Scalping is an interesting form of trading to explore. People who practice this trading style are called scalpers. In this trading style, scalpers are asked to hold their instruments for only a few minutes and then sell when the price difference starts to appear.

So in general The profit potential on every trade made by a scalper is small unless the scalper compensates by increasing the amount of assets bought and sold. So don’t be surprised if this strategy is maximized if the trader has a lot of money. a lot

However, this does not mean that novice traders cannot perform this trading style. Here are the steps for scalping stocks for beginners:

1. Start with Swing Trading

The first step is to start trading gradually using the swing trading style first. The reason is that the trading period of a swing trader is longer than that of a scalper and this style doesn’t require time to face the computer. continuously

The benefits are:

  1. Traders can practice their trading experience.
  2. Traders can develop their technical analysis skills during the trading session. This is important because scalping requires technical analysis It covers more than fundamental analysis.
  3. Swing trading can help traders determine timings, strategies, types of instruments. and other technical matters

2. Prepare trading tools and equipment

If you have practiced using swing trading patterns Traders can begin to prepare the tools and equipment needed for scalping. such equipment and items such as

  1. High-capacity computer and good internet connection. The scalper must always be in front of the screen when trading. So he needs a high quality computer and internet.
  2. trading plan This is because scalping is a very short time frame trading style. Therefore, it is important for traders to prepare a trading plan that includes targeted instruments, what price, profit and loss goals are max. and what is the strategy
  3. Applications to help implement the strategy in the trading plan, such as the stock screening app, the Bandarmology app, and others.
  4. Set up hours of preparation and execution of trades. Because of having to stay in front of every trade, the scalper is prone to fatigue, drowsiness, lack of concentration, or even FOMO, so it’s important for traders to set trading hours. The goal is when the trading hours begin. Traders can open trades with stable emotions and fresh bodies.

3. Scaling with reduced risk

You can say that scalping is one of the most risky trading styles. This is because traders need to be experts in technical analysis. Trading in stable and fresh conditions And usually the instruments of choice are those with a high degree of volatility. for newbies This risk can be reduced by:

  1. Start with minimum capital So if you lose the amount it will not be too much to cause the trader to stop trading.
  2. Don’t just use leverage or margin.
  3. no transaction short sale first.
  4. use cold moneyThe goal is that losses in the trading world will not spread to losses in the real world.
  5. Although the selected instruments are categorized as highly volatile. But each instrument has a different level of possible volatility for each instrument. The risks of forex scalping are different from scalping stocks Because forex instruments tend to be more volatile than stocks, that is to reduce risk. You should scalp stocks first and then forex.
  6. Remember to set a stop loss in the trading application. Stop Loss is used to minimize the risk of loss if the instrument’s price moves in the opposite direction of the trader’s forecast.

4. Continuously update economic news

One factor that can trigger an increase in the level of volatility in the price of an instrument is the presence of positive and negative news about the instrument. For example, the Forex market tends to fluctuate after the announcement of non-employment. Agriculture (NFP)

in the context of stocks This economic news can be news related to stocks or related industries. For example, world commodity exchanges use higher commodity prices. Therefore, stocks of commodity companies such as palm oil and mining products tend to fluctuate.

However, you should be careful to avoid fried foods. Fried stocks are highly volatile stocks. However, volatility does not occur naturally. but caused by some traders for their own benefit

5. Keep learning technical analysis.

The main characteristic that distinguishes scalping from other trading styles is that this trading style requires technical analysis of various scalping indicators. more than fundamental analysis Because scalping trading has a short trading period So what happens to fundamentals won’t have much impact.

The problem is that there are a lot of technical indicators to study. Fortunately, today’s scalping traders need to understand how technical analysis works and what it means without using it manually. This is because today’s trading applications have several automatic scalping indicators.

The solution is that speculators must continue to learn technical analysis. Today, there are many resources that can be used to learn about it, from communities, articles on the Internet. Webinars, YouTube videos, and more.

6. Discipline and Consistency

Discipline and consistency are one of the keys to trading success. With discipline, you won’t be easily influenced by FOMO. Use unreasonable trading decisions to keep learning.

It takes time to establish discipline and consistency, so scalping should start small with swing trading to build on these two and work your way up. It takes a small amount of money to keep traders from giving up. because in the end Trading and investing is just like any other business. It takes time to succeed and there will be ups and downs.



Source link

Please wait 180 seconds or 3 minutes, the secret code will immediately appear under the countdown

LEAVE A REPLY

Please enter your comment!
Please enter your name here