This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
2 scalps today for 12 SPY cents. I could have gotten a lot more out of the second trade. I was ready to bail on a 6 cent initial protective stop today. I still consider 10 cents my “official risk”, so I netted R 1 after commissions. My max drawdown on each trade was 1 cent using market orders. I am pretty freaken happy with that! Done early as I see low volume ahead of the weekend.
Chart SPY:
Time and Sales SPY:
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
November 23rd, 2007 at 3:01 pm
Awesome, Zoomie! Thanks for the charts. Please keep the analysis and examples coming.
November 23rd, 2007 at 3:06 pm
Do you watch the tape as your trade is going? The first one really stalled out on you. That would be hard to hold through unless you’re confident in your setup.
November 23rd, 2007 at 8:09 pm
Thanks Prospectus. I find I need to be a bit patient, even with these quick scalps. I found that when I watched the tape, I would react too quickly, so I don’t watch the tape anymore. In fact, I haven’t since I started scalping. I just review the time and sales after the trade to see the max drawdown for my winners. I watch just the immediate bid/ask price on the IAB execution platform, and the 89 tick chart (mostly)…once I am in the trade. I look at all 1,2,3, and 5 minute to ensure they are all pointing (trending or hopefully starting to trend), in the same direction upon entry. I never trade just one timeframe. So if I post a chart here, it doesn’t really tell the whole story. I hope to join the higher timeframe…like 5 minutes, and get a big move. I managed to do that on Tues and Wed. Today on my second trade, I had a chance to follow the bear flag to its’ target, but bailed early…my bad. I will try to get a screen shot Monday. Things happened quickly today. More coffee for Monday ;)