Scalping Trading Strategy-Advantages & Disadvantages That You Must Know

 

What is Scalping?

Scalping is one of the strategies that traders try by buying after that sell trades or stocks in a short and short duration. The duration of sale by buying can be a few minutes or part of an hour.

Although approaching day trading, scalping leads to greater capital. Not only that, day trading is generally tried by traders every day. Unlike scalpers who only trade for a very short duration and are not tried every day by traders. 

Scalpers use small movements from special trades to earn income. Because it is not carried away with elementary analysis or information, scalpers usually have certain technical patterns consisting of various marker indicators. What are the indicator markers?

The following are some parts of the indicators that are suitable for trading using scalping strategies:

Stochastic

This marker has a slightly different method of function from some other indicators. Usually, scalpers only use these markers to meet other markers mixed in one system.

Moving Average

Moving Average is a very easy indicator and is widely used by scalpers. Almost all trading platforms have it. The working method is quite easy to list for current and experienced traders.

Things to Do in Using Moving Average Indicators

First, you determine the type of time frame to execute a trade after that put some of the moving average mixed lines. Experiment first before operating it. One of the suggested mixes is sma 5-8-13 on the 2-minute chart. This combination is considered accurate to recognize the price if you must buy and sell. You can also take into account if the price wants to change direction. 

After being operated on, you will stare at the chart that goes up and down. When the force is solid, the line will be attached to SMA 5 or 8. If it has approached SMA 13, it is time to close because the reversal is about to be intertwined. To open the position again, you must wait until the entire line blends. 

To better understand it try to look at the picture below.

Bollinger Bands

Bollinger bands indicator is also one of the scalper indicators with a small time frame that is widely used by traders, this indicator is good for stock or forex trading. You can practice Bollinger bands using period 12 and deviation 2. 

In using this indicator, take a long position. If the number has touched or is close to the upper band, install a sell position. Do not install stop losses and TP very much. You can use the analogy of 10 to 5 pips between stop loss with TP. 

You need to remember again that in my previous article there is no strategy that is really perfect for trading, listed if you use Bollinger bands. This indicator is indeed efficiently used in the scope of ranging or sideways markets.

Conversely, if you use trading when the price is trending, you can actually disappear. This is due to Bollinger bands often having difficulty scanning the band's canal and it affects the position you want to take. 

If you have understood the options indicator above to trade using a scalping strategy, you also certainly have to know the advantages and disadvantages of scalping strategies.

Advantages and Disadvantages of Scalping

Advantages of Scalping Techniques: There is also the advantage of scalping that it can accelerate profits in the duration of lightning. Not a kind of long term that must wait for days, with scalping you can get trading profits on that day as well. This advantage I take in a nutshell, but there are a few more about the advantages of this scalping strategy.

Disadvantages of Scalping Strategies: In addition to having advantages of course strategy scalping has weaknesses that you need to know, namely The technique is difficult and requires accuracy. Not only that, traders are obliged to stay in front of the screen throughout trading. 

That includes the advantages and disadvantages if you want to use a scalping strategy, hopefully, you can understand what we are discussing. It would be better to return if you explore strategies that have a strategy that has high winnings, but not to find a strategy that will 100% continue to profit every time you make a transaction.

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