If you are an aspiring scalp trader, then you should strongly consider trading the ES S&P 500 Emini Futures, because…
- Price action is the best technical analysis you can use to make consistent profits
- Every market follows the basic principles of the Market Cycle and 4 distinct phases
Notice in the beginning of March 2017, we had clear weight-of-evidence that price action was moving lower with lower highs and lower lows over multiple days (i.e., Phase 4)
Once you have clear direction of price action and momentum…you can use this same evidence for multiple trades!
Now jump down to the SPY, ( i.e., next chart below) which is a derivative of the S&P 500.
The ES Emini Futures and the SPY are mirror images of each other as it relates to price action and momentum.
So once we have a clear trending market cycle phase such as the downtrend described earlier, you can follow your daily scalp trading with a different style of trading (i.e., Swing Trader – holding positions overnight)
Simply Buy Puts as price action moves downward – and what’s really nice about this is that the risk of trading Calls/Puts is fixed and predetermined when you purchase them!
This should provide enough evidence to study the Advanced Mastering the Market Cycle eCourse and Strategy guide…because one simple framework helps with trading every financial market, every time frame and every price action possible moves.
Maybe you are not convinced that the market cycle works on other time frames…so look at the Daily Chart for the ES E-mini Futures which is identical to the SPY Chart.
You could have easily bought CALLS and using a simple Swing Trading approach be adding extra profits to your scalp trading profits….so now you don’t have to force trades on the days when the markets are not trending!
Wait for the ES 5 Minute Complete Strategy to give you signals that the markets are trending!
So in a nutshell – you are getting incremental income from your scalp trading the ES Emini futures and extra income from trading PUTS with price action moving lower as well.