Scalper Trading Techniques for Fast Gains
Trade fast and frequently for micro profits
By Ananya Iyer | August 5, 2024
Scalping is a high-speed trading strategy where traders aim to profit from very small price movements—often entering and exiting trades
in seconds or minutes. It requires a lot of discipline, fast execution, and the right technology.
Imagine a scalper watching a stock like Reliance (RELIANCE.NS) which fluctuates between ₹2,500 and ₹2,505 several times in a day.
By buying at ₹2,500 and selling at ₹2,503 with high frequency, a scalper makes small profits that add up over hundreds of trades.
Edge cases involve slippage—when your order executes at a worse price than expected—or a sudden drop in liquidity, making it
hard to exit positions. Scalpers also face the risk of overtrading, which can lead to increased transaction costs and burnout.
To get started, you need a broker with low-latency order execution and low fees. Platforms like Angel One or Zerodha Kite offer fast APIs.
Scalping strategies often rely on Level 2 data, hotkeys, and custom scripts to place rapid orders. Beginners should practice on a
simulator and start with just one or two stocks they can follow closely.