Scalping Strategy: How Scalping Trading Works in the Commodity Market
By Tejas Wankhede (Tejas Sir), commodity trader and founder of The Millionaires Floor, Nashik. Updated .
Quick answer
Scalping is a trading style that aims to capture small price moves many times a day, holding each trade for seconds to minutes. A commodity scalping strategy needs a liquid contract (such as a mini contract), clear levels, a volume-based trigger, a tight stop loss and strict daily loss limits.
What is scalping in trading?
Scalping is a very short-term trading style where you open and close positions within seconds or minutes to capture small price moves. Scalpers take more trades than other traders, so trading costs, slippage and discipline matter more. It suits liquid MCX commodity contracts with high daily volume.
Scalping vs intraday trading vs day trading
All three close positions within the same day. Scalping holds trades for minutes and targets small moves. Intraday or day trading holds trades for longer, from tens of minutes to several hours, and targets the main move of the session. Many traders scalp inside the direction of a larger intraday trend.
A simple commodity scalping strategy
Use the 15-minute chart to mark support and resistance, the 5-minute chart to define trend, and the 1-minute chart to enter. Buy only above key support in an uptrend when a high-volume 1-minute candle turns up from a pullback, with a stop below that candle. Reverse the rules for sell trades.
- Market: one liquid contract only (one mini contract).
- Context: trade in the direction of the 5-minute trend.
- Trigger: a 1-minute candle with clearly above-average volume at a level.
- Stop loss: just beyond the trigger candle.
- Exit: first target at 1:1.5 to 1:2, or at the next level.
- Daily limits: stop after 3 losses or after your daily loss limit is hit.
What is the best intraday strategy?
The best intraday strategy is one with fixed rules that you have tested and can follow every day. For commodities, strategies that combine key levels, volume and trend direction tend to be easier to follow than indicator-only systems. No strategy wins every trade, so risk control decides long-term results.
At The Millionaires Floor, the Samrat Strategy is built on high-volume candles and market structure, and the Pro-Scalping Strategy applies the same thinking to 1-minute and 5-minute charts.
Common scalping mistakes
The most common scalping mistakes are overtrading, moving the stop loss, trading during major news, using too many indicators and trading too large a size after a loss. Each one turns a small, controlled loss into a big one. A written rulebook and a daily loss limit fix most of them.
Frequently asked questions
Is scalping profitable?
Scalping can work for disciplined traders with a tested edge, low costs and strict risk control, but most beginners lose money. Practise on small size first.
Which timeframe is best for scalping?
Most commodity scalpers use the 1-minute chart for entry and the 5-minute or 15-minute chart for direction and levels.
How many trades should a scalper take per day?
Quality matters more than number. Many disciplined scalpers cap themselves at a few trades and stop after a fixed number of losses.
Learn this step by step with Tejas Sir
Join the online commodity trading course from anywhere in India, or the offline trading classes in Nashik. Plan your trades with the free position size and risk reward calculator.
See courses and feesRelated guides
Disclaimer: This guide is for education only and is not investment advice. Trading in commodity derivatives involves substantial risk of loss. The Millionaires Floor does not provide tips or guaranteed returns. Read the full risk disclaimer.