Scalp Trading 🥷 A Beginners Day Trading Strategy 🍏

all right everyone hey welcome thank you guys for tuning in here so this is a live broadcast and we're going to be talking about scalp trading scalp trading for beginners this is a beginner day trading strategy but it's not just for beginners anyone can scalp trade whether you're a beginner intermediate or an advanced trader during this free class that i'm streaming here on youtube i'm going to break down for you scalp trading as a strategy how i find stocks to trade where i get in where i get out the criteria for a scalp trade and i'm going to show you a bunch of live examples so those of you guys tuning in live thank you for being here today super excited to be teaching for you guys um appreciate you hitting the thumbs up and being tuned in to the channel you're welcome to subscribe if you'd like that way you get the notification whenever i go live but um you know you you do that when you're ready so let's see um since everyone's here i'm going to give you my disclaimer before we get started which is a reminder in case you didn't already know that trading is risky most beginner traders lose money so i encourage you not to trade money that you can't afford to lose take it slow and i'm gonna give you let's see whiteboard here so reminder trading is risky all right and now let's go ahead i'm going to run my intro and then we're going to jump right into the class so okay so here we go scalp trading for beginners and i'm gonna keep my whiteboard handy here because i may need it a couple more times before the end of this class so i'm gonna go full screen and by the way you can see uh today i have already taken a number of trades so uh it's about one o'clock in the afternoon i'm not going to be trading well who knows maybe i'll trade during this workshop if we end up seeing a really good example i'll take some trades but i probably won't be trading during this uh live event i'm gonna be focusing just on teaching you scalp trading but uh vero uh veru the biggest winner today just in terms of stock selection this is what this one's going to be a good example of the right type of stock to be trading and why scalps could have been good opportunities on this particular stock all right so let's go ahead and jump in here first so let's start high level what the heck is scalp trading um you know you're probably aware you may have heard of scalping before um and there's a couple different types of scalping uh there's the the kind where you lose the top of your head now that's the worst kind um then there's the kind you might have heard of where someone buys some tickets for a concert and then sells them out front of the concert hall to people going in a scalper right you may have heard that and typically what they've done is they've bought it and then they're reselling it for just slightly a higher price and now sometimes they price gouge and that's not great but the scalping by itself is um totally legal and you're allowed to do it both with concert tickets and you could do it um on the trading side and so on the trading side scalping is when you buy a stock and sell it very quickly so essentially it's a quick entry and a quick exit you're trying to buy it for one price and sell it a few minutes later maybe a few seconds later for a little bit more than you paid for it so scalp trading is a day trading strategy of taking trades around key technical levels key technical areas and i'm going to show you actual chart examples of this but you know for right now let's try to keep it high level some of you guys are driving while you're listening to this some of you guys are you know walking around the house and you just got this on the headphones so i'm going to try to keep it high level explain it in a way that you can picture it and then we'll get into the details a little bit further into the video those of you guys just getting tuned in right now please do me a favor and hit the thumbs up um i wanted to do something special for this uh video which is for every person that hits the thumbs up i'm going to donate a dollar to a local charity and at the end of this broadcast we'll see how many thumbs up we've gotten if we've gotten a thousand thumbs up i'll donate a thousand bucks if we've gotten three thousand thumbs up i'll donate three thousand dollars i will also donate two dollars for every time you share this video the only thing i want you to do is type in the chat feed that you liked it and you shared it all right so if you like it and you share it not only will i donate uh two dollars for every share and a dollar for every thumbs up for one person today and i'm gonna randomly choose at the end of this video the end of the broadcast i'm going to give you a free membership at warrior trading all right so that'll be for people that have liked and shared comment below that you've liked and shared all right so um so day trading is a strategy of taking trades around key technical areas where you expect to see a surge in volume taking small percentage gains but with bigger share size scalp traders are typically more active trading in and out of a stock many times throughout the day now a scalp trade should work instantly if the scalper has a good read on the level two and the tape that's just the time in sales and is correct about the importance of that technical level where they're trading the trade should work instantly scalp traders will often have a one-to-one or even a negative profit loss ratio now this is a little bit of the drawback and where it can be a little tricky for beginners the one-to-one profit loss ratio means your average winners and average losers are the same so and this has always been the case with me in my trading my average winners are about 1300 average losers are about 13 1400 it's about a one-to-one ratio but you can be profitable with a one-to-one ratio as long as your accuracy is higher than 50 right that's just that i mean that's basic math right there if you make a dollar on average and you lose a dollar on average if you're right half the time you're break even but if you're right 75 of the time you're profitable so a scalper typically will have a higher percentage of success higher percentage of accuracy and you know what that's attributed to is attributed to taking profits quickly now what's kind of interesting here um is that uh you can actually in a way adjust your accuracy based on the way you trade so for instance if you get in and you take profits really quickly your accuracy is naturally going to be higher because it's not super hard to predict when something is going to go up 5 cents or maybe 10 cents now if you get in and you don't take any profit until it goes up 50 cents you may have trades where you were initially right and then they turn around and you end up being wrong and you end up losing money so as a scalp trader anytime you're right by at least 5 or 10 cents it's going to be a winner and that's what keeps your average so high however scalpers scalp traders rarely produce home run trades because we're focused on small base hits consistent small base hits and so sometimes it can feel a little bit frustrating because you might see a stock go up significantly as we saw with veru from 8 all the way to 12 and you got in you got out you got back in you got back out you got back in you got back out and you feel like man if i had just held my initial position i would have actually made so much more money and so there is a time and place for both being a scalp trader and also going for a trend trade or a longer hold time sometimes it could be hard to do both if you are trading in just one account because you know you have to make a decision is this going to be a position that i just take quick profit on or am i going to hold it for the bigger move so you know if you're a beginner trader you may be more inclined to just take those those quick gains as you have them all right so uh let's see let me go back to full screen on this um and oh i have what is scalping here and the other um definition of scalping which some of you may be aware of is on the broker dealer side so broker dealers are not allowed to scalp trade scalp trading on the broker dealer definition is when a broker buys a position right before they execute the position for a client like if they have a client that calls them and says hey buy 50 000 shares of apple if they go and they buy 50 000 or 10 000 shares then they place the 50 000 share customer order and then take the profit that's a scalp trade you're not allowed to do that as a broker dealer so that's a form of scalping that is not allowed but for regular traders who are not broker dealers scalping is um is totally okay uh and scalp trades are typically i mean they're short they can be one to two minutes long sometimes longer sometimes shorter they could be as short as one second but they could be a little bit longer as well so here are some tips for scalp trading trade the hot stocks each day based on the watch list that you create these stocks must have a few things in common they must have high relative volume because that accommodates your ability to get quick entries and quick exits high relative volume typically means the liquidity is going to be better it's above average volume so people are talking about it you want to be trading the most obvious stock if you're trying to employ a scalp trading strategy on a stock that has very low relative volume you're you're going to get in and nothing's going to happen right stocks that have high relative volume those are the stocks that at key technical levels will see big moves sometimes up or sometimes down depending on of course which direction it's going but that's where you're going to get that quick resolution and that's what you're looking for so essentially and i'll jump over to my whiteboard here so what we're looking for on a scalp trade and i'll move this back as well let's see so we're going to look for let's say we have a pattern and we're going to do it as a line chart here so let's say we have an abcd pattern or a bit of a flat top so we have this very clear level of resistance right around here so a scalp trade would be trying to anticipate the break through this level with an entry just under it or just as it breaks and then as it surges through what would we expect volume bar will be high volume through this area we might have seen high volume on the move up high volume and then it moves down a little bit the volume bars and then it comes back up again as it comes up for that second attempt then the volume comes down a little bit and what we want to try to predict is the volume spike that's going to occur as the stock breaks through this critical level that is a technical level that's an apex point and oftentimes these correspond with uh psychological areas of support or resistance so this could be like six dollars even or maybe it's 650 you know 650 half dollar that's very common so in this case your entry is as it's coming up right here you might be buying right as it breaks this level maybe you see there's a seller for ten fifteen thousand shares at six six dollars six fifty whatever the price is you see it starting to go from ten then it goes to nine then it goes to eight then it goes to seven and it goes to six and you punch that order because you see on the time and sales you can see on the tape how it's clearly moving up and then you jump in right there for the break through that level you're long at the ask you look for a quick extension high volume bar and take a little profit off