EMini Scalping

Day trading can be broken down into three general areas: (1) Intra day trend following, (2) Divergence trades, and (3) Scalping trades, following either trend or swings.

Scalping, or trading for a small percentage of a trend or swing, can be accomplished if the day trader can be satisfied with capturing many small profits and avoiding large losses throughout the trading day. One must not feel cheated when a large move occurs and only a small fraction of that move is locked in.

Scalping trades can last for seconds to minutes, depending on what type of indicator you use and the profit you are trying to capture. A good OB/OS indicator, such as HLOBOS, will go a long way towards helping you enter and exit the market at ideal areas to execute scalping trades.

The biggest danger with scalping is over trading, which will drive down your overall profits and mentally wear you down. Look for a scalping method that enters at the least riskest areas, such as at the first pullback at the beginning of a trend, or after divergence has just occurred. Trading in these two areas will give the day trader the best chance to capture consistent positive trades. Attempting to catch every single move throughout the day will overwork you and lead to burnout. A scalping method that gives 5-10 trades everyday will be more than enough trades to follow during a day trading session.