Golden scalping methods you should use

Golden scalping methods you should use

Scalping used to be an overall trading strategy for stocks, but it should not be considered a standard trading method.

Although scalping is currently being done every day, only certain traders should use this type of strategy due to the required risk levels.

There are three golden rules you should follow when using any cryptocurrency trading strategy:

 

  1. Never invest more than you can stand to lose.
  2. Only use the money you can afford to lose if this is your first cryptocurrency trade or investment.
  3. Don’t make investment decisions based on emotions. Take your time and keep emotion out of it altogether.

 

The biggest mistake new traders make when they first try their luck with cryptocurrencies is trying to make too much money too quickly. It is how you end up losing your investment very fast. Scalping cryptocurrency markets is a great way to start, but you should not aim for getting rich quick. Only use it as an advantage if you are already experienced with this type of trading.

Day Trading

Scalping is considered day trading because the stocks or coins are opened and closed within 24 hours or less. The most common time frame used with scalping is 5 minutes due to the immediate moves during this period.

You can also utilize leverage when using this type of strategy. If done correctly, there will be little risk involved because you will open and close several trades within just a few hours or less.

When initially entering a trade, never try selling more than you have of that specific cryptocurrency.

It is considered a rookie mistake and could cause you to lose all your money quickly. It is essential to know how much of the coin or token you can sell without causing any of your positions to suffer.

Once again, only use leverage when you are already familiar with it to avoid losing everything in just one trade.

The amount of time it takes for the price to move should not determine whether or not scalping should be used during that period. Profit targets must always outweigh your stop losses for scalping to become profitable in the long run. Do not take short term profits when they come and wait for the price to move in your favour before taking more profits.

Many traders use this type of strategy and make a living from it. The best way to know whether or not scalping is suitable for you is trial and error. Many different strategies can be used when scalping, some that work better than others depending on the price action at that specific moment.

Cryptocurrencies

The point of scalping cryptocurrencies like Bitcoin is to get in and out of the market within minutes due to significant volatility during this period.

Although it can be very profitable, there are also many risks involved, so beginners should only use this method if they have enough experience behind them.

Due to the high risk involved, scalping should only be used when other strategies are not working correctly. The volatility of cryptocurrencies makes it very hard for other trading methods to produce consistent profits after a certain amount of time.

The prices move so fast that you cannot enter or exit your trades before they become red or green again.

Scalping works well with any cryptocurrency that has smaller market caps. The prices do not take long to move, making it much easier for traders to scalp them in just minutes.

This strategy is also considered day trading since most stocks are kept open and closed within 24 hours or less.

Some traders will look for coins or tokens with a lower market cap to trade them many times within a short period. It is done by buying the cryptocurrency then selling it as soon as the price reaches a specific predetermined point that is profitable for that particular trader.

The objective of scalping cryptocurrencies is to repeatedly buy and sell them to gain small profits several times throughout the day instead of waiting for just one big win.

This strategy works best with low volume currencies, which means you will end up paying fewer fees out of your potential profits.

Conclusion

As always, though, do not put all your eggs into one basket and try to invest in different strategies at once rather than putting everything onto scalping since this method also carries high risks.

Most traders use multiple strategies simultaneously, such as scalping, swing trading or investing in ICOs.