In recent weeks we have seen high volatility in the markets. I have to point out that I think it’s not uncommon to see volatility at any price level. Volatility is part of the environment in which we work. Knowing that the market is volatile, I would assume that most traders want to enter trades as soon as possible after confirming the trading setup. I also suspect that most traders will back up the market beforehand and reduce your profits or move fast enough to move into negative trading territory. These ideas just make sense.
So why does the world emphasize the world of trading with e-mini scalping tools?
I am the first to acknowledge that lagging indicators may have a place when you are dealing with swing time with longer times and looking for larger market movements. Swing trading and e-mini scalping are polar opposites in terms of trading techniques. Swing trading takes patience and discipline when scalping is like speeding up to 90 mph. There is no time to study in the long run what might be the right action to get into an e-mini trade. Both trading styles require a lot of trading techniques and experience, but the decision-making process is much faster considering scaling. You make decisions in seconds, not minutes.
Okay, okay … I’ll get out of the soap box, but let’s talk about the scalping tools needed to make the right decisions.
This brings me to the core of my dilemma with someone who is mostly an e-mini climber. I often trade swing if the market is in trend mode, but that is the exception, not the rule. When I’m scaling, I use tools that can inform potential professions in real time. I don’t want to know what has already happened; I can see that in the table. I want to know what is going on at the moment and only real time indicators can provide this information with great experience reading the charts. I don’t use a whole battery of indicators to make decisions, but the things I find useful are:
· Application flow software
· Better volume indicator
· Volume ladder software
· Volume profile
· Intermediate software recovery
· Darvas boxes or dynamic support and resistance software
· Diagram reading skills, which are the most important components of e-mini scalping
Real-time trading is not some of the phenomena dreamed of. I was taught the skill in various organizations. Trying to scalp with delayed indicators will get you back and forth. Since most new traders tend to start out as e-mini climbers, I think they should learn to trade in real time. They should not be taught to trade with delayed indicators. Do you want proof to justify my point? See the failure rate of new traders; it is astronomical and I blame the archaic methodology that is standard practice in most commercial education programs.
You don’t start a race 20 meters away from other competitors, but negotiating well behind the price action means leveling up with starting well behind your competition. Look at real-time trading, there are more than a few books and people who defend my point of view on this topic.