What Is Scalping Trading?
Scalping trading is a fast intraday trading strategy where traders make many small trades to capture tiny price movements.
Each trade lasts from a few seconds to a few minutes.
According to the CFA Institute, scalpers attempt to profit from micro price changes using high discipline and strict risk control. (Source: CFA Institute – Market Microstructure Notes)
Why Scalping Is Popular
- Very quick profits
- Works in stocks, crypto, forex, and indices
- No overnight risk
- Ideal for volatile markets
- Small capital is enough to start
How Scalping Trading Works
Scalpers look for small price fluctuations and enter/exit trades rapidly.
The goal is not big profit per trade but many tiny profits that add up.
Example:
- Profit per trade: ₹20
- Number of trades: 40
- Total profit: ₹800/day
Best Timeframes for Scalping
- 1-minute chart
- 3-minute chart
- 5-minute chart
Scalping does NOT use long timeframes like daily or weekly charts.
Most Used Scalping Indicators
✔ 1. VWAP
Shows fair price value. Scalpers buy below VWAP and sell above.
✔ 2. Moving Averages (MA 9 / MA 20)
Identifies micro trends.
✔ 3. RSI (5 or 7 period)
Overbought/oversold signals for quick entries.
✔ 4. MACD
Momentum confirmation.
✔ 5. SuperTrend
Simple buy/sell signals for speed trading.
Table: Pros & Cons of Scalping Trading
| Pros | Cons |
|---|---|
| Quick profits | Emotionally stressful |
| No overnight risk | Requires fast decisions |
| Many opportunities daily | High brokerage costs |
| Good for volatile markets | Not suitable for slow markets |
Who Should Try Scalping?
Scalping is good for you if you are:
- Fast at decision-making
- Comfortable with 1–5 minute timeframes
- Able to stay focused
- Disciplined with stop-losses
- Not emotional during trades
Popular Markets for Scalping
| Market | Why It Works |
|---|---|
| Stock Market | High liquidity during open hours |
| Forex Market | 24/5 trading + low spreads |
| Crypto Market | 24/7 volatility |
| Indices | Perfect for momentum scalping |
Step-by-Step: How to Start Scalping Trading
1. Choose a liquid market
Nifty, Bank Nifty, BTC, ETH, EUR/USD, NAS100.
2. Select your timeframe
Start with 3-minute for clarity.
3. Pick 1–2 indicators
VWAP + RSI = best beginner setup.
4. Use tight stop-loss
Always use 0.5% – 1% SL.
5. Target small profits
Take 0.3% – 0.8% gains.
6. Avoid overtrading
Best scalpers trade quality setups, not quantity.
7. Track brokerage costs
Scalping involves many trades—keep costs low.
Risks in Scalping Trading
Scalping has higher execution risks:
- High trading frequency → higher fees
- Emotional pressure
- Low accuracy can wipe profits fast
- Requires fast internet + good platform
- Slippage during volatility
According to the Bank for International Settlements (BIS), fast-trade strategies often face slippage risk in high volatility periods. (Source: BIS Market Microstructure Study)
Winning Scalping Strategies for 2025
✔ 1. VWAP Reversal Scalping
- Price goes far from VWAP
- RSI shows overbought/oversold
- Enter when candle closes back toward VWAP
Perfect for stocks & indices.
✔ 2. MA 9 & MA 20 Crossover
- Buy when MA9 crosses above MA20
- Sell when MA9 crosses below MA20
Simple, beginner-friendly.
✔ 3. Breakout Scalping
- Identify tight range
- Enter when price breaks above or below
- Use small stop-loss
Great for crypto scalping.
Infographic Ideas for This Blog
Infographic 1: “Scalping in 5 Steps”
- Choose timeframe
- Pick indicators
- Enter fast
- Exit faster
- Manage risk
Infographic 2: “Best Indicators for Scalping”
Icons for RSI, VWAP, MA, MACD.
Infographic 3: “Pros vs Cons of Scalping”
Simple comparison chart.
Infographic 4: “Scalping Timeframes Explained”
1m, 3m, 5m visual chart.
FAQs
1. Is scalping trading legal in India?
Yes, scalping is legal on regulated platforms like NSE/BSE.
2. What is the best timeframe for scalping?
Most traders use 1–5 minute charts.
3. Which indicators are best for scalping?
VWAP, RSI, MA, MACD, and SuperTrend.
4. How much capital is needed for scalping?
Beginners can start with ₹2,000–₹5,000 in crypto or ₹10,000–₹20,000 in stocks.
5. Is scalping good for beginners?
Yes, but only if you follow strict stop-loss and avoid emotional trading.
About the Author
Tanishq Mittal is a digital marketer and trading content creator who simplifies complex financial topics for beginners. He writes actionable blogs on trading strategies, market insights, and digital growth. Follow him on LinkedIn for daily knowledge posts.