Scalping 101 Lecture

Core Concepts of Scalping

Scalping is a trading style focused on short-term, fast-paced trades.
It is one of the main styles of trading alongside intraday trading, swing trading, and positional trading.
Time is the key differentiator between these styles. Scalping involves quick trades often within minutes or hours.
Market Structure Principles: Stop-loss, take profit, risk to reward, and market structure are consistent across all timeframes.
Scalping is about the length of time in the market and requires quick execution.

The difference between scalping and other styles like swing or intraday trading is primarily time.
In all styles, the core trading principles remain the same, but the execution speed and timeframes differ.
Scalping involves trading during high-volume and high-volatility periods.

Various methods can be used in scalping such as trendlines, zones, EMAs, and using volume times during sessions like London or New York.
Scalpers often focus on price action and patterns like bounces off moving averages or trendlines.
Scalping is effective when performed during specific trading sessions with high market activity (e.g., London and New York sessions).

Emotional Discipline: Scalping demands strong mental fortitude and discipline to follow a trading plan.
Greed Management: Human greed often prevents traders from following their set plans, leading to losses.

Risk to Reward: Typically, scalping involves a smaller risk to reward ratio (e.g., 1:1 or 1:2).
Timeframes: Use daily and 4-hour charts for overall trend and structure, with 1-minute charts for precise entries.
Execution: Requires precision and patience, waiting for valid entries with minimal drawdown.

Follow your trading plan strictly, taking profits according to the plan rather than market temptations.
Scalping requires adaptability to changing market conditions and the ability to react quickly.
Consistent analysis and execution at key levels and zones provide the best results.

Scalping involves live reading of price action and market conditions.
The importance of session volumes: aligning trades with market opening times can provide profitable opportunities.
Always adapt strategies to fit personal lifestyle and trading goals; no single method suits everyone.

A follow-up session will include a live trading example to demonstrate scalping principles in action.