Scalping: Ultra-Short-Term Trading Tactics

What Is Scalping? A Deep Dive into the Core Concept

Scalping, at its most fundamental level, is the practice of entering and exiting trades extremely quickly to profit from small price differentials. The word itself borrows from the idea of taking a thin slice - scalpers are not interested in the whole loaf of a major price trend; they want to cut off small, repeated slivers throughout the trading session.

A scalper might look at a one-minute or even a thirty-second candlestick chart. They identify a moment where the price is likely to move even a few ticks in their favour, enter the position, and exit almost immediately once that small target is met. If the price moves against them, a tight stop-loss kicks in to minimise the damage. The profit per trade may be tiny, but the strategy relies on volume - executing the same edge over and over throughout the day.

In the Indian context, consider a trader scalping the Nifty 50 futures contract on the NSE. The lot size for Nifty futures is 25 units. If the trader captures just 5 index points on a trade, that translates to ₹125 per lot (5 × ₹25 per point per lot... noting that each index point = lot size × underlying price multiplier, and one point of Nifty futures is worth ₹25 × 1 unit = ₹25 per lot of 25... actually the value per point for Nifty futures is typically computed as lot size × price change, but in common parlance a 1-point move in Nifty futures = ₹25 approximately depending on contract specifications - traders should always verify current lot sizes and tick values on the NSE website). Multiply that by twenty well-executed trades in a session, and the gross profit becomes meaningful - though transaction costs will consume a portion of it.

Scalping is distinct from other short-term strategies in its frequency and holding duration. An intraday trader might hold a position for a few hours; a scalper might hold for under two minutes. This distinction matters because the analysis frameworks, the tools, the mindset, and the cost structures are all different.

It is also important to clarify what scalping is NOT. It is not high-frequency trading (HFT) in the institutional sense - HFT firms use co-located servers, proprietary algorithms, and microsecond-level execution that retail traders simply cannot replicate. Retail scalping is manual or semi-automated and operates on a slightly longer timeframe, though still very short by most trading standards. SEBI regulates algorithmic trading separately, and retail traders using automated order placement must comply with SEBI's algo trading norms.

The key pillars of a scalping approach are: liquidity (you need instruments where you can enter and exit instantly without significant slippage), tight spreads (the difference between the buy and sell price must be minimal to preserve your tiny profit target), speed of execution (a direct-market-access or low-latency platform is preferable), and rigorous risk management (because a single large loss can wipe out many small wins).

Popular Scalping Strategies Used in Indian Markets

There is no single universally agreed method of scalping - practitioners have developed dozens of variations over the decades. However, several broad strategic frameworks are widely used by retail scalpers in Indian equity and commodity markets.

Market-Making or Bid-Ask Scalping This approach involves simultaneously placing a buy limit order slightly below the current price and a sell limit order slightly above it, attempting to profit from the spread. In practice, this is more accessible to professional market makers than to retail participants because of capital requirements and the need for extremely fast order management systems. Still, understanding this concept helps explain why tight spreads are crucial - you are, in effect, trying to be on both sides of the market.

Momentum Scalping This is the most common form among retail scalpers. The trader identifies an instrument showing strong directional momentum - perhaps a Bank Nifty futures contract surging after a macroeconomic announcement or an RBI rate decision - and rides that momentum for a very short burst. Tools like the 1-minute chart, the Volume Weighted Average Price (VWAP), and the Relative Strength Index (RSI) on a short timeframe help identify entry and exit points. The idea is to join a move already in progress, take a quick bite, and step aside before the momentum fades.

Range Scalping When a stock or index is trading sideways within a well-defined range, a scalper can buy near the support level and sell near the resistance level repeatedly. The Bollinger Bands indicator is particularly useful here - when price touches the lower band in a ranging market, it signals a potential bounce to the upper band, and vice versa. This works well on liquid large-cap futures during relatively calm mid-session periods on the NSE.

News-Based Scalping Major announcements - quarterly earnings, RBI monetary policy decisions, government budget numbers, global cues from US markets - create sharp, momentary price spikes. Some scalpers specialise in being ready to trade in the seconds immediately following such announcements. This requires excellent preparation, a fast platform, and the discipline to take the pre-planned trade mechanically rather than hesitating.

