There are many kinds of traders in the forex market who thrive on profiting from trading. Among the retail traders, most of them prefer scalping or day trading. As you have already been informed about the basics of scalp trading and day trading. Here, we will go deep into the commonalities and differences between scalp trading and day trading.
The Commonality Between Scalper and Day Trader
1. Both do not hold trades over the night.
2. Both can trade in most of the available trading instruments in the market.
3. Both require excellent grasp of money and risk management strategies.
The Difference Between Scalp Trading and Day Trading
|Hold the trade for a minute to a few minutes.||Hold the trade for several hours.|
|Follow the Minute Chart||Follow the Hour Chart|
|Depends on small price movement||Depend on big price movement|
|Open tens or hundreds of trades in a single day.||Open a few trades in a single day|
|The profit gain is very limited in each trade.||Profit gain is good enough in each trade.|
|Can take a large Lot size to trade, as the risk of losing Big is rare.||Should maintain strictly in taking big Lot sizes as the market can get volatile any hour of the day.|
|Risk to losing Big is pretty rare.||Risk to losing Big is definite.|
Here you go, the common criteria and differences between the two of the most populated traders in the world. If you are a retail trader, you must train yourself to become the best in either of these two or both.