Have you seen a cricketer who is a batter?
He is fully prepared before throwing the ball to the baller.
What kind of ball will come, what to do if a short pitch comes, what to do if a bounce comes, what to do if a yorker comes.
If he doesn’t do this, after the ball comes in, he will think about what to do, then play a wrong shot and get out.
With this, I want to explain that if you are scalping, you should know how to make quick decisions.
Not that the trade is visible, you are thinking whether to take the entry or leave it.
See, this is the mistake most scalpers make.
Scalping and intraday or swing trading have completely different mindsets.
When you take a normal trade, there is a support or resistance level or a big target in your mind.
Like 1 is to 3, 1 is to 4, like the risk-reward you plan.
That is, if the trade is wrong at that time, then you think it is fine; I will leave it to the next support.
Here, the money will be late, so I will leave.
But this move does not work at all in scalping.
The mindset of a scalper is that if the stop-loss is small, then the profit should also be small.
If the trade did not go according to plan, then you should leave immediately.
But most people get stuck in that.
Assume you risked Rs 5,000 on a scalping trade, but it went against you.
Now, instead of going out, what are you doing?
You shift to a swing-trading mindset and start thinking that if I reach this support, I will leave here.
Or if it reverses from here, then I will book a profit.
The same thing happens: the loss of Rs 5,000 that you had thought would be gradual turns into Rs 25,000.
When Rs 5,000, Rs 10,000, Rs 15,000, you never know.
Sometimes, your luck will support you.
What will be the same trade?
Sometimes, at the break-even point, it shows a little profit.
So you will feel that this is great.
But remember, luck will not always be kind to you.
This habit will gradually empty your account.
So remember the biggest rule that lets scalping run like scalping.
You never scalp with the mindset of swing trading or intraday trading.
If there is a small stop-loss, then there is a small profit.
And if it does not run, then get out immediately.
The Discipline of the Mumbai Local Train
Consider scalping as if you have ever seen Mumbai’s local train.
There is so much crowd that if the train comes to the station, the door opens, and you do not get on it in a minute, people will crush you.
So what happens there?
Either you have to decide whether you want to get on or move back.
The same thing happens in your trading.
People make the same mistake in scalping.
In profit, people quickly book profit.
As soon as they get 10 points, they immediately make a decision.
But when there is a loss, then it feels like the snake has gone.
The hand is on the mouse, but it cannot be clicked.
You keep thinking that I will catch it now. I will leave now. Maybe the market will go around from here.
These are all small things, think about it.
Your stop-loss increases, and your loss increases even more.
Remember that, just as there should be discipline on the Mumbai local train, you should be completely disciplined when scalping.
Either get on or get off immediately.
Or do not get on at all.
Getting stuck in the middle is the biggest risk.
The Most Dangerous Enemy: Morning Volatility
Now I am explaining the second point.
The most dangerous enemy of a real scalper is the starting time of the morning.
From 9.15 to 9.30.
If you put a trade at this time, then your risk increases manifold.
Because the market is very volatile at this time.
Suppose you buy a put or call at 9.17.
Your opposite market starts going.
Your hand is on your mouse, but it still won’t click.
Because your mind gets blocked there.
What should I do? Should I cut it now or wait?
As a result, the loss increases further.
The problem with most people is that if the first trade of the day is a loss, then the whole day is a loss.
You can see this.
Very few people recover their first loss and make a profit.
I believe that the biggest opportunity in the market is often between 9.15 to 3.30 in the morning.
This is the time when the market is open, and the volatility is high.
You are also with full enthusiasm.
You get to see big moves.
But there is a truth here.
If you are a beginner or you do not have that much experience.
You do not have control over yourself.
This time can be the most dangerous for you.
Because in scalping, taking an entry is not the skill.
The real skill is to get out immediately after that entry.
As soon as 5 or 10 points come, the scalper immediately books.
But when the same trader goes to a loss, then your mind starts deceiving you.
You think? Let me wait 1 more second.
Maybe the market will turn from here.
Should I click now or not?
And during the 2-3 second delay, the market makes such a bad candle.
That your small risk becomes a big one.
And this is why you have not trained yourself well yet.
If you did not control your mind on that level.
Then, this golden time from 9.15 to 9.30 will become a dangerous time for you.
Target this time only when your mind is under your control.
You have complete confidence in your decision.
One Day’s Risk Plus One Day’s Target
Now, one more big thing that most scalpers do.
They think that scalping means trading 20-40 in a day.
No.
Scalping does not even mean blindly trading.
Even if your profit from each trade is not fixed.
But your target and your risk for the whole day should be fixed.
Because in scalping, your entire hard work, your entire account can be in danger in just half an hour.
If you trade in the last 30 minutes of the option expiry.
If you get stuck in the trap of the wrong trade, then how can your entire account be empty?
Even if you are a broker.
It is enough for the market to turn you from a crorepati to a roadpati in 30 minutes.