Level 2 / Order Book Scalping Experienced scalpers often watch the market depth screen (the order book showing pending buy and sell orders at various price levels) to gauge short-term supply and demand. A sudden appearance of large buy orders just below the current price can act as a support cushion, encouraging a long scalp. Conversely, a large wall of sell orders above the price might signal resistance. This technique requires a platform that provides real-time Level 2 data.

Tick Chart and Time-and-Sales Scalping Instead of time-based candlestick charts (1-minute or 5-minute), some scalpers use tick charts - where each candle represents a fixed number of transactions rather than a fixed time interval. For example, a 500-tick chart plots a new candle after every 500 trades. This can filter out noise during slow periods and provide cleaner signals during busy ones.

Each of these strategies requires practice, backtesting on historical data, and careful paper-trading before real capital is committed. The best approach is to master one strategy thoroughly rather than attempting several simultaneously.

Essential Tools and Technology for Scalpers

Scalping is perhaps more technology-dependent than any other retail trading style. Because profits are measured in fractions of a percent, delays in execution or inadequate analytical tools can make the difference between a profitable and losing session.

Trading Platform and Order Execution Speed The single most important tool for a scalper is a fast, reliable trading platform. Latency - the time between clicking the order button and the order reaching the exchange - needs to be minimal. A platform that experiences frequent outages, slow order confirmation, or poor mobile/desktop performance is simply unsuitable for scalping. Traders should evaluate platforms based on order execution speed, uptime history, and the availability of keyboard shortcuts for rapid order placement. Many serious scalpers prefer desktop-based platforms over mobile apps because of the larger screen real estate and faster data refresh rates.

Direct Market Access (DMA) DMA allows traders to place orders directly into the exchange order book without going through a broker's internal system first, reducing latency. SEBI permits DMA for eligible retail clients, and many brokers offer it as a feature. Scalpers benefit significantly from DMA because even a fraction of a second's delay can mean the difference between a fill at the intended price and slippage.

Level 2 Market Depth The market depth screen shows pending buy and sell orders at different price levels. For scalpers, this is critical information - it reveals where large orders are sitting, which can act as short-term support or resistance. On the NSE, this data is available as the "best five" buy and sell orders, though institutional-grade systems provide a deeper view.

Charting Software with Short Timeframes Scalpers primarily rely on one-minute, three-minute, and five-minute candlestick charts. The technical indicators most favoured by scalpers include VWAP (Volume Weighted Average Price), which provides an intraday benchmark price; RSI set to a short period (often 7 or 9 instead of the standard 14); Exponential Moving Averages (EMAs) on short periods such as the 9-EMA and 20-EMA; and Bollinger Bands set to tighter parameters. All of these help identify short-term momentum, overbought/oversold conditions, and dynamic support/resistance levels.

Scanners and Alerts With so many instruments on the NSE and BSE, manually watching each one is impossible. Real-time stock scanners that filter for unusual volume spikes, price breakouts above recent highs, or sudden volatility expansions help scalpers quickly identify actionable opportunities. Many platforms offer customisable alert systems that can trigger audio or visual notifications the moment a pre-set condition is met.

Stable, High-Speed Internet This sounds basic but is non-negotiable. A dropped connection in the middle of an open position can be disastrous for a scalper. Serious practitioners often maintain a backup internet connection (such as a separate mobile data connection from a different telecom provider) specifically for trading.

Brokerage with Low Transaction Costs Given the high frequency of trades, brokerage costs compound quickly. Flat-fee discount brokers have made scalping more viable for Indian retail traders compared to the era of percentage-based brokerage. However, STT, exchange transaction charges, SEBI turnover fees, stamp duty, and GST still apply and must be factored into every strategy's cost analysis.

Understanding Transaction Costs: The Hidden Enemy of the Scalper

If there is one concept that separates successful scalpers from those who simply donate money to the market and transaction cost system, it is a thorough, mathematical understanding of costs. Because scalping targets tiny price movements, even modest costs per trade, when multiplied across hundreds of trades, can completely overwhelm gross profits.

In India, the cost structure for equity intraday trades (which most equity scalping falls under) includes the following components:

Brokerage: Discount brokers typically charge a flat fee per executed order (regardless of trade size) for intraday trades. This makes scalping more feasible than under the older percentage-of-turnover model, but the fee still needs to be factored into your minimum profit target per trade.

