We’ve all been in this situation…it’s a question that is asked of us almost every time we meet someone new… “So, what do you do for a living”.
We, at HODLNOTS, could answer this question in many different ways… “Well, I’m a psychologist, an economist, an analyst, an IT guru, a risk-assessment manager, a teacher, a student or maybe even a researcher. (at least that’s the way we feel most days) But, what comes out of our mouths…”I’m a scalp trader”.
Then, you see it…in their eyes and on their faces…a bit of confusion that turns into, what? Is that disbelief? Doubt? Uncertainty? “Huh, that’s interesting…what does that mean and why would you want do that?”
Well… why do we scalp trade? Let us count the ways…
Firstly, to understand why we scalp, we need to know what scalp trading is. Scalp trading is a very short-term trading strategy that involves making frequent trades to capture profit off of small price movements in the crypto market. The reason that is important is the reason we scalp trade:
1. We can scalp to pay our daily bills:
Scalp trading aims to capitalise on small price fluctuations, often within minutes or seconds, so there is a potential for quick, daily profits. By making multiple trades in a day, we accumulate small gains that add up. There is no need to wait for days or even months to realise these gains, so we can use these profits to pay our daily household requirements. People are often amazed when we tell them what daily percentage a scalp trader can make, in any market condition. (Want to know more?….Have a look at this: https://projects-dev.bitcointaf.com/blog-details/6150-total-portfolio-gain )
2. We can have our cake and eat it too:
Even if we are also trading using other methods, like long term or day trades, Scalp trading can provide an additional stream of income while we are waiting for those longer-term trades to play out. By dedicating time and effort to scalp trading, we can gain those extra profits on a daily basis.
3. We get a good night’s sleep:
Since scalp trades are very short-lived, scalpers can minimise exposure to market risks. This approach can be attractive to traders who prefer to limit their market exposure and focus on short-term opportunities. We don’t need to worry what the market is going to do next month, next week, tomorrow or even in a few minutes. When the trade ends after a few minutes…it’s finished…we can go on to the next one. We can sleep soundly knowing that we don’t need to worry about what the market is doing while we are not looking.
4. We can scalp in any overall market trend – up, down or sideways:
Scalp trading relies less on longer-term market trends and more on short-term price movements. Unlike long-term or day trading strategies that require holding positions for days, months or years, scalp trading involves very short holding periods, often minutes or even seconds. In any market direction, prices go up and down in the short-term and scalpers can take advantage of this movement, every minute of every day.
5. We can do ‘other life’:
Flexibility in trading hours means scalp trading does not necessarily require a full-time commitment, as trades are executed within a short timeframe. This flexibility allows us to trade during specific hours or integrate scalp trading with other personal or professional activities.
6. Our money isn’t tied up for years, months, days or even hours.
This can be appealing to traders who prefer not to tie up capital for extended periods. We can pivot quickly to take advantage of the currently running coins. Did someone tweet? Is a coin moving now? Well, we can jump on that coin, trade it for a few minutes, get out quickly and have our money back in our account, ready for the next tweet, rumour, news or run.
7. We can be as involved or as uninvolved in the general crypto market as we wish:
Some traders like to get down to the nitty-gritty and learn everything there is to know about the coin/tokens they are trading, while others just want to just trade what they see in the moment. While longer term trading normally requires knowledge of the specific project (fundamental analysis) scalpers don’t necessarily need to delve into this type of analysis, if we are not that way inclined. Knowing every detail of a coin or token is unnecessary – if it’s running, we can scalp it, without sometimes even knowing what the coin or token is or does.
8. Scalp trading isn’t easy and it prepares you for other types of trading:
Scalp trading requires discipline, quick decision-making, risk management, and proficiency in technical analysis. Learning how to scalp trade can help develop these skills, which can be valuable for other trading styles, like Day Trading, or going on to further education, like that of our Ultimate Trading Course.
So, after hearing all that, what are the faces showing us now? Is that respect? Curiosity? Admiration? One thing is clear…the follow-up question; “Where can I learn to do that?”
And that’s an easy answer – “At HODLNOTS, of course”
For more info:
HODLNOTS Group Course: https://projects-dev.bitcointaf.com/product/hodlnots
HODLNOTS One-On-One Private Training: https://projects-dev.bitcointaf.com/product/hodlnotspremium
