Scalping and Day Trading

Master the art of short-term trading. Techniques, strategies and mindset to capture fast market movements.

⚡ Short-Term Trading Warning

Scalping and day trading are high-risk approaches requiring experience, discipline and appropriate capital. 90% of short-term traders lose. Start with demo.

Section 1

Scalping vs Day Trading

Understanding the differences between these two short-term approaches.

⚡ Scalping

duration: Seconds to minutes

trades: 20-100+ per day

objective: 1-10 pips per trade

timeframes: M1, M5 mainly

stress: Very high

capital: Can start small

leverage: High leverage needed

📊 Day Trading

duration: Minutes to hours

trades: 1-10 per day

objective: 20-100+ pips per trade

timeframes: M15, M30, H1, H4

stress: Moderate to high

capital: More flexible

leverage: Moderate sufficient

✅ Advantages

• No overnight risk
• Quick results
• Numerous opportunities
• Fast compounding possible

❌ Disadvantages

• Stress and mental fatigue
• High commissions
• Requires total concentration
• Steep learning curve

Section 2

Setup and Environment

The optimal equipment and environment for short-term trading.

🖥️ Essential Equipment

• Fast computer (min i5, 8GB RAM)
• Reliable internet connection (fiber ideal)
• Dedicated trading screen(s)
• Quality mouse/keyboard
• Internet backup (4G/5G)

🚀 Setup Optimal

• Multi-screens (2-4 monitors)
• Dedicated trading PC
• UPS (backup power supply)
• Ergonomic desk
• Quiet environment

💻 Plateformes

• MetaTrader 4/5 for forex
• cTrader for precision
• TradingView for analysis
• Sierra Chart for futures
• NinjaTrader for automation

🔧 Outils

• Real-time economic calendar
• News squawk box
• Position size calculator
• Automated trading journal
• Market scanner

🏢 Espace de Travail

• Dedicated office if possible
• Proper lighting
• Minimize distractions
• Comfortable temperature

⏰ Routine

• Fixed trading hours
• Pre-market preparation
• Mandatory regular breaks
• Defined shut down time

Section 3

Sessions and Optimal Timing

The best hours for scalping and day trading.

asian Session

📅 23:00 - 08:00 GMT

• Generally low volatility
• Good for range trading
• Active JPY pairs
• London preparation

london Session

📅 08:00 - 17:00 GMT

• High volatility
• Best EUR/GBP volume
• Optimal overlap with NY
• Important news

newYork Session

📅 13:00 - 22:00 GMT

• Maximum volatility 13-17h
• Dominant USD pairs
• Strong US news impact
• Important position close

🔄 Important Overlaps

London-NY

13:00 - 17:00 GMT

Maximum volatility and liquidity

Asian-London

07:00 - 08:00 GMT

London opening breakouts

✅ Optimal Moments

• London opening (8:00 GMT)
• NY opening (13:00 GMT)
• Major news releases
• Fixings (London 16:00 GMT)

❌ To Avoid

• Lunch hour (12:00-13:00 EST)
• Friday afternoon
• Major holidays
• End of month/quarter

Section 4

Scalping Strategies

Proven techniques for profitable scalping.

Price Action Scalping

name:

Price Action Scalping

timeframe:

M1, M5

setup:

• Clear Support/Resistance
• Rejection candles
• Entry on confirmation
• Quick TP 5-10 pips

management:

Tight SL 3-5 pips, R:R minimum 1:1

Order Flow Scalping

name:

Order Flow Scalping

tools:

• Footprint charts
• DOM (Depth of Market)
• Volume profile

signals:

• Absorption at levels
• Iceberg orders
• Momentum shifts
• Trapped traders

Momentum Breakout

name:

Momentum Breakout

indicators:

• VWAP
• Volume
• ATR

execution:

• Entry on volume breakout
• Aggressive trail stop
• Target extensions
• Quick exit if stall

Mean Reversion

name:

Mean Reversion

setup:

• Bollinger Bands extremes
• RSI oversold/bought
• Support/resistance test
• Fade gap openings

timing:

Best in range markets

📏 Strict Rules

entries

• Multi-timeframe confirmation
• Volume must support
• Spread acceptable
• No against strong trend

exits

• Predefined TP/SL
• Time stop if no movement
• Exit before news
• Partial scale out

Section 5

Day Trading Strategies

Effective approaches for day trading.

name:

Trend Following Intraday

timeframes:

M15, M30, H1

identification:

• Higher highs/lows
• MA alignment
• Volume confirmation
• ADX > 25

entries:

• Pullback to MA
• Break of consolidation
• Fibonacci retracement
• Trendline bounce

name:

Range Trading

conditions:

• Market without clear trend
• Defined support/resistance
• Decreasing volume
• Low ATR

execution:

• Buy support, sell resistance
• Stop outside range
• TP opposite range
• Avoid if breakout imminent

name:

News Trading

preparation:

• Economic calendar
• Consensus vs actual
• Historical reactions
• Pre-news position

strategies:

• Straddle before news
• Fade initial spike
• Trade continuation
• Avoid whipsaw zone

name:

Opening Range Breakout

setup:

• Define first 15-30min range
• Wait for breakout
• Volume confirmation
• Enter on retest

targets:

Range height projection

Section 6

Short-Term Risk Management

Risk management specific to fast trading.

