Scalping is a trading style that specializes in profiting off of small price changes and making a fast profit off reselling. It requires a trader to have a strict exit strategy because one large loss could eliminate the many small gains the trader worked to obtain. Having the right tools—such as a live feed, a direct-access broker, and the stamina to place many trades—is required for this strategy to be successful. A successful stock scalper will have a much higher ratio of winning trades versus losing ones while keeping profits roughly equal or slightly bigger than losses.
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