Scalping
Scalping is taking many small trades that last seconds or minutes. You aim for a few cents a share and get out fast, whether it works or not.
In depth
A scalper trades size and speed instead of distance. Buy 500 shares at 20.00, sell at 20.06, and that is 30 dollars. Do it several times a day and the small wins add up. That holds only while the losers stay the same size.
Two costs decide whether it works. The spread and the fees come out of every trade. They do not shrink when your target does. On options a wide spread can eat a whole scalp before price moves. Exits have to be mechanical, because one loser you hold undoes a dozen wins.
Why it matters
Scalping punishes hesitation more than any other style. The gain is small, so a single loss you let run wipes out the day. Costs bite as well. Play for 6 cents and a 2 cent spread takes a third of the profit before you start.
TraderLog tags short trades as scalps on its own. You can then compare them with everything else you do. Results by hold time show whether the fast trades pay. The stats page puts your average loser next to your average winner.
Frequently asked questions
Usually seconds to a few minutes. If you are still holding after ten, it stopped being a scalp.
It is the hardest style to start with. Decisions come fast, and costs take a big share of every small win.
Keep your Scalping trades on the record in TraderLog
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