15 Scalping Rules I've Learned From 7 Years of Trading

I lost over $30,000 before I turned my trading around and started making thousands per month trading here are 15 lessons that would have made me a profitable Trader 5 years earlier a trick that has saved so many losses for me is going break even on your trade after you have given it time to play out that whole idea with this is once the market starts to go in your favor and I'm right here I'm betting that the Market's going to go down I want to move my stop to break even because the whole idea is that if the market is going to reverse here it's probably going to go pretty quickly but if for some reason it's not going to do that you want to get out of the trade out of scratch you want to just move on because the whole idea with trading is you have an idea and the Market's either going to follow that idea potentially or it's just not going to and if you let the idea have a chance to start to play out but then if it's got to an deflection Point like here where okay either it's going to keep going down or it's going to reverse and go all the way up reversing and you know you're wrong on the trend you want to get out at break even and just move on to the next trade it's so easy to get married to an idea of a trade and in reality what you need to do is just get in let the idea play out and get out if it's not going to work you 100% have to trade with a stop loss and you cannot move it farther away once you're in a trade if you do it's a Surefire way to lose more than you meant and end up blowing your account this is a terrible Habit to start that will make you lose as a Trader losing is a part of trading accept it and move on to the next one you don't need to trade every day to make good consistent money trading take a day off if you aren't focused trading can seem like a game but it's the hardest game you will ever play in your life only play it when you're at your Peak practice on a simulated account then switch to real money start out with as little as possible because when real money is on the line emotions come into play and it completely changes the game I get emails all the time from people saying they've lost tens of thousands of dollars trying to learn when they could have made those same mistakes and lost zero money trading a simulated account having too many indicators is going to cause analysis paralysis I personally don't use any indicators because I find it way easier to just be profitable just reading the candlesticks and looking at the chart patterns but if you do want to use indicators only use a few your charts do not have to look crazy effective trading is simple so many issues from Trading come from over trading Revenge trading or fomo which is the fear of missing out trading can be really stressful and cause you to make worse decisions the more time and the more trades you take in a day I realized it was is way easier to have those not affect me if I only took one trade a day a lot of my students have even found it insanely helpful because it helps them deal with the emotions of trading and essentially skirt around them also what this does is it helps you practice patience and cherry picking only the best trades which will make you more profitable when it comes to trading not every trade is the same really every trade is different there's infinite possibilities the market even if you're going for the same strategy or pattern every time there's always something slightly different about the market no two trades are the same so sometimes you may see a trade and think it's a decent setup but not good enough for your full trading size still take a stab at it because it's worth your time to take that trade you've clearly spotted that there's something saying that there's opportunity there a smaller size trade may not seem worth your time because it's less money but trust me the money adds up over time people always want to know about what the news is when they're trading if it's going to be good or if it's going to be bad because the logical thing is to think well if the news is good the Market's likely to go up and if it was bad the Market's likely to go down but this isn't how the market works the market will price in an expectation going into a news event let's say we have a news event about to come out at this time well the market is going to have an expectation and if it expects the news to be good will the price of whatever you're looking at is going to increase and then when the news comes out well it's going to have to fit what that expectation is and so if the market already expected the news to be good well it might not move anywhere the market just kind of might go sideways and so you might be confused that well the the news was good why isn't the market going up now or on even the worst side is the market over expects the the news to be really really good and then it actually isn't as good as you it was supposed to be and so the market sells off even after good news came out and so that's where trading news can really I think just be the biggest kind of gambling when it comes to trading because you cannot know what it's going to do when it comes out even if you get it right that the news is going to be good you don't know if the Market's going to go up sideways or down because you don't know what it's already done beforehand and its expectation going into that news event the only profitable way I have found trading into a news event is not be in a trade get out of a trade before a news release comes out and then once the news pops you can then see what the market does see how it reacts to the news and then enter in a trade based on what you're seeing if that fits your strategy the market will always tell you what it thinks through the price movement of the chart you don't have to spend time guessing what it thinks of the news release all you have to do is just look at what the chart is telling you just read the chart a painstakingly but extremely important thing to the success of your trading is journaling your trades and your patterns that you're taking but also Journal your emotions understanding what patterns you being successful with is the key to your success at trading what made me successful was realizing I was the best at taking one style of trading and cutting everything out I started to just focus on trading reversals and that's it after I started cutting out all the other opportunities and moves that I saw in the market that I thought I could catch I saw my results really turn to being profitable and I wouldn't have been able to do that if I wasn't paying attention to what was working and what wasn't in my trading I saw drastic results when I made this change in my trading when I started started out trading I started going for a 2:1 risk reward ratio and what this means is I was risking $100 to make 50 and what I didn't realize is this was setting me up for failure initially trading like this it seemed like it would work because when you jump to a trade the market doesn't have to move very far for you to win it will actually increase your win rate but when you lose you lose way more than you are winning over time and the math doesn't play out in your favor what I found was better was flipping this and going for a one to two risk award ratio or one to three risk reward ratio where you are risking let's say $100 to make $300 the trade does have to go farther in your favor for you to win and it will reduce your win rate but when you win you win way more money than you lose and so that's where win rate isn't everything when it comes to trading also what this does is it mentally really helps you with your losses because when you lose they're not as big of a deal so they don't cause you to potentially emotionally spiral and have more issues trading make sure you're trading the correct time frames when it comes to trading swing Traders generally are looking at Daily or hourly charts whereas scalpers are generally looking at smaller time frames when I trade I'm a scalper I look at a 1 minute a 5 minute a 15 or the most up to