Question

What is the Psychology Behind Scalping trading? In explanation and detail?

Answer 1

Scalping trading is a type of trading in which individual traders will be trying to to specialise upon the the profit of a small price change and they will try to make a fast profit by reselling and hence it will be mostly used in day trading and it is a strategy to prioritise making high volume of small profit.

The psychology behind scalping trading is that most stock will complete the first stage of movement but where it goes from there is uncertain, and after the initial stage some stock will cease to advance while other are continuing advancing and hence the discounter will intend to take many profit as possible so many scalpers are unable to hold onto the trade for several days and was the profit and losses fluctuate and hence their trying to quickly book out on the profits as they are immediately closing upon the trade reversing onto the fact that the market may reverse the trend and they will have a highly strict exit strategy. The primary motive is to make large amount of smaller gains frequently.