What is Scalp Trading? A Definitive Video Example.
Want to review the performance of a day trading system from DayTradeToWin? The fastest way is to watch this new video where John Paul shares about five Trade Scalper signals along with real-time trading. The Trade Scalper software is easy to use and is enjoyed by beginner and advanced traders alike. No optimization is needed – once applied, trading signals will begin to appear again and again according to the rules of the method.
Those rules are fully explained via the included live training, training video, and digital course. Scalping tends to be quick trading, so it’s important that you fully learn how to use the software, at least, so that you can promptly submit the most appropriate type of order for the observed conditions.
For the live trade in the video, the profit target goal was 1.25 points, which is 5 ticks. It is said that 1 point = 4 ticks, hence the 1.25 equaling 5 ticks. Each E-mini S&P 500 tick is worth $12.50. If an order consists of 5 contracts, that means 5 ticks * $12.50 * 5, which equals $312.50. This is why you see the trade approach this dollar amount (the set profit target).
Please know that it is not necessary to begin trading with 5 contracts. In fact, this requires a fair amount of money set aside in a brokerage account. Rather, a trader should read all trading disclaimers and upon proceeding forward, begin the process of practicing with a real-time data feed and simulated account. After some time, moving forward with the Micro E-mini presents a safer option as compared to potential losses incurred when trading the regular E-mini’s greater (10x) tick valuation.
When scalping, the objective is to successfully win at multiple junctures throughout the day with each attempt furnishing several ticks of profit. Note that different markets, or trading instruments as they’re sometimes called, vary in tick valuations. For example, Crude Oil is “less per tick” compared to the E-mini. Sometimes, if the valulations are too low in consideration of broker fees and overall win rate for that market, you may prefer to trade others with a greater tick valuation and recognizable patterns of movement.