GAME PLAN FOR SCALPING
A practical, behaviour anchored system for fast paced trading
Scalping is the closest thing trading has to a high speed sport.
You don’t have time to think — only time to execute what you’ve already prepared.
This plan gives you structure, boundaries, and a calm internal rhythm.
1. PRE MARKET PREPARATION (Your foundation)
Scalping is won before the market opens.
A. Choose your market conditions
You only scalp when:
- Volatility is moderate to high
- Spreads are tight
- Volume is strong
- Price is clean, not choppy
If the chart looks messy, you walk away.
Scalping rewards discipline, not bravery.
B. Mark your key levels
Before trading, identify:
- Yesterday’s high/low
- Overnight high/low
- Major support/resistance
- VWAP
- Trend direction on the 5 minute chart
These levels act as your “map”.
Scalping without a map is gambling.
C. Decide your maximum risk
Set this before you take a single trade:
- Max loss per trade
- Max loss per session
- Max number of trades
When you hit a limit, you stop.
No negotiation.
2. YOUR SCALPING SETUP (The technical core)
You need a setup that is:
- Fast
- Repeatable
- Easy to recognise
Here is a clean, beginner friendly one:
The Pullback + Momentum Kick Setup
- Identify a clear trend on the 1 minute chart
- Wait for a pullback to:
- VWAP
- A moving average (9 or 20 EMA)
- A micro support/resistance level
- Confirm momentum with:
- Stochastic turning upward (for longs)
- Or downward (for shorts)
- Enter on the first candle that breaks the pullback structure
This setup works because it aligns:
- Trend
- Pullback
- Momentum shift
Three confirmations = fewer impulsive trades.
3. ENTRY EXECUTION (Your moment of action)
When your setup appears:
A. Enter small and fast
Your size must be:
- Small enough to stay calm
- Large enough to matter
B. Place your stop immediately
Your stop goes:
- Just below the pullback low (for longs)
- Just above the pullback high (for shorts)
Scalping stops are tight.
If it hits, you exit without emotion.
C. Your target is small
Scalpers aim for:
- 0.2% to 0.5%
- Or 5–10 pips
- Or the next micro level
You’re not hunting home runs.
You’re collecting pebbles.
4. TRADE MANAGEMENT (Your emotional safety net)
This is where most beginners fail.
A. Never widen your stop
If you widen your stop, you’re no longer scalping — you’re hoping.
B. Move to break even only when structure supports it
Too early = you get wicked out
Too late = you give back profit
C. Take partials if the move is strong
Lock in something.
Scalping is about flow, not perfection.
5. EXIT RULES (Your profit discipline)
You exit when:
- Price hits your target
- Momentum stalls
- A reversal candle forms
- Stochastic crosses against you
- Volume dries up
You do not wait for “just a little more”.
Greed destroys scalpers faster than losses.
6. POST TRADE RESET (Your mental hygiene)
After each trade, take 10 seconds to reset:
- Breathe
- Relax your shoulders
- Review what just happened
- Return to neutral
Scalping requires emotional neutrality.
You cannot carry the last trade into the next one.
7. SESSION ENDING RULES (Your long term survival)
You stop trading when:
- You hit your daily profit target
- You hit your daily loss limit
- You feel tired, rushed, or frustrated
- The market becomes choppy
Scalping rewards those who know when to stop.
8. THE GOLDEN RULES OF SCALPING (Print these)
- Trade only clean trends
- Avoid low volume periods
- Never chase
- Never widen stops
- Never revenge trade
- Stop after 3 consecutive losses
- Stop after 3 consecutive wins (euphoria is dangerous)
- Protect your emotional capital as much as your financial capital
My real goal is to help people to develop an income from investing that will make their employment optional. I have developed a library of books on Personal Finance that are largely jargon free and help establish a foundation of how money really works. No matter how constrained your income is you can make decisions that result in growing your wealth over time.
You can find my library at addingtowealth.com/?page_id=18 more details are on the Book Index page and don’t forget to check out the growing list of blog posts.
But if you insist that Day Trading is your desire then you can download a FREE copy of Day Trading – Beginner to Winner at https://addingtowealth.com/wp-content/uploads/2026/04/Day-Trading.pdf
