Scalping
An ultra-short-term trading strategy that aims to profit from small price movements, typically holding positions for seconds to minutes.
Explained Simply
Scalping is the fastest form of day trading. Scalpers make dozens or hundreds of trades per day, targeting small profits of $0.05-$0.50 per share. The strategy requires extremely tight spreads, fast execution, and low commissions to be profitable. Scalpers typically use 1-minute or tick charts and focus on the most liquid stocks and ETFs (SPY, QQQ, AAPL, NVDA). Success depends on a high win rate (65%+) since each trade has a small profit target. Scalping is mentally exhausting and requires constant screen time — it's not suitable for most retail traders.
How Tradewink Uses Scalping
Tradewink's day trading pipeline can operate on shorter timeframes for scalp-style entries, particularly during high-volatility events like market open or FOMC announcements. The SmartExecutor uses VWAP and TWAP slicing algorithms that are similar to scalping techniques — entering and exiting positions in small pieces to minimize market impact.
Related Terms
Learn More
Day Trading for Beginners: Everything You Need to Know in 2026
A comprehensive day trading guide for beginners. Learn what day trading is, what you need to get started, the PDT rule, essential strategies, risk management, and how AI is transforming day trading in 2026.
VWAP Trading Strategy: How Institutions Use Volume-Weighted Average Price
Learn how to trade using VWAP (Volume Weighted Average Price). Understand VWAP bounces, breakouts, and how institutional traders use VWAP as support and resistance.
See Scalping in action
Tradewink uses scalping as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.