Coffey Operation

In the financial world, a coffee transaction is a trader’s intraday transaction, which consists of the following: buy a stock and immediately sell it for exactly the same price. He can hold the spread. Thus, he can earn and lock in profits.

The essence of such an operation is not just to buy a share at the average market price, but to immediately reset it, which leads to making a profit.

Scalping, as a synonym for coffee operations, is extremely popular among those involved in trading, and this is not surprising. Today's stock exchange and trade are just providing an opportunity to pound water in a mortar.

Nowadays there are more and more opportunities to see how quickly any person can become a millionaire, but this truth applies exclusively to those people who have found their field of application and have shown an enviable zeal to bring what they started to a victorious end, having a certain supply of knowledge, patience and time. Such trump cards have long been enjoyed by stock exchange gurus, who have seen the potential of trading in brokerage companies since the very birth of the exchange. Thus, over time, the need to improve the trading style of traders has increased - to improve knowledge and skill. And one of the most undeservedly forgotten tricks to this day is the classic Coffey operation

Up to 80% of transactions in the futures market are intraday. Understanding this, a smart trader tries to sell shares well in advance of the transaction and store the results, waiting for the moment when he knows how many lots he can buy. It is those transactions in which it is customary to set a stop loss in advance that last a long time. Not every trader succeeds in resisting buying such a stock and waiting until the price drops a little more. The result of the coffee operation is good. What makes coffee surgery popular? • Coffey operation is classified as scalping, using it together with other types of trading; • The trader can close the deal with a small positive profit; • Can make the most successful deal by selling it without a flat;

In no case should the coffee operation be abused; such a solution is only used as background trading. It is worth paying attention to the history of quotes in the period before the operation itself: the price at the time of the operation, bargaining. The encrypted signs on the chart of the price before the fall indicate the period of fixation of the short a little higher. Then the price decreases according to the moving average, quotes begin to fall significantly lower, after which the price drops down, trading at the specified level, which forms a low trend reversal figure in the seller’s order buffer. Simple until the last "strong player"

Thus, trading using coffee operations makes it possible to make money on a breakout of levels using a low-active fixation of a position after opening a position at the very beginning of the day. This is the only way to enter the market with a stop of 15-20 cents per share for almost no gain, saving a little money in addition.