Introduction
In today’s tradespotlight, we will look at Natalia, a funded trader from Portugal, who entered 5 contracts at 6471.00, right as buyers started stepping in and momentum began to shift.
Price then moved up quickly and cleanly. She scalped a 73-tick move, exiting at 6489.50 for a $4,612 profit.
It may look like a simple trade, but this trader has withdrawn over $33,000 since joining OneUp Trader, and it shows the discipline that helps Natalia stay consistent on her $150K account.
Strategy Explanation
This trade is an example of a countertrend scalping strategy.
The trend is bearish. Instead of chasing the downside, Natalia waited for it to overextend. The key shift happens around the 6471 level, where the market dropped too fast, too quickly.
Countertrend trading can be risky, however, and traders need very strict risk management to ensure they do not enter into gambling tendencies. Traders should also remember that countertrend scalping is not about trying to catch a falling knife but about calculating correctly when the market overextends itself and taking advantage of it.
With this strategy, there is also a difficulty in placing stop losses since there is no defined level to place the order, which further emphasizes the need for the trader to be experienced in the market. With that said, it can be a very effective system when approached correctly!
This analysis is for educational and informational purposes only and does not constitute trading advice. Futures and forex trading involve significant risk and may not be suitable for all investors. Always conduct your own research before making trading decisions.
