Lesson 9 of 20 · 8 min
Scalping
Step 1
What it is
Scalping means very short trades for small moves, often lasting minutes. The rules stay the same as any other trade, only the scale changes.
The problem is cost. The spread takes a much larger share of a small target, and more trades mean more chances to act on impulse. This is the hardest style to do well, and we do not suggest starting here.
Traders are drawn to it because it offers many chances and quick feedback. Those same things make it easy to overtrade.
Step 2
See it on a chart
The same structure as any trend, on a one-minute chart.
Illustrative chart with made-up prices and tick volume, built for teaching. It is not real market data and not a trade idea.
Step 3
The exact rules
What must be true before entry
- A clear trend on a higher timeframe, in the same direction.
- A small pullback on the short chart.
- A spread small enough that 3:1 still holds after costs.
What volume should show
Where to enter
Where the hard stop goes
Where the target goes
What invalidates the idea
- Price trades past the stop level.
- The spread widens before you enter.
When not to take it
- You have reached your maximum trades for the session.
- You feel you need to keep busy.
- Major news is due soon, or you would be trading outside your planned hours.
- You have just taken a loss and feel the need to win it back.
Step 4
Your turn: plan the trade
On a one-minute chart, price is falling and has made a small pullback. Mark your plan, and remember that the spread would come out of this target.
This setup is a short. Look at the candles and the volume. Choose a line below, then tap the chart to place it. You can also drag its label or type a price.
Illustrative chart with made-up prices and tick volume, built for teaching. It is not real market data and not a trade idea.
Step 5
The trap: overtrading
A fast chart always offers another trade, which makes it easy to turn a small loss into a bad day. Set a limit on trades and a daily loss limit before you start, and stop when you reach either one.
Read about revenge tradingStep 6