Today I am going to allow you to watch me take live scalp trades in the ES using price action strategies just as we teach them each day. I am always getting comments about “my trading” and why don’t I show all of my trades, etc. The idea with our chart lesson’s is to teach you how to find and take the trades as we teach our strategies, so it’s not to show my trades. I often talk about my trades during the video, but the point is not to show my personal trades, as that’s not going to help you learn how to read a price chart or to trade profitably. Learning why we take trades and teaching you how to find those locations and entries is what is needed to learn how to do these things and become profitable as a day trader in the ES or other markets.
I have attached a video of about two hours of trading on a single day in the ES between 9:30 AM CST and 11:30 AM CST. The date was July 9, 2013 and it was a relatively low volume, low volatility day, which can often be a very difficult type of trading day. I took a total of 3 trades, all winners and all longs during a small uptrend in what was an overall range type day with an upward bias. If you follow our work, you are likely familiar with the fact that we feel it is important to understand the “type” of trading day we are experiencing and to trade accordingly until those variables change. The idea behind this video was to show that you can indeed scalp singles contracts in the ES and make money. Obviously you will not get rich this way, but you will be surprised at how well you can do and it’s a cheap way to learn to day trade without risking huge amounts of capital.
Just to clarify for any newbies, we are scalping a single point on each trade which makes us $50.00 prior to commissions. We will risk a maximum of two points on any trade, but our objective is to try and enter the trade with less risk than two points if possible. Our stop always goes a tick or two below the signal bar as long as that doesn’t violate our two point safety stop rule. If so, we have to find a better entry or skip the trade. I hope that you enjoy the video and that it gives you some insight into how and what I am thinking as I am trading. Most importantly, notice how patient I am and how I wait on the right set ups. Yes, I am often anticipating that certain things will happen. Often times I am correct, but if not, I quickly change my strategy or remove the entry order for my trades. I never force a trade, or at least I try not to force myself into trades, because impatience and forcing yourself into trades is a sure way to lose money.
The video is below. I hope that it’s a good learning tool or at least allows some of you to get an understanding that “yes,” you can have multiple winning trades in a row following our strategies and techniques if you can indeed learn them. I’m going to wrap up this article and now get on with the video so that you can watch me take live scalp trades in the ES using price action strategies as we teach them. As an FYI, the first trade has no sound, as I forgot to turn on my microphone, but I describe the trade later on in the video so that you will better understand what I was doing and thinking.
David July 11, 2013 at
Will you please comment on how/why you avoided buying above the reversal bar around 9:19. Reversal after making new low at bottom of a trading range seems like a reasonable long. Thanks!