Scalping In Trading : 2 Quick Trading Strategies
Scalping In Trading : 2 Quick Trading Strategies - Fast stock trading strategy can be done with several types of strategies. This is what you need to understand as a stock trader, especially those of you who want to apply fast trading practices to get daily profit.
Fast trading itself actually consists of 2 strategies namely INTRADAY TRADING and SCALPING TRADING. Although both are fast trading, scalping and intraday trading have different strategies.
So, you should be able to choose a fast trading strategy that suits your character, and not just from doing fast trading. So, you need to understand the difference between the two fast trading strategies. Let us discuss.
1. Scalping stock trading
Fast trading with the shortest time frame is scalping trading. Scalping trading is trading with minute time frames. You buy and sell shares in just 1 minute, 10 minutes, 15 minutes, 30 minutes, 1 hour. That is what is called scalping trading.
What stocks can go up fast in minutes? The answer is fried foods (third-tier stocks). Yup, so scalping trading is done by looking for potential fried foods to rise within minutes.
But to find fried foods, of course you have to use analysis and momentum. Buying fried stocks is not recommended to be done carelessly (without analysis). In addition, you must be more disciplined in capital management and set targets.
Ways to choose stocks, capital management and analysis for scalping trading by looking for three-tier stocks that have the potential to rise 5-10% a day.
Because fried stocks have a high risk, and easy to go up and down in a fast time, fried shares are stocks that are most suitable for scalping trading.
Scalping trading, 'slang' is a hit and run strategy. If you already profit, sell immediately (in minutes), because fried foods are not suitable to be stored for a longer time.
2. Intraday stock trading
Intraday trading is daily trading, where you buy and sell shares on the same day (for example, buy shares in the morning sell in the afternoon), up to 1-3 trading days.
So both scalping and intraday are both fast trading strategies. However, intraday trading has a longer trading time frame than scalping. Intraday trading has a daily time limit (up to three days), while scalping is done by minute trading.
Analysis for intraday trading is also different from scalping. In the intraday trading strategy, you must choose stocks that are liquid, stocks that have volatile fluctuations, and are easy to rise on a daily basis.
That is, intraday trading is done by choosing non-fried stocks (blue chip shares or second liner stocks).
Intraday trading must be done by analyzing stocks with technical analysis, tape reading analysis and a combination of momentum analysis. In my experience, choosing stocks for intraday trading tends to be easier than scalping, because in intraday, you can reduce the risk of choosing stocks that are too volatile.
Strategies and practices of selecting good stocks for intraday trading, we have discussed together in full, along with stocks worth trading.
In intraday trading, your take profit target is also lower than scalping trading. Ideally, intraday trading is carried out with a target profit of 1-4% a day. While scalping (choosing fried foods), the target profit can be done 5-10%. However, the risk of intraday trading is much smaller than scalping trading.
You also need to know that intraday trading can be scalping trading. This is because often stocks that are good for intraday trading, can go up within 30 minutes to 1 hour, so that if your target has been reached within that time range, you can sell shares, no need to wait 1-3 days.
So, through this post, you already understand the strategies of fast trading in the stock market. Now you only need to determine what fast trading strategy is right for you (are you more typical scalper or intraday?), So you can make maximum profit.