1. Introduction to Stock Trader Types
  2. Stock Traders’ vs. Stock Investors' Roles in the Marketplace
  3. Decision-Making Methods: Informed, Uninformed, Intuitive
  4. Informed Traders: Fundamental Traders, Technical Traders
  5. Swing Traders
  6. Buy and Hold Traders
  7. Value Traders
  8. Trend Traders
  9. KISS Traders
  10. Momentum Traders
  11. Range-bound Traders - Break-out Traders - Channel Traders
  12. Options Traders
  13. Options Seller Traders
  14. Day Traders
  15. Pattern Day Traders
  16. Intra-Day Traders
  17. Intra-Day Scalp Traders
  18. Contrarian Traders
  19. Active and Passive Traders
  20. Futures Traders
  21. Forex Traders
  22. Online Stock Traders
  23. Pivot Traders
  24. News Traders
  25. Noise Traders
  26. Sentiment-Oriented Technical Traders
  27. Intuitive Traders
  28. Price Action Traders
  29. Price Traders
  30. Detrimental Traders
  31. Unsuccessful Types of Stock Traders
  32. Conclusion

As if intra-day trading were not challenging and nerve-wracking enough, there are some intra-day traders who engage in what is known as scalp trading. This is a special type of short-term trading which involves the goal of lowering risk exposure by reducing time in the market. Scalp trading typically yields the smallest gains per each successful trade of any type of trading. It is usually based on technical analysis of indicators like moving averages, MACD (Moving Average Convergence Divergence), momentum oscillators, and so on. Trades are usually held for minutes at most.

While scalp trading is incredibly difficult, there are a number of reasons why traders may be attracted to this method:

  • Reduced risk exposure

  • High-volume trading (up to 100 trades per day, or potentially more)

  • Minimizes greed, as profit targets are very small

  • Huge number of trading opportunities each day

Intra-day scalp traders enjoy many benefits. Because they hold their positions for very short periods of time, they experience a lower likelihood of reversals which knock out their trading position. They don’t have to be patient and wait for a trade to close. These traders usually aim for profits at a 1:1 risk to reward ratio, or even less. This means their strategies achieve a higher strike rate, rather than a high reward rate. Because of the duration of their trades, they also don’t require as much knowledge of the market, and they aren’t so worried about long-term trends.

Drawbacks of Intra-Day Scalp Trading

Being an intra-day scalp trader can be difficult, as some brokers do not allow for this type of trading. A single loss can deplete many of the incremental gains of previous trades. Also, because the potential profits are so small, a scalp trader needs to accomplish a larger number of successful trades per day in order to achieve his or her goal.

Intra-day traders require a high win/loss ratio each day in order to make a profit. This is different from some other day trading strategies, in which traders only need to achieve a win/loss ratio in trades of 50% per day (or, in some cases, even less). Tobe successful, scalp traders have to be right much more often than they are wrong.


Contrarian Traders
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