Is Scalping Good for beginners - Option Trading

 

 

No, scalping is not promising for beginners because it requires some expertise and experience in trading. Try scalping if you're a seasoned pro.

Let's first understand what scalping is, and I will be discussing some ways to learn scalping,

 

What is Scalping?

In scalping, we try to capture as small as possible momentum and take a small profit, which is probably 8-10 points and hold a trade for a second or minutes but not an extended period, which is called scalping.

 

Here are the various things to consider while checking out scalping trade,

 

Smaller Time Frame for Scalping

People use shorter time frames for a scalping trade because we have to capture every tiny movement in the market.

For instance, people use a 1-minute to 5-minute time frame for scalping trade, and if you're a beginner, then use a 15-minute time frame for trading and stay away from scalping.

 

Use a Deep ITM Option

Using Deep ITM(in the money) is promising for the Scalping trade because the OTM option hardly gets any movement until & unless it gets any significant moves, and you may lose your trade because of these trends. So, it's better to use the Deep in the Money option.

But nobody will tell you these facts, so expanding your knowledge is crucial.

 

Require Strong Psychology

I'm writing this from personal experience, and what mistake I made back in the day when I used to buy and sell in each & every bounce back, and also this is the biggest mistake every beginner makes while starting trading.

I used to buy a position within a second and sell it within a second, so you must have a strong psychology, and it comes from experience.

 

Exit the Position if It Goes Wrong

Usually, scalpers do not add a stop loss in trade, but they have a stop loss in their minds, and it's a kind of risk-to-reward ratio, which means if it goes wrong, then exit positions.

Proper stop loss is mandatory in any case if it goes wrong. As I stated, you must use a small timeframe for scalping trade, and I have already shared one strategy that you should check out in my Trading Post section. If it hits the stop loss, do not worry because it is part of the game.

 

F&Q Question

Is Scalping Good for Small Accounts?

Yeah, but only if you are a seasoned professional. I used to do it with my small account, and it's worked perfectly fine for me, but do with proper stop loss.