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.

Stocks | Forex | Options | Economics | Bonds | History | Language learning | Technology | Technical Analysis | Fundamental Analysis
Copyright © 2014 econtrader | Risk disclosure | Terms of Use