Scalping Futures Using Emini Contracts

Although as traders we use various methods to make our money from the markets, scalping futures using emini contracts is one method experienced traders use frequently.

If you're new to the index futures market, in this article we will explain how using this method can reduce your exposure while allowing you to reach your trading goals and increase your confidence and grow as a futures trader.


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By nature, trades executed using the scalping method are designed to get the trader in and out of the market quickly.

Usually with no more than a few minutes elapsing between entry and exit with the trader pocketing a small profit. Since the time frame is small, exposure to the market is significantly reduced thereby protecting precious capital.

Shorter Time Frames - Less Exposure

With traditional emini day trading, the trader is focused on a larger time frame, ideally entering a trade and riding the current days trend, banking larger profits than the trader utilizing a scalping method.

However, the day trader risk more exposure to market forces by holding a position for longer periods.

Scalping mini-sized contracts is a much more rapid type of trading with traders focused more on smaller movements in market action.

Accumulating profits with each trade, the trader will execute several times more trades throughout the daily session than those using a futures day trading methodology.

Since this type of trading is faster than traditional day trading, the scalp trader must be more focused on his trading rules and sticking to his money management system.

Although experienced traders utilize scalping methods, this form of trading lends itself very well to the new index futures trader.

Day trading methods normally allow for more liberal stop losses before exiting a losing trade.

However, scalp trading by design, requires the position be exited quickly should the trade turn south minimizing trading losses.

Stealth and Favorable Odds

Scalping futures is not unlike a submarine using stealth to stalk and attack an opposing target.

The scalper will only execute trades when the odds are in his favor by employing tactics and strategies which exploit favorable market conditions.

In most cases, other traders will never know he's there, quickly entering and exiting the market, waiting on the next profitable set-up.

Although many believe scalp trading to be difficult, in most cases a simple strategy or one tactic can be used over and over.

The futures market offers many opportunities throughout the daily sessions for a skilled scalper to enter many trades everyday, making it possible for him to make as much profit as a traditional day trader.

Scalpers or day traders never hold positions over night, going home with a flat account with no exposure to the news and geopolitical events which can affect the overnight futures markets.

Hence the scalper sleeps worry free each night. In fact, the scalper seldom if ever concerns himself with daily financial reports or anything that can affect the markets, relying only on the technical attributes of the futures markets.

Ideal Conditions For the Scalp Trade

Certain conditions need to be present within the index futures market for successful scalp trading tactics.

Fortunately, these conditions are almost always present in the daily futures trading sessions.

Liquidity is one characteristic of the futures market which is always present. Thousands of contracts are bought and sold each day without wild price swings making them extremely attractive to short term traders.

Volatility is another condition which is needed for scalpers to trade successfully. The index futures market can be highly volatile in some instances like when an FOMC announcement is released other financial news hits the news wires.

At times such as these, the wise trader stands aside and lets the market sort out the news before considering a new trade.

However, the futures markets has enough volatility on normal trading days which allow the scalp trader to enter and exit the market multiple times everyday.

The scalp trader learns to exploit these characteristics of the futures market and profit.

By exercising discipline and obeying the rules of their trading system such as exiting the market when stop losses are hit and not swinging for the fences and focusing on small profits, scalping futures with emini contracts is an excellent way to profit from the financial markets.

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