I just couldn’t resist this topic any more. Primarily because many “experienced” traders just don’t get it. Some of these “experienced” traders have been trading for “years” and yet they don’t get why the scalper was able to collect 40pts-100pts when the market only moved 3pts at the end of the day.
The question is like asking a doctor how can you have miles of veins and arteries inside this kid when he is only 4yrs old and 3 foot tall. And what do you mean that basketball player ran 5miles playing basketball when the court isn’t even 100yrd long. In my former job, we would label such an “experienced” trader as, 1D 10T. This same “experienced” trader would have no issues collecting 4pts and attempt multiple times trying to collect 4pt during that 3pt day and still be too 1D 10Tic to get it that he may have attempted to get that precious 4pt at least 30 times that same day. And how many points did he lose? Did it really cost him 20pts to get his 4pts? More than likely.
Considering how some of these “experienced” traders trade, it really isn’t so far fetched that the most obvious possibility eludes them. While they are trying to be a scalper, they use 1min, 5min and even tick charts, but when they consider what the scalper is collecting at the end of the day, what chart do they reference? The day chart.
1D 10Ts, if they weren’t around, who will fund the scalper’s winnings? Thank you 1D 10T