Series 3 Exam Course

If you will recall my discussion of price spikes and probes, I noted that when a market declines quickly to a previous price spike on the down side that very quick rallies can develop within a matter of seconds or minutes. This is particularly advantageous to the scalper who will anticipate such moves; moves which usually occur in response to significant government reports or other scheduled news items.

Conclusions No matter what method you use for scalping the futures markets, remember that the scalper attempts to achieve the following important goals: 1. To trade as often as possible to accumulate as much profit as possible by taking advantage of small but reliable moves within the day time frame 2. To exit positions very quickly either at a profit or at a loss 3. To avoid having a strong opinion as to market direction in order to limit the possibility of being influenced to act on opinion as opposed to market fact The Importance of Orders To the day trader (in fact to all traders), using the right price order is just as important as using the right tool for the right job is to the mechanic or carpenter.

Using the right orders can spell the difference between profits and losses. Using a market order when a stop or stop limit order should have been used may result in a poor price fill which will cost you dollars.

Since the bottom line is very important to day traders, perhaps more important than to any other type of trader other than a scalper (who is also a day trader), every tick saved is indeed a tick earned. Orders should be specifically geared to what you seek to achieve in terms of your timing your trading system. Orders are designed to save you money, not to lose you money.

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