Hey Traders! ๐
Scalping can be a fast-profit strategy, but without proper risk management, it can blow up your portfolio!
Let's learn how to balance risk & reward wisely!
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1. WHAT IS SCALPING?
Scalping is a trading strategy of opening and closing positions within minutes to hours, capturing small price movements.
๐น Profit target: 0.5% - 2% per trade.
๐น Timeframe: Typically uses 1M, 5M, or 15M charts.
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2. KEY CONCEPT: RISK-REWARD RATIO (RRR)
RRR is the ratio between the risk you take and the potential reward.
Example:
ยท Stop Loss (SL): $100 (risk)
ยท Take Profit (TP): $300 (target)
โก๏ธ **RRR = 1:3** โ For every $1 risk, target $3 profit.
โ Minimum recommended RRR: 1:2 or higher.
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3. REAL SCALPING EXAMPLE IN CRYPTO:
Asset: $BTC/USDT on 5-minute timeframe.
ยท Entry: $62,000
ยท Stop Loss: $61,800 (risk $200 per contract)
ยท Take Profit: $62,600 (target $600)
โก๏ธ RRR = 1:3 โ If risk is 0.32%, target profit ~0.97%.
๐ Simple formula:
RRR = (Target Profit - Entry) / (Entry - Stop Loss)
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4. TOP 5 SCALPING RISKS:
1. High spreads & fees โ Ensure profit targets exceed total transaction costs.
2. FOMO/Greed emotions โ Stick to your SL/TP discipline!
3. Extreme volatility โ Major news can wipe profits in seconds.
4. Low liquidity โ Avoid low-volume coins.
5. Overtrading โ Too many positions can drain mental capital.
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5. SCALPING RISK MANAGEMENT TIPS:
๐ธ Use only 2-5% equity per trade โ Never all-in!
๐ธ Always set SL before opening a position โ No exceptions!
๐ธ Avoid trading during major news (e.g., CPI data, Fed meetings).
๐ธ Use trailing stops to lock profits during strong trends.
๐ธ Weekly review โ If 3 consecutive losses, STOP and re-analyze.
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6. SAMPLE SCALPING TRADING PLAN:
ยท Capital: $1,000
ยท Risk per trade: 2% = $20
ยท Target RRR: 1:3
ยท If wrong: Loss $20
ยท If right: Profit $60
ยท Daily target: 2 wins, 1 loss โ Net profit +$80/day.
Remember! Not every trade wins, so RRR must be proportionate!
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7. ESSENTIAL BINANCE TOOLS FOR SCALPING:
ยท Stop-Limit Order โ Automated risk control.
ยท TradingView Chart on Binance โ Accurate technical analysis.
ยท Market Depth โ Check order book liquidity.
ยท Portfolio Margin Mode โ Optimize margin usage.
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๐ฌ DISCUSSION:
What RRR do you usually use for scalping?
Which assets are most liquid for scalping in your experience?
Share your thoughts in the comments! ๐
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