Investopedia

Scalping

Dictionary Says

Definition of 'Scalping'

A trading strategy that attempts to make many profits on small price changes. Traders who implement this strategy will place anywhere from 10 to a couple hundred trades in a single day in the belief that small moves in stock price are easier to catch than large ones.
Investopedia Says

Investopedia explains 'Scalping'

Traders who implement this strategy are known as scalpers. The main goal is to buy (or sell) a number of shares at the bid (or ask) price and then quickly sell them a few cents higher (or lower) for a profit. Many small profits can easily compound into large gains if a strict exit strategy is used to prevent large losses.

Articles Of Interest

  1. Scalping: Small Quick Profits Can Add Up

    We look at different styles of scalping, and how they can all be very profitable.
  2. A Look At Exit Strategies

    Setting appropriate exit points should help you avoid taking premature profits or running losses.
  3. An Alternative Covered Call: Adding A Leg

    Try this approach to covered calls to increase your potential for profit in any market.
  4. Are You Under Or Overtrading?

    Under and overtrading can lessen an investor's profits. Find out how to fix these issues with a trading plan.
  5. Day Trading Strategies For Beginners

    From picking the right type of stock to setting stop-losses, learn how to trade wisely.
  6. A Beginner's Guide To Scalping In The Forex Markets

    We look at what scalping is, how to do it and the characteristics of a successful forex scalper.
  7. 4 Common Active Trading Strategies

    Learn four of the most popular active trading strategies and why active trading isn't limited to professional traders anymore.
  8. Introduction To Trading: Scalpers

    This type of trader makes many trades per day to "scalp" a small profit from each trade. Find out how it works.
  9. When Not To Trade

    When conditions arise where systems are likely to perform poorly, traders must exercise discipline and cease trading.
  10. Forex: How To Scalp Fundamentally

    Learn why event-driven scalping in the currency market involves balancing fundamentals with technicals.
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