Stock indices such as NAS100 (the Nasdaq 100) and US30 (the Dow) are prized by scalpers for their strong momentum, particularly around the US cash-market open. When the equity session begins, volume surges and moves can be fast and directional.
The energy of the open
Around the open, the day's news and overnight positioning are digested at once, producing a momentum burst. Scalpers try to ride the initial thrust or trade the first clean pullback. But the same energy that creates opportunity also creates violent two-way whipsaws that can stop you out in both directions.
Respecting index risk
Indices move in points, and a single point can be worth a meaningful amount, so position sizing deserves extra care. It is easy to underestimate how quickly a fast index can travel against a trade. Keep size modest, keep the stop at a logical level, and let the fixed-risk rule decide how many contracts or lots you carry.
- Momentum concentrates around the cash open and major news.
- The first thrust and first pullback are common scalping targets.
- Whipsaws are frequent — the open cuts both ways.
- Size for the point value, not the price — risk stays fixed.
Indices offer momentum energy at the open — treat that energy as risk to be sized down, not as free money.