What is scalping?
A scalper tries to make a small profit (scalp a slice) from small fluctuations in market price with a small risk objective. It often involves a higher number of trades when compared with swing trading or position traders, but invariably involves smaller stop losses and equity draw-downs. We in the call room trade exclusively as scalpers, we like this approach to trading, but it won’t not be the right style of trading for everyone. Why scalp trade when you could hold & get all these big moves? Well, as we said before – our profit objective is only $500.00 per day. It is based on our experience that for trader to operate, he/she must maintain $5,000.00 in account. Therefore $4,000.00 can be used to trade 4 contracts at the time, still leaving $1,000.00 safety cussion. Aiming for half point profit per trade (in case of e-mini ES) it means making 5 trades in 2.5 hours We feel that our success in making a consistent profit comes down to having a modest profit target and not getting greedy –
