Because scalpers focus on short-term positions with low-profit margins, the best scalping strategies (such as the Triple S strategy mentioned below) require some leverage. It's recommended that scalpers start with a large amount of capital. Opening and closing larger positions allow you to reduce the marginal costs of trading and maximize potential gains.
Order execution: A novice needs to master the art of efficient order execution. A delayed or bad order can wipe out what little profit was earned and even result in a loss. Since the profit margin per trade is limited, the order execution has to be accurate. As mentioned above, this requires supporting systems such as Direct Access Trading and Level 2 quotations.
Day trading is making short-term trades, lasting less than one day, in an attempt to extract a profit from the financial markets. Some day traders are very active, making many trades each day, while other traders may only make one or two trades per day. The most common day trading markets are stocks, forex and futures. Day trading can be a part-time or full-time career, depending on the trader's style.

Individual traders often manage other people's money or simply trade with their own. Few of them have access to a trading desk, but they often have strong ties to a brokerage (due to the large amounts they spend on commissions) and access to other resources. However, the limited scope of these resources prevents them from competing directly with institutional day traders. Instead, they are forced to take more risks. Individual traders typically day trade using technical analysis and swing trades—combined with some leverage—to generate adequate profits on such small price movements in highly liquid stocks.
The difference between the profit target and the entry point is the approximate reward of the trade. The difference between the entry point and the stop out point is the approximate risk.When determining whether it’s worthwhile to enter a swing trade, consider using two-to-one as a minimum reward-to-risk ratio. Your potential profit should be at least twice as much as your potential loss. If the ratio is higher than that, the trade is considered better; if it’s lower it’s worse.
As with any other style of trading, many different methods of scalping exist. The most well-known scalping technique is using the market's time and sales to determine when and where to make trades. Scalping using the time and sales is sometimes referred to as tape reading because the time and sales used to be displayed on the old-fashioned ticker tape, known as the tape.
So, swing traders are not looking to hit the home run with a single trade – they are not concerned with the perfect time to buy a stock exactly at its bottom and sell exactly at its top (or vice versa). In a perfect trading environment, they wait for the stock to hit its baseline and confirm its direction before they make their moves. The story gets more complicated when a stronger uptrend or downtrend is at play: the trader may paradoxically go long when the stock dips below its EMA and wait for the stock to go back up in an uptrend, or he or she may short a stock that has stabbed above the EMA and wait for it to drop if the longer trend is down.
Even if you're a complete beginner in trading, you must have come across the term "scalping" at some point. Scalping in the foreign exchange market is a method of trading certain currencies based on real-time technical analysis. The main goal of scalping is to make a profit through purchasing or selling currencies by holding a position for a very short period of time, and closing it for a small profit. Without further ado, let's dive right in and see what one of the most popular Forex scalping strategies – the 1-minute Forex scalping strategy – has to offer.
Traders following the Breakout Intraday Trading Strategy identify a price level which can be their breakout trading level, wait for a breakout and identify the resistance level and then wait for the break out to close above the resistance level. However, breakout trading is quite risky as the traders are buying the security that everyone else is, and there is hardly anyone left to buy it after the traders get in.

The swing trader, therefore, is best positioned when markets are going nowhere – when indexes rise for a couple of days, then decline for the next few days, only to repeat the same general pattern again and again. A couple of months might pass with major stocks and indexes roughly at the same place as their original levels, but the swing trader has had many opportunities to catch the short-term movements up and down (sometimes within a channel).

