{"id":10786,"date":"2023-02-23T10:00:35","date_gmt":"2023-02-23T10:00:35","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=10786"},"modified":"2022-05-17T15:14:38","modified_gmt":"2022-05-17T15:14:38","slug":"what-is-scalping-and-how-does-it-work","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/what-is-scalping-and-how-does-it-work","title":{"rendered":"What is Scalping and how does it work?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-scalping-and-how-does-it-work\/#how_does_scalping_work\" >How does Scalping work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-scalping-and-how-does-it-work\/#when_to_apply_or_not_to_apply_scalping\" >When to apply or not to apply Scalping?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-scalping-and-how-does-it-work\/#advantages_and_disadvantages_of_scalping\" >Advantages and disadvantages of Scalping<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p>In the trading world there are many techniques to obtain\u00a0<strong>profits<\/strong>. Scalping is one of the most attractive, since in a few words it is about generating profits through\u00a0<strong>micro movements<\/strong>\u00a0in the market. The fact of earning money in such\u00a0<strong>short<\/strong>\u00a0periods of\u00a0<strong>time<\/strong>\u00a0attracts the attention of many users who decide to put this technique into practice.scalping is also known by the name of quick trading being a variant of\u00a0<strong>day-trading<\/strong>. In other words,\u00a0<strong>short-term trading<\/strong>. The operations carried out under this technique are\u00a0<strong>fleeting,<\/strong>\u00a0since we are talking about opening and closing a trade in a matter of\u00a0<strong>minutes or even seconds<\/strong>.<\/p>\n<p>This technique involves traders making a<strong>\u00a0large number<\/strong>\u00a0of trades throughout the day. This\u00a0<strong>instantaneous<\/strong>\u00a0system makes the trader earn\u00a0<strong>small<\/strong>\u00a0but repeated profits in a day.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"how_does_scalping_work\"><\/span><strong>How does Scalping work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If we want to obtain\u00a0<strong>profitability<\/strong>\u00a0in scalping operations must be done\u00a0<strong>methodically<\/strong>\u00a0adjusting the\u00a0<strong>stop-loss<\/strong>\u00a0on each operation. This is a high-risk technique that requires extensive knowledge of the market and a good technological support.a.<\/p>\n<p>Operations of this type are carried out in<strong>\u00a0short intervals<\/strong>\u00a0of time, so speed of analysis and decision making is required. Therefore, the systems we use as tools must be as\u00a0<strong>fast<\/strong>\u00a0as possible.<\/p>\n<p>To apply this technique, the ideal assets are those with\u00a0<strong>maximum liquidity<\/strong>\u00a0whose turnover is high and guaranteed, as is the case of Bitcoin. Practicing scalping in cryptocurrencies involves applying this methodology in multiple operations with the objective of obtaining<strong>\u00a0fast returns<\/strong>\u00a0in short periods of time.<\/p>\n<p>Scalpers are a highly active type of currency traders. They open and close orders quickly. This type of strategy is very popular with more\u00a0<strong>experienced<\/strong>\u00a0traders, as it helps to\u00a0<strong>limit losses<\/strong>\u00a0and high exposure to the market. The risk is more limited.<\/p>\n<p>The Scalping strategy is a perfect starting point for\u00a0<strong>beginner<\/strong>\u00a0traders who do not want to take high risks. Always keeping in mind that it is a strategy that requires\u00a0<strong>daily time<\/strong>\u00a0in front of the charts. This strategy involves about\u00a0<strong>100 trades per day<\/strong>\u00a0for the average trader. This means that we should choose an exchange with smaller\u00a0<strong>spreads<\/strong>\u00a0and low commissions. Clearly Scalping is based on<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/technical-analysis-or-fundamental-analysis\/\">\u00a0technical analysis<\/a>\u00a0and\u00a0<strong>price<\/strong>\u00a0action. On the one hand general analysis is only marginally taken into account while technical indicators\u00a0<strong>play a fundamental role.\u00a0<\/strong><\/p>\n<p>In this technique there are\u00a0<strong>relevant factors<\/strong>\u00a0that condition our operations. These factors must be taken into account before starting an investment.<\/p>\n<ul>\n<li>The first factor is the level of\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-the-liquidity-of-a-cryptocurrency\/\">liquidity<\/a>. If we want to do Scalping the most suitable environment is in markets with\u00a0<strong>high liquidity.<\/strong><\/li>\n<li>The second important factor is the level of\u00a0<strong>volatility<\/strong>. To gain more possibilities to accept we need to look for markets with\u00a0<strong>volatility<\/strong>\u00a0that allow us to enter\u00a0<strong>micro-trends<\/strong>\u00a0and follow a price.