where to , to learn how to scalp the ES ? | Traders Hideout

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where to , to learn how to scalp the ES ?

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Trading Experience: Intermediate
Platform: Bookmap and Jigsaw DOM
Broker/Data: Stage 5 Trading
Favorite Futures: ZN
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Posts: 433 since Jun 2015
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broken8 View Post
wanting to learn how to scalp the es for 2 or 3 ticks per trade . using fibs and ninja 7 or 8 . open to any methods and platforms if they come highly recommended . can someone point me in the right direction ?

If you want to scalp I highly suggest using a DOM (Depth of Market) tool. It really helps open the door to the moment-to-moment transactions which take place in any given market. If you want to click at a chart a few times a day for the rush of trading then you probably don't need a DOM.

The other thing is that two or three ES ticks happen in the blink of an eye. It can be tough to pick a stop loss point in a thin market like the ES or CL. I'm going to outline the above by telling the story of how I started "scalping crude"; this may or may not apply to you, so feel free to just take it at face value.

To start: I highly respect MLM. He does things I cannot and trades markets I will not. His journal, for better or worse, is called "The Scalper's Journal". I thought that scalping was about picking a quick, whippy product, and banging out a few ticks here or there. I thought to myself "Boy... if I can do ten trades a day, hit 60%, make 8 and lose 5, then I'm making 28 ticks per day. That's ~250 after commissions. That's $65,000 per year, and then I'll just size up to a 5 lot to make hundreds of thousands!!"

And then I sat at my desk, clicked into 7 trades, lost on 5 of them, and thought "What the hell happened". Sometimes I picked the direction dead on, but got stopped to the tick. Sometimes I was perfectly right, but saw the market rocket 20 ticks in my favor after I had bailed for 8. Other times I would place an order to test the waters, only to get swept for a quick -5. I was obviously trading poorly and trying to do something which I was not meant to do.

In my opinion, scalping isn't about clicking around, hoping to become rich. I was clicking excessively, reading into every single twitch of CL, and getting nowhere. I think scalping is about reading order flow, understanding what larger folks are doing or trying to do, and hopping on board with them. It sounds easy. It's tough. It takes a whole lot of time to see what's happening, to understand why it moved today but not last week, to reason why absorption works here but not there, and to start to realize when you're wrong and need to exit immediately.

I also trade ZN, which is the US 10 year treasury future. I think this product is the easiest of all products to read precisely because it's so thick. You might pull up a chart of ZN and think "There's no action in this market. I need to trade the ES or NQ for some real action", but I can assure you that there's action every single day. The caveat is that you have to spend a lot of time staring at a DOM and interpreting the order flow.

And, like others here have said, trying to emulate somebody else's trades will wind up with you facedown in the mud. You can't just copy-paste a winning trader's P&L or strategy or mindset. You have to put in lots and lots of time.

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