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I have seen many beginner traders curious about scalping, and honestly, it is one of the most frantic methods you can try. Essentially, you open and close trades continuously throughout the day, accumulating many small profits and trying to limit losses. The trades last a short time, sometimes just a few minutes or even seconds, depending on how you analyze the market and what your goals are.
This is the beauty of day trading: you don't want to hold positions overnight because it's risky. Day traders prefer to close everything before the night session. Some open trades in the morning and close them at the end of the day, others spend the entire day testing different strategies. But scalping is different, much faster.
When you do 1-minute scalping, you use the 1-minute chart for everything. Each bar represents exactly one minute, so you see the movement in real time. It's fascinating but can be misleading. Take Cardano, for example: on a 1-minute chart, it might look like a clear downtrend, but if you switch to a 4-hour chart, you suddenly see an uptrend. For a 1-minute scalper, however, this doesn't matter; they only look at the timeframe where they operate.
One of the most common 1-minute scalping strategies is trend following, and it's quite straightforward in concept. You find an asset that is already in an uptrend and buy it, especially when it pulls back, hoping it will continue. You make some profit and move on to the next asset. Similarly, if you see a downtrend, you can short sell and take advantage of the decline.
The interesting thing is that many uptrends tend to be followed by down movements, so sometimes you can ride both if you're fast enough. With the 1-minute scalping strategy, the focus is precisely on speed and discipline in closing when you have your small profit. It's a constant battle against time and market noise, but if it works for you, you can generate interesting cash flows throughout the day.