I Became a Profitable Trader After Doing This

I was an unprofitable Trader before I started scalping but as I learned and started trading it I stopped consistently losing money but there were some Miss and traps I fell into along the way so let me share with those with you so hopefully your learning curve is steeper and your path to profitability is quicker the first trap that I fell into and then I see a lot of people do is taking too many trades the idea that scalping in the market is taking 10 or 20 trades a day now in the end with trading you want to find what strategy works best for you and generally over trading is not the way to do that the concept of just looking for the low hanging fruit is the way you're gonna make consistently profitable trades you may think that oh but if I take more trades I can make more money because if I make fifty dollars a trade and I take five trades and they're all winners well I've made 250 that day but the likelihood of doing that consistently is a lot harder than taking one trade that has a higher chance of profitability and then with if that one trade is scaling up your size maybe it starts out at fifty dollars a win but over time that could turn into five thousand dollars a trade and so that's a really hard part when it comes to trading is being patient with how much money you're gonna make initially and when it comes to scalping just because you have the opportunity to take a ton of Trades it's better to wait for those trades that are really good and that have a very very high chance of success and just taking those and then being done for the day also you don't have to be in front of the charts for hours and hours on end I know some traders that just trade for half an hour in the day and then they're done for them the idea is I can only really focus on trading for half an hour and find that low hanging fruit and then I'm done with the day you do not need to be sitting six hours in front of the charts every day to be a profitable or good scalper generally when it comes to trading less is actually more profitable than more but it is very easy to fall into that trap of of wanting to trade more to make more money I have done that myself I still feel like I do that but remember over time you will scale up your account fastest way to becoming profitable as a Trader is find one simple pattern that you can be profitable with and then only trade that pattern and if that pattern only shows up once a day once a week that's okay consistently be profitable with that strategy and slowly scale with it the only reason why we start searching for more strategies to trade is because we want to try and find more opportunities in the market to increase our number of Trades because that seems like the logical way to make more money but when it comes to scalping and trading it's the opposite and specifically when it comes to scalping all we're looking for is very quick moves in the market a journaling that's on a small time frame chart I like to look at a one minute chart to look for scalps and a lot of people like to look at a five minute chart now in reality you could even look at a larger time frame chart but the whole idea was scalping is that we are looking for small moves in the market we're just looking to capture a quick move up and that's it we're not looking to capture a massive swing where the market trends higher over days or months that is something that you're not doing as a scalpel what we are focusing on is one minute charts five minute charts 15 minute charts generally or even just taking very small moves on larger time frame chart and in reality you can scalp on any Market you want I like to focus on the S P 500 futures because I have found that scaling from a small account it makes it very very easy and it allows you to consistently day trade without having to deal with a pattern day trading rule that stocks actually have but in the end when we're scalping again all we're looking for is quick moves in the market what you want to be looking for is a risk reward of one to one one to two one to three and it can sometimes be more but generally that is the Sweet Spot hitting massive home runs where you make 1 to 20 X is not an actual consistent way to profitably trade over time you want to be playing the numbers game if I can be right sixty percent of the time of betting when the Market's gonna go up and I risk a hundred dollars to make a hundred dollars well then I'm consistently profitable over the long run and so again trading is all about looking for that low hanging fruit and how I like to do that is looking for reversals in the market off of support or resistance levels and so let me walk you through a live trade that I took scalping and show you how it works in real time and so what I like to do to find key areas in the market is I like to actually draw a support or resistance Zone off of a larger time frame now I'm not going to go into that a ton in this video but the basic idea is on a larger time frame on a 15 minute chart I have seen that the market has bounced in the area multiple times and then when the market comes up to this area I want to look for a reversal signal that the market is going to reverse off of that and so with this trade you can see we have our trend line that we have here the market has broken that and it's making a really big bearish bar and so I'm going to jump in on a short betting that the market is going to go lower based on that and so I put my stop up here above this swing High because I want to get out if the market starts to go against me you always want to have a stop loss in place you never want to risk more than you really should on a trade you always want to have a fixed amount of risk on a trade and so let's say for example I want to risk 200 every trade and so what I need to make sure is wherever I enter and wherever I get out on the trade if it goes against me that is always less than 200 because if that's more or I don't have a stop loss in place of something that gets me out when the market comes up to this level and then I might lose more on the trade than what is necessary and you could potentially blow up your account and what we need to do as Traders is keep things consistent if you keep your risk Ward at one to one or one to two you want to be consistently risking two hundred dollars to make 200 or 400 and if you mess around with those numbers well it's gonna make it a lot more harder to be consistently profitable and so as this starts to break in our favor you can see I like to Trail up my stop a little bit because as the market goes in my favor I don't want it to potentially reverse and I end up losing on the money it's really good to get to a point where you can't actually lose money on the trade because it'll just help your profitability over time and then in terms of reading the market and managing a trade and just figuring out how to scalp the market you want to be focusing on the major swings just like we did up here of area to get in well you got to focus on where you want to get out of the train and you can see the market had pretty much a double bottom here and so that's a really good area to assume well there's probably some kind of support down here and I'm going to want to be cautious when the market gets down there and potentially get out of my trade and so as we let this trade kind of go in our favor go towards that level we're going to want to be tight with our trailing stop because as we start to make money on the trade we always want to try and keep our profits because again that's how you're going to be a profitable Trader is making sure your trades make as much money as possible and make sure you lose as little as possible over time as well so you can see here we are making a little bit of a bounce off of this level and so I'm gonna quickly move my stop down to Above This Candlestick so in case this little pullback we have here turns into an actual reversal of the market but because of my practice with reading the market and reading the candlesticks my assumption is well we might just make a quick pull back here and keep going lower and so because of that I'm able to tighten up my risk here and not risk losing that much money or losing that much profit that I have left over and and I'm able to keep the trade going and increase how much money I am actually making or potential could make on the trade and then you can see we have a another support Zone that the market has down here again drawn from a larger time frame chart I like to keep track of a larger time frame of whatever I'm trading if you're looking at a five minute chart maybe you want to look at a 30 minute chart and so to close out of this trade what I did was I realized that the market was in a really tight downtrend right here and again we're getting close to this support area and we're already up a really nice amount if we look at my risk reward about this is about how much I'm risking and here if we kind of just visually draw that I'm at about three times my risk and so I want to keep those profits and so the market right here is starting to break this downwards Channel and so I want to move my stop and get out of that trade and that's okay again we're looking for scalps I'm not looking to hold on a massive swings in the market betting that there's going to be a massive move lower and that I can make huge returns again we're looking for just quick moves in the market that we can scalp off of and make consistent money trading in the market and so if you want to learn more about how I like to find these support and resistance levels check out this video right here it goes way more in depth on how I draw and find key support levels in the market

Channel: Riley Coleman

Views: 203,464

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: 8UAFqoFA_64

Length: 9min 53sec (593 seconds)

Published: Sun Mar 26 2023