|   Mobile App   |     |  

Scalping is often dismissed as a trading strategy due to its high-frequency trading nature. Ultimately, trading can only be classified into two types – profitable and unprofitable. While tweaks can be made to intraday and positional trading strategies and used interchangeably, scalping requires a special focus and unique strategies for success. Although it is hard to master, it is not impossible to successfully scalp the Indian market.

What is scalping?

Scalping is a type of high-frequency trade in which traders enter and exit a position in under a few minutes. In this short window of time, traders will exit with small profits or losses. Since scalpers enter and exit positions frequently, the small profits can amount to something substantial at the end of the day.

Advantages of scalping

  • Limited risk due to limited exposure to market volatility.
  • Smaller movements are easier to capture.
  • Smaller movements are more frequent.

 

Skills required for scalping

  • Quick thinking.
  • Fast responsiveness to changes.
  • Previous experience in trading.

Preventing losses while scalping

  • Strict stoploss is still important.
  • Low brokerage to make the small profits count.
  • Do not enter a trade without getting the complete go-ahead from your trading system.
  • Trade in sufficient volume to scale your efforts.

Who shouldn’t scalp?

  • Anyone who is hard pressed for time.
  • Anyone who cannot handle numerous entries and exits in a short time frame. Scalping can sometimes be mentally exhausting.
  • Beginner traders.
  • Anyone who makes sufficient profits with intraday or positional trading.
Member name : Zebu Share and Wealth Managements Pvt Ltd
NSE / BSE / MCX , SEBI Registration No: INZ000174634
CDSL : 12080400
AMFI ARN : 113118
Research Analyst : INH200006044

Head office:
No 127, 1st floor ,PSK Booshanam Mahal ,100 feet Bypass Road, Velachery, Chennai 600 042.
Phone : +91-44 4855 7991

Assist: assist@zebuetrade.com
Investor grievance: grievance@zebuetrade.com
The following advice is issued in the interest of investors:
Safeguard your account from unauthorized transactions. Update your mobile numbers/email IDs with your stock brokers. Get all information related to your transactions directly from the stock exchanges on your mobile phone/email id, at the end of every day. KYC compliance is mandatory when you enter the securities market. It is a one-time exercise done through a SEBI-registered intermediary (stockbroker, depository participant, mutual fund, etc). There is no need to repeat the KYC process when you go to any other intermediary.

You do not have to issue a cheque while subscribing to an IPO. Write your bank account number clearly on the IPO application and sign it, sanctioning your bank to make payments when there is an allotment. Your funds will remain in your bank account in the case of non-allotment.