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By www.ProfitableTradingTips.com
Traders who engage in rapid
momentum trades are often scalping
         in day trading.



                By www.ProfitableTradingTips.com
These traders make their profit from the
 difference between bid and ask prices.




                   By www.ProfitableTradingTips.com
Even in a flat market traders can profit
    from scalping in day trading.




                   By www.ProfitableTradingTips.com
In order to successfully make a business
out of scalping in day trading the trader
   needs to pay close attention to the
   market, always be aware of market
   fundamentals, and keep abreast of
           technical analysis.


                    By www.ProfitableTradingTips.com
Despite the theoretical possibility of
trading in an absolutely flat market the
  price of a stock constantly moves to
 some degree throughout the trading
                   day.


                   By www.ProfitableTradingTips.com
Thus when scalping in day trading one
  acts as a mini trend trader as well.




                  By www.ProfitableTradingTips.com
By www.ProfitableTradingTips.com
There is a rhythm to scalping in day
        trading and it is fast.




                 By www.ProfitableTradingTips.com
Traders seek to profit from the actions of
  traders to simply take the bid and ask
             prices of a stock.



                    By www.ProfitableTradingTips.com
This strategy guarantees a profit if the
          trader acts quickly.




                   By www.ProfitableTradingTips.com
It can result in losses if the stock price
          moves too quickly.




                    By www.ProfitableTradingTips.com
As an example, Xyz Corporation has a bid
price of $10.10 and ask price of $10.15.




                   By www.ProfitableTradingTips.com
If the scalper can buy at the bid price
and sell at the ask price he gains $0.05
 per share, a small amount but a lot if
 repeated many times throughout the
                   day.


                   By www.ProfitableTradingTips.com
However, the market might move lower
  before he can complete his trade.




                 By www.ProfitableTradingTips.com
Let’s say that the stock moves so that
the bid price is now $9.90 and the ask
             price is $9.95.



                  By www.ProfitableTradingTips.com
The trader who purchased for $10.10
now needs to sell at $9.95 if he wants to
         quickly exit his trade.



                    By www.ProfitableTradingTips.com
The other choice is to continue the trade
   in hopes that the market will turn
       upward and not fall farther.



                    By www.ProfitableTradingTips.com
This later course is anathema to scalping
              in day trading.




                    By www.ProfitableTradingTips.com
When scalping a trader is never trying to
outguess the market but simply helping
to make the market and make repetitive
             small profits.



                    By www.ProfitableTradingTips.com
By www.ProfitableTradingTips.com
Bid and ask prices are available on
    markets across the world.




                 By www.ProfitableTradingTips.com
Gaining the spread on every trade is the
   goal when scalping in day trading.




                   By www.ProfitableTradingTips.com
The ideal scalping trade would be
         instantaneous.




                By www.ProfitableTradingTips.com
Buy at the low price and sell at the high.




                    By www.ProfitableTradingTips.com
Getting in and out in an instant would
seem to be the ideal situation if dealing
with absolutely static bid and ask prices.



                    By www.ProfitableTradingTips.com
However, the market is never static so
traders must look to market direction
  even when scalping in day trading.



                  By www.ProfitableTradingTips.com
A successful scalper also engages in
   trend following in day trading.




                 By www.ProfitableTradingTips.com
By www.ProfitableTradingTips.com
Scalping in day trading takes advantage
of market movement as well as the bid
             to ask spread.



                   By www.ProfitableTradingTips.com
While trend traders use technical
analysis to read market sentiment they
attempt to ride out a trade to gain the
            maximum profit.



                   By www.ProfitableTradingTips.com
On the other hand a scalper will jump in
and out of a position as the stock moves
      back and forth in its trend.



                   By www.ProfitableTradingTips.com
Thus when scalping the trader has the
opportunity to make money as the stock
 goes down as well as up even though it
eventually moves in one clear direction
              for the day.


                   By www.ProfitableTradingTips.com
By scalping in day trading the trader cuts
his risk of losses, only trades when profit
 is clear, and only picks the best stocks
            and days for trading.



                     By www.ProfitableTradingTips.com
Throw in a little range trading in day
trading to keep a clear sense of market
 direction and you have the complete
              stock scalper.



