Scalping, Head's Itching

Once again, I am lost in the cryptospace and I was looking for something to make some quick bucks and some quick profits from a few of my holdings. I do not have much so I was not expecting to make millions or any of that, I was just out for some quick coins.

And I went on to stake, to farm in pools, and all that, but of course, in just small amounts. Just what I was willing to lose. And while I was doing so, I was reading here and there about some strategies to make a killing whilst in the cryptoverse. And through reading many materials, "scalping" always came up when it comes to quick profit-making.

Did they say quick profit-making? That's just what I was looking for. I don't care if it's cents or whatever, if you are telling me that I could make some quick cash, I will be much interested in it. Even cents will have their value if they are kept and you stayed with it, constantly and diligently. I thought that I could do it.

What is Scalping?

Alright, so this is not a technical article and certainly not a know-how piece, so if you are looking to study about it, I suggest that you find your materials elsewhere.

Anyway, from what I understand, scalping is a strategy in trading wherein you make a lot of trades in a span of time while taking in a small percentage of profit. You are making every tick and every beat of an asset's price into consideration.

Let's say instead of waiting for a $1 movement of an asset, you are making use of the $0.01 movement. I think that's the gist of it. Basically, instead of waiting for a $1 profit on your trade, you are trading off of $0.01 intervals. Of course, these figures are just to imagine the concept behind it.

Since you are just playing with a very small amount here, it is imperative to make a series of trades in short succession. Compared to a day-trader for example, who makes trade just one time a day, scalping may make use of hundreds of trades a day. That's pretty tedious, isn't it?

That's what I think it is. And since I can't really learn it just by reading about it, I put it to the test.

I opened up Binance since I know I have a few BNB stuck in there. And then I picked BNB-BUSD for the purpose of the test. Then I traded the BNB for some BUSD at the price of $574.6. Now all I need to do then is to wait for it to come down just a bit and buy BNB back.

But then my powers kicked in. BNB price went up, and it never came back down to what I was expecting. It's now around 587.1 as of writing this.

And then my test came to an end. I am now stuck with some BUSD and my thumb up my a$$.

I do not know what I did wrong, I don't know what to do next. If anyone's really good at scalping, any pointers or guides will help.

I have read many articles about scalping and I tell you what, I have the concept of it nailed to the ground but the specifics of it, how to start, what to do, and all those important nitty-gritty, I have zilch knowledge about them.

I don't know but I think it will be pretty helpful if you are not working with just a single pair-trade. Is it still called scalping if you use several trading pairs with your fund? I mean, for example, BNB to BUSD, then BUSD to some other coin, then so on and so forth until you are back with BNB and some profit.

So, what did I accomplish with my little test? Well, nothing. I just prove that this scalping thing will make your head itchy and you will start to scratch it until your scalp is all red and sore.

Dang this is hard. I will keep on reading through. Maybe somehow, someday, I'll get a clue on everything and make this part of my trading arsenal.

And yes, any input will be much appreciated.

Haloa!

Yep, you got it right. I really don't have any idea what I am doing. I feel like I'm just grasping at straws while throwing away money on fees at this point. It seems like everything is just being charged to experience.

I just wish that someday all this head-scratching will come to fruition.

But until then, I'll just be here sippin' and as always...

Cheers!!!

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Series    : Anything Crypto
Title     : Scalping, Head's Itching
Published : 06-Nov-2021
Author    :  © RB