📊 Position Sizing

scalping

• Max 1% risk per trade
• Position size constante
• Never average down
• Quick stop loss

dayTrading

• 1-2% risk per trade
• Max 3 simultaneous trades
• Daily loss limit 3%
• Scale in/out allowed

🛑 Stop Loss

types

• Hard stop obligatoire
• Mental stop = disaster
• Time stop if flat
• Trailing on profits

placement

• Beyond noise level
• Technical invalidation
• ATR-based stops
• Never move against

⚠️ Limites

daily

• Max loss: 2-3% account
• Max trades: define limit
• Profit target: realistic
• Stop after 3 losses

rules

• No revenge trading
• Respect the plan
• Exit if emotional
• Review before continue

Section 7

Indicators and Tools

The best indicators for short-term trading.

⚡ For Scalping

Essential

• Price action (naked chart)
• Volume/Volume Profile
• Support/Resistance
• Moving Average (9, 20 EMA)

Complementary

• VWAP for intraday
• RSI (5-7 periods)
• Stochastic fast
• ATR for volatility

📊 For Day Trading

Principaux

• Multiple timeframe MA
• MACD for momentum
• Volume indicators
• Fibonacci levels

Advanced

• Market internals
• Sector rotation
• Correlation matrix
• Options flow

🔧 Customization

development

• Personal indicators
• Alert systems
• Scanners custom
• Automated analysis

backtesting

• Strategy tester
• Walk-forward
• Monte Carlo
• Optimization

Section 8

Fast Trading Psychology

Mental and emotions in high-frequency trading.

😰 Stress

• Constant rapid decisions
• Performance pressure
• Decision fatigue
• Information overload

😤 Emotional Challenges

• Amplified FOMO
• Tempting revenge trading
• Easy overtrading
• Burnout risk

💚 Solutions

preparation

• Detailed plan before
• Anticipated scenarios
• Non-negotiable rules
• Strict routine

during

• Controlled breathing
• Mandatory breaks
• Regular hydration
• Emotional check

after

• Total decompression
• Review without judgment
• Sport/meditation
• Life outside trading

✅ Winning Mindset

• Process over profits
• Consistency is key
• Small wins compound
• Protection first

❌ Mental Errors

• Looking for home run
• Trading for adrenaline
• Ignoring fatigue
• Neglecting discipline

Section 9

Automation and Algorithms

Using technology to optimize short-term trading.

🤖 Semi-Automation

Outils

• Custom alerts
• One-click trading
• Preset orders
• OCO orders

✨ Advantages

• Error reduction
• Execution speed
• Forced discipline
• Less fatigue

🚀 Full Automation

Types

• Expert Advisors (EA)
• Trading bots
• Copy trading
• Signal services

Considerations

• Rigorous backtest
• Forward testing
• Risk parameters
• Monitoring constant

💻 Development

Languages

• MQL4/5 for MT4/5
• Python for analysis
• C# for NinjaTrader
• Pine Script for TradingView

Process

• Define strategy rules
• Code and test
• Optimize parameters
• Live with small size

Section 10

Progression Plan

Structured evolution from beginner to pro.

beginner

Duration: 3-6 months

focus

• Single market/pair
• One simple strategy
• Intensive demo trading
• Detailed journal

objectives

• Consistency in demo
• Understand your strategy
• Established discipline
• Solid risk management

intermediate

Duration: 6-12 months

progression

• Micro real account
• 2-3 strategies max
• Gradual increase
• Statistics tracking

metrics

• Win rate stable
• R:R positif
• Controlled drawdown
• Profit factor > 1.2

advanced

Duration: 1-2 years

evolution

• Multiple timeframes
• Multiple markets
• Dynamic position sizing
• Semi-automation

results

• Constant profitability
• Mastered emotion management
• Market adaptation
• Successful scaling

expert

characteristics

• Proprietary strategies
• Partial automation
• Mentoring others
• Business structure

revenue

• Primary trading
• Multiple prop firms
• Signals/courses
• Managing for others

⚡ Quick Start Guide

To Get Started

1. Choose scalping OR day trading (not both)
2. One liquid pair/market (EUR/USD, ES, etc)
3. One simple strategy and master it
4. Demo minimum 3 months with journal
5. Micro real account with strict rules
6. Progressive scaling over 6-12 months

Non-Negotiable Rules

✅ Stop loss on EVERY trade
✅ Max 1-2% risk per trade
✅ Daily loss limit 3%
✅ Breaks after 3 consecutive losses
✅ No trading when emotional
✅ Mandatory daily review

Important Warning

The information presented on this page is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading incentives. Trading carries significant risks of financial losses. Past performance is not indicative of future results. We strongly encourage you to properly educate yourself, practice on a demo account, and never invest more than you can afford to lose. Consult a professional financial advisor before making any investment decision.

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