Welcome back,
Today I am going to talk about scalping, and the reason why I want to talk about this is because of a video that I saw on YouTube today. There was a man who was explaining how you can get into this thing known as scalping and earn a good profit.
Now, while scalping is actually one of the methods by which most traders make money, we should not forget that it is a risky thing and you either make money quickly or lose it. The first thing I do not like about scalping is that it is often done in future trading.
I am not saying that you cannot do it in spot trading, but most people doing scalping today are those who are future traders, and the reason is quite simple. You want to make quick money, and the movements that come quickly are not more than 2 to 3%.
So with 10x leverage, they are able to make 20 to 30%, or sometimes when they are lucky and get a 10% move on spot holding with 10x leverage, it is a 100% gain. That is what scalping looks like.
So, if you are someone who has heard about scalping and you are thinking about getting into it, make sure you have very strong technical skills because it actually requires technical analysis.
You must know how to read charts on 5-minute and even 1-minute time frames because that is what scalping traders do. In scalping, they actually book profit in a few minutes or sometimes even a few hours. Sometimes you have to exit the token you bought in just 10 to 15 minutes, while sometimes you might sell it in just 5 minutes. That is what scalping looks like.
I personally have done scalping but not the way it is done by others. I have done scalping in spot trading because I am not a future trader. I have always stayed away from it because I think I do not want to get into it.
So in spot trading, I have done scalping recently when I bought a token and it pumped by 3%, and then I sold it. Now, if you are able to make 3% a day, it is not less because making 3% a day is like making 90% a month, which is not a joke. Anyone in the market making more than 20 to 30% is actually a successful trader in my opinion.
So, do not go with scalping if you do not have technical skills or if you do not know how to read charts on lower time frames. Make sure you stick with long-term trading or you can stick with trading pairs from time to time, like buying a pair of tokens and selling them in the next 2 to 3 days.
That is what you can do, and always make sure that you do not invest all your money in scalping because that is another mistake that people make, especially newcomers who just watch videos and start doing these things.
So make sure you have technical skills and then only get into this with a very small portion of your total portfolio value.
Thank you and happy trading everyone!