the table now if you're a more aggressive trader you may turn that scalp into a bit of a more aggressive trade where you add as soon as it goes higher sometimes what we also see which is very common we'll see a break of this level a retest so it breaks it re-tests and if it holds support that's along on the first pullback for a move higher so there's two possible trades here you can have one trade that's actually on the break of that technical level and then a second trade on the retest as it's proving it's holding and as a scalp trader what's important is that you're taking profit so you're long and you take profit in this squeeze here that way if it comes back and flushes down you've got a green trade you've taken profit off the table and that's what a lot of traders won't do they'll be in a trade they'll have 15 20 cents a profit they don't take any of it off the table and what ends up happening it ends up turning into from a winning trade to losing trade and that's why it's so important to book those profits now uh yogandra to answer the question between scalping and trading they're they're one and the same scalping is just a subset strategy for day traders a scalper who's a day trader could be scalping momentum they could be scalping reversals you know it's it's more of an entry exit strategy and a position management strategy that falls within day trading so let's see and i'm going to get my drawing tool where's my drawing tool here um there's my laser pointer all right so a couple more tips for scalping we want to be focusing on the leading gappers and gainers each day those are the stocks that have the highest relative volume that are moving the fastest and we're going to trade smaller moves 10 15 cents with larger size maybe a thousand to 10 000 shares may be higher and this is where as a scalper you do carry a little bit more risk because essentially what you're doing is you're trying to profit on a relatively small move in the stock and the only way you can profit on a relatively small move in the stock is if you take a bigger position right so you know let's just do the math here for a second if you go along with 100 shares 100 shares times 10 cents how much does that equal you're up 10 bucks 10 dollars but then you do that same trade with a thousand shares times ten cents and you're up a hundred bucks you take that same trade with ten thousand shares and now ten cents equals a thousand bucks now as a beginner trader you're probably not going to feel comfortable managing risk with a 10 000 share position but the way i've always traded in a small account is by trying to target 10 uh 1 000 shares and 10 cents a share which is about 10 which is about 100 bucks that's kind of been my goal whenever i trade in a small account to focus on a stock where i could afford a thousand shares so if you have a a three thousand dollar account you could buy 1 000 shares times a three dollar stock that equals three thousand dollars in the trade it goes up 10 cents you're up 100 bucks right it goes up that's 10 cents it goes up 20 cents you're up 200 bucks it goes up 30 cents you've got 300 bucks that right there is 10 growth on your account in one day and that's not even talking about using leverage that would just be using cash now some stocks might go up more and you could always get back in and keep actively trading them as they move higher and that's something that i do but as a beginner trader one of the things that's so important is to focus on one and done get green and then shut it down don't keep trading so another tip for scalp trading is to buy at breakout points where you would look for an instant move after the entry one of the challenges with buying stocks during consolidation is that the volume is lighter and so during this consolidation you've got the stock consolidating in a narrow range the volume is lighter and if you accumulate a large position and it breaks out of the consolidation to the downside it's going to you're going to see a big spike of selling volume because it's obviously breaking down there's not going to be a lot of buying volume and it's going to be hard for you to unwind a big position without taking a significant loss and so what i'm more inclined to do is to buy as it's breaking to the upside of that consolidation which therefore is a breakout trade you're buying for the break through the highs now one of the challenges here is false breakouts and we'll talk about that a little bit more as we get into this um class and i'll share with you at the end of this broadcast when i um when i share with you uh who we're giving a free membership to which will be at the end of this broadcast i will also share with you a couple of um little tidbits that you should know about market makers to help you avoid getting caught in those false breakouts so stay tuned for that now another tip for scalp trading so we talked about trading the high relative volume stock we talked about trading smaller moves with larger size we talked about buying at breakouts and looking for an instant move now i'm going to talk about being cautious about scaling into a larger position when you start scaling into a larger position meaning you're adding and it's going higher and you're adding higher adding higher adding higher what you're what you end up doing invariably is sacrificing the initial profit and so let's go here i'm gonna do um the split screen here for a second so um let's say you have a stock at six dollars here so the stock's moved up it's pulled back and you're long right there which you know we would say that that right there could be a great entry for the break of six right that's a nice looking entry there for the break of six dollars all right so you're in there at six and it goes up to 615 625 now a conservative trader would take that profit off the table they'd say you know what that's my 15 20 cents i'm out a more aggressive trader what are they going to do they're going to add right here maybe it does a little micro pullback just for a second like this and then it starts to squeeze up again and they're gonna add right there as it starts to squeeze up and what they do at in that moment is they're now scaling into the trade so their average goes from six dollars and if they add at 630 now their cost basis is 615. so what they've done is they've sacrificed taking that initial profit off the table in exchange for the opportunity to get a bigger trade now that's fine and if this ends up going up here through 650 and then maybe pulls back again and then goes up to 675 and pulls back again and then up to seven you could continue doing that you could continue to scale in so now your average is 615. let's say you add again at 665 and you double your position well once again now your average is going up so 25 plus 15 so now your average is going to be around 640 right now if this ends up going up to 670 the the cool thing is what initially was a 1 000 share position at six turned into two thousand shares at six fifteen and then four thousand shares at six forty if it goes to six sixty you're ending up with an eight hundred dollar winner right that's great and that's certainly a lot more than the initial hundred fifty dollars if you had just taken your profit all off the table uh when it broke through six and went up to six ten but getting to the point where you feel comfortable sacrificing that initial profit in exchange for the potential for a bigger move that takes first at least a month of consistently hitting base hits and consistently hitting base hits mean means getting in getting green and getting out and not overstaying your welcome that's so important it's adding adding adding as it goes higher that's for more advanced traders and you will see me doing that all the time absolutely i'm a more advanced trader i feel comfortable doing that but as a beginner that's not the approach that you're going to want to take as a beginner you want to get in get your profit and then get out so the fourth tip was use caution when it comes into when it comes to scaling into larger positions if you're focusing on being a scalp trader begin with one entry before attempting scalping and sorry before attempting scaling as soon as you have a small profit on that one entry you're in at six you take some profit off the table as it goes to 615 initially as beginner trader and this is what i always have done in a small account is i've taken the whole thing off the table so if i'm in with a thousand shares i'm up 150 bucks 15 cents i sell the whole thing i'm done one trade a day as a beginner with a small account that's absolutely got to be the approach because your job is to try to build consistency and we know how hard trading is we know that it's risky and we know that most people don't find any consistency at all so if you can get in you can get green and get out that's the way to do it and what you want to focus there is on accuracy focus on accuracy take the best quality setup get in get out and you're done now of course one of the challenges um with that approach is that you know you could have the misfortune that that one trade that you took is a bad trade you end up taking a loss on it but that's that's life that's part of trading and if you find at the end of let's say a 10-day period of doing that that you took 10 trades and you're right on only four of them well that tells me that you should go back to trading in the simulator because your accuracy your ability to choose strong stocks to trade is not good enough yet if your accuracy through that 10 day period is 60 or 75 60 70 you're right on six or seven out of 10 trades good that's great you should be green and do it again for another two weeks if it's 60 or 70 at the end of that 10-day period and you're red it's most likely because one of the three trades that were losers or three or four that were losers ended up being a big loss so then you have to go back you have to ask yourself what about that trade gate should have given me a little bit of a red flag before i took it and that's we're going to talk about towards the end when we talk about market makers and some of those false breakouts so as soon as you have small profit sell half adjust to stop to break even on the remainder of the position so that would be your average cost your average entry and one of the things that's really cool is um you know with the trading software for instance that i'm using i can automate all of that with hotkeys so i'll i'll just show you right here i'm going to switch to my my main account so i've got my my retirement account which is up ten thousand and i've got my main account which i didn't trade in today and i'm actually going to give you a um kind of close-up here of my keyboard as well split screen so you can check this out all right so i've got the keyboard right here so what we're going to do is we're going to pull up zbzt is the test stock and i'm going to show you how quickly you can do this uh just with keyboards all right so this is going to be we're going to pretend this is a quick scalp trade shift one just like that all right so i bought 1500 shares by pressing the button shift and one all right so shift one press it a second time all right now what i can do if i wanna set a profit target i can press ctrl and then i can set p for profit target or i can use the semicolon right there or the bracket and right just like that i have profit targets already set one is at 10 12 for a quarter position the other is at 10 22. now i already set my hotkeys to be based on scaling because i don't want to do one entry