Hey Traders! đ
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!
---
1. WHAT IS SCALPING?
Scalping is a trading strategy of opening and closing positions within minutes to hours, capturing small price movements.
đč Profit target: 0.5% - 2% per trade.
đč Timeframe: Typically uses 1M, 5M, or 15M charts.
---
2. KEY CONCEPT: RISK-REWARD RATIO (RRR)
RRR is the ratio between the risk you take and the potential reward.
Example:
· Stop Loss (SL): $100 (risk)
· Take Profit (TP): $300 (target)
âĄïž **RRR = 1:3** â For every $1 risk, target $3 profit.
â Minimum recommended RRR: 1:2 or higher.
---
3. REAL SCALPING EXAMPLE IN CRYPTO:
Asset: $BTC/USDT on 5-minute timeframe.
· Entry: $62,000
· Stop Loss: $61,800 (risk $200 per contract)
· Take Profit: $62,600 (target $600)
âĄïž RRR = 1:3 â If risk is 0.32%, target profit ~0.97%.
đ Simple formula:
RRR = (Target Profit - Entry) / (Entry - Stop Loss)
---
4. TOP 5 SCALPING RISKS:
1. High spreads & fees â Ensure profit targets exceed total transaction costs.
2. FOMO/Greed emotions â Stick to your SL/TP discipline!
3. Extreme volatility â Major news can wipe profits in seconds.
4. Low liquidity â Avoid low-volume coins.
5. Overtrading â Too many positions can drain mental capital.
---
5. SCALPING RISK MANAGEMENT TIPS:
đž Use only 2-5% equity per trade â Never all-in!
đž Always set SL before opening a position â No exceptions!
đž Avoid trading during major news (e.g., CPI data, Fed meetings).
đž Use trailing stops to lock profits during strong trends.
đž Weekly review â If 3 consecutive losses, STOP and re-analyze.
---
6. SAMPLE SCALPING TRADING PLAN:
· Capital: $1,000
· Risk per trade: 2% = $20
· Target RRR: 1:3
· If wrong: Loss $20
· If right: Profit $60
· Daily target: 2 wins, 1 loss â Net profit +$80/day.
Remember! Not every trade wins, so RRR must be proportionate!
---
7. ESSENTIAL BINANCE TOOLS FOR SCALPING:
· Stop-Limit Order â Automated risk control.
· TradingView Chart on Binance â Accurate technical analysis.
· Market Depth â Check order book liquidity.
· Portfolio Margin Mode â Optimize margin usage.
---
đŹ 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! đ
Don't forget to follow for more trading education!
#Scalpingtips #RiskManagement #CryptoEducationđĄđ #tradingtechnique #BinanceSquare #TradingForBeginners