July 4th, 2008
Scalp Trading And Razor Thin Profits
Scalping is known for buying and selling within a matter of minutes. Unlike swing trading of holding positions for a few days or weeks, or even the day trading strategies of holding positions for hours, scalping involves holding a position for a matter of minutes. In just a few minutes, scalping can yield a highly leveraged trader thousands of dollars.
Who Scalps?
Professional traders that use scalping techniques are numerous. Scalping is best known for its impact on the foreign exchange markets where the commission is built into the price and prices move more smoothly than equities markets. Scalping requires buying and selling in a short amount of time for a very small return on investment. It is the volume of profitable trades that results in a lucrative strategy.