## A Brief Guide to Scalping: How to Trade Effectively in Volatile Markets

Scalping is a specialized trading approach where a trader makes numerous trades over a short period, extracting profit from minute fluctuations. If you're interested in scalping without significant risks, it's important to understand the key elements of this strategy.

### Why Beginners Lose Money in Scalping

Before diving into mechanics, understand the most common mistakes:

**Lack of discipline with stop-losses** — most novice traders neglect protective tools, hoping the price will "turn around." This leads to catastrophic losses.

**Overleveraging** — using 10x or higher leverage on short timeframes is a quick way to lose your deposit. Even a 2-3% move against you can liquidate your position.

**Emotional trading** — scalping requires cold calculation. If you're trading in search of "compensation," you've already lost.

### What You Really Need to Know Before Starting

Scalping is built on three pillars:

1. **Trading on ultra-short periods** — M1 and M5 charts are your working zones. Movements here are more predictable and volatile.

2. **High frequency of trades** — 20-50 trades per day. Each yields 0.5%-2% profit.

3. **Minimal target movements** — no need to wait for a major reversal. Even 0.2% in your favor is a success.

### Necessary Tools to Get Started

**Trading platform**: Use futures contracts to access leverage (but not more than 5x for beginners).

**Technical indicators**:
- **Moving Averages (MA)** — help determine trend direction. Use MA(20) and MA(50).
- **Relative Strength Index (RSI)** — shows overbought (above 70) and oversold (below 30) levels.
- **Volumes** — confirm the strength of movement. If the price rises on low volumes, it may be a trap.

**Computer and stable connection** — a 1-2 second delay can cost you a whole trade.

### Practical Example: Entering a Position with Real Numbers

Let's take Bitcoin (BTC) at the current price of **$85,070** (actual quote at the time of analysis).

**Step 1: Find Entry Point**

Open a 1-minute chart. See that:
- BTC broke the $85,000 level with good volume
- RSI shows 55 (not at an extreme, room for growth)
- MA(20) is above MA(50) — an uptrend

Local support at $84,950, resistance at $85,150.

**Step 2: Enter the Position**

Enter a LONG (position on the rise) with a market order with volume $100 and 3x leverage(, totaling $300 on the account). Avoid using 5x to keep a safety margin.

**Step 3: Protect and Take Profit**

- **Take profit** set at $85,150 — expecting 0.09% profit.
- **Stop-loss** placed at $84,950 — willing to lose up to 0.14%.

In a favorable scenario, the stop triggers faster (price often bounces off support), leaving us with profit.

**Step 4: Calculate Results**

If the price reaches $85,150: Profit will be approximately $0.27 (before fees). Futures commission — 0.02-0.05%, consuming ~$0.06-0.15. Net profit: $0.12-0.21.

If the stop triggers at $84,950: Loss of $0.42, but this is a controlled risk.

### Types of Orders You Will Use

**Market order** — executes instantly at the current price. Used for quick entry.

**Limit order** — specify a price and wait for it to be reached. Saves on commissions but may not fill.

**Stop order** — triggers automatically when a level is broken. Critical for deposit protection.

### How to Start Correctly

**Micro-positions for training** — first 10 days trade with volumes of $10-20. You will lose money on commissions but gain experience.

**Keep a journal** — record each trade: entry time, reason, result. After a month, you'll see your mistakes.

**Gradually increase volume** — when your win rate (percentage of profitable trades) exceeds 55%, double your position size.

**Don’t trade on weekends** — liquidity drops, spreads widen. This is for analysis, not trading.

### The Main Rule of Scalping

Remember: scalping is not a way to get rich in a week. It’s micro-transactions that should yield 0.5%-1% daily. Over a month, this can be 10-15% of your deposit. Sounds modest? That’s 120-180% annually if you stay disciplined.

Start small, refine your strategy, document results, and only then increase volumes. Anyone willing to learn and follow the rules can trade effectively with scalping.