Define, Expect and Explain (1 of 6)


Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

This is the first segment in a planned six part series on scalping, covering the most important things to know to give yourself a chance to be profitable and to stay engaged in the markets. There is something here for everyone.

A table of all the 6 segments in the series was displayed. Each was briefly introduced.

Another table of two tiers of scalping products was displayed. The first tier included the /ES (S&P 500), /NQ (Nasdaq) and /ZB (Bonds). The second tier included liquid underlyings such as SPY, AAPL, NFLX, AMZN, TLT, QQQ, TWTR,FB, /NG, /GC, /6E, /ZN, /CL and /VX. The importance of liquidity was stressed.

A summary of reasonable expectations for stocks was displayed. The summary included the underlying stock and what the daily price percentage change was 68% of the time. A second summary of reasonable expectations for futures was displayed. The summary included the underlying future and what the daily P/L change was per contract was 68% of the time. A final table of the daily intraday range and percentage of days the /ES range has been greater than the daily range. The opportunities these numbers provide was examined.

Finally, a list of things to know and some scalping “rules” was discussed. Tom and Tony went through them and explained their importance. The segment ended with two takeaways. The first was that scalping is an intra-day play intended to make a few points if the opportunity is there. The second is to have an exit strategy, especially to know what your profit target is.

Watch this first segment of "Scalping” and the rest of this compelling series, with Tom Sosnoff and Tony Battista to better understand how to learn how to scalp futures and stocks and how this can improve your overall engagement of the markets.

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