[walterw]

Hello everyone, want to make a little comment here on some scalping money management that has a great impact on the technical trading as on the traders psichology...

First of all let me make clear that this considerations are ONLY for scalpers.. it will clearly not apply for a daytrader by no means...

As you all know I am a scalper myself... I love scalping ¡¡¡ I enjoy making little money everyday, its a life style... and when you master a method its so exciting to sit down on your trading room an say, I know what I am technically looking for, I know how much money I want... I have understanding of what this is all about... I trade, get to my target and STOP trading live, from there on I do research...

So from this point of view, a scalper MUST have a daily target... so lets say for example this : trading ER a daily target of 60 dollars per contract its a very tangible and worth seeking target... some of you may say its too little, well not necesary... if you trade up to 30 contracts it can give you a steady monthly income of 36k... wich I dont regret....

60 dollars its equivalent to 6 net ticks after comisions, depending what comissions your broker is charging you, you will need 1 or two ticks more to cover costs...

If you look at ER range, 6 ticks is a stupid amount of money to make.... BUT sometimes its not that way... if you got stopped lets say two times on -5 ticks each... now you have to work 160 dollars to your target...

So you see, making 60 dollars per day contract some days may be a joke others will make you swet some... I call this easy or hard days...

Now, if your method has a good RRR embeded on its apraoch should you do fine...

On the other hand, having such low expectations for the day makes you much more selective on your trading... you will only take the best setups that most probably with one or two trades will make your day...

As day makes target and other day so does, week makes it month too, trader gets confident on his system and he is not greedy to take more than his daily target... here comes self-restriction not to trade.... In this types of ocations the trader is tempted to make more... going behind that temptation is something that will hurt the most valuable asset he can have : NO GREED... greed destroys... it does in all aspects of life, so in trading...

Most downward equities at some point where ok, you got so enthusiastic about that you thought you could trade everything that came in front of you... well no, it wasnt the case...

Scalping bussiness is more a conservation than creation of capital bussinness, and selfrestriccion does the job...

You want more than 36k month...? no problem, trade more contracts or consider trading ES or forex (hi liquidity)... but keep your daily target very low...

As any system , recomendation or experience, some things work for some traders as for others dont...

The Scalper Daily Target is a lifestyle.... cheers Walter.