There are many strategies in Forex and sometimes notions about these strategies overlap in the minds of traders. Day trading and scalping are different strategies in Forex. They are not related to each other, and the traders are also different.
Traders who use the day trading strategy are called day traders in the market. On the other hand, people who use the scalping to scalp the market are called scalpers. One thing to keep in mind is that, day traders trade the market for a long period of time, but closes it within the day, whereas scalpers scalp the market. If you look at the professional traders in the United Kingdom, you will find both types of traders as both of these systems are extremely profitable.
In order to make consistent profit in the forex market, you need to make sure you have a solid trading strategy, or you lose money in trading. Always stay disciplined and trade with proper risk management factors to reduce your risk exposure in the market.
Differences between these two traders
There are many differences between these two traders. We will tell you the differences, and you should be able to differentiate a day trader from a scalper in your next trades in the market.
The difference in timeframe: The main difference is the timeframe the scalpers and the day traders use to trade in the market. The scalper’s trade in a very short timeframe, typically 1 or 2 minutes in the market. The day traders trade the market with a long time frame usually 1 to 2 hours in the market. The difference in timeframes may also be the reason traders overlap these two types of trades.
Account sizes vary: The scalpers have a big account size. They take high risks in the market. The day traders, on the other hand, have an average account size. Most of the professional scalpers execute high lot size trade in their online trading account and make a decent profit within a very short period of time. Though they trade the market with a high lot they also follow proper risk management factors in every single trade. Trading is all about probability, and as a professional trader there is no guarantee that you will win 100 percent of the time in the forex market. For this very reason, the experts in the financial market always use proper risk management factors in their trading.
Experience is also not the same: The experience of a scalper is the strategy in scalping. They know the market and can understand the market trend. They place trades on the market and do not wait for the result. They know where the market will go and wait for closing trades to get a profit in their account.
Ultrafast result and result in days: This is the main difference between a day trader and a scalper. A scalper is ultrafast in his trading. He is like a rocket traveling in space when trading and closing his trades. Before you can see the market price of his opening trades, he will close his trades. The day trader keeps his trades for a single day on the market. They are also fast traders as they do not keep the other days for the same trades, but they are average traders. Scalpers get their result immediately and day traders in a day.
Better trade execution: Regardless of your trading system you should learn the price action trading strategy. If you scalp the market or even day trade, then price action trading strategy will help you to find the best possible trades in the market.
Day trading and scalping are two different trading strategies. By now you know the major difference between the two systems in the market. If you truly want to make money in the online trading world, then make sure that you trade with proper risk management factors and use logic to execute the trades.