Why Scalping Is The Best Type Of Trading: A Journey Towards Expertise

What is scalping? To put it short, scalping is trading within a very short period of time. Buying and selling within a very short time frame; typically seconds to minutes. It presents quick money within the same day. Who doesn't love to get paid within the same day? Right? 

It would be too ambiguous to define it without providing a detailed outline of how it is the kind of trading you should want to and realistically need to adapt if you actually want to become a great trader. A successful trader is someone who makes money consistently, and lots of it. You're not a successful trader if you're not making serious money, are you? Realistically you wouldn't substitute your 9-5 for this lifestyle if it's not to make big boy money. Reading a graph and making accurate predictions means something if you get paid. Trading is the game, and money keeps score for who's winning.

Scalping vs. Swing Trading

So how does scalping give you the edge and increase your probability of success at trading? We should first talk a little about the other two forms of trading that most traders use. 

Swing Trading: Letting your trades run a long time, typically a few days to weeks. A swing trader attempts to buy/sell and hold his trade for some time, hoping their position reaches a specific target on a price chart. These traders typically use longer time frames, such as weekly, Daily, 4hr, to make a trade prediction. They make a trade decision and set a target with (Y) amount of distance to be met to get paid. The time it takes them to meet their target is relative to what the market decides to provide. They typically set wide stop losses and longer take profits.

Investing: "HOLD HOLD!!! The portfolio is down 40%! But HOLD!!! Maybe it will come back in 15 years". Jokingly, you are betting on the Fair Value of a product and buying at what the investors perceive as cheaper than the current price. However much time it takes for a product to reach that fair value is outside their concern. It usually takes months to years. Investing is typically out of the league of trading altogether, as you need to do something more active to manage your positions.

Pros of scalping vs. Swing trading 

Now that you know what scalping is, let's take a deeper look at why this form of trading surpassed any other trading methods.

Distance Constraint

A scalper does not need to have a specific distance on a chart to be met. Think about it. Imagine you had to place a trade, and I told you: "The only way you get paid is if this chart travels this far and meets your target". Doesn't that sound like I am giving you an extra factor that can prevent you from making money? A scalper reacts to price volume and exits without a specific distance needing to be met. You literally remove a whole variable from the equation. A variable that gives a scalper a massive edge over any swing trader. A scalper presses buy when a candle is at its most red and waits seconds to watch it fluctuate upwards to see money print on the screen and instantly take profit—no need to wait days to get paid. 

Time Constraint

Lastly, a scalper's most important variable over any other trader is time. Time is the biggest factor you should consider when trading in this business. It is something you can't get back. We are all trading our own time for money in hopes of living comfortably. As a trader, the more time you spend in a trade, the less likely you are to make money. I say that because imagine you entered a trade and had to wait to get paid. You can wait days on end watching your profit/loss fluctuate and have NO control over that. The only control you have is exiting your position wherever it is at that time. 

Take Profit When It's Offered

A scalper typically takes profit the first time offered, usually within seconds to minutes. The same profit a swing trader would make in weeks, a scalper would make in only a slight moment. The difference is the scalper does not need to wait for any distance to be met or for time calculation to constrain themselves. Scalpers use size to their advantage and make the same money any joe blow swing trader would wish to make on the same trade day. A scalper does not need huge point/pip swings to make money. They need only a few. A few points on a large-size, pay is just as great. 

There is no uncertainty of whether the trade will or will not reach its destination. A scalper banks profit, and if he wants to spend that money the same day, he can. No financial constraints; it is a guaranteed money period if you take profit when you're up. Money is in your pocket. You don't have to keep watching the screen and watching your money go from up to negative back to even etc. Remember: Many trees make a forest. Many scalps make a massive return. The bottom line is: The guy who takes money off the table the fastest guarantees himself that money. There's no way around it.

Scalping: The best form of Trading 

Trading is as hard as it gets. There is a reason that 99% of all retail traders fail; it is difficult. So why need to make things harder and bend to the will of two extra variables that can severely handicap your performance? It mathematically makes no sense. It's like a girl who wants a man who's 6'5, makes a huge salary, is European, has a tan, is a model, and is loyal. Calm down... you're never going to find that man. The probability is extremely low; vs. the woman who will settle for a man who is simply European and loyal. See how much easier that just got? Same with trading. Pick the style that does not include a distance to be met or time to make you wait to guarantee money. Take away those variables, and you will see much more success. The edge is in your favor. Money today. Money Now. Go spend it.

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