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Scalping
A trading strategy that attempts to make many profits
on small price changes. Traders who implement this
strategy will place anywhere from 10 to a couple
hundred trades in a single day in the belief that small
moves in stock price are easier to catch than large ones.
Traders who implement this strategy are known as
scalpers. The main goal is to buy (or sell) a number of
shares at the bid (or ask) price and then quickly sell
them a few cents higher (or lower) for a profit. Many
small profits can easily compound into large gains if a
strict exit strategy is used to prevent large losses.
A trading strategy that attempts to make many profits
on small price changes. Traders who implement this
strategy will place anywhere from 10 to a couple
hundred trades in a single day in the belief that small
moves in stock price are easier to catch than large ones.
Traders who implement this strategy are known as
scalpers. The main goal is to buy (or sell) a number of
shares at the bid (or ask) price and then quickly sell
them a few cents higher (or lower) for a profit. Many
small profits can easily compound into large gains if a
strict exit strategy is used to prevent large losses.