What is Scalping Trading | how to make money scalping trading

What is Scalping Trading? How some people earn lakhs of rupees in the stock market within a few minutes and that too without any loss, is this possible for everyone?

Stock market is an ocean of money, but to be successful here, hard work and learning is very important, there are many types of trading, scalping trading is one of them, yes, people earn millions of rupees in a few minutes in the market, that’s why, Because those people do Scalping Trading on the stock exchange shares. Scalping trading is a unique trading system to earn money in less time .

In this article we will understand step by step Scalping Trading, and also know what is the meaning of Scalping Trading? And how to earn money from scalping trading and how to do scalping trading in the right way, so let us move ahead –

What is the meaning of scalping trading?

Scalping Meaning – The literal meaning of Scalping Trading is ‘black marketing business’ . However, if we understand it in simple language, Scalping Trading means trading outside the rules, this is called Scalping Trading.

Who are scalpers? Who are scalpers?

Dear reader, now it must be coming in your mind that who are these scalpers and how do they earn from trading ? Scalping trading is a trading style that employs small price changes to maximize profits. Let us tell you that scalpers often trade in a short term , however, it is very important for a scalper to have a strict exit policy .

Because a big loss can wipe out all the profits that the investor has made in other trades, scalp trading requires discipline, decisiveness, stamina, a clean mindset . If someone has quality then you can become a successful scalper . Yes but you need to have complete knowledge about trading and research is very important.

What is scalping trading

When an investor does intraday trading in the stock market, he buys and sells shares between the opening and closing of the market within the same day. . This happens because it is a rule that in intraday trading the investor buys shares at a lower price and earns profit by selling them at a higher price.

But for this he has to hold his position for a long time and sometimes this work is also done quickly. But the investor has to wait to buy shares at a lower price. But this is not the case with scalping trading.

What is scalping trading? In scalping trading, the most volatile stocks are selected, after that the stocks are bought with the entire margin money, and then as soon as the price of those stocks increases a little, then it is sold. Scalping trading usually takes place within 1 minute to 25 minutes.

How to do scalping trading

To do scalping trading, first of all investors have to make a strategy so that investors can work in the trading field according to the same strategy. We will understand how to do scalping trading through an example –

Suppose an investor chooses a Scalp share and the price of that share jumps a lot. That means volatility ranging from 25 paise to ₹1.50 every 15:20 minutes. volatility rangesNow investors have to first buy the shares of that company by going to their trading account.

Now as you all know that investors are doing scalping trading , then they have to buy shares for the amount of money they have. Here you can use almost 90% margin of your trading account , here you get 5 times margin. Now let’s assume investor bought shares at ₹110 per share.

So now immediately the first stoploss has to be set, you set the stop loss at ₹ 109.50 per share. For more information about stop-loss, you can read this article What is stoploss and how to apply it.

Now investors have to set their target Trigger price Rs.110.50/paise per share Now as soon as the stock price hits the target, the Stocks of Investors will be automatically sold and their profit will go into their account.

Key Points of Scalping Trading

There are some tips for scalping trading, which you have to follow.

  1. Never use the entire Margin money .
  2. Always take trades by doing research and don’t go by guesses.
  3. Always carry a stop loss so that you do not have to take big risks .
  4. Don’t be greedy at all, just keep the same as your target.
  5. Don’t fight with the market and don’t take trades again and again.
  6. Do not trade shares of the same company repeatedly .

Conclusion : What is Scalping Trading

Dear Reader, no matter which segment or sector of trading you invest in , it is important to be disciplined because if you repeatedly argue with the market, the market will get rid of you. Therefore, do not repeat the mistake you have made and accept your mistake.

In Scalping Trading you have to take action very quickly, so if you are a beginner trader then you should avoid it for now, because it is an advanced level task. When you learn, you will do it comfortably.

We hope you liked today’s article What is Scalping Trading and you also got information about Scalping Trading.

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