Professional scalpers should place their stop loss orders 1-2 ticks below the recent high price rather than above it, because placing stops above the high exposes traders to significant slippage when price accelerates, as the market will quickly fill orders at worse prices than expected; by positioning stops just below the high, traders can exit their positions before the acceleration occurs and protect their capital.
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AVOID This FATAL Scalping MISTAKEđ¨AĂąadido:
A small trick for the [music] aggressive scalpers. There is a way to avoid slippage. Put the stop loss not above the high. Above the high there are a lot of orders and what you see is that market will boom, [music] accelerate.
You see that the market even if it's a failed auction now it's going down, it accelerates. So you lose an additional amount that you can protect. How you can protect them? Just put [music] your stop loss one or two ticks below the high. So you are taken out before everyone that is for acceleration takes place. And it's worth it.
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