one exit but as a beginner trader you might set that you might go in and change the settings that hotkey and say no i want that hotkey to be sell entire position up 15 cents so as soon as i press ctrl p sell the whole thing for profit i'm out of the trade and now what you can also do is you can press um i can cancel this and i can press ctrl b stop it break even so that's going to stop the rest of my position at breakeven so once i've taken a little profit off the table stop it break even and i can hold the rest now i personally don't use stops in any of my orders and the reason that i don't do that is because market makers can see your stop orders and i don't want to show them my cards because i know how market makers will abuse retail traders through stop hunting so i don't do that with 10 20 30 000 share positions i never use livestocks but as a beginner trader as you're trying to manage your risk and this is what's really important with scalp trading is that you keep your losses really tight so for a scalp trader beginner scalp trader you may want to use livestock orders to help you manage your risk all right so um and then i can press on um back on this one control q to cancel orders and control z sell the whole position at the bid and i'm out just like that so you know very quickly you can move in and out of positions if you're using the right software and so this is another area where um we'll we'll talk about that in just a second so um so as soon as you have a small profit you can sell half and adjust your exit um to your entry point on the remaining position and then the next tip for scalp trading is to hold until the momentum slows down as you're getting better so you can jump in and if the stock is is squeezing and it's really strong there's no reason to sell i mean if you're up 10 cents that's great but that by itself doesn't need to be a reason to sell right if you have profit but you're only seeing green on the tape and this thing is ripping up then that's where i say let's let it ride let's see if this turns into a bigger move and oftentimes it will because you got the timing right on your entry it was at a key technical level and then as soon as i start seeing some red on the tape or i feel like it's a little extended or maybe it's approaching a psychological resistance point like a half dollar or a whole dollar that might be my cue to sell half and then i still might not sell the rest until it comes either back down or until it's just clear that it's not looking like it's going to keep going higher again that requires a little bit of intuition because you have to have a sense of is this the type of stock that is going to go higher or is this the kind that's just going to reverse hard and so you know you have to spend some time actively trading and practicing this strategy just like any other before you're going to get to the point where you feel comfortable holding winners a little longer and kind of letting them ride if the trade doesn't work out immediately get out quick exits you've got to just bail on these because the problem the biggest risk with scalp trades is that if you're taking profit at 15 cents or 10 cents you can't have 20 30 cent losses they're going to ruin your profit loss ratio and then you're going to need three winners just to make back that one loss so you've got to be really disciplined about cutting your losses and you have to be really careful not to get in too high because if you start getting in too high you can really you can end up digging a hole and it can create a real problem so again you know this is just something that through all my years of experience trading and you know scalp trading is just a subset of momentum trading where i'm getting in getting out taking quick profits you know i i have to remind myself not to hold the losers too long just to be really disciplined and just let him go and i know that it's easier said than done because as a beginner trader you know when you get into a trade like that you get frustrated you think i'm just gonna hold this i'm just gonna i'm just gonna let it keep going it'll probably come back up and the next thing you know you can be really you can be really underwater on a position and then generally a scalp trader while as a very beginner you might be focusing on just one trade a day you know get green and then that's it once you have a little bit more experience you may end up starting to take three five trades or more a day being a little bit more aggressive and that's totally okay all right so uh some of the skills and tools required for scalp trading all right this is important you need to be super good at tape reading your tape reading and your level two skills need to be on point understanding the bid in the ask movement understanding the spread being able to read and clearly see when there's big sellers on the ask this is going to be critical for you being a successful scalp trader if you're not good at tape reading you're not good at reading the level two practice keep practicing try to get better but it's going to be hard to be a good scalper if you're not good at that scalp trading is not a strategy where you're just going to trade based on charts it's not going to be a strategy it's going to be easy to trade if you're just on a mobile phone you're going to want to be trading using desktop trading software and you're going to want to be really good at tape reading and you need an ability to make quick decisions and that means jumping in quickly and jumping out quickly cutting losers so if you're the type of trader that finds yourself being kind of deer in the headlights and you freeze you're going to want to try to break through that pattern so you don't keep doing that when you're trying to get aggressive as a scalp trader you don't want to get caught at the very top of a move and then unable to have the discipline to cut those losses and then uh lastly a platform that enables fast order execution through hotkeys and routing i really think that this is important you know again i'm not saying you couldn't scalp trade with robinhood or weeble or something like that because i'm sure people do and i'm sure you could but i don't think that you would be serving yourself really well if you tried to i think that you would find more success if you're on a platform that offers direct access routing and has the hotkeys and you can see you know in the little example i showed you on my trading platform how quickly i can move and add trades how quickly i can set profit targets you want to be able to do all of that if your platform is holding you back you need a better platform right all right so um now let's talk for a second about predicting algo spikes um i was gonna save this to the end but um why don't we talk about it here and then i'll show you a bunch of live examples before i do that so during this class i'm going to be showing you guys a bunch of live examples and if you want to download those live trading archives you can do that through this link right here so um on this link you will get a copy of my micro pullback strategy pdf a copy of my small account strategy worksheet live archives showing the order execution and a lot of those are going to be live archives of scalp trading so i really encourage you guys to download that you'll get my pre-trading checklist and you'll get a special video that i recorded on holding losing trades too long all right so right on point with what you need to make sure you're not doing as a scalp trader and you guys will also get a copy of my best-selling book titled how to day trade all right so make sure and if you're enjoying what i'm talking about so far that you go ahead and i'll put a link i'll pin it in the top of the comments for those watching this later and i'll also put this link in the description so you guys can check it out and it's basically continued learning that you guys can focus on on your own time after this video's done so a big advocate of you guys trying to educate yourself as much as possible so i'm going to empower you by giving you some more some more resources to help you do that so let's now talk for a second about algo spikes um and by the way for those that are tuning in to this broadcast um a little bit late who weren't here at the very beginning i mentioned that at the end of this broadcast i'm gonna give away uh one membership to warrior trading a full year of membership to where you're trading uh to one person we're gonna do um i've got a member of my support team who's gonna be pulling names we're gonna do a random giveaway uh but only for the people who have commented in here that they've liked and shared the broadcast so please hit the thumbs up and share the broadcast and then for one of you guys we'll do something special for you because you've been doing something special for us by helping support this channel so thank you so much so what are algo spikes well algorithmic trading accounts for over 60 of the volume in the markets now algorithmic trading um these are um trading algorithms that are running and generally are being run by institutional traders and or market makers all right now uh we look for key technical levels where we are expecting a breakout a breakout takes the form of a surge of buying volume caused by a combination of short sellers stopping out and long biased traders going long plus by stop orders triggering long positions at the market and also manually entered limit orders for buying at the at the limit maybe but just above the current price so how do market maker algos respond to spikes in buying and selling so let me let me pull up the whiteboard here for one second and i'll just give you kind of a little lesson on this um so let's see let me move this back over here there we go all right so let's just talk for a second super high level about the purpose of a market maker so a market maker is making the market all right so when we're looking at a stock we have the bid and we have the ask right and so if we have a stock that's trading um six dollars by 605 or small yeah let's just let's do 605. um 605 you've got a five cent spread on this stock and most likely you you have market makers that are on both sides of the level too now a market maker has to register with um regulators with the sec they've got to register and they at the end of i don't know what period it is maybe every month or quarter or something they regularly have to um provide transparency into their order execution and things like that but yes trading is in a lot of ways us against the machines the machines dominate the market in terms of volume so we've got to be really mindful of how they work so and i'm going to talk about this just briefly i will have there's some other videos on my channel and i've got another one that's going to be coming out soon we're going to go into a little bit more detail on this but i haven't posted it yet so stay tuned for that coming soon or if you're done when you're done watching this video maybe you could go search for it but when we're talking about market makers um a market maker sits on both the bid and the ask and what they do is they if you want to sell right now let's say you want to sell seven thousand shares of this stock at six dollars well in the entire world there may not be someone out there that wants to buy exactly seven thousand shares of this stock at six dollars and that's where the market maker comes in they say you know what we'll buy your shares we'll take your shares from you so they buy your shares here for seven thousand seven