One of the toughest occupations to define is that of a trader. There are countless variations on methods for trading the ES Emini contract. Most forms of trading differ in the length of time the trader holds a given contract. Of course, all traders attempt to accomplish the same goal: profit by moves in the market. It is simply the manner in which traders quantify moves in the market the delineates them from each other.
Before I continue much further, I should state that I am a dedicated scalper. I never hold contracts overnight, and my average trade seldom lasts more than twenty minutes. I am looking to snatch small 2-3 point moves in the market and cash in on them. Generally speaking, I am unconcerned about the fundamentals of the market and concentrate solely on trading the chart in front of me, with little consideration for what the market is going to do tomorrow, next week or next year. My time frame in trading is strictly “now.”
Scalp trading is about making many small gains throughout the day and never about trying to hit a “home run” on a trade. Scalpers also rely heavily upon technical indicators and thus, most scalpers are experienced traders. Scalp traders risks are minimal and are an effective use of trading capital since this method of trading usually generates more winning trades than traditional day trading. Scalpers generally run very tight stops and limits and are extremely risk averse. I would also point out that beginning traders can make use of scalping techniques. I point novice traders in the direction of scalping because of the lower risks involved with this style of trading. Still, even Scalping takes a high level of self discipline to be successful. Continue reading ‘ES Emini Trading: The Scalping Style’ »