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Scalping

Scalping is a trading strategy designed to trade and make money off of small movements in the price of a specific company stock. Traders that use this approach are called scalpers. Scalpers execute anything between five and tens of trades in a single day in the assumption that minor changes in stock price can produce larger combined profits rather than just a larger ones. If a tight exit strategy is adopted to prevent large losses, many little profits can readily compound into large gains at the end of day.

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