thousand shares at six dollars and then what they do is when someone comes along and says hey i want to sell my shares at or sorry i want to buy shares at 605 the market maker says oh here you go we'll sell you these shares that we just accumulated at seven or at six and the seven thousand we'll sell those to you at 605 and the profit that they make is between the spread so market maker's job is basically to be buying and selling buying and selling all day long and as long as they buy let's say you know a hundred thousand shares they buy a hundred thousand shares at the bid price and they sell a hundred thousand shares at the ask price as long as their balance between their buying their sells they will be profitable between the spread they just keep buying selling buying selling and they profit from the spread so market makers create the spread but remember they do compete with each other because whoever gets the order gets the opportunity to make the money on it so sometimes the spreads can be very tight but on other stocks especially small caps we'll see that the spreads can be a bit wider and this is very common not as many market makers on the stock a wider spread these are stocks that carry more risk just not just for retail traders but also for institutional traders and so i've talked with my broker about this pretty extensively because something that i kept finding was i would press the buy button and we'll go back here i press the buy button to buy 10 000 shares at 605 and i would see that there were shares at 605 and maybe 606 and 607 and then when i would get my order back it would show that i got filled at 608 as soon as i bought all of a sudden those orders that were sitting at 606 607 seem to disappear and i get filled higher at 608 and i asked my broker i said what the heck is going on what's the deal with this why is this keep happening he said well the algorithm as soon as it sees your order coming through and starting to execute they're going to pull their offers they're going to pull the orders that they have to sell stock and so if you're trying to buy a big position for instance it's very common that you're going to get slippage and he gave me some tips of different ways i can route my order to mitigate that slippage but let's think about why they're doing that they're doing that because they're seeing a surge in volume there's and as a breakout trader i'm usually buying at breakout so i'm buying it the places where volume is coming in so they're seeing that surge in volume and so to mitigate their risk to keep their position balanced they can't just sell an unlimited amount of position an unlimited amount of shares at 607 or 608 they could become imbalanced right they've now sold a huge position and this thing rips up to 650 and gets halted up now their risk profile is imbalanced on the stock so they move with the algo they programmed it so it's you get this slippage as it's going higher so as these stock start to move faster and faster and faster those market makers are pulling their orders more and more and more and more so it becomes a self-fulfilling prophecy but this is also part of managing risk now this is where you want to be a buyer if you're a buyer right at this creek this um this critical technical level here and this is a very obvious level you're going to see as it breaks 605 as it pulls away from 610 up to 615 you're going to see it start to move faster and faster and faster and faster and this is a combination of retail traders buying it's a combination of short sellers covering and the algos which as we know are running the market moving out of the way as they're trying to manage their risk on a fast-moving stock and if you're using market orders those are the type of orders that you're giving to the market maker where you're saying i want this stock but i don't care what the price is and there's an interesting article and that i read recently where they were talking about how market makers prioritize limit orders ahead of market orders because the limit order you're you're putting a limit of how much you're willing to pay whereas a market order you're saying oh i don't really care i just want the shares and that gives them the right uh to give you not as good of a fill now they they obviously you know they have competition and so among market makers you have to be they have to compete against each other and some stocks like a tesla or a facebook these are stocks where there's going to be a lot more market makers on them there's a lot less risk in holding positions on those types of stocks compared to small cap stocks so they may allow a position on a tesla or something like that to go further out of balance on a risk um sort of risk profile than they would on a small cap stock all of a sudden squeezing up 30 40 50 percent because if they've sold an unlimited number of shares at 605 they're short right now their their position is that they're short and so that's not going to work and then if they decide they want to buy back then what's going to happen so so how do market makers respond to spikes in buying or selling they pull the offers or they pull the bids depending on whether it's spiking up or spiking down and you can get a ton of slippage on your orders that's why if you're seeing a stock approaching a key technical level a critical level i often want to buy as it's approaching that level before it really starts to spike that way i can be capitalizing and profiting on the spike but the very least i want to make sure that i'm getting in at the very beginning of that spike which should be very close to the technical breakout so in the case of like six dollars or 650 that's where we'd expect it and don't worry i'm going to show you not just chart examples i'm going to show you some live examples of these types of patterns today during this episode so sometimes we'll see really really big moves and that can even be on lighter total volume and that rate of change is fueling that algo spike we see it most frequently on breaking news and around key technical levels and on small cap stocks that aren't experiencing as much market maker competition spikes can become self-fulfilling prophecies where the more they go up the more market makers pull the offers but then it can reverse right back down and you can have these drops there's definitely been criticism of how algorithmic trading can fuel volatility in the market like flash crashes uh but there's also the argument that the market makers provide liquidity because they're they're taking the risk they're getting in um you know if you want to sell they're there to buy your shares and then when you want to buy they're there to sell you shares so they do provide liquidity and they get compensated for that but their job really does carry a lot of risk and so you know they try to mitigate that risk with these automated um you know algorithmic trading um programs but uh we've seen as was certainly highlighted in the case of gamestop um that these can go wrong things can get a little crazy all right so um a question here before you start scalp trading is always to ask yourself am i trading the right stocks so first of all the time frame and this is sort of the criteria for the strategy that you're trading but um your time frame generally for scalp trading is going to be when you have peak volume that's typically going to be in the morning the early hours um the stock type you want to be focusing generally on stocks with lower floats that are parabolic that have some type of breaking news you want to be focusing on a stock that has a range of at least 10 today it should have at least two times if not five times relative volume the daily chart should be above the nine ema and above the 200 ema the stock should have a catalyst or be a former momentum stock but technical breakouts can be okay the price range preferably between a dollar fifty and twenty dollars you can scalp on all price ranges but higher price stocks carry more risk with big big spreads that false breakouts could really hurt your profit loss ratio um and the entry will be some of the setups that we'll discuss today when i get into the live examples but parabolic setups are also valid when the stock is up 50 or more the way i find these types of stocks is using scanners so many of you guys already know this but i have a development team that i've that i hired that built out the scanners that are part of the warrior pro membership so one of our goals is building out this software for traders and this is the software that i use every single day so viru which was the one that i made um the most on here today if we switch back you'll see my um my last trades on vero there so on veru this one was on our gap scanner right here it was gapping up 37 this morning with news the relative volume today on veru is uh let's see relative volume is 931 so that certainly exceeds five which was our minimum criteria um it's flow to 64 million shares it's a little bit higher but that's okay in this case 270 million shares of volume it's got a tremendous amount of volume it's uh really insane i mean it's got over a billion dollars in in in in money traded trading hands today this is a huge amount of volume and if we look at the chart briefly uh you'll be able to see that this is a stock that really did respect some of these critical levels quite well uh one of my first trades on it was along on the break right here of this blue line which was a high a day break that gave me a squeeze up into this 8 40 850 level all the way up to nine it runs into psychological resistance there at the whole dollar continues up then to 950 psychological resistance pulls back breaks through goes to 10. and notice if you mark out half dollars in whole dollars that's eight this is 8.50 that's nine that's 950 that's 10. look at how right at these critical levels it runs into little bits of resistance do you see that and you get these quick moves in between those levels so that's the type of area that we really want to be watching so i found uh veru on this scanner here um iv da someone just mentioned is squeezing up a bit so you know this is a stock moving a little bit higher right now you're high right now this is a little extended your high is uh 469 but you've got room on the daily chart up to 5 24. and this is a stock that we did talk about this morning and i also traded this morning so it's hitting this scanner here the float is 10 million shares it's got a relative volume of 20. 