Scalping has always been a controversial topic in the retail trading world. Look at any online forum topic about scalping and you’ll see that people can barely agree on what it is, let alone how to do it.
In this video, we look at one approach to scalping. One approach to taking short term profits in the market. Traditionally, scalping was a term used to define capturing the bid-offer spread. Now it’s used to define a wider range short term trading techniques.
If you look at the leading legitimate scalping educators out there – Axia Futures, John Grady, Gary Norden – they employ very different techniques but they all trade the ‘here and now’. In this video we look at a technique of trading the ‘here and now’. A scalping technique that uses the relationship between instruments to find opportunity. A scalping technique that does not require any predictions of where the market is heading. A scalping technique that doesn’t need ‘homework’ to define ‘areas you want to do business. A scalping technique that does not care about price.
Yes – that last sentence was intentional. These techniques of trading do not require you to have any opinion on the market and they don’t care what price you are at when you take a trade. Guess what else you don’t need? Charts! That’s right – we don’t need any charts to employ these scalping techniques.
As you watch this video, you’ll be looking at the market in a very different way. It looks a bit confusing, as we go through each trade, it gets clearer and clearer. As we progress, we explain the different things you need to look at, how to do a “reset” so that the market activity is clear, how to manage the trades. There’s more than one trade entry setup type here and we discuss different scalping techniques to employ when.
- Markets are in a range
- Markets are breaking highs/lows
- Markets are in an orderly trend
- Markets are moving aggressively
- One market is lagging
You do not need to master all of these market states or all of the setups. In fact, it would be better to master 1 first.
By the end of the video, you’ll have a good idea of how professional traders approach scalping. It’s not about charts and indicators, it’s about momentary mis-alignment, about jumping on momentum, it’s about the here and now.
For more on scalping, take a look at our Institutional Trading Education Program