This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
2 for 3 today with a loss that I let get out of hand for my style. I think I will put in a hard stop in at 10 cents for the current market and my methodology. My 2 winners had drawdowns of 1 cent and 3 cents during the trade. Plus 21 SPY cents total, R 1.8 net, or a whopping 36 bucks.
SPY Scalps:
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
November 26th, 2007 at 10:06 pm
what’s the world coming too…1st futures, and then scalping…it seems to be working for you…keep it up!
November 26th, 2007 at 10:29 pm
It does seem to be working. I was “forced” into it because of my business venture. I like scalping MUCH better than day trading. I always wanted to be a scalper, but I felt I needed more experience. I said F it, and jumped right in. I plan to scalp YM. ES has too big of a spread for my liking. I think the first hour trading, YM should have only a point spread. I gotta look into that. I love trading the first hour as well. Charts are cleaner and more predictable I find (obviously because of the volume). I have heard so many traders complain of giving gains back later in the day. So I will quit early ;)
November 27th, 2007 at 10:11 am
sounds like a good plan…i’m becoming much more excited about the 1st and last hours…big movement volume!
November 27th, 2007 at 4:10 pm
Hey Zoomie, how much are you putting at risk to earn 38 bucks? (buck rate noob here)
E.
November 27th, 2007 at 4:49 pm
Eric,
I risk 10 SPY cents X 200 shares = 20 dollars per trade. That is my hard stop; however, most of my winners draw down less than 5 cents, so I am starting to cut my losses at 5 or 6 cents. If the swings on the 1 minute chart get bigger, I will give it a bit more room. Sometimes I place my stops at the tops/ bottoms of swings in the 89 tick chart. I rarely trail stops above break-even though. hope this helps. I have returned 13.7 times my risk (net) in 5 trading days. I just started full time scalping 5 days ago, so I started small.