Is there a difference btwn scapling and momentum trading?

Discussion in 'Trading' started by breezy1, Oct 15, 2002.

  1. No doubt. But what I'm talking about is in a breakout situation, where the market (Emini S&P) goes for the high of the day. Here you have a strongly up trending market with hardly any pullbacks. Yet at every price level there will be hundreds of people selling. Sometimes there are stopping points where a bunch of people will join the offer for a quick tick or two, then the trend resumes. Who are these people trading counter trend like that in a rising market? Is there a professional scalping strategy which would account for this type of trading? Its not something I would want to do.

    I'm used to the pattern in agricultural commodity trading where once a market moves there are relatively few intervening trades until the next turn starts to set up. With Eminis you have people trading boths side of the market at every price level even when there is a strong trend.
     
    #11     Oct 16, 2002
  2. Momentum is one factor of several used when trading stocks. The trading of index futures is a whole different game, since so much of the futures trading is arbitrage, not direction, done by the big houses on the street.

    Don
     
    #12     Oct 16, 2002