<\/li>\n<\/ul>\n<p>We must keep in mind that this technique is based on activating a<strong>\u00a0stop-loss.<\/strong>\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-market-order\/\">This type of market order<\/a>\u00a0will only be triggered if volatility triggers it again and again. On the contrary, in a market with low volatility we will not be able to enter small trends.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"when_to_apply_or_not_to_apply_scalping\"><\/span><strong>When to apply or not to apply Scalping?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To perform this type of trading we must first think about whether we meet the necessary characteristics to carry it out. This type of operation requires\u00a0<strong>investors<\/strong>\u00a0who, first of all, orient their investments to\u00a0<strong>short term<\/strong>\u00a0and\u00a0<strong>fast trading<\/strong>. It requires a\u00a0<strong>lot of time<\/strong>\u00a0to observe the market charts and draw conclusions after hours of watching them. You need to think and act<strong>\u00a0fast<\/strong>.<\/p>\n<p>It should be noted that there are situations in which Scalping is not the best option. One of them is when the user cannot dedicate enough\u00a0<strong>time<\/strong>\u00a0to observe the charts and market movements. If our goal is to earn\u00a0<strong>large profits<\/strong>\u00a0in a few operations Scalping is not the best option.<\/p>\n<p>If you are one of those people who need to\u00a0<strong>meditate<\/strong>\u00a0when carrying out a general analysis of the market and determining the\u00a0<strong>general trend<\/strong>, this methodology is not for you.<\/p>\n<p>Finally, it is essential to know how to control\u00a0<strong>emotions<\/strong>\u00a0in the face of rapid\u00a0<strong>market<\/strong>\u00a0movements.<\/p>\n<div id=\"image_1365713337\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img fetchpriority=\"high\" decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu%C3%A9-es-scalping2.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu\u00e9-es-scalping2.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu\u00e9-es-scalping2-300x205.jpg 300w\" alt=\"Qu\u00e9-es-scalping\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu\u00e9-es-scalping2.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu\u00e9-es-scalping2-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/05\/Qu\u00e9-es-scalping2.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"advantages_and_disadvantages_of_scalping\"><\/span><strong>Advantages and disadvantages of Scalping<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Like everything else, this technique has its own advantages and disadvantages. Below we will tell you the most important ones.<\/p>\n<ul>\n<li aria-level=\"1\"><b>Less risk.\u00a0<\/b>Losses are reduced, if any, since we play little. However, this feature also makes it a disadvantage because as losses are reduced, profits are also reduced.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Many opportunities.<\/b>\u00a0This is considered an advantage, as due to the fact that the action time is quite short, traders have many opportunities to make profits.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\">We must\u00a0<strong>know<\/strong>\u00a0at what exact moment to\u00a0<strong>enter or exit a transaction<\/strong>. This is because in very volatile markets there can be a lot of price variation between the opening of the transaction and its closing.<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><a href=\"https:\/\/www.bitnovo.com\/blog\/en\/psychology-in-trading-how-does-it-affect-us\/\"><b>The trader\u2019s emotions are involved<\/b><\/a><b>.<\/b>\u00a0This is a clear disadvantage considering that in the face of large price variations we do not usually think before acting and we can make mistakes that result in losses.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>In the trading world there are many techniques to obtain\u00a0profits. Scalping is one of the most attractive, since in a few words it is about generating profits through\u00a0micro movements\u00a0in the market. The fact of earning money in such\u00a0short\u00a0periods of\u00a0time\u00a0attracts the attention of many users who decide to put this technique into practice.scalping is also known [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6901,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10786","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-criptomonedas"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10786","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=10786"}],"version-history":[{"count":0,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10786\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/6901"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=10786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=10786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=10786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}