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, 09-13-2021 at 04:40 AM (423 Views)
Text automatically translated from: Italian to: English
Scalping is one of the types of intraday trading, a professional type of trading that requires the highest level of qualifications from a trader. A trader performs a large number of operations during a trading day in order to catch the slightest price movements. Therefore, the scalper takes a very small profit in one trade (as if it removes the "scalp" from the general price movement), but does it hundreds and thousands of times a day.
If the price does not go in his direction, then he immediately closes his position and fixes the minimum loss. If the scalper works in manual mode, then it makes 300 - 500, sometimes up to 1000 transactions per trading day. However, the trading process can be reduced to a specific algorithm and configured to execute transactions of a trading robot. In this case, the speed of transactions is dramatically increased and the total number of transactions can grow to several tens of thousands per auction. This kind of trading is also called HFT (High frequency trading). The profitability of scalping operations is very high - up to 10% per day of the invested amount. The main disadvantage is the inability to carry out scalping operations on large amounts.

Swing trading or trend trading is the main type of exchange trading that is used by most market participants. It is on this strategy that the bulk of the money is earned. The strategy boils down to trying to catch a strong price movement in any direction, open a position correctly and hold it, if it makes a profit, as long as the trend remains valid. Otherwise, if the price movement turns out to be false, the position is immediately closed. The main advantages of this strategy are that it is a fairly calm type of trading that requires an investor to have basic knowledge of technical analysis and relatively little time. Within the framework of trend trading, you can work with the largest possible amounts of money. This is the main strategy of managers around the world.
More details about swing trading scalping.


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