Page 339 - THE MARKET WHISPERER

THE MARKET WHISPERER 33 5

the premise that you are on the right side of market direction, you need to
cancel the exit order and try to profit from a few more cents beyond the
original profit target.

I wish to stress, yet again, that this method sounds simple. In reality, it
requires a great deal of patience, self-discipline, and deep familiarity with
the market. You need to follow the stock chart in one-minute candles. You
also need to watch the market chart which will indicate if you need to
flee the trade with an unexpected loss, or cancel an exit order and let the
market take you to unanticipated profits of a few additional cents. For the
same reasons, you need to be following the stock’s sector chart. You should
be avoiding any trade when the stock is at a breakout or a breakdown point
which may shift the stock into dangerous territory.

Example of One Cent Scalping with Citigroup, C

Citigroup (C) is trading with high volatility up until the end of the
opening hour [1], making it an inappropriate time for cent scalping. Citi
slows at 12:30 during the lunch hour [2], and from that point up to the end
of the day, it fits the scalping criteria. Notice that in addition to the high

volume during the opening hour of trade, which does not include scalpers,
the volume from point [2] up to the end of the day shows an average of ten
million shares in five-minute candles. Notice how the stock price is locked
in the range of just 4 to 6 cents fluctuation.