To the average investor, scalping might sound a bit like gambling; but it isn’t by any means. Scalping severely reduces a type of risk that’s inherent in any investment: the risk of being in the market. When a trader has a position open, he is exposed to market risk. At any time, the price could move drastically against the trader as a result of the occurrence of an unforeseen market-moving event. The more leverage the day trader uses, the greater the move (or risk). Really talented scalpers, on the other hand, are in the market for a very short period of time – reducing their “holding risk.”
For the reasons stated above, I have become a greater fan of scalping over the years. That’s why I’m constantly trying to introduce talented scalpers into our talent (”Trade our Money”) program. The Day Trading Robot found on this site is also exclusively a scalping program.