Securities Transaction Tax (STT): For intraday equity trades (where you buy and sell the same stock within the day), STT is levied on the sell side. For futures, STT is levied on the sell side at a rate applicable to futures contracts. For options, the rate differs for premium vs. exercise. Since STT rates can be revised in each Union Budget, traders should refer to the latest Finance Act or SEBI/exchange circulars for current rates. STT is a significant cost for high-frequency traders and is non-negotiable.

Exchange Transaction Charges: Both NSE and BSE levy transaction charges on each trade, calculated as a percentage of turnover. These vary by segment (cash, futures, options) and are updated periodically by the exchanges.

SEBI Turnover Fee: A very small percentage of turnover is payable as SEBI's regulatory fee. Though tiny per trade, it adds up over thousands of trades.

GST on Brokerage and Transaction Charges: GST at the applicable rate is levied on the brokerage and exchange charges component.

Stamp Duty: Levied by the state government on contract notes, calculated as a small percentage of turnover.

Impact Cost / Slippage: This is not a visible fee but is a very real economic cost. When you place a market order, you typically get filled at a slightly worse price than the last traded price because you are moving through the order book. On highly liquid instruments like Nifty futures, this slippage might be negligible, but on less liquid stocks, it can be significant. Scalpers should exclusively trade highly liquid instruments to minimise this.

A practical way to think about this: before executing a scalping strategy, calculate your total round-trip cost (buying and selling once) in rupees per lot or per share. This becomes your break-even point - you must capture at least this much from the market on every trade just to cover costs. Your profit target must be meaningfully above this break-even figure to generate actual returns. If your strategy's average profit per trade is barely above costs, a few losing trades will quickly turn your session negative.

This cost analysis also explains why scalpers gravitate to index futures and highly liquid large-cap futures on the NSE rather than mid-cap or small-cap stocks - the liquidity keeps slippage low, and the ability to trade in and out of large positions quickly is preserved.

The Psychology of Scalping: Mental Discipline Under Pressure

Of all the challenges that scalping presents, the psychological ones are arguably the most difficult to overcome. The speed of decision-making required, the rapid oscillation between small wins and small losses, and the constant sensory stimulation of watching fast-moving charts create a uniquely stressful mental environment.

Emotional Neutrality Towards Individual Trades A scalper who has just had three losing trades in a row may feel the urge to "get it back" on the next trade by taking a larger position or a lower-quality setup. This revenge trading is one of the most common destroyers of scalping accounts. The solution is to develop genuine emotional neutrality towards individual trade outcomes - viewing each trade as simply one instance of a repeatable process, where the outcome of any single trade is less important than executing the process correctly across many trades.

Accepting Small Losses Gracefully In scalping, losses are not failures - they are an inevitable cost of doing business. A scalper with a 60% win rate will still lose 40% of their trades. If each loss triggers emotional distress, anxiety, or frustration, the trader will eventually deviate from their system. The ability to take a stop-loss without hesitation and move on to the next setup is a learnable skill, but it requires deliberate practice.

Avoiding Screen Fatigue Watching one-minute charts for five or six hours continuously is mentally exhausting. Fatigue causes decision-making quality to deteriorate - the trader starts seeing patterns that are not there, hesitates on valid setups, or takes trades that do not meet their criteria. Experienced scalpers typically trade in focused bursts during the highest-liquidity periods (often the first 90 minutes after the NSE opens at 9:15 AM IST, and again in the final hour before close at 3:30 PM) and take breaks in between.

The Danger of Overconfidence A string of successful trades can breed overconfidence, leading to increased position sizes, less rigorous setups, and ultimately a large loss that erases days of work. The solution is to maintain a trading journal - recording every trade with entry, exit, stop-loss, profit or loss, and a brief note on why the trade was taken. Reviewing this journal regularly keeps overconfidence in check and reveals patterns in both winning and losing trades.

Mindset: Trading is a Business The most sustainable psychological framework for scalping is to treat it as a business. Businesses have operating costs (transaction costs), sometimes have unprofitable days or weeks, require systems and processes, and are evaluated over months and years rather than a single day. This long-term perspective prevents the emotional volatility that ruins many short-term traders.

Simulation Before Live Trading New traders aspiring to scalp should spend considerable time paper-trading (simulated trading without real money) to build familiarity with their chosen strategy, test their discipline, and understand how their chosen instruments behave. Only after demonstrating consistent profitability in simulation should real capital be deployed - and even then, starting with the minimum possible lot sizes is advisable.

