As a general rule, it's best to close all positions during one day's trading session and not transfer them to the next day.
Scalpingis based on small opportunities. Scalping is based on the small opportunities that exist in the market, and a scalper should not deviate from the basic principle of holding a position for a short period of time. A currency speculator seeks to carry out a large number of trades, taking advantage of the small price movements that are common throughout the day.
Some speculators place dozens or hundreds of trades a day; this strategy can be time-consuming and requires high levels of concentration. Since resellers can no longer rely solely on real-time market depth analysis to get the signals they need to make several small profits on a normal trading day, it is recommended to use technical indicators designed for very short periods of time. The automatic and instant execution of orders is crucial for a scalper, so the preferred method is a direct access broker. Detecting trend and momentum is useful for a scalper, who can even enter and exit briefly to repeat a pattern.
Scalpers also use the level 2 quote to follow stocks that reach new intraday highs or lows in order to make as much profit as possible. For example, if you see a stock like AMC's rising in pre-market trading, a reseller can buy it and walk away when it makes a small profit. Resellers can take advantage of small changes in the price of a stock that don't necessarily reflect the overall commodity price trend for the day. However, a scalper is much more active and places many more trades during the day, because they focus on making small but repeated profits.
A scalper mainly uses one-minute graphics, since the time frame is small and you need to see how the configurations are taking shape as close to real time as possible. However, a successful stock reseller will have a much higher ratio of winning trades to losing trades, while keeping profits roughly equal to or slightly higher than losses. Speculators don't have to follow basic fundamentals either because they don't play a major role when faced with a very short period of time. The first type of scalping is called market creation, in which a speculator attempts to capitalize on the spread by simultaneously publishing an offer and an offer for a specific stock.
A beginner needs to understand the pulse of the market and, once the scalper has identified it, trending trades and momentum trades can help achieve more profitable trades. The main goal of forex resellers is to get very small amounts of pips as many times as they can during the busiest times of the day.