This may sound scary, but this is the reality.
And don’t be afraid of it, but learn a lesson from it.
You have to understand that the field is so risky.
So you should have your own strategy, planning, and rules.
You should know when to go out in the market.
When to close your screen.
When to lock your account.
If you don’t make this decision on time, then the market will force you to take a heavy loss.
And how will all this happen?
For this, you have to follow a simple but very powerful principle.
One day’s risk plus one day’s target.
This means that every day you decide that today’s maximum risk will be here.
If that limit is hit, you have to close the screen, no matter what happens that day.
Because often, if you keep a small loss under control, it stays small.
But if that loss gets out of control, it will ruin all your hard work.
Your entire account will become zero.
So the real mindset is to do the most volatile time in the morning when you are fully ready.
For the whole day, you should keep your profit and loss fixed.
And most importantly, never give yourself a chance to punish the market.
Avoiding the Target Trap
Assume that you have made a plan that today’s risk will be only 5000.
Now, what happens in reality?
Sometimes, due to slippage, this 5000 can go up to 7000-8000.
And sometimes it happens the opposite.
You thought that today’s target is 10,000, and the market booked the same 10,000.
There will be days when your target will be easily hit.
But there is a big trap here.
If you think that you can keep the target of 10,000 every day, then you are mistaken.
Because the market can give you a profit of 10,000, it can also, by increasing the loss to 10,000, reach 25,000-30,000.
And this is the real game.
One day’s risk plus one day’s target.
Both these things are lifelines for every scalper.
Now, how will this be decided?
Assume that your account size is 50,000 or 1,00,000.
So you have to see how much consistent profit or loss has occurred so far.
Accordingly, set a reasonable target.
If the money comes into the account, then keep it.
20,000-15,000, whatever you think, do it.
No, the market does not work like this.
If your average earnings have been 5,000 till now, then your target is right there.
That will be your stop loss.
And the goal of the day will also be the same.
If you follow this rule, then assume that you will be in the green for 9 out of 10 days.
You only have to save one day when the market wants to show you a big loss.
And how will you save that?
You will also be saved from the same rule.
Straight away.
The risk is fixed.
If you have set a limit of 5,000, you have to stop trading at that point, no matter what happens.
Now assume that your target is 5,000.
And you have made 5,000 by scaling 2-3 small.
If any running trade is profitable, let it go.
No problem.
But once you have squared up the positions and the target has been hit, there is no point in taking a new trade.
Because from there, overtrading starts.
And from there, your day also turns red.
Leveraging Tools and Managing Expectations
Now, the most important thing.
Now, some brokerages help you with this.
Like Zerodha, Dhan, and all these, they offer a kill switch option.
If you turn on the kill switch, you will not be able to trade after that.
So this is a very good thing for a scalper.
Look, if you have come to do scalping, then once you have a knot in your mind.
This game is to pick up small profits.
What is the problem of most people?
They come to scalp.
But somewhere in their mind, there is a feeling that today, I would have made a big profit.
Now pay attention.
The job of a scalper is to make small profits repeatedly.
If you consistently make small daily profits, by the end of the month youwill have such a good amount that you will think it’s amazing.
I wish I had done this for 5-6 months; how good my capital would be today.
Now what happens?
Look, sometimes the market itself gives a chance.
Sometimes, you suddenly get an amazing breakout.
Sometimes you get a very good breakdown.
On the same day, within 5 minutes, it will make it so big that your imagination that today I will make a profit of 5,000-10,000.
That 5,000 gives you 50,000.
But what was your plan?
You had made 5,000.
That’s why scalp sometimes gives you a lot of money.
Now some people start planning that I will not listen to 5,000, I will do it for 50,000.
So this is a string trading.
It has become intraday.
If you are scalping, then the market can give you.
You can’t fix the target.
Your target will remain 1-to-1.
If you start aiming for the 50,000-60,000 range, you will be ruined.
Keep the losses small.
Never give the market a chance to blow the account.
The big profit comes on its own.
When the market wants to give, it will give.
But if you want to plan it, that’s a big mistake for a scalper.
The Operational Setup and Lot Sizing
Now I am telling you the second point.
When you think of scalping, find a peaceful place.
There should be good internet.
Because in scalping, you need 100% concentration.
A little mistake, a little lagging, a little internet is gone.
Your profit will turn into a loss.
So whenever you think of scalping, keep your equipment ready.
On the label on which the scalping is done.
Look, everything is very fast in scalping.
See the market chart.
Also, monitor the option chart.
Manage the entry and exit order.
Put a stop loss.
You have to do everything in a very short time.
And many times you have to do the trail.
Scalping is an active game.
The approach of sitting in a comfort zone will not work here.
Don’t chase big profits by treating scalping as a trade.
Always keep the target reasonable.
Do scalping only if you want to take it seriously.
Proper tools and setup.
Because this work is of speed and accuracy.
Not of any trick.
