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Timing your scalp trade entries is the key to keeping your risk low while moving towards your target and goal. That sounds reasonable, acceptable, and the thing to do, but most traders have a real hard time doing this. The reason, they just do not know that the market has a built in language to it, that tells traders ahead of time where it wants to go.
How would you feel if on your next trade, the market only moved against you by one tick? What if you could do that again and again. You would be doing pretty good. How about when you do take a loss, it is only then for two ticks with only on occasion 3 or 4 ? (ticks) Now, some would say, that would be a dream come true, but impossible to do. It is only impossible by those who think it, with their limiting beliefs. If you don’t think something is possible, then for you it will never be possible.
Our subconscious minds will never allow us to attain something that we first do not believe ourselves. Read that line again, as it is a very big reason why many traders struggle. So, first thing. Tell yourself that this is possible and I will become a successful trader.
Next, you need to take the steps to help yourself get to the level you want to be at. It is not going to happen by itself. The same way learning a foreign language is just not going to jump into your mind on its own. You will have to do something about it.
Back to timing your scalp trades entries. Every day, the market presents itself with opportunities. Those trading opportunities are present on multiple time frames across the board. Typically, the higher the time frame, the greater the risk associated with the trade. Finding the right balance that is tied to your trading personality is very important.
If your trading objective is to just pick up a few Emini points per session, than you need excellent trade timing. This can also be done while trading stocks and is no different in any way. Having a reasonable daily target, goal or objective, you can not allow the price to move against you very much. If you find that is the case, your entries need work. You likely need to improve on finding “The Hole”, the trading hole. This is the area a trade has the least amount of trade risk associated with it.
A trader may be able to pick the bottoms and tops, catch a few now and then and see his trade selection move in his direction and make more on the move with this approach. That is not “Sniper Day Trading”, as you will most certainly have to give the trade much more room to breath in order to account for this type of trading. You will see more stop outs and you will be trading against the momentum at that moment in time. I know some traders do this and it may work for them, but it leaves to much risk open for other traders to run the stops and take you out at your threshold only to then see the move go in your favor, but without you.
Their is another way, by leaving some of the trade on the table upon entry, but at times have the ability to sell into strength or cover into weakness, towards trade to targets. Here, with my method, you will at times see clear area’s that you may want to wait for. They could pay off big if you catch a couple of them.
If we take the “easy and obvious trades” we will not be putting ourselves at risk, but what is easy and obvious? You just need to know how this game works. I don’t want to talk in riddles, but their is so much trade structure that happens every day I can not begin to tell you. Actually I can’t tell you, because I would be revealing my method. I have never seen anyone trade and put the market structure up on the screen as I do. I am not the only one in the world I am sure who trades the way I do, that would be a bit presumptuous on my part.
By and large, those to take my training see things they never saw or even knew existed, in the charts. The price tells all and the indicators can confirm. On most every trade, I always see it building first and getting into position. One thing I can say, the market is like a power plant, building up energy only to later be released. Knowing how to spot the energy and its likely path of release, will give you the edge to prepare and then take action when it all comes together.
Going back to an earlier statement that can help those struggling, “your believes about your ability to trade successfully and about money will determine your outcome”. Traders need confidence and the only way to get it is do the right thing at the right time and you get rewarded. The opposite is true. Learn how to trade the price, learn how to limit your losses, learn how to enter with little or no draw down, learn to be patient, learn to be disciplined and you will build confidence and your trading account. It is possible, learn.
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In my trading today, I took 8 trades and had only one loss for 2 ticks. I played it very conservative with the following trades of / Flat / +9 ticks & +4 ticks / +4 ticks & +6 ticks / +2 ticks / +4 ticks & flat / -2 ticks on smaller size / +3 ticks & +4 ticks / +4 ticks , +5 ticks , +9 ticks /
I could have traded for extended runs today, on a few trades, I certainly did have the room in the market for it, but just controlled myself for the smaller scalp trades. I thought to do a video today since the price swings were a lot better.
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