Scalping in the stock market can be defined as taking quick profits. This seems to work. I tried it today and it was fun.
What is Scalping?
Scalping is a trading strategy where one takes advantage of the obvious small changes.
In Indian stock market, we can observe that there is some 0.3 points variation in all stocks. They usually go up or down 0.3 points from the current price.
This variation is enough to make profits if you are buying enough shares. I have made an average of ₹200 if I buy 1000 shares.
I tried it already and surprisingly it works!
I may get half of it after taxes and charges but it is worth it. Now let’s see how this can be achieved.
Use the 1-minute chart and see the variation. Here is an example. This is SBIN chart when there is no clear trend.
Between the red line and the green line, there is a whole point variation. We can make a small profit just with 0.3 points variation. So buying at 280 and selling at 280.3 is enough!
We buy at the red line and sell near the green line. We perform this several times to get a good accumulative profit.
Here is how you can check how much profit you can make with 0.3 points variation. Go to Zerodha Brokerage Calculator and try to see how many shares are needed to make a profit on small variation.
For 1000 shares, we can make a reasonable profit even for a small variation.
Try this strategy and let me know if it worked for you.