Scalping in Different Indian Market Segments

Scalping opportunities exist across several market segments available to Indian traders, each with its own characteristics, cost structure, and suitability.

Equity Index Futures (NSE) Nifty 50 futures and Bank Nifty futures are the most popular instruments for scalping in India. Their extreme liquidity, narrow bid-ask spreads, and availability of options chains for hedging make them ideal. The relatively lower STT on futures (compared to equity delivery) also helps. The availability of these contracts for intraday trading without taking or giving delivery makes them operationally straightforward for scalpers. Note that lot sizes and contract specifications are periodically revised by SEBI and NSE - traders should always verify current specifications.

Equity Stock Futures (NSE) Highly liquid large-cap stock futures - those in the top tier of the Futures and Options (F&O) list - also offer scalping opportunities, though their bid-ask spreads are typically wider than index futures. During earnings season or after significant corporate announcements, these can see sharp short-term moves that scalpers attempt to exploit.

Equity Cash Segment (NSE and BSE) Intraday scalping in the cash (equity delivery) segment is possible on highly liquid large-cap stocks. However, STT rates for intraday trades in the cash segment, combined with brokerage and other charges, create a higher per-trade cost burden compared to futures. The absence of leverage (unless margin products are used, which have regulatory constraints) also limits position sizes for capital-constrained traders.

Commodity Futures (MCX) The Multi Commodity Exchange (MCX) offers futures contracts on gold, silver, crude oil, natural gas, and base metals. These can be scalped effectively, particularly around global market hours (US market opening, OPEC announcements, etc.) when Indian commodity markets see increased volatility. The cost structure on MCX is different from equity markets, and traders should carefully study MCX-specific charges before scalping commodities.

Currency Futures and Options (NSE/BSE) Currency derivatives - particularly USD-INR, EUR-INR - are available on the NSE and BSE currency segments. These are regulated by both SEBI and the Reserve Bank of India (RBI). They offer tight spreads and good liquidity, particularly the USD-INR pair, making them a viable scalping instrument for those with knowledge of currency markets.

Equity Index Options Weekly expiry options - particularly weekly Nifty and Bank Nifty options on the NSE - have created a new scalping ecosystem in India. Traders buy or sell options contracts targeting short-term directional or volatility moves. However, options involve additional complexity: time decay (theta), implied volatility changes, and the non-linear payoff structure make options scalping significantly more complex than futures scalping. This segment is not recommended for traders who do not have a solid understanding of options Greeks.

Across all segments, traders must maintain adequate SEBI-mandated margin requirements. Trading without maintaining proper margins can lead to margin calls, forced position squaring by the broker, and regulatory consequences.

Common Mistakes Scalpers Make and How to Avoid Them

Learning from the mistakes of others is far cheaper than making them yourself. Scalping has a well-documented set of errors that repeatedly trip up newcomers and even some experienced traders.

Mistake 1: Trading Illiquid Instruments The single most damaging mistake a scalper can make is trying to scalp a mid-cap or small-cap stock with low trading volumes. Wide bid-ask spreads mean you immediately lose money the moment you enter a position (you buy at the ask and can only immediately sell at the lower bid). Thin order books mean that even a small position can move the price against you. Scalpers must restrict themselves to the most liquid instruments available in each segment.

Mistake 2: No Backtesting Many traders develop a strategy based on a few good trades they happened to observe and then go live immediately. Without backtesting - systematically testing the strategy on historical price data - there is no statistical basis to believe the strategy has a genuine edge. Most charting platforms allow replay of historical data, which scalpers can use to test their strategies without financial risk.

Mistake 3: Ignoring Market Conditions A momentum scalping strategy that works beautifully in a trending market will produce repeated small losses in a choppy, sideways market. Scalpers need to adapt their strategy to prevailing market conditions or simply not trade when conditions are unfavourable. Developing the ability to recognise whether the market is trending, ranging, or experiencing unusual volatility is a critical meta-skill.

Mistake 4: Not Accounting for Transaction Costs in Strategy Design A strategy that shows a profit on paper (before costs) but generates a loss after accounting for STT, brokerage, and exchange charges is not a viable strategy. Every strategy must be evaluated on its after-cost profitability. This seems obvious but is a surprisingly common oversight.

