How to make scalping profitable

How to make scalping profitable

How to make scalping profitable

What are the advantages of scalping? Its efficiency. Fast money is one of the most important incentives in a person's life. In this article, you will learn how to improve scalping and make it really profitable, and not just tickle your nerves.

Many traders are looking hard for profitable strategies that allow them to apply an overactive approach to trading. These are scalper traders. This method of trading requires considerable attention from the trader and involves taking a small amount of profit (5-20 points), after which the position is closed. Naturally, this approach involves opening positions with a large volume. This must be done in order for profitable transactions of 5 or more points to bring a significant percentage of income.

All quick money hunters need to remember that scalping involves a high risk, because there is always a chance that the price will go against the open transaction. And in this case, the trader will receive a loss instead of profit, the amount of which will be significant.

Most often, scalping is used to disperse the Deposit. I strongly DO not recommend making this type of trading the main one, as it is associated with significant emotional stress. As a result, a trader can "burn out"in a fairly short time.

However, you can increase the efficiency of scalping. How? Using the VSA trading strategy. It is the analysis of the market based on candles and volume that allows you to determine the most likely correction points and, moreover, open trades with a profit potential of 1 to 3.

The stop loss will be no more than 10 points. It is also worth noting that there will not be very many entry points per day, but their quality significantly exceeds many scalping strategies.

The obvious advantage of this approach to scalping is the simplicity of the method. To use this strategy, you will need an indicator of real futures volumes, rather than the usual volatility indicator, because only real futures volumes can tell us the most likely price reversal points.

Below is an example of how the readings of the futures volume indicator and the tick volume indicator differ from each other.
You didn't even have to select sections – the differences are visible to the naked eye. This is why I recommend installing the ClusterDelta volume indicator. It displays exactly the exchange information. The one on the basis of which we will determine significant price areas where we can expect a rebound from a certain price level with a high degree of probability.

Preliminary analysis should be performed on the hourly timeframe H 1. We are interested in areas (candles) with the maximum volume values. Then we need to apply support and resistance levels on the tops and bottoms of such candles, as is done below.
Please note that as a result, we marked 11 levels in 9 trading days.

This completes the preliminary analysis. It's time to start the next step, i.e. determining the entry points. Do you want to find out more? Then watch our free webinar, where you will learn how to find profitable entry points, determine important price levels, set stop loss, take profit, and much more.

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