Scalping is a trading strategy that involves trying to profit from relatively small price movements. Scalp traders don’t look for massive profit targets. They instead aim to harvest gains from small price changes over and over again.

Due to the short time frames involved, scalpers will heavily rely on technical analysis to generate trade ideas. As most fundamental events play out over a longer period of time, scalp traders will rarely concern themselves with fundamental analysis. Still, fundamental narratives can make a big difference when deciding what asset to trade. Stocks or coins with increased interest due to some news or fundamental event will generally have high volume and good liquidity – at least for a period. This is when scalpers can step in and generate profits off the increased volatility.

In summary, scalpers exploit short-term bursts of volatility rather than larger price moves. It’s a strategy that’s probably not ideal for everyone since it requires an advanced understanding of market mechanics and quick decision-making (often under stress).