                   By www.ProfitableTradingTips.com

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Scalping in Day Trading

  • 2. Traders who engage in rapid momentum trades are often scalping in day trading. By www.ProfitableTradingTips.com
  • 3. These traders make their profit from the difference between bid and ask prices. By www.ProfitableTradingTips.com
  • 4. Even in a flat market traders can profit from scalping in day trading. By www.ProfitableTradingTips.com
  • 5. In order to successfully make a business out of scalping in day trading the trader needs to pay close attention to the market, always be aware of market fundamentals, and keep abreast of technical analysis. By www.ProfitableTradingTips.com
  • 6. Despite the theoretical possibility of trading in an absolutely flat market the price of a stock constantly moves to some degree throughout the trading day. By www.ProfitableTradingTips.com
  • 7. Thus when scalping in day trading one acts as a mini trend trader as well. By www.ProfitableTradingTips.com
  • 9. There is a rhythm to scalping in day trading and it is fast. By www.ProfitableTradingTips.com
  • 10. Traders seek to profit from the actions of traders to simply take the bid and ask prices of a stock. By www.ProfitableTradingTips.com
  • 11. This strategy guarantees a profit if the trader acts quickly. By www.ProfitableTradingTips.com
  • 12. It can result in losses if the stock price moves too quickly. By www.ProfitableTradingTips.com
  • 13. As an example, Xyz Corporation has a bid price of $10.10 and ask price of $10.15. By www.ProfitableTradingTips.com
  • 14. If the scalper can buy at the bid price and sell at the ask price he gains $0.05 per share, a small amount but a lot if repeated many times throughout the day. By www.ProfitableTradingTips.com
  • 15. However, the market might move lower before he can complete his trade. By www.ProfitableTradingTips.com
  • 16. Let’s say that the stock moves so that the bid price is now $9.90 and the ask price is $9.95. By www.ProfitableTradingTips.com
  • 17. The trader who purchased for $10.10 now needs to sell at $9.95 if he wants to quickly exit his trade. By www.ProfitableTradingTips.com
  • 18. The other choice is to continue the trade in hopes that the market will turn upward and not fall farther. By www.ProfitableTradingTips.com
  • 19. This later course is anathema to scalping in day trading. By www.ProfitableTradingTips.com
  • 20. When scalping a trader is never trying to outguess the market but simply helping to make the market and make repetitive small profits. By www.ProfitableTradingTips.com
  • 22. Bid and ask prices are available on markets across the world. By www.ProfitableTradingTips.com
  • 23. Gaining the spread on every trade is the goal when scalping in day trading. By www.ProfitableTradingTips.com
  • 24. The ideal scalping trade would be instantaneous. By www.ProfitableTradingTips.com
  • 25. Buy at the low price and sell at the high. By www.ProfitableTradingTips.com
  • 26. Getting in and out in an instant would seem to be the ideal situation if dealing with absolutely static bid and ask prices. By www.ProfitableTradingTips.com
  • 27. However, the market is never static so traders must look to market direction even when scalping in day trading. By www.ProfitableTradingTips.com
  • 28. A successful scalper also engages in trend following in day trading. By www.ProfitableTradingTips.com
  • 30. Scalping in day trading takes advantage of market movement as well as the bid to ask spread. By www.ProfitableTradingTips.com
  • 31. While trend traders use technical analysis to read market sentiment they attempt to ride out a trade to gain the maximum profit. By www.ProfitableTradingTips.com
  • 32. On the other hand a scalper will jump in and out of a position as the stock moves back and forth in its trend. By www.ProfitableTradingTips.com
  • 33. Thus when scalping the trader has the opportunity to make money as the stock goes down as well as up even though it eventually moves in one clear direction for the day. By www.ProfitableTradingTips.com
  • 34. By scalping in day trading the trader cuts his risk of losses, only trades when profit is clear, and only picks the best stocks and days for trading. By www.ProfitableTradingTips.com
  • 35. Throw in a little range trading in day trading to keep a clear sense of market direction and you have the complete stock scalper. By www.ProfitableTradingTips.com