Can You Scalp the Market in the Morning?
There’s a reason why we love to trade using price action for over 10 years. It’s based on price candles primarily; sourced from reality rather than an abstraction that is a pretend authority. After all, you’re trading the price of the instrument, right? Well, if you center your trading around price itself, that seems to make sense.
All of the software provided by DayTradeToWin is based on price action. For example, the Atlas Line software’s line is based upon recent price activity. It grows in the same direction throughout the day, never changing it’s angle. This is one reason one can think of as the Atlas Line as “looking forward.” Price is going to do what it wants during the day and if it happens to close twice above or below the plotted Atlas Line, well, that’s an Atlas Line signal.
Will you always be able to enter a trade at the signaled entry price? It’s not possible. NinjaTrader attempts to replicate the experience of real-world fills, but trading with real money will always vary a bit from simulated/paper trading. Nevertheless, it’s important to practice with real-time data until you feel comfortable. At some later point, consider graduating to the Micro E-mini (MES) and the E-mini S&P 500. Throughout your journey, NinjaTrader provides an account performance feature that generates trading reports.
Some traders prefer to scalp, which means many quick trades but less risk per position due to shorter trade duration. If you want to see DayTradeToWin’s approach to scalp trading, go to the 1:00 mark and you’ll see what happens. Per trade, the Trade Scalper goes for a minimum of three ticks, but may be more than a point if conditions allow. In this video, you can see four winning signals.
These occurred around the market open. Typically, market open is a quirky time to trade. Many regular at-home traders will stay out for at least the first 20 minutes. This allows for a stabilization period in which a more consistent direction may be established.