The Mathematics of Brokerage and Charges
Assume that you are scalping from 1 lot.
In every trade, your brokerage, charges, and taxes add up to 70-80 rupees.
What is the profit of scalping?
Sometimes 4 points, sometimes 7 points, sometimes 10 points.
And sometimes it is difficult to get out in 1-2 points.
Assume that you took 8 trades in a day.
Brokerage plus charges.
You have about 600-700 rupees.
What will be your average savings?
400-500 rupees.
That is, work hard all day.
And what do you get in the end?
A small amount.
More than half of the brokerage is used.
Assume that you did scalping for 15 days.
Profit came in 10 days.
Assume that the average is 500 per day.
Total is 5000.
But in 5 days, there is a loss due to the mistake or reversal.
The average is 1200 per day.
Total loss is 6000.
What is the final result?
After hard work, there is a loss of 1000.
Scalping becomes sustainable only when you trade it in lots of 3-5.
Then your daily profit will exceed the charges.
That is, if you had taken 6 points from your 5 lots, then you would have 1500.
Brokerage is 95.
Net savings are about 1050.
Now the picture changes.
Your effort is worth it.
So this is a simple rule.
If you want to scalp, always choose the right lot size.
Assume that you have to work for 1-2 lots.
Work all day.
And in the end, you will only get the brokerage.
Now, let’s understand the second point.
Experience and Capital Allocation
If you are trading with only 1-2 lots, then it is clear.
You do not have much capital.
Then why are you doing scalping?
First, build your skill in normal trading.
Understand the market.
Learn to read the price action.
Learn to follow risk management.
Because scalping is one step ahead.
Not one step behind.
Many people think that scalping is easy.
Scalping is very tough.
Make a profit quickly and run away.
But the reality is that scalping is more difficult than intraday and swing trading.
Because every second matters here.
Execution should be ultra-fast.
Your decision-making should be strong.
So if you have limited capital and little experience, first prove yourself in regular trading. Go for scalping.
Now the next point is even more important.
Never keep all your money in the trading account.
Assume that you have 1 lakh capital.
If you put all 1 lakh in the trading account, then every trade will have a direct effect on your psychology.
Because the mind will say that all the money is invested.
Every trade should be perfect.
And this pressure will put you in training.
And this will be your biggest enemy.
So thSo the smart approach is to start trading with 1 lakh if you have it. That much money is in the account.
Keep the rest of the money in the bank.
Keep that much in the demat.
What will be the benefit of this?
If there is a loss, it will also be manageable.
If there is a profit, you can withdraw.
And you will be able to enjoy the actual money.
Your psychology will be stable.
Because your account size is small.
And there will be no fear or pressure on every trade.
See, don’t do scalping with 1 lakh.
Otherwise, the brokerage will take the profit.
First, learn trading.
Then do scalping.
And most importantly, never put all the money in the trading account.
Always distribute the risk.
Managing Scaling and Embracing the Reflex
The biggest problems with scalping are scaling and discipline.
Scaling is the trickiest part.
Scaling means increasing the quantity.
If you make a good profit today, tomorrow the mind will automatically say, “Today I have done it with 5 lakhs.”
Tomorrow I will do 10 lakhs.
The day after tomorrow, I will do 20 lakhs.
And this is the most dangerous thing.
In scalping, running after exponential growth is the biggest trap.
Because if your mind and psychology are not ready at that speed, then that increased quantity will convert you into a huge loss.
That’s why you focus on gradual growth.
Grow slowly.
Take small steps.
Exponential growth will automatically happen.
Your mind and hands will be prepared at that level.
Now, one more important thing.
Never keep the mentality that you can only see profit in the market.
The market is unpredictable.
If you show profit today, Tomorrow, you can also see a loss.
That’s why this should be the discipline.
If there is a loss, then shift only as much as is needed in the trading account.
If there is a profit, then withdraw in between.
Why?
Because when the bad period comes, the same withdrawal will keep you mentally stable.
Otherwise, if the account is empty, your psychology will break.
If you withdraw the profit, and the account is still running, then you are trading properly.
Now, the last and most important point.
In scalping, your mind will automatically become strong.
Because the market will make you tough every day.
But you have to control your hands.
Because the biggest mistake in scalping is in losses, the mind says to stop.
Maybe it will come back from here.
But your hands should be trained.
Without thinking, exit immediately.
If you see a loss, exit immediately.
If you see a target, exit immediately.
Don’t give the mind time to think.
This reflex should become an action.
There is no time to think.
Because scalping is a mile-second game.
If yoIf you are coming into scalp, remember this is the fastest, riskiest, and most disciplined trading style. should not only have a strategy, but also a system. Your internet, your hands, your mind, Everything should be razor sharp.
The market will always give you a chance.
Sometimes a small profit, sometimes a big loss, sometimes a painful loss.
But the scalper will be the one who learns to exit without emotion. If you want to become a scalper, you should first master all these things.
Then think about that.
