#Thread on Scalping.

Lot of New traders are getting attracted towards Scalping Nowadays. For obvious reasons of course. Faster moves, Faster Profits. I get it why. But, Do they really understand the implications that come with it & what it can lead to if not done right.
Scalping is a trading style that specializes in profiting off small price changes, generally after a trade is executed and becomes profitable or results in small loss.

Simply, Entering & Exiting a trade just to Encash a few points in favor.
Just Be aware, it& #39;s not Scalping if you& #39;re using it as an excuse for & #39;Not being able to hold onto a winning trade& #39; or & #39;Not letting the profits run.& #39;

Only you& #39;re your own bullshit detector..https://abs.twimg.com/emoji/v2/... draggable="false" alt="âœŒđŸ»" title="Victory hand (light skin tone)" aria-label="Emoji: Victory hand (light skin tone)">
Essential Factors For Scalping.

- Faster Live-feeds & Faster Order Execution.
- Liquid instrument (Be it Cash, Futures or Options)
- Liquid Spreads.
- Aggresive Entries n Exits
- Managing Psychology after Frequent trades.
- Realising if Scalping is reached at Overtrading stage.
1) Selecting Instrument.
(Cash, Futures or NF/BNF Options)
- Should& #39;ve decent volume & Volatility.
- Liquid Spreads
Gap Between Bids n Asks & Consecutive orders.
- If Spread is not Liquid, Scalping will go wrong & Slippages will be bad enough to ruin those small Profits.
2) Identify the most sensitive price areas where maximum action can happen within seconds. This includes Demand n supply zones, VWAP, Trendline S/R, imp moving averages, Opening range highs n lows, Psychological levels at IMP Options Strikes.
3) Aggresive Entries & Exits.
To avoid Mkt order slippages, Better find Aggresive Entry with Limit order instead of market order. Also, Plan for Probable Exit point & Place (Realistic) Profit Booking order.

More the Aggresion in Entry Exits, More the Probability of Gains.
4) Managing Psychology in between Frequent Scalps.

- This is Probably the most imp factor. We may do a few frequent successful scalps but one bad trade can take it all away & then the Psychology fucks up & What follows after is the worst nightmare of a trader. Overtrading.
There is only 1 way to overcome this,

DISCIPLINE..!!

Be ready to Accept the SL Hit, As much as u want to hit the target. This minimises impact of loss, which will help in & #39;Not screwing up& #39; next trades.

More on Overtrading here on my Previous thread. https://twitter.com/jagtaparun007/status/1192816636094484480?s=19">https://twitter.com/jagtaparu...
5) Averaging or Pyramiding wouldn& #39;t be a good idea for a scalper. Instead use Partial Profit (or loss) booking Method.

It& #39;s a scalper& #39;s paradise if Scalp trade gets converted into a Trending one & instead of Pennies, it becomes multibagger.
(Talking about NF/BNF Options)
You can follow @arunjagtap007.
Tip: mention @twtextapp on a Twitter thread with the keyword “unroll” to get a link to it.

Latest Threads Unrolled: