Hi folks, a fellow trader just emailed me with some serious questions about proper scalping methods and management. I thought I would just capture the charts and the potential trade and put it right in here for a good example. This is just one example of certain things I am looking for. Take a look at the following chart of the GBP/USD on a one hour basis. Things have turned bearish for this pair (short term) and this is the current hourly with 25 whopping minutes left for the candle to complete:
Click the chart to open and can you see why I would really like price to rise toward the 1.5350 area? its a psych level and a prior hourly pivot and take a look at this 15 min chart. It happens to be the 200 MA stop point on the 15 min chart. A nice area to short indeed. PROVIDED that I get a sell signal in that neighborhood. Here is the 15 min chart:
So as I am writing this… I have a few moments before I potentially take this trade. SO, I would like to say number one… forgive the ‘sloppiness’ of this article, Casey has gone away for a bit, and I stink at wordpress. (LOL) Number 2 you must exercise some PATIENCE. and learn to WAIT. You must also be careful to not let a scalp hurt you by going to far against you. If your just looking for a quick 10 to 20 pips, don’t let it run35 pips against you, OK. Time is getting short here. I got 10 minutes to go. Doesn’t look like its going to make it to my level…. waiting for a sell bar on a one minute or a 5 min chart. Will capture the screenshot as soon as I take it.
Ok, Price hit the declining 40 ma on the 15 min and put in this one minute sell and I entered right here on this signal. I am looking at the 15 min chart and analyzing the bars and the potential. Look at the 15 min chart and you can see the 20 Ma is right near the whole figure of 1.5300 so this area will be my target and I will close it there if I can. I will probably get a nano second to exit. This also happens to be the 200 ma on the one minute chart. so my target is about 11 pips or so should I get lucky on it but do not mind if I go out for just 7 or 9 pips. Its ok lets see what happens….
Then I immediately hit the button. So, we have a picture of a scalp trade. The entire time for this was not that long. 25 minutes was the total to watch, wait, execute and get paid. Do this 10 times a day is your mission. When you are really good, you will be able to do this 50 times a day. It just takes you being relaxed, patient, focused and disciplined. Hope this was a help to some. Thanks for taking the time to read and until next time, Happy trading. Michael Storm.
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