38 million shares of volume right so it's a stock that is clearly the right type of stock to be focusing on the only problem with it is that it's the wrong time of day perhaps to be taking that trade now it's not to say you can't take trades in the afternoon because you certainly can uh but i prefer to trade earlier in the day okay so your entry and just to step back for a second i saw a comment on um on youtube yesterday and by the way those of you watching this later after the fact um please leave comments down below we respond to every comment that's posted on the channel so don't hesitate to post some questions if you have them but someone said ross um i'm a beginner trader and i'm having a really hard time finding stocks to trade and i said you know what to be honest finding stocks to trade is the easy part that is the easiest part and so the good news is that's easy once you learn the right tools you're not most likely in his situation he wasn't using the right software so he was sitting down each morning and genuinely didn't know out of thousands of stocks trade which ones to trade and someone recently said you know i trade forex so i know to trade the us dollar euro pair but i i don't know how to find stocks and there's thousands of stocks to choose how do you choose which ones to trade it's easy it really is easy and it doesn't mean that being profitable is easy because that's not but finding stocks of trade is the easy part i do it by looking at what's the leading gainer today and that points me almost every single day to the right stocks to trade this morning we had uh on the uh back on the scanner here we had hoth gnca ivda vroo those are the top four and i traded two of those four and that's where my profit came from today and that's generally where my profit comes from on any given day it's from focusing on leading gainers and then from that from the sort of um early part of the morning watching that high day momentum scanner for what's moving up right now so that's the easy part is finding the stocks to trade the hard part is back over here timing your entries and your exits this is where it gets a little bit tricky and especially when it comes to scalp trading because you have to be so disciplined about getting in quick and getting out and taking your profit and not overstaying your welcome all right so these are a few of the entries that you could trade as a scalp trader and i'm not going to go over every single entry because i have more of them in our curriculum than i could possibly fit into this class right here for the sake of uh concise youtube video but i'll tell you that these are four of my favorites these are four that usually perform pretty well for me this scalp trade setup would be buying the first candle to make a new high after a sell-off that could be either a reversal or a dip trade this is a micro pullback setup right here this is a break through a flat top right there which i know is somewhat blocked by my video but i can move that there and you can see it better and then this is an abcd pattern so you know these are these are a few of the patterns and for each one of these patterns i have a separate chapter that has examples that are just of those patterns and including screenshots but also live trading examples so for this let's try to be a little bit more concise and let me show you uh some live examples here so let's see i'm going to jump out of this slide deck and we're going to go on to live examples so i've got one right here on gbr that we'll look at and let's see if these help put a little bit of the the pieces together here for you all right so i'm going to go full screen by the way those um who tuned in a little bit late i keep seeing people trickling in so thank you guys for joining us for the live broadcast um this will be saved as a playlist on youtube so you can re-watch it later if you'd like that's fine i want to remind you of a couple things number one first thing is there's a link posted um pinned comment to download the live trading archives so you can keep learning i want to encourage you guys to keep learning as always and you can also when you download um you're going to be on our newsletter and we'll send you a copy of my best-selling book we'll send you a copy of my micro strategy pdf and let's see we had a couple other things that we were going to send you as well where is it um i had the page up let me just click it and put it back up and go back to full screen here we go all right so you're also going to get oh that's right my small account worksheet and my pre-trading checklist and the video on holding losing trades too long which is very topical for a lot of beginner traders all right so that's number one i want to remind you of number two please like and share if you like and share the video comment that you liked and shared it we're going to be putting the people that comment and doing a random giveaway at the end of this youtube live where i will be giving away one year-long membership to warrior trading all right so number three and this is important you must be here for the giveaway because if the person isn't here to claim um the giveaway then we're just gonna go and choose the next person so make sure you stay to the end of the broadcast so uh if you've if you're hoping to get to win uh a year-long membership at warrior you can you can claim it all right so now let's go ahead and jump back over here i'm going to go full screen i'm going to move this out of the way and let's look at this example so this is a stock we're going to get acclimated here what are we looking at okay so we've got a lot going on uh this is gbr this is a stock that i have traded a few times over the years um on and off the float on gbr today so i can um just check in my uh software here on this so let's see um gbr the float is um a 3.74 million shares we can see that right here so this is um a pretty low float the float's low and on this particular day it was curling back up and so on this trade um we're going to watch this here i'm gonna go back so this is a stock that is approaching psychological resistance of four and what you notice already on the level two you can see a couple of sellers stacked at four about 20 000 shares that's not that much uh the stock is up 20 and watch this for a scalp trade okay so for those that are uh listening in while they're driving and we have so many uh folks on youtube that subscribe to this channel and are driving um semi trucks so thank you guys for driving uh across the country and doing everything that you do i know that this is going to be audio only for you so your eyes are on the road so let me describe what we're looking at here we're looking at a stock that's up 24 that has squeezed up from 350 up to four dollars it hit four and at four dollars there were twenty thousand shares for sale on the time and sales in green we just saw twelve thousand shares get bought so we're seeing some buying and they were bought at four dollars on the ask and so the ask went from 20 down to about 10 000 shares so now here i'm about to press the buy button and i just bought 7 500 shares at four dollars exactly now initially my p l shows minus 375 dollars it says that i'm down five cents because the bid is 3.95 remember on these types of stocks i buy at the ask and i want to sell at the ask why do i want to sell at the ask because the last thing we want to do is feed the algo we never want to feed the algo that's a big no feeding the algo means hitting the bid because that's where you're gonna get slippage on your order now i suppose i feed the algo on the ask when i buy at the ask but i'm not gonna feed the algo on the sell side by hitting the bid i'm gonna avoid that as much as possible i'm gonna always try to buy at the ask and sell at the ask so i'm in here at four and immediately this squeezed up to 407 and in two seconds in two seconds right there i sold half of my position on the ask at 407. so i took half off the table which locked up about 400 of profit and now we're gonna watch uh actually no sorry i locked up about 265 dollars of profit and then i sold a little bit more at 409 and now i'm holding only 676 shares i've already locked up 472 dollars and in this moment right now it's now hesitating so it's starting to hesitate a little bit which is a good time to either bail on the bid at 402 or maybe keep trying to sell on the ask but it's got to hold over four and i sold on the bid there at 403 and just like that in a period of about a total trade of 20 seconds i made 492 okay so this is a stock and again what kind of level was this at this was at a key technical level all right so let's see so we're going to go just draw this out so remember the stock approaches a key technical level in this case it was four dollars so four dollars is the key technical level pulls back for a second and then it breaks through there was a seller of 20 000 shares i bought as those were getting bought up i waited first to see green on the tape and then i bought we got that immediate pop up to 410 in this case only to 410 and as soon as it broke through that level i took half off the table at 407 so plus 265 and then i took the rest off the table at about 409 and then the rest is it came back down now in those spikes that's where we're seeing peaking volume you see on the chart how we had peaking volume right on that candle as it broke through four dollars that's important that peaking volume is what gives you the liquidity to get in and out with a big position if you're trading these when they're not moving very quickly you're going to have a harder time moving in and out with larger positions so you want to be trading them around key technical levels if you're focusing on scalp trading which you probably are if you know you're watching this video but if you if you end up taking big positions when the volume is light you're not going to be able to move in and out as easily so that that was that whole example that was a real example of trading almost 500 real money a stock around in that case five dollars of four dollars okay so that was our first example so now let's go back to the second example all right so let's see second example here we've got um and we've got a couple that are going to get a little crazy so i hope you uh are buckled up because this is going to get wild all right so this is titled huge break of v wap and rip to 29. well the stock's currently at 19 so i can't wait to watch this okay so what are we working with here again let's get kind of uh oriented so we've got a stock that has a pre-market high of 17.55 it is up 313 the float is uh let's see i'm not sure what it is on this particular day i'm not seeing it on my screen so i'm not sure what the float is but i think it's a pretty low flow um did have some news it looks like the stock sold off and went below the volume weighted average price and now it's curling back up a question there on youtube why don't you buy the retest after the breakout i will i will be happy to buy the retest after the breakout but i'm also going to trade the breakout so i'm going to trade both i'm going to do the breakout and i'm going to do the retest now on that example of gbr i didn't do the retest and the reason was because it sort of just declined in volume so you got that breakout and then that kind of just sort of just petered out it was sort of like that was it which sometimes happens so i'm gonna be more inclined to keep trading it aggressively when it's still you know moving quickly so when you still have high volume it dips down and then for the next leg up okay so on this example right here the stock is currently at 12 and 45 cents note the last green candle broke over the volume weight average price and what it's doing right now is a micro pullback so it the v wap is right here and it curled up to about 1240 and then it did the retest on a micro pullback and right now it's coming up right there and i'm drawing this out on my whiteboard so right here as it comes up this is where i'm going to punch the buy button so let's watch this so i punched the buy button here it looks like i filled uh three orders of a thousand shares at 12 28 so i'm in with 3 000 shares all right let's go back to the main screen so 3 000 shares of this is my position so far all right so boom in with 3 000 shares and we already are seeing 1250 on the ask on this one i got in a little early to anticipate the breakthrough that half dollar i probably wouldn't have gotten in that early on a 2.50 stock but on 12 stock willing to be a little bit more aggressive um thank you guys uh looks like we've got a bunch of folks from florida here today