a 30 minute chart but a mistake I see many Traders making is looking at something that is out of the time frame that they are trading for example if you're looking to trade on a one minute chart looking at what the market is doing on a daily chart doesn't make sense you know the market is in an uptrend on the daily chart right now but if you're looking to trade on a one minute chart you can see on a one minute chart there is downtrend potentially happening at that time on a one minute chart and so looking at what the market is doing on a daily chart when you're looking to trade on something small like a one minute chart or even vice versa is a complete waste of time because the daily chart is such a larger time frame that the patterns and Trends take way longer to play out that even if you see an uptrend like we have on the daily chart right now you can still find a downtrend tradable opportunity on a one minute chart and if you let the uptrend of the daily chart influence your decision you might actually skip a good trade on a smaller time frame you still want to be aware of the big picture but usually looking at something like a 15minute chart or a 30 minute chart over the past couple of weeks will give you a good enough information of what the market is doing and where those Trends are that you need to be paying attention to you really need to be aware of the market structure and what it's telling you you really need to be aware of when the market is really going sideways and there is is extremely low volatility in the market because the market is more likely to give you signals to jump into a trade potentially and it's easier for you to fomo into something and in reality on days like this where the market is just sitting there doing nothing it's better to just skip trading for the day versus if you see over here where the market then starts to have movement you can take trades a massive thing is looking at okay if I enter for a trade right here is there movement for me to hit 1X 2x three times my risk and make a profitable trade if you're looking to buy down here and there's a resistance zone right here that doesn't allow you to get to your two times or three times your risk which is your target you should not be taking the trade either that is another big thing about Market structure that people Overlook is making sure your trade has room to profit and that it's actually worth the risk of even getting in that location even when your pattern shows up and tells you to get in over time your intuition will give you signals about the market this is because you have learned to recognize patterns subconsciously when you're trading through experience if something feels off about a trade you're about to get into Don't Force the trade my best trades almost always have the feeling of oh my God this is exactly how I want this to set up I have to get in right now now don't get me wrong here I'm not emotionally chasing or jumping into the trade just clicking the buy button I am methodically jumping in but I am extremely confident in the trade that things look exactly how I want to when I enter into a trade and through my intuition I have seen that over time this is my bread and butter and it has worked consistently when I'm uncertain or it's kind of in that gray area between things don't seem amazing but I think it's good enough to potentially get into a trade I try not to force the trade this is a part of trading that comes down to really experience and it's hard to deal with that great area and so generally when I'm not sure stay out of the trade and just move on it sucks when you miss a trade because of that and it worked out but again there was something telling you that something was off about the trade and at the end of the today do not hindsight trade it's going to ruin you if you didn't feel something was right in the moment or it didn't set up really how you liked but ended up working out that doesn't mean it was a good trade to take now when it comes to refining your strategy and figuring out what works for you a huge mistake I see people making all the time and I did it myself was having a trading loss and then trying to figure out what I could have done better to avoid that loss entirely or reduce that loss this naturally makes sense because really that's how the world works with a lot of other things but it doesn't work with trading sometimes a loss can happen and you didn't do anything wrong the market can do really anything it wants it doesn't matter what pattern you saw and you know the probability that that says that the Market's going to go a certain direction you might have gotten the most perfect looking trade of your life and it still fails so don't change or tweak your strategy quickly based on one or two or even just three losses or trades that happen you have to give time for your strategy to play out and to collect data in your trading journal so later you can sit down at a calm time when you're not trading and logically think about okay what is working and what isn't and refine your strategy over time like I did where I eventually realize okay these things aren't working for me I only need to focus on taking reversal trades one mistake I see happening all the time and I used to do it myself is I'd see a potential trade come and I'd not be 100% sure if it was good enough to get in my confidence wasn't truly there I'd let the market start to play out and the market for an example in this trade the market would start to go in your favor and right here the market looks really good that it's probably going to sell off and keep going lower and so then right here I would jump into the trade now in reality at that point you're chasing the trade and really the signal like where I got in for this trade actually was up here and so if you're you know the signal should have been here where you got in but you wanted to wait for a little bit more confirmation like this big bearish Candlestick here well you are waiting a long time and you're chasing the trade at that point and if you think about a risk reward ratio if your stop loss is still all the way up here and then you know you enter in down here and so you have to wait for the market to go all the way down here to just get one times your risk you're making your risk reward potential way way worse because you chase that trade you need to learn to just be confident in your strategy and if you just missed the trade because you weren't confident in it accept it and write that down in your journal and learn about that for the next time remember that okay maybe I get scared and I don't enter in and that's something I have to work on I miss trades all the time and it sucks but chasing trades will ruin you it's going to make a really bad pattern that will make it harder for you to be successful in the long run and this is really your subconscious not being confident in your strategy and being too scared to take that leap into the unknown outcome of a trade and wanting to really just wait for that more confidence to be there and you will never have that in trading honestly I am nervous every trade I get into even when it's that trade that I'm extremely confident in there's still nervousness of the unknown outcome now the biggest thing that I figured out over my years of trading was how to trade only 60 to 90 minutes in the morning this video right here will show you my exact strategy that I use to trade before going to my full-time job that you can use as well

Channel: Riley Coleman

Views: 85,401

Keywords: live day trading futures, day trading strategies, futures trading, futures trading for beginners, futures trading strategies, trading strategies, trade ideas live, day trading live, stock market for beginners, price action trading, Price action trading strategy, price action trading system, price action trading live, price action trading for beginners, price action trading small account, trading price action, Trade ideas live, live day trading, scalping, scalping strategy

Id: Eq_oo3BwLdc

Length: 16min 18sec (978 seconds)

Published: Sat Feb 24 2024