Tuesday, November 22, 2016

E-mini Scalp Trading for Beginners Explained

Day traders attempt to make money by buying an asset and then selling it later. Traders typically do this for days at a time, and often multiple times during the day. Long-term investors buy and hold for months or years at a time. The term "scalper" applies to day traders who hold trades for the shortest duration - typically minutes, seconds, or even less (for automated scalping algorithms). Some scalpers execute trades hundreds of times per day. Their goal is to accumulate small profits for a large reward. One of the drawbacks to scalping is that a trader has to be aware of the market at all times and be ready to place a trade at any moment. Commissions can also stack up because they are typically applied per trade, per contract. Low commissions are a priority for scalp traders.

DayTradeToWin's Trade Scalper is different from other scalping strategies. With the Trade Scalper, there is no need to have multiple positions open at once. Also, the number of trades per day is reasonable. On average, eight to twelve E-mini trades in the morning session occur. Also, John Paul, the founder of the company, recommends using the NinjaTrader platform. NinjaTrader is now a brokerage (NinjaTrader Brokerage) and provides low rates, which are ideal for scalping. NinjaTrader also provides Level 11 data and 1-min charts, which are utilized by this particular scalping method. Scalping has an advantage over other strategies in that it's designed to keep you in the market for a very specific, short duration. This is good because the longer you're in the market, the greater the risk. Having a clear-cut exit strategy is necessary.



The E-mini is a great market to scalp because of its value. Each tick is worth $12.50. Each point (four ticks) is therefore $50. On average, the Trade Scalper has you going for 2 to 4 ticks on each trade ($25-$50) with a maximum stop loss of six ticks ($75). NinjaTrader provides a full practice environment with live data. This allows you to get a sense of how the Trade Scalper is traded without risking real money. Using the report feature, you can get an idea of your simulated performance and factor in any broker commission fees. If you're a high-energy individual or like staying active with your investments, scalping is going to be appealing.

The Trade Scalper indicator for NinjaTrader produces two types of long signals: regular Longs and Shorts as well as Dbl Wick Longs and Shorts. The differences between them are taught in the included live training. Text signals are accompanied by directional triangles. They signify the entry point at which you want to be filled. NinjaTrader's ATM Strategy feature allows you to define a profit target and stop loss value ahead of time, thus allowing for quick entry. Utililizing NinjaTrader's Chart Trader lets you see the profit target on the chart as well as the stop loss. You can click and drag these green and red lines as needed. Keep in mind that adjusting the profit target and stop loss will put you in the back of the line, so to speak. Only adjust these values if you absolutely have to.

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