A scalp trader can look to make money in a variety of ways. One method is to have a set profit target amount per trade. This profit target should be relative to the price of the security and can range between .%1 - .25%. Another method is to track stocks breaking out to new intra-day highs or lows and utilizing Level II to capture as much profit as possible. This method requires an enormous amount of concentration and flawless order execution. Lastly, some scalp traders will follow the news and trade upcoming or current events that can cause increased volatility in a stock.
The next important step in facilitating day trading was the founding in 1971 of NASDAQ—a virtual stock exchange on which orders were transmitted electronically. Moving from paper share certificates and written share registers to "dematerialized" shares, traders used computerized trading and registration that required not only extensive changes to legislation but also the development of the necessary technology: online and real time systems rather than batch; electronic communications rather than the postal service, telex or the physical shipment of computer tapes, and the development of secure cryptographic algorithms.
To succeed as a day trader, it is important to know how to pick stocks for intraday trading. Often people are unable to make profits because they fail to select appropriate stocks to trade during the day. Choosing the right stocks to book profits is an art that you will learn with experience. For beginners, here get some tips to choose stocks for intraday trading.
By holding overnight, the swing trader incurs the unpredictability of overnight risk such as gaps up or down against the position. By taking on the overnight risk, swing trades are usually done with a smaller position size compared to day trading (assuming the two traders have similarly sized accounts). Day traders typically utilize larger position sizes and may use day trading margin of 25%.
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The goal of swing trading is to capture a chunk of a potential price move. While some traders seek out volatile stocks with lots of movement, others may prefer more sedate stocks. In either case, swing trading is the process of identifying where an asset's price is likely to move next, entering a position, and then capturing a chunk of the profit from that move.

Frequency and costs: A novice scalper has to make sure to keep costs in mind while making trades. Scalping involves numerous trades — as many as hundreds during a trading session. Frequent buying and selling is bound to be costly in terms of commissions, which can shrink the profit. This makes it crucial to choose the right online broker. The broker should not only provide requisites like direct access to markets, but also competitive commissions. And remember, not all brokers allow scalping. 


EMA stands for " Exponential Moving Average", the second most popular type of moving average after the Simple Moving Average (SMA), except for the fact that more importance is given to the latest data. We recommend you to explore the entry points and the necessary stop-loss levels on your trading terminal. Why not attempt this with our risk-free demo account? And see if this strategy works for you!
Swing traders should select their candidates from the most actively traded stocks and ETFs that show a tendency to swing within broad well-defined channels. Virtually all trading platforms provide a function to enter channel lines on a price chart. The trader should keep a list of stocks and ETFs to monitor on a daily basis and become familiar with the price action of their selected candidates.
Risk management - Rather than looking for one big trade, the way a trend trader might, the scalper looks for hundreds of small profits throughout the day. In this process the scalper might also take hundreds of small losses during the same time period. For this reason a scalper must have very strict risk management never allowing a loss to accumulate.

A pure scalper will make a number of trades each day — perhaps in the hundreds. A scalper will mostly utilize one-minute charts since the time frame is small, and he or she needs to see the setups as they shape up in as close to real time as possible. Supporting systems such as Direct Access Trading (DAT) and Level 2 quotations are essential for this type of trading. Automatic instant execution of orders is crucial to a scalper, so a direct-access broker is the preferred weapon of choice.
It is important to make sure you have a fully developed training plan before starting to trade any swing trading system. This will help you prepare to become more successful and join the ranks of professional day traders. It is our goal to give you the trading opportunities, as well as help you in every way that we can to become the best swing traders around. You can also learn the way bankers trade in the forex market.
Scalping highly liquid instruments for off-the-floor day traders involves taking quick profits while minimizing risk (loss exposure).[14] It applies technical analysis concepts such as over/under-bought, support and resistance zones as well as trendline, trading channel to enter the market at key points and take quick profits from small moves. The basic idea of scalping is to exploit the inefficiency of the market when volatility increases and the trading range expands. Scalpers also use the "fade" technique. When stock values suddenly rise, they short sell securities that seem overvalued.[15]
Scalping is the shortest time frame in trading and it exploits small changes in currency prices.[1] Scalpers attempt to act like traditional market makers or specialists. To make the spread means to buy at the Bid price and sell at the Ask price, in order to gain the bid/ask difference. This procedure allows for profit even when the bid and ask don't move at all, as long as there are traders who are willing to take market prices. It normally involves establishing and liquidating a position quickly, usually within minutes or even seconds.

Successful traders have to move fast, but they don't have to think fast. Why? Because they've developed a trading strategy in advance, along with the discipline to stick to that strategy. It is important to follow your formula closely rather than try to chase profits. Don't let your emotions get the best of you and abandon your strategy. There's a mantra among day traders: "Plan your trade and trade your plan."
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