thank you um feel free to comment where you're logging in from everyone from florida just wanted to say at the same time that they're all here so uh it looks like that's that's great news i'm really i'm proud of you guys you guys are from florida it's a great state it's warm all year round you have no income tax so you're you're living the life living the dream thank you i'm i'm in new england where nine months out of the year the weather is miserable and everyone is sick and we dream about living in warmer places but we don't because our family is all here and we don't want to leave our family and they're just like a big you know cinderblock around our legs just holding us back day after day after day uh so uh we probably won't go to florida until our all of our family has died and we're going for retirement and that's what it's like living in new england well that's one way to think of it it's actually not that bad but uh thank you guys so all right uh so let's see we've got 12 28 here and so i'm long with my 3 000 shares and immediately we're coming up to 12.50 what level is 1250 it's psychological resistance watch what happens when we break over it if we can hold over it we're in good shape and holy moly we just went straight to 13. we just went straight to 13 bucks that's called a 50 cent breakout matt i'll see you at the show all right so we went from 1273 on the bid we've got now 13 on the ask and the halt up is at 13.08 this thing is on fire it is moving fast and so if we look at our um white board on this one we got the good luck on this stock of a instant rip through 1250 all the way to 13 in like 10 seconds so the algo is moving out of the way they're pulling the orders and now you're squeezing up and if you're short on this uh oh because this thing is moving quick all right so we've got 1308 as the halt level and i actually let's see what happens um i'm taking it looks like a little bit of profit off the table at 80 something and then actually i added back at so i took first a little bit of profit off the table at 89 and 92 but of my 3 000 share position i only filled like 270 shares and then i changed my mind i said you know what i'm actually gonna go and add on this thing so i added another 2 000 shares at 1292 and 1294 and i noticed that the halt level has moved up to 1342. watch the break of 13. it's not breaking so i take half off the table right underneath 13 at 1297 and is it going to break 13 there's 13 42 on the ask we're into 13 42 and i take a little bit more off as we come up to that level so you've got 13 41 on the bid 1342 on the ask and i'm still there we go i was holding still 800 shares but i took the rest off the table in this position here you can tell that i'm still being a little bit conservative with my scalp trades i'm adding and then i'm getting out and then i'm adding back and then i'm getting out so i'm not trading this um super aggressively but watch here the new high is about 1380 and the halt level is 13.90 right there i just bought the dip at 13.32 which dip trading it can be you can scalp a dip trade you could get in and get right back out remember scalping doesn't refer to the entry it just refers to getting in and getting out quickly so on this we're now back to 1250 on the bid we've pulled back almost well a full dollar a share off the high which was right around 14. i'm holding 1200 shares at 13.32 and i'm down right now about 50 cents okay so let's watch this trade the high is about 14. we're going to look for this to curl back through that high and because this video is live trading i might have to speed it up a little bit so we can kind of jump to the more exciting areas but what we're watching right here is a perfect retest of volume weight average price which is around 12 25 and now watch this over 13.50 for the first candle to make a new high into 14. so in this case right here you can see that i'm flat on the trade and i have my hand on the buy button and i'm watching to add back to the position i'm up 39 000 on the day as always trade in case you'd already know is risky my results are not typical including uh the results of this day which were from a little while ago this is a live trading archive so we're going to look for this to squeeze back through 13 and i'm going to show you here the first candle to make a new high on the one minute chart watch right here i just added back 4 500 shares for the break through 13.50 look at the volume coming in there there's 13.78 there's 13.99 i added another um partial fill my order was for a thousand shares at three at 1379 i filled uh 350 and i filled a thousand shares at 1384. now i've got six almost 6 000 shares long for the break of 14. the halt level is 1526. added another thousand shares there this is first candle to make a new high we're looking for the squeeze through 14 if we could break through 14 we're going to look for a move back up towards uh the pre-market high or the high of day which is around 1718. so this is an area right here where you can see it's kind of slowing down we got that surge back up and then it kind of slowed down again and then we'll get another surge back up and it sort of slows down again this is a stock that is mid-range it's not at high of day and so while it's definitely active it's not super easy so i ended up stopping out of that as it came back down at a only a little bit above break even instead of taking profit at 1384 i added and as a result you know i ended up with a little bit too high of a cost basis with a little bit too many shares and i had to sell break even as it came back down so now we've come back down [Music] and let's just look at this so the level that we're watching now is an abcd pattern that's forming at fourteen dollars we have a double top at 14 and we're right between 14 and uh volume weighted uh average price so here we go so this is the abcd pattern now breaking out the high there is 14.78 actually and watch this over 1478. there's 1478 there's 15 44. there's 1588 my average is 14.97 with 2 000 shares halt level is 1601 this is up 430 percent i added to my position there and looking for the squeeze through 16 up to the halt level 1644 holding 8 000 shares at 15.50 that's 16 on the ask they're 16 10 they're 16 30 16 44 and you can see the open p l is 6 200 i added at fifteen ninety eight and sixteen dollars now going into the halt level i'm taking a little profit off the table holding seven thousand shares note here something important happened on the level two you can see that the halt level moved from 1644 up to 1709 why that happened it's at exactly 10 36 it's at the top of the minute and halt levels are routinely updating so the halt level has updated as this has moved a little higher so now watch for an ad at 1642 for a break through that level and continuation of the squeeze watch what happens at 16 40. there's 16 40 on the ask there's 44. there's immediately it pops to 88. so what's happening there the algo is pulling the sell order and moving it up so the order on nasdaq is at 1688. all right so i'm holding 6800 shares are we going to break through 16.88 there's 89 there's 90 and this is a spot to be taking some profit off the table into those surges of buying volume so taking a little off the table for over a dollar a share at 16 1709 my average is 16.03 now the halt level's moved up again why it's 10 36 in 30 seconds the halt level is updated again it's moved up the new long now is 1709 for a move up to 1790 which is the new halt level so now what we're doing on this stock is scalping as the halt level moves higher the long here is going to be 1709 oops sorry back to full screen 1709 watch this so in this case for whatever reason i didn't add there but i should have because we just went straight and see that there's that seller at 1750 but we blew right through it almost 1744 halt level is 1779 new order watching for an ad at 17.50 added there for the break of 1750 there's 18 on the ask halt level moved up there's 18.48 my average is 16.67 this stock is up 500 percent 500 percent so each of these trades are quick entries around key technical levels and then profit as it breaks through now some of these i've been a little bit more aggressive by continuing to add as it goes higher and if you have the cushion and you have the experience that's fine if you don't have the cushion you don't have the experience then you know obviously that makes sense not to do that not to be as aggressive now we're coming up to 19 so there's 18.84 and as this goes higher each time it goes a little higher and breaks through a new high that's a scalp opportunity there's up to 19 dollars and 16 cents that's another three thousand four thousand dollars of profit each time it breaks these levels so watch now watch the clock it's coming up to 10 38. if this halt level updates now it looks like it might be a real halt so we're pinned right here and halt level updated but makes it look like a false halt how do you distinguish the two this is why just as you know as sort of a side note this is one of the reasons when you have stocks like this it is so helpful to be trading with a group of traders they've been doing this for a long time because this is some really wild stuff and being able to listen so like when i'm trading for members over at warrior they have our scanners but then they can also um they can be tuning into my live broadcast so they can be listening to me as i'm giving that commentary a false halt new halt coming up halt level's moving and you don't feel like you're doing this on your own all right so the halt level's moved up to 1985. and watch over 1950 right there you go 1975 and we're coming up to 1985. so now we're going to watch that halt level to move up again there's 1985 but it's coming up to the bottom of the minute so halt level may update here in just a moment up over 20. still holding 950 shares in this example but look there's the new hall level moved up to 2044. so you could add right here at 1986 and your target's 2044. watch what happens just like that now it's at 2044 right and you could take profit off going into the hall if you wanted to or you could hold it's whatever you want and this one just continues to go higher it continues to go higher so we get the high there of about 20 then it pulls back now we've got right here this is a flat top breakout setup for the breakthrough uh twenty dollars fifty cents twenty one dollars this has you know outrageously high relative volume the percentage gain is crazy it's up 600 percent now we're looking for the breakthrough 21. there's 2120 right there 2140. but you can see how volatile it is see right see how much that dropped so this is one where if you're in too high all of a sudden you've got to be really careful and that's why one of the things that's really important as a scalp trader is to make sure you're taking profit along the way and reducing your share size the more you trade because the longer you get into the day you start positioning yourself where you know one tr one bad trade could really be bad it could really cost you and when the stock is up 600 percent on the day you know it's obviously extended how much higher is it going to go so on this one you're still in consolidation but then it breaks here through uh 21 goes up to 24. and again i'm just continuing to trade it so that on this day i probably traded it i mean a hundred times i i just kept trading it i just kept getting in getting out getting in getting out so let's see um now we're at 24.00 and you can see each time i'm buying looking for the break of whole dollars so i just added 23.77 for the break of 24 and there's 24 25 on the ask then i'll look for a break of 25 24 50 and then i move up to 25 and i'll just keep trading it as it goes higher and higher and higher so there's 24 25 so the critical level that we want to watch there's 24.50 there's 25 boom i'm holding 5000 shares in this example from twenty three dollars and sixteen cents twenty three dollars and sixteen cents i'm up ten grand just on that one trade and so this is where it kind of you know the lines can blur between which one is really a scalp trade and which one is like becoming a bigger kind of a bigger momentum trade right it can it can get a little bit confusing but this one is just it's really wild let's see so you've got 25 on the ask see all that buying volume as soon as it breaks through 25 we're going to look for a squeeze up to 25.50 then 26. when you get into these higher price ranges you start to look for bigger moves not just 10 cents on the breakout but 50 cents maybe a dollar a share watch the break of 25 there's 2502 there's 25 25 on the ask there's 46 there's 25.50 there's 25.85 there's 26.50 holy moly 26.50 that's two dollars a share i mean it's just it keeps going up so the fact is stocks are not always going to be super strong like that there are times where we get some phenomenal opportunities and we can do really well and then there's times where you know they're just they're more difficult to trade so on this particular day uh i finished the day on jfin up uh almost a hundred thousand dollars almost a hundred thousand dollars on jfim 101 000 actually before fees and commissions and i just kept trading it as it went higher and higher and higher so these are the types of stocks certainly it's the right type of stock to be trading and this one definitely highlights some pretty aggressive scalp trading and it's definitely a different example from uh the first one that we saw on um gbr you know gbr was like one trade one entry one exit just kind of like you know one very sort of simple trade and i have i mean i have so many examples um i don't even know how many you guys um are going to want to see like wow this is okay obviously i have to learn how to do this um i can show you i'll show you the airbnb ipo i traded the airbnb ipo and made 20 grand on it and that was definitely scalp trading uh aggressive for sure anytime you're trading an ipo that's expensive you've got some some high risk there again thanks for folks tuning in uh those who uh haven't um [Music] haven't already hit the the like the thumbs up or subscribed or shared the video would love it if you do that uh at the end of this video i'm going to be giving away a one-year membership to one lucky live attendee who is still in attendance at the end of the video and it's going to be um for someone who has hit the like and share so type in here if you've hit the like and share if you haven't already typed it um please do that i really appreciate it so let's look now at uh airbnb all right so airbnb is getting ready to ipo it's initial public offering and ipos can present really good opportunities for uh some trades so um in the meantime it looks like oh my gosh i'm looking at this sls chart uh which is kind of crazy so sls you could see on the side is up 100 and looks like the high a day is about 13 20 and it's moving up pretty quickly there's 13 on the ask so it looks like i start trading sls while i'm waiting on the airbnb ipo and so naturally where's the first level that i'm watching it's at 13 which is psychological resistance so watch this long right here for the break of 13. all right so i got a partial fill it goes up to 13 20. new order 1320. if it breaks through the high there's an ad right there 1320 there's 1339 so once these start breaking through the highs i start to step up to the plate on this one we've got some range it's volatile holding on the pullback right now it dropped down to 12 61. so i'm down about 2600 bucks on it i sold for a loss looks like i'm down on sls i'm green on sls but i'm down on the day on this particular day so where's the next level to watch back over 1340 if it can come back through the highs and my goodness this thing came back through the highs looks like i missed um part of the video but so now it's up at 15.85 for the break of 16 up 33 000 on sls all right let's look for airbnb um so let's see airbnb all right so there's our airbnb ipo so let's back this up here real quick so i'm a big fan of trading big ipos like airbnb and these ones i can do really really well on okay uh sorry let's just back that up one second so you could see so i might i started the video looks like all right so i just went long on airbnb at 47 147 2000 shares so looking for the break of that psychological resistance of uh 47 and watch what happens when it breaks 47. you can see on the ask is 46.99 and now it's at 48. it went straight to 48 it jumped a whole dollar a share so i'm immediately up two grand now it's at 48.99 on 94 on the ask there's 49 on the ask two dollars a share that's 4 000 bucks there's 70 000 shares for sale again that could be a market maker providing some liquidity but they want to be careful about going short next thing you know they've got to maintain balance on their position so it dips down now watch for the break through 49. i added there for the break of 49. let's see took half off the table and we've got 49 on the ask then it dips down you can see how volatile this is putting the new order at 150 a share holding just 269 shares so i took my profit it's pulling back and now we're going to watch it to come up again so there's the chart you can see we have a pivot at 49. so i put the order at 149. there we go add 3 000 shares long for the break of 149. my average is 148.79 there's 150 on the ask 200 000 shares for sale they're getting bought up there's 250 000 on the ask 220 190 140 130 watch the break of 150 100 000 on the ask 39 000 on the ask i added another thousand shares at 150. i'm looking for the break through 150 my average is 149. 150 is a big psychological level if we can break that and hold over it i'll be in good shape there's 150 on the ask what happens when it breaks i took uh some of it off the table because i'm afraid it won't break added back a thousand share uh what did i add back um and there's 151.92 there's 152 on the ask there's 152 34. 153 it broke a critical level now it's pulling back will it hold support at 150 there's 153 150 350 154 coming up 13 million shares of volume 155 on the ask and i just added 156 on the ask adding 150 690 157 150 750 158 up 12 000 on it 159 159 40 159.50 new orders at 160. watching for a pullback added there for the break of 160. 2 000 shares 3 000 shares there's 160 on the ask 50 000 shares watch let's see for some reason my uh internet i don't know slow down for a second um let's back up [Music] so watch the break through 160. now a technical level here is that this is holding ascending support right here uh holding ascending support i bought right there and now i'm looking to add for the breakthrough 60. i now have 4 500 shares so that's a um over a half million dollar position on airbnb there's 160 on the ask immediately look at that algo spike it immediately breaks 160 and goes straight to 162. so that's 9 000 of profit on that trade there's 162 there's 163 163 on the ask there's 164 holding 4 000 shares 160 450 165 taking profit at 164.40 holding 2 000 shares so you know when you have a stock that's making a big move and that puts me at 30 20 000 in profit on airbnb and 32 000 in profit on the day on that in that account so when you have something like airbnb that is volatile that is moving quickly that provides a lot of opportunity other traders would have a different approach other traders would say i don't want to be jumping in and out you know what i'd rather do is i'd rather just take um you know one entry and just hold it and let it work and that's fine one of the things that um so here's the deal so when i was learning how to trade one of the things that was really challenging was having a small account and not feeling like i could take a lot of risk i couldn't just get loosey-goosey and just hold something and just kind of let it work i needed trades to work out immediately i needed instant resolution profit or i'm out and so i got zoned into trading around these key technical levels like half dollars in whole dollars the top of a flat top breakout the first candle to make a new high on a bull flag things like that because that's where i found instant resolution the trade either worked immediately or it didn't and you know when i was first trading i was using a margin on and leverage on a lot of my trades so you know let's get out the white board here for a second so you know let's just say here um i'll move this camera over just a little bit so let's just say that you've got um you know well you know even on a stock that's 160 bucks um you know but let's just use a cheaper example so let's say you've got a stock that's five dollars and you want to buy five thousand shares times five so you've got five thousand dollars in the trade well if you're trading with let's say an account that has a balance of five thousand dollars and six times leverage you've got thirty thousand dollars of buying power so that means you can day trade with that money now why would a broker let you day trade with borrowed money it's really simple because the broker wants you to trade more shares the more shares that you trade the more commissions that they make the more shares that you trade the more for brokers that sell order flow they can sell your your order flow based on shares and for the brokers that have these relationships with clearing firms where they're trying to have volume discounts they get more discounts when their firm is producing more trading volume so they're incentivized to allow you to trade more so in this instance you know you're you're trading with four times five times borrowed money and a lot of traders will do this and i did it when i was getting started also i was trading with borrowed money all the time and so i might be okay with getting in at five and selling at 5 15 for 750 profit if i could do that within one minute because then i felt like i'm managing my risk by only holding this amount of money on leverage for a very short period of time because one of the ways you can calculate risk is your exposure time so the longer you're holding a position the more exposure you have to you know something bad happening so i'm a big advocate of those quick breakouts it for me helped me feel more comfortable when i had a smaller account i would get in i would either get instant resolution or i'd be out now having said that obviously trading with leverage and trading with margin is aggressive and risky and you shouldn't do that with real money unless you already have proven that you're a profitable trader i would also say that the level of trading that you just saw in a couple of those videos was extremely aggressive so i was being very aggressive on those which is appropriate for someone with a lot of experience not going to be appropriate for a beginner trader a beginner trader you're going to want to be more dialed in on finding one two maybe three really good trades each day and honestly that's going to be the same whether you're scalp trading or you're taking trades where you're going to hold for a bigger move you want to get in you want to get your profit and you want to get out now if you know you're going for a longer hold time that's fine but you know in