Yes that is it. SPBL trend day. Keep practicing (best on a SIM) the techniques will begin to become second nature. There were piles of trades that could have been taken today but I only had time for 3 as I wanted to annotate these charts and post them. Three trades. Three winners. For a scalper it is important to have a high win rate and to grab profits as the market hands them to him.
I understand. You might consider practicing it a lot of times on a SIM and doing it within the three contexts I speak of. The more times one is able to successfully do it the more confidence he should find in using the technique. It does take a lot of practice to trains oneself, as it is counter-intuitive. But consider these things: 1) A scalper has to grab profits when the market hands them to him. Or he is not a scalper. 2) Averaging down or scaling in is a technique that can be used to turn back the odds that he will be able to grab a profit, of some sort, from his entry/entries after the market has gone against his initial position. Why? Because he is lowering the BE point with each additional position he adds to the losing position. Second, he is also lowering the PT point that will be needed to grab some sort of a profit. This works because of intraday probing by bullish and bearish institutions as the market titters back and forth hunting for fair value. A sort of auction if you please. But he must practice and learn to use it correctly not use it to "hope" a losing position will come back nor use it to avoid a loss. There is a point in every trade where averaging down is a losing proposition. 3) Over the long haul a scalper has to maintain a high win rate 70% or above or he will go broke. I know the arguments for average profit vs average loss ..etc. but I am just telling all who are reading this journal that in my opinion and experience, a high win rate is necessary to be a successful scalper of 1 to 8 points in MES or the ES. 4) A scalper MUST have a technique in place when things go wrong (and they will from time to time). Especially, when they go wrong on an averaged down position. A technique to get back a loss and get back in profit during the session. There are more than one but one I will use often is doubling or tripling up in the correct direction AFTER I have exited my losing average down position. When I get a signal to do so.
Thanks. I agree with everything you said. I need to read more of you journal to figure out WHEN to average down and when NOT to.