Module 24: Scalping
Key Takeaways
- Scalping captures small moves many times a day.
- It needs tight spreads, fast execution and intense focus.
- Costs and discipline make or break a scalper.
Scalping strategy
Scalpers aim for small, frequent profits — a few pips or ticks per trade — entering and exiting within seconds to minutes. They trade liquid instruments during high-volume sessions, often using S/R, VWAP and order flow for precise entries.
Timeframes
Scalpers live on the 1-minute and 5-minute charts, sometimes using tick charts. A higher timeframe (15m or 1h) sets the bias, while the lower timeframe times the entry.
Risk management
With many trades, small mistakes compound fast. Use tight stops, fixed small risk per trade, and a strict daily loss limit. Trading costs (spread and commission) eat into thin profits, so only scalp instruments with very tight spreads.
Scalping is the most demanding style. It’s rarely the right starting point for beginners — master higher timeframes first.
Frequently Asked Questions
Usually not. The speed, costs and emotional pressure overwhelm most newcomers. Start slower.