Firm Element

Scalpers find themselves in a unique category of day traders. Not only do they seek to trade within the day time frame, but they also attempt to capitalize on the most minute of moves during the day.

In order to be a successful scalper, you must either possess or develop specific skills to assist you in your endeavors. Since the scalper seeks to profit only on extremely small moves of several price ticks, it is of paramount importance that positions be entered and exited quickly and that trading be done on a large scale in order to compensate for the relatively small size of price moves.

The scalper who truly wishes to be successful must be willing to trade large positions, to take small moves out of the market, and to do so many times each day. While I feel that in some ways the job of the scalper is more well-defined and more easily implemented than that of the more traditional day trader, it is also an extremely demanding role inasmuch as large positions which move against the scalper quickly can prove very costly.

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