Scalping

Nick1984,


I always go into my scalping with the mindset that I WILL achieve my daily profit goals and as a result I do about 90% of the time (and the days I do not is usually when I shut down early for the day and take care of other business).

One thing that really helped me to move towards my new proper mindset is a book suggested to me from someone at Felton Trading that I read. I read the book and WOW, I had immediate positive impact with the way I started to conduct my career as a trader (felton is also about to add a psychology curriculum to their course called trading with intent)

[namstrader]

Fulcrum,

what is the name of the book may I ask?

[Blu-Ray]

	Quote:	namstrader
	Fulcrum, what is the name of the book may I ask?

Any Joy ??


Cheers

Blu-Ray

Yes....it was "Law of Attraction" by Michael Losier. Excellent read to build a proper psychological foundation in which to operate from on a daily basis..the techniques had an immediate impact for me to build constructive daily operational habits.

[Soultrader]

Here are some of my thoughts on scalping. I am sure other traders have different criteria regarding entries and exits. Scalping is extremely advanced form of trading in which one must be able to execute in a blink of an eye and be very good at "feeling" momentum of price action, reading order flow whether it be tape or Level 2.

In my scalping, entries are purely made on momentum and as the ask or bid starts to get thin. If I am going long, I want to hit the ask before it disapears and becomes the bid. This 1 tick is critical to my profit target as I am only looking to get 2-3 ticks of a trade. (Nikkei tick is huge)

The entry is the easiest part in my opinion. The exit is the hardest. This is because a scalper must exit based on his entry. In other words, a 3-5 tick stop for a 2-3 tick profit target does not make any sense. Which is why if Im scalping there are no hard stops in place. If momentum drops instantly I am out at break even or even -1 tick. This is why I want to get in on the ask as it thins out so if I sense that Im wrong, I can hit the bid (formerly the ask) and get out at break even. Now for those who are still new to trading, intraday position trading is a much easier technique. Of course, there is not guaranatee of a good intraday swing as the markets may just chop or reverse, etc... Most new traders will never be able to pull the trigger to cut their losses when scalping and will bigger losses compared to their scalp wins.

So how do you know when youre wrong? The best I can describe this is experience in the market you trade. Understanding how fast price tends to move in momentum, what you would consider large lots, tape, etc...

[Charter_Joe]

Hi All,

I used to trade full time until April 07, I had a kid and at the same time was building our house. Those two advents took away my trading account. I thought I could get back in with a smaller account in just a few weeks, but has taken longer than that, I will be trading full time again by the first of NOV.

But I used to scalp ES and Averged out 150-200$ per contract. I would keep hand drawn charts on the 30-min SPX, and had a formula for calcluating #'s

When I started taking 1 point profits instead of 5 points, that was the turning point for me and actually for the first time got in the black and became profitable and paid my bills for a year, started a house and got way over budget and had to close the account. But I still keep up with the market and keep my charts and numbers up to date and they still work very good. And am looking foward to scalping once again.