Scalping

Scalping is a strategy in trading similar to the German blitzkreig. The objective of the trader is to enter a trade and exit as quickly as possible, locking in gains with small price movements. Scalpers usually trade large blocks and are happy if the stock moves a cent higher.

This strategy however, is very dangerous and if there is no existing solid rules for exiting the trade, huge loses as a result of a large price movement in the opposite direction where the trader wishes the price to be can wipe out a month's worth of gains.

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