping is tiring.

It is also very stressful. Among the various approaches that can be embraced, it is the most stressful of all. Stress comes in large part from having to make decisions in a short space of time, to change the shot frequently and in a determined way.


Tip number 2: get experience

Scalping, from the outside, may seem like an approach that is all interpretation and intuition. In the eyes of the layman, it even appears random, and therefore simple. It is, of course, just an illusion.

Even if it were simple, and from a certain point of view it could also be, it would still require an exceptional technical background to be practiced effectively. In this regard, an aphorism by Picasso can be cited, another that apparently used a simple approach, but which revealed an extraordinary complexity and depth: “I had to learn to paint like Raphael to learn how to paint like a child”.

Here, the Scalping traders, the winning ones of course, have experienced the same thing. They had to become experts in normal trading before learning how to scalping.

So, if you have decided to become a scalper, know that one of the necessary conditions is to become an expert trader in general. Also because in Scalping everything is accelerated, everything is fast. Therefore, habits, practices, precautions and strategies must be internalized and transformed into automatisms which, in general, in normal trading can be experienced in a longer time.

Tip number 3: become an expert in Money and Risk Management

Scalping is risky. Indeed, it is the riskiest of the trading variants. The reason is simple, albeit twofold. On the one hand, the risk is caused by exposure, which is quantitatively significant: you open more positions per day, you risk several times a day. On the other hand, the risk is determined by the difficulties that Scalping poses. Having to change the shot, update a position, enter exactly at the right time and exit in an equally timely manner creates several chances for mistakes.

Risk primarily means a higher probability of losing money. Hence the absolute centrality of Money and Risk Management.

A good scalper should be a true expert on these two practices. Indeed, he should internalize its mechanisms. Since timeliness is everything, for example, he should define Stop Loss in a very short time, turning it as needed into Trailing Stop (which is a dynamic stop).

Tip number 4: look at fundamental analysis in a different way

Those who trade “normal”, ie intraday or with a longer horizon, look at fundamental analysis in a certain way. The Scalpers, the good ones, in a quite different way. Here are the particularities that characterize fundamental analysis from a Scalper perspective.

A terrific exit sign. Fundamental analysis, a bit like a mega-indicator, can emit an exit signal, or at least a signal of “self-exclusion from the market”. If the economic calendar, but also the news of the day, signal a certain degree of chaos, a convulsive situation, the scalper in most cases draws a conclusion: the situation is unmanageable in the very short term, so it is better not to trade.

Afterthought. Those who practice technical analysis take a look at the market movers contemporary to the position they intend to open, interpret the analysts’ estimates and trade accordingly. The scalper, however, must manage the volatility after the publication of the data, so he must take into account not only the rational part of the investor behavior, but also the irrational one. That is, he must foresee the gut reactions, those that move the price in the immediate following moments, and that for him makes the difference. It is therefore called to a double interpretation, to follow a double track.

Not just a market mover. When practicing fundamental analysis, market movers are only one side of the coin for Scalpers. And perhaps not even the most important. To decide the price, during the day, are also and above all the elements that escape all predictions, which are not covered by the market movers. That is, the statements of policy makers. A good scalper, despite not having a glass ball, must identify patterns in the sign of the declarations and prepare a specific action protocol.

Now, learning how to do fundamental analysis from a scalper perspective represents an advanced stage of the training path. However, even before starting to study, it is good to become aware (as a preparatory step) of the differences with the “normal” fundamental analysis.

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