Hugh’s Ultimate: Scalping

There are never any guarantees in this business; you all know that.

But, this can be a high probability win strategy that is not only profitable but a lot of fun. In fact, it may be particularly attractive to those who love to trade… in and out, multiple times a day.

Essentially, you are putting up more cash into each position, aiming for just a small gain per trade but repeating the process many times a day. I would invest $10-$15k, buying at the money options on SPY a week or so out, securing a 6 cent gain and often selling in seconds. Rinse and repeat, rinse and repeat. With a good commission structure, I would earn about $150 net with each trade. Do this ten times a day, and you could yank $1,000/day or more out of the market, often done by noon.

Of course there is a bit more than what I am disclosing here, which is why you should join our Trading Room. However, align your trades to the indicators we teach, and you stand a much better chance at reaping the benefits.

One caveat: you do have to be good with pattern day trade rules, which permit this high frequency trading only if you have $25k or more in your margin account. One way around it is with a cash account.

I love scalping as it feeds all my senses. Want to know more? Just contact me for details and to get started.

Hugh Grossman, Head Trader, DayTradeSPY