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Therefore, if you intend to be a scalper, begin to increase your position size slowly and do so only as a function of your financial ability. Buying into Large Declines or Selling into Large Rallies Many traders feel that they can successfully scalp a few ticks out of a market by buying into large price declines in bull trends or selling into large price rallies in bear trends.

This certainly makes a great deal of sense in terms of ideal thinking; however, in practice it is a very risky procedure because large price declines can continue well beyond theoretical support levels and large price rallies in existing bear trends can continue well beyond theoretical resistance points.

Nevertheless, very quick money can be made during such moves. The scalper can take advantage of these, provided certain rules are followed. First, I refer you to my book Short-term Trading in Futures for additional methods of support and resistance trading on a short-term basis. In particular, consult the section on price spikes and probes.

These two techniques, namely buying on probes to support and selling on probes to resistance, can prove very effective to the scalper who is willing to establish a position during large declines to support or large rallies to resistance but who must also be willing to exit these positions very quickly, right or wrong. An illustration will serve to clarify what I am suggesting.

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