Mistake 5: Moving Stop-Losses After Entry Hopping the stop-loss further away from the entry price after the trade moves against you is a guaranteed path to large losses. The stop-loss is calculated and set before entry, based on objective technical or risk criteria. Adjusting it after the fact is purely emotional behaviour and should never be done (with the sole exception of moving a stop to break-even once a position is in profit, to protect gains - a practice known as a trailing stop).

Mistake 6: Scalping in the Wrong Market Hours The NSE cash market opens at 9:15 AM IST. The first few minutes can be extremely volatile as overnight orders get executed. Some traders thrive in this period; others find it too unpredictable. Similarly, the period between roughly 12:00 PM and 1:30 PM IST often sees low volumes and choppy price action, which is poor scalping territory. Understanding the rhythm of the Indian trading day - when volumes are highest, when institutional activity is greatest, when volatility is most predictable - is an important part of becoming a successful scalper.

Mistake 7: Using Too Many Indicators A cluttered chart with fifteen different indicators is worse than a clean chart with two or three well-understood ones. Multiple indicators often give conflicting signals, creating analysis paralysis. Scalpers need fast, clear signals. Less is more.

Mistake 8: Underestimating Capital Requirements Many aspiring scalpers underestimate the capital required. Between margin requirements, the need for diversification across multiple trades, and the inevitable drawdown periods while a strategy is being refined, scalping requires meaningful capital - not just the minimum needed to place a single lot.

Is Scalping Suitable for You? An Honest Assessment

Scalping is not for everyone, and there is no shame in concluding it is not the right trading style for you after careful reflection. The honest truth is that scalping is one of the most difficult forms of trading to master, and the failure rate among those who attempt it without adequate preparation is high.

Time Commitment Scalping demands your complete, undivided attention during market hours. You cannot scalp while also doing your regular job, attending meetings, or taking care of other responsibilities. This immediately excludes most part-time traders. Scalping is a full-time occupation for those who pursue it seriously.

Emotional Temperament Not everyone is emotionally suited to the rapid decision-making and the frequent cycle of small wins and losses. Traders who find it difficult to accept losses, who are prone to revenge trading or overtrading, or who become anxious under pressure are likely to struggle significantly with scalping. Honest self-assessment of your emotional temperament before attempting to scalp is essential.

Technical Knowledge A good understanding of technical analysis, at minimum at an intermediate level, is a prerequisite. Candlestick patterns, moving averages, volume analysis, support and resistance, and an understanding of market microstructure are all valuable. Without this foundation, the fast-moving charts and indicators used in scalping will be confusing rather than informative.

Capital Adequacy Because of leverage limits set by SEBI and the capital needed to absorb the inevitable drawdown periods, scalping requires a meaningful amount of dedicated trading capital. Trying to scalp with very limited capital means that even a small drawdown can wipe out the account, eliminating the ability to continue trading and learn from the experience.

Alternatives to Consider For traders who are interested in short-term trading but find pure scalping too intense, intraday trading (holding positions for minutes to hours) or swing trading (holding for days to weeks) offer more forgiving timeframes while still providing active trading engagement. These approaches allow more time for analysis, less extreme psychological pressure, and lower sensitivity to transaction costs.

The Learning Curve Becoming a consistently profitable scalper typically takes years of practice, study, and refinement of one's approach. Expecting quick profits is unrealistic and dangerous. The best approach is to treat the learning phase as an educational investment - start with very small positions, paper trade extensively, keep a detailed trading journal, seek out educational resources, and accept that losses during the learning phase are tuition fees.

Finally, it is worth emphasising that SEBI provides several investor education resources, and traders are encouraged to use the regulatory framework as a guide for understanding their rights and obligations. Trading in derivatives without a proper understanding of the risks involved is strongly discouraged, and SEBI has mandated risk disclosure documents that traders must sign before accessing the F&O segment.

Regulatory Considerations and Tax Implications for Scalpers in India

Scalpers operating in Indian markets must navigate both the regulatory environment established by SEBI and the tax treatment of their trading activity. These are not minor footnotes - they directly affect the profitability and legality of the activity.

SEBI's Regulatory Framework SEBI regulates all trading activity on Indian stock exchanges. For scalpers specifically, several regulations are particularly relevant. The margin framework - consisting of SPAN (Standard Portfolio Analysis of Risk) margins and exposure margins - limits the amount of leverage a trader can employ in the F&O segment. These margins are computed daily based on volatility and can increase significantly during periods of high market volatility, potentially forcing scalpers to reduce position sizes or add funds to their accounts.

