Scalping's biggest risks
In scalping, FEAR and GREED carry significant risks that can adversely affect your trading outcomes...
They can cause you to miss your golden opportunities and change your decision regarding the placement of stop-loss orders, leading to failure in following your initial strategies and emptying your pocket.
So, how can you maintain consistency in scalping to avoid the influence of emotions and manage the risks in each trade?
The answer is: You need a clear CHECKLIST for order execution and a low-risk Stop position that you can follow through in every trade.
The Agile Piranha Scalping System - a robust scalping system on Ninja Trader 8, will give you a significant advantage in addressing both aspects.
The table below will give you a systematic approach to entering and stopping positions with this powerful scalping strategy.
In an uptrend:
The Opening price of the Reversal candle (at the closest left of the signal candle) is BELOW the plot of Triple-Range Rover.
Stop should be placed BELOW the Reversal candle.
In a downtrend:
The Opening price of the Reversal candle (at the closest left of the signal candle) is ABOVE the plot of Triple-Range Rover.
Stop should be placed ABOVE the Reversal candle.
- Stop positions serve as crucial risk management measures to limit potential losses and maintain trading discipline. So, don't forget to place your Stop according to the instructions above.
While both problems were resolved, I must highlight the final yet equally important factor:
Defining a total loss limit for your trading period.
Entering a stop order for each trade without controlling total loss is like wearing a seatbelt while hurtling at 200km/h. If you can’t determine where to halt, the car/loss will take you to rock bottom. A total loss limit ensures your ability to continue trading and maintain long-term sustainability.
By the way, If you're still curious about how our scalping package works, make sure you watch our detailed instructional video: