My take on futures scalping

Discussion in 'Trading' started by CollegeTrader, Jan 14, 2009.

  1. Forum seems slow so...I think scalping is the best strategy for newer traders trying to build up a capital base. Scalping futures for halfs to 1 pt but yes even a tic still yields a profit! I think its the best strategy even though its time consuming because at 10 rts averaging halfs you can pull out 100 bux a contract assuming you have a win ratio of 7/10 and dont take a loss bigger than 1pt. If you limit yourself to how many trades you can make it allows you to stay in the game longer and focus on accuracy. Taking trades that look most promising. Some traders say dont limit how many trades you can make. While i agree, if you are averaging 7/10 by all means keep going! But if not it helps limit your loss and build discipline. Do that 5 days a week you got 500 bills. A month you got 2g's. Limiting your exposure with limited capital is the key to the game. As accuracy improves you can size up and have longer exposure. Over time given accuracy and taking fast loses i believe any trader can turn from a small scalper to a Red Ink trader. Now i like to reference to golf a lot. My pro said when he was in college his coach said you have one ball lose it and take your ass home your done for the day. I say you have 10 trades abuse them. Shut it down ur ass is done for the day. Critiscm is welcome. fwiw this is my strategy so anyone can agree or disagree also i look only to make 50 dollars a day. Hey im trying to be net profitable. The rest is reward.
  2. Scalping is a losers game in the futures markets. Its much more difficult and inferior P/L wise to any decent intraday swing trader. Shoot to kill and minimize losses. Take it or leave it my friend.
  3. what sort of drawdown are you sitting through to get 1 tick profits???
  4. Stosh


    Sounds like a good plan if you can stick with your game plan. No matter what you evolve into later, it is great experience.
  5. Everything on paper looks good until action is taken. That's when reality hits you in your face and your back to trading ideas
  6. Scalping is tough. You need to predict market moves within a few ticks and execute within milliseconds or else you lose.

    Having said that, I am not of those guys that think one method is always better than the other. At the end of the day, all that matters is that you make money. If eating jelly donuts makes you more money, then by all means do it.
  7. i said if you have the capital lets say 20+K then by all means you can position trade. To me you need a lot of capital to position trade because there are a lot of supports you can use. for instance you buy 1 at 850 market drifts lower. you buy 2 at 840. market drifts lower. you buy 5 at 830. Market consolidates then bounces to 845. you take profits. but in that case you have to have the capital to take that kind of drawdown. im 19. young by most standards. im not working with 50, 60, 100 grand. To learn to trade im utilizing this approach. If that bothers you i guess ill just scalp the ticks in your position trade. this strategy probably isnt for 30 year old traders who can't sit infront of the moitor all day. I like to punch and run. thats my style. like i said im not picking 1000 round trips a day. i said accuracy is important so 10 trips and choose your spots carefully. the goal is to compound slowly then size up. over time you can take even fewer trades with more size. limiting exposue even more. to cite golf again. why do a flop shot when a chip gets you there? maybe im a better chipper and your better at a flop shot.
  8. don't feel bad. those wet behind the ears always think that a fat bankroll is the secret to an easy living and a constant cash flow .

    you'll find out different soon enough.