SEBI also regulates algorithmic trading. If a scalper wishes to automate any part of their strategy - even placing orders through an API - they must ensure compliance with SEBI's algo trading regulations. Unauthorised algorithmic trading can attract regulatory penalties. Traders should consult with their broker about the compliance requirements before using any automated order placement.

Circuit Breakers and Price Bands Individual stocks have daily price bands (typically 5%, 10%, or 20% depending on the stock) within which trading can occur. Index-level circuit breakers halt the entire market if the Nifty falls by 10%, 15%, or 20% in a single day. These mechanisms are designed to protect investors during extreme volatility and can suddenly halt scalping activity mid-session. Scalpers must be aware of these safeguards and factor them into their risk planning.

Taxation of Trading Income The tax treatment of income from scalping in India depends on how the activity is classified. Generally, if trading is a primary occupation conducted with high frequency, the Income Tax Department may classify it as "business income" rather than capital gains. Under business income classification, profits are taxed at the applicable income tax slab rate, but the trader can also claim deductions for legitimate business expenses such as internet costs, subscription fees, and a portion of infrastructure costs.

For futures and options trading specifically, any profit or loss is treated as non-speculative business income (as per current interpretation of the Income Tax Act), which has different set-off and carry-forward rules compared to speculative income from equity intraday trading (which is treated as speculative business income). Given that tax laws are amended regularly via the Finance Act and administrative circulars, scalpers are strongly advised to consult a qualified chartered accountant (CA) who is familiar with the tax treatment of trading activity.

GST on Brokerage GST is applied on brokerage and transaction charges, adding to the overall cost of trading. This is automatically computed and included in contract notes.

Books of Accounts If your trading income classifies as business income under the Income Tax Act, you may be required to maintain proper books of accounts. Given the high volume of transactions a scalper generates, using accounting software that can import trade data from the broker's contract note is strongly recommended. Annual tax filing, including the correct ITR form for business income, is mandatory.

Maintaining Contract Notes Brokers are obligated to issue contract notes for every executed trade. Scalpers should systematically save and organise these, as they serve as the primary legal and financial record of all trading activity and are required for accurate tax filing.

Example

Key benefits

How it works

1. 1
   Prepare Before the Market Opens

   Before 9:15 AM IST, review overnight global market performance, identify key support and resistance levels on your target instrument, check economic events scheduled for the day (such as RBI announcements or macro data releases), and ensure your platform, internet connection, and order templates are ready.

2. 2
   Identify Your Setup Using Your Pre-Defined Strategy

   Once the market opens, wait for a setup that matches your specific trading criteria - such as a pullback to the VWAP in an uptrending market, a Bollinger Band touch in a ranging market, or a confirmed breakout above a key resistance level with above-average volume.

3. 3
   Define Entry, Stop-Loss, and Target Before Entering

   Before placing the order, know exactly where you will enter, where your stop-loss will be placed (a hard order in the system, not just a mental note), and what your profit target is. Confirm that the risk-reward ratio meets your minimum criteria.

4. 4
   Execute the Trade with Speed and Precision

   Place the entry order promptly - hesitation in scalping often means the opportunity has passed or slippage increases. Use limit orders where possible to control entry price, and ensure your stop-loss order is placed simultaneously or immediately after the entry is filled.

5. 5
   Monitor the Position Actively

   Watch the price action closely. If the position moves in your favour and approaches the target, be ready to exit. If the market shows signs of reversing before the target is hit, consider exiting early with a partial profit rather than waiting for a full reversal and a stop-loss hit.

6. 6
   Exit the Trade - at Target or Stop-Loss

   Exit at the pre-defined target or, if the stop-loss is triggered, accept the loss without hesitation and close the position immediately. Never hold a scalp trade beyond your planned stop-loss in the hope of recovery.

7. 7
   Review, Record, and Repeat

   After each trade, make a brief entry in your trading journal noting the setup, entry, exit, profit or loss, and any relevant observations. Periodically review this journal to identify patterns in your performance, refine your strategy, and catch any drift from your trading rules.

Formula

Net Profit Per Trade = (Exit Price − Entry Price) × Lot Size − Total Transaction Costs
Minimum Viable Target = Total Round-Trip Transaction Cost Per Lot ÷ Lot Size (in points or ₹)

Key takeaways

Frequently asked questions

Related terms