In our previous article on Positional Trading, we explored how traders hold positions for days to months to ride big trends. But what if you don’t want to wait? What if you want to enter and exit trades within minutes, grabbing tiny profits multiple times a day?
That’s where Scalping comes in — the fastest-paced trading style designed for traders who thrive on action. 🚀
What is Scalping?
Scalping is a trading style where positions are opened and closed within seconds to a few minutes, targeting small price movements. Scalpers aim to profit from frequent trades rather than large price changes.
Positional vs. Scalping – Quick Comparison
| Feature | Positional Trading | Scalping |
|---|---|---|
| Holding Time | Days to months | Seconds to a few minutes |
| Trade Frequency | Low | Very high |
| Target | Large price moves | Tiny price changes |
| Risk Exposure | Higher due to overnight risk | Low, trades closed quickly |
| Screen Time | Minimal | Very high (needs full attention) |
| Suited For | Long-term thinkers | Fast decision-makers |
Key Features
| Feature | Description / Details |
|---|---|
| Style | Ultra-short-term trading style. |
| Trade Duration | Trades last from seconds to a few minutes. |
| Execution Speed | Requires quick execution and fast decision-making. |
| Focus | On liquidity and low spreads to minimize costs per trade. |
| Common Indicators | Moving Averages, RSI, Bollinger Bands, Order Flow or DOM (Depth of Market). |
| Critical Traits | Discipline and speed are critical for success. |
Real-Life Example
Let’s say you are trading Nifty Futures.
- Nifty is at 22,300
- You notice a support level at 22,290
- As the price drops to 22,292, you buy
- Within 1-2 minutes, the price bounces back to 22,298
- You exit the trade with a quick 6-point profit
👉 On 10 such trades in a day, even small profits can add up.
Pros
- Small losses, small wins — more control over risk due to tight stop-losses.
- No overnight risks — trades are closed same day, eliminating exposure to market gaps.
- Can profit even in sideways or low volatility markets by capturing tiny fluctuations.
- Multiple opportunities in one trading session, maximizing the number of trades.
Cons
- Requires full-time screen attention throughout the trading session.
- High-speed execution tools needed (fast internet, robust broker platform with low latency).
- Mentally exhausting due to constant focus and rapid decision-making.
- Brokerage and transaction charges can eat into profits due to high trade frequency.
Who Should Consider Scalping?
Scalping is ideal for traders who:
- Are quick decision-makers.
- Love fast-paced environments.
- Can monitor markets actively during trading hours.
- Use reliable, fast-order execution platforms.
Final Thoughts
Scalping is not for everyone — it demands speed, focus, and emotional control. But if you love adrenaline-filled trading and want to profit from small moves multiple times a day, scalping could be your style.
If you’re starting, begin with small capital, learn with demo trading, and understand both the technical and emotional side of trading.
Start Your Trading Journey