this market we just see so much choppiness that i've just found if i don't take the profit off the table it's gone and then you know of course there's times where you know you have a stock that goes you know up five ten dollars a share and you're like oh man i wish i just held my initial position a little bit longer but you know for every time that happens you're going to have 10 more times where the stock ends up tanking and you're going to be really glad you took your profit off the table because it otherwise would have turned into a loser let's see so um you know i i hope that you guys have um enjoyed everything i'm covering this is some fairly you know on the one hand um it's a it's a bit complex but when you think of it sort of high level it's really fairly simple your goal is to look for quick entries and get in and get out quickly and the places where that's going to be the most obvious are going to be around psychological areas of support and resistance half dollars whole dollars and around levels such as near the uh the apex of a pattern so a v wap breakout or something like that so let me show you another uh pretty fun example here so this one's pretty crazy too and then i have one where let's see this one might be a little slower let's see [Music] uh yeah let's try it let's try doing this one first and then we'll come back to that one by the way those who haven't already uh downloaded some of the live trading archives i'm going over um for you guys make sure you go over to this page you can when you're on your newsletter the first thing that we'll send you since you joined the newsletter from this page we'll send you the micro pullback strategy pdf we'll send you a small account strategy worksheet some live trading archives which is what i've been showing you today but you can go back and rewatch them like real slow um my pre-trading checklist and a special video on holding losers too long how to avoid doing that and then once you're on our email list you get first dibs when we have special events going on you get notified when i upload new content and stuff like that so make sure you check that out and for those that haven't already liked and shared the video uh everyone who likes and shares and says in the chat that you liked and shared we're going to put your name into a little giveaway and we're going to be randomly choosing one of you to give a full year membership or at warrior which will give you access to these scanners over here on my screen you'll also have access to the chat room and our curriculum for a full year so the only thing is you got to still be here at the end of um uh at the at the very end of this broadcast because that's when we're going to do the announcement and i need you to say yes i'm still here and then we'll give you the the year if the first person that we put it up to doesn't claim it we're going to go right on to the next one all right so thank you for those getting tuned in and you know videos like this sometimes they run a little bit long feel free to watch it again if you find that helpful um i really i try to be concise but at the same time i want to be really detailed and make sure i'm not missing anything for you guys all right so uh vtsi this is a stock as you can see that halted going up at 7.77 so resumption on this stock is going to present a possible opportunity to do a dip and rip setup all right so it's about uh let's see resumption looks like this is going to be a 10 minute long circuit breaker halt so we're familiar with those all right i'm going to fast forward this video a little bit oops okay so um let's see so the halt time was at 9 36 and 26 seconds resumption will be at 9 46 and 26 seconds a 10 minute long haul all right so let's see we've got um the halt up again just to get oriented we're at 62 gain on the day 8.8 million shares of volume the stock has news it's clearly moving relative volume you can see is off the charts the previous day's volume was like a hundred thousand shares and now today you've got eight million shares of volume so this thing is going bananas all right so watching here for resumption and this is what i do when i want to take a scalp trade on a resumption when i want to do a scalp trade on a resumption i look at the high of the resumption sometimes i'll let it dip down and i'll buy the dip so in this case we've resumed at 8.46 there's two ways i can trade this one way is to simply buy the break of 850. if i buy the break of 850 i could go along right here for psychological resistance my target 865 870 a quick 15 20 cents i can already see the next halt levels at 9 16. alternatively i could let it dip down and then buy the dip so let's watch this so in this case i bought 7 000 shares at 8.50 all right so let's get the whiteboard so what's the setup here we've got a this was a red to green move so we got a red to green move into a circuit breaker halt alright so we got our circuit breaker halt right here and let's see it resumed a little bit higher and it dipped for a moment and this was right at 8.50 so the long was right there at 8 and 50 cents i bought 7 000 shares all right so now let's see what happens let's see all right so i'm in at 850 and there's immediately 875 on the ask that's 25 cents so you could instantly instantly take this profit off the table and that's it you're good you've got your you've got your 25 cents one trade and you could be done for the day now i might choose to take this with 7 000 shares as a maybe beginner trader a newer trader you might prefer to take this with a thousand shares that's still 200 bucks 250 bucks right so within your risk tolerance this is the right type of stock to focus on all right so there's 70 so i taking a little profit there uh at 67 and then look there it goes a little higher new order goes up the high of this candle so what i'm doing with my mouse is i'm going to put my mouse over the height of this candle check to see what the high is and then i'm going to buy that break in that case i just did a dip at 43 and a quick profit of 63 but that's a dip trade which is you can do as a scalp trade if you want uh the high is uh in the 70s it looks like 80s so watch right here i put my order at four dollars 4 000 shares so i'm ready to buy looking for the break of 75 added right there at 74. we've got 82 on the ask there's 87. can we break through nine dollars add it again i'm anticipating the break now took a little bit of profit at 91 it pulls back a little bit taking probably a little loss on the rest of the position at about 70 69 so it dips down again so showing a little choppiness here and this is where you have to be careful getting aggressive because when you start getting aggressive you can start over trading these and when you start over trading you can end up losing money right easy come easy go because once you've broken the ice and you've gone red then you start feeling like okay i'm going to keep trading let's see if i can get back to green alright so uh so now watch this level here orders at nine dollars and i'm looking to see if this can break through nine if it can break through nine then we're looking to move up to nine twenty five nine fifty again thinking about those sort of psychological levels so looks like i bought on this as it came back up holding in the red right now it's coming down to the volume weight average price and you know if i was going to look at this trade i would say not super great risk management it came all the way back down to v wap let's keep watching let's see oops so looks like we came up to nine dollars which provided an exit and let's see if this goes higher now so you can see that this one's starting to get choppy and this is this is exactly this is the type of algo stuff that we've been seeing a lot of so what we've been seeing are these stocks that break out and then immediately reverse so i'm actually going to do a separate video that i'm going to upload if not later this week i'll upload it next week and i'll put the link in the description once i upload it so those of you guys watching this days or weeks down the road you should check it out it's going to be specifically on market makers so it's something that we'll talk about a little bit more so all right um let's see and uh students uh students who are over at warrior we're gonna do a raffle uh later this month i already have some pasta and cactus sweatshirts set aside for you guys so we've got something coming up this month for students we've also got a new ira class coming up this month and what i want to do right now is go ahead and do the giveaway for one person during this live broadcast and i also want to recommend everyone who's checked out this video to check out the video on the simplest day trading strategy so i'm gonna post um the link probably in the top corner right up here for the simplest day trading strategy that video breaks down for you how to find the right stocks to trade and what i choose is my entry and exit now if you want to apply everything you've learned in this video of scalp trading to the simplest trading strategy which is trading the leading percentage gappers leading percentage gainers do it and let me know how it works for you absolutely you have to sort of combine strategies to get something that works really well for you some of you scalp trading is going to be too quick but i think for a lot of you who are into trading and this is why you're here you're going to really enjoy it okay so um craig haddock uh sorry greg greg greg haddock is greg here let's see if greg is here uh greg is the first name out of the hat so let's see if greg's here we'll give him a second to say he's here and if he is the win is for him the one year of membership greg where are you alright so i'm not sure if greg's still here he's got a couple more a couple more seconds greg are you here hmm well looks like he's not so oh there he is there he is greg haddock he's there all right very good so we're gonna give you a year of membership um what i want you to do is um send an email uh with just your um the proof that that's your username on um youtube send that over to us teamwarriortrading.com and we will get you squared away with one year of membership thank you guys all who tuned in today this is um this has been a fun a fun class it's not the last one i'll do another class real soon and again for those that have watched the whole video you're here because you want to learn i want to be able to keep teaching you so make sure you check out that video uh top corner on the simplest day trading strategy keep studying keep learning make sure you subscribe to the channel hit the thumbs up and reminders always trading is risky most beginner traders do lose money my results not typical so i want you guys to take it slow and practice in a simulator all right congratulations greg and i will uh see you guys back here tomorrow for the morning show right around 9am all right i'll see you first thing tomorrow morning you

Channel: Warrior Trading

Views: 481,479

Keywords: day trading, day trader, stocks to day trade, day trade, How to day trade, Ross Cameron, Warrior Trading, day trading strategies, day trading for beginners, day trading live, how to trade, how to trade stocks, stock trading for beginners, stock trading for dummies, penny stocks to buy now, wall street, how to day trade for beginners, learn to trade stocks, Scalp Trading, Scalp Trading Strategy, Scalp Trading for Beginners, Scalping, Scalping Trading, Scalping Strategy

Id: -0slMH7N6eI

Length: 106min 54sec (6414 seconds)

Published: Mon Apr 11 2022