How to do swift trading - Scalping

Ever wondered how to take advantage of the volatility in the stock market? You really can do a lot to use these dynamic fluctuations to your advantage. The technique is called scalping. You might also call it as swift trading. The concept is amazing and runs in symphony with this amazingly swift world. You really got to change your attitude and actions and be in harmony with the market. Never tie your emotions with the market. Scalping does precisely that in unbelievably shorter span of time. You buy something now and you sell it off within a minute.

If you hold your stock for more than 2 minutes then that doesn’t qualify under the heading of ‘Scalping. In scalping you just don’t hold any position for more than 2 minutes. Some experts might consider even 2 minutes as a lot of time. The idea is to create multiple positions every moment. Let’s imagine you are scalping a particular stock. You bought 10000 stocks of the company at a price of $10.20. In 60 seconds the price fluctuates to $10.25. Would you sell it? In ideal trading you might want to gain more profit and recover from brokerage charges. However, in scalping you will sell it and swiftly switch to take another position.

Vow!!! That’s remarkable. Scalping requires you to have specific trading accounts that are actually tuned for such sort of trade. It works on the concept of volume and the brokerage charges are minimal. So even if you make 1 cent profit on each stock and if you have a volume of 10000 stocks then it effectively means you just made a profit of $100. You don’t really need to tie any emotional attachment to your stocks. Just execute the position swiftly and stand by your rules. Your scalps can go wrong. That’s the reason you need to have a strict stoploss for all your positions. On a bad day you can lose some money. But that’s how it works. You win some you lose some. If you have more wins than loses then you are a good scalper.

There are many tools in the market that help scalping swiftly. These tools provide you a lot of technical and fundamental tips on what to scalp and when. So, if you have great inner strength, patience and ability to stand by your decisions then scalping is for you. If not, then just stay away from it.

http://expertscolumn.com/users/samprad78