Scalp Trading Strategy on Breaking News #scalping #daytrading #stocks #stockmarket

okay so we're gonna get this uh broadcast up and running here thank you guys uh for tuning in so uh today's special class is going to be on scalp trading breaking news that's the topic we're gonna jump right in those you guys who are tuned in thank you for being here this is gonna be a live broadcast for everyone that is um here and hit the thumbs up for every thumbs up i'll donate a dollar to charity so thank you guys for uh hitting that thumbs up it makes a huge difference for the channel and i want to remind everyone as we get started here that day trading breaking news is especially risky this is something that is not going to be for everyone you have to be very disciplined about which trades you're willing to take you've got to have a strategy of how you get in how you get out in terms of order routing in terms of scaling in terms of hotkeys you also need to be able to have a news source so i'll walk you through the process that i have this has been one of the strategies that for me in the last month has been really the most consistent that's not a guarantee that's going to work for you but it's for me it's been the most consistent but i think what's going to happen for a lot of beginner traders trying to trade breaking news uh is that you're going to struggle and uh i'm going to show you a little uh a funny little video here that um kind of to me is sort of like uh trying as a beginner to trade breaking news it feels like it should be easy this shouldn't be too hard you've got the news headline you see the stock you see the setup and this guy has managed to screw it up just like that so i don't want you to be that guy i want you to be a little bit more like me uh so let's see all right so why don't we go ahead and dive in here so we're gonna talk specifically about scalp trading breaking news and scalp trading is the strategy of taking really quick breakout trades so jumping in jumping out quick entry quick exit that's a scalp trade scalp trading um i think sometimes people get sort of confused about it you can be a you can scalp trade stocks going up you can scalp stocks going down really it's just taking quick profits that's all it is and the reason that i'm going to be an advocate of scalping breaking news is because when for news first breaks the stocks can move really really quickly but where you're getting in is probably already fairly extended so it's not going to be the type of trade that you're going to be able to hold on to for a longer period of time and and i'll show you these are a couple examples um this is actually an ipo and i'll show you a couple ipos here today because i sort of treat an initial public offering like a breaking news trade because when a stock ipos all of a sudden you know it's going to happen so it's like you know news is coming you know the stock's gonna ipo and you know that people are hyped up about it especially when it's a big one but you also recognize that it's probably going to be really hyped up it's going to open at a really high price and this is not the place to be a long-term investor you can't buy and hold usually at the ipo level but you can take a quick scalp trade you could take a day trade and i have trades here um if you guys want to watch some videos we could do i could show you this video of making nine thousand dollars on the door dash ipo making 13 000 on the airbnb ipo we've got the lyft ipo we've got the snapchat ipo so you know ipos i treat them very similarly as breaking news um and you know so this is this though right here is an example of breaking news where this stock goes from 28 to 37.38 in a matter of like 10 minutes and that's on news so the fact is news can happen it can come at really any time at any time in the day we can have breaking news however we know that there's a little bit of a pattern to the way news is released so what we know is that typically news headlines come out at the top of the bottom of each hour so starting at 4am 4am is when pre-market begins and sometimes you will see companies put out news as early as 4am that's fairly rare for a u.s company but there are european and asian companies that are listed on the u.s exchange so 4 a.m eastern standard time for them maybe you know later 10 in the morning noontime two in the afternoon and so they may put out a news headline that early but typically what we have found is that news headlines come at the top and the bottom of each hour so 4 4 30 5 5 30 6 6 30 7 7 30 8 8 30 9 9 30 and then going into regular trading hours usually we don't see headlines coming out as frequently um most companies will put their headline their news out before 9 30 market opens or after 4 p.m closing bell so those are the times that you're most likely to see breaking news i personally don't trade this breaking news scalp trading strategy after hours you could but i choose not to because it just doesn't really fit into my schedule i do all my trading in the morning so i'm focusing early but i'm not sitting down at four or five in the morning one of the problems with doing that is that most brokers aren't even open that early so you're not even gonna be able to trade that early even if you wanted to so it's not even going to be an option most brokers will open at 7. so i usually sit down at this point around 6 45 to watch the news headlines that drop at 7 am today we did have news on tklf um this was an example of a stock that had breaking news this morning and this pop was at eight a.m so if we look right at this candle here you can see that that was 8 a.m on the dot and the stock squeezes from 1.65 to 1.97 and a minute later was at 210. so you know that's a 20 squeeze almost a 30 squeeze in two minutes okay so that's why we want to look for breaking news so and just to kind of rewind for a second um i i don't know if everyone's kind of on the same page here with stock selection and what we're looking for but if you're a day trader what you're looking for is something that has the potential to make a big move right that's what you want you want something that has a potential to go up 20 30 40 in one day that's best case scenario the stock that i traded today that i did the best on pgy 8 418 the stock went up a hundred percent today from a low of five all the way up to twelve dollars so that's the type of stock that we want to trade now usually a move like that is going to be associated with some type of breaking news headline not always but usually so the way i sort of find these stocks uh some people say ross you know what are you subscribing to for um you know for for news feeds and stuff like that so i do have a number of news feeds that i use that help me see the headlines but the reality is all day long there are headlines dropping on that news feed all day long and 95 of them result in absolutely zero price impact on the stock the stock doesn't go up the stock doesn't go down nothing happens they're just like no one cares but that other five percent or maybe it's less man whatever it is that other small percentage do like what we see here on tklf the news drops and immediately there's a response so actually next week um i'm going to teach a class on algo scalping which is going to be a little bit different because we're going to actually talk about the nuances of what creates that pop and how to find that in real time as it's happening today we're going to focus on breaking news all right so to find breaking news what i'm generally going to do each morning is i'm going to be sitting down here 6 45 you know 7 a.m whatever it is and i'm going to be watching this scanner right here and i'm going to be looking at the stocks that are hitting it and when it comes up to 7 59 i'm going to be sitting here watching really closely now my broker window i already have it open so i'm ready to start taking trades right so i don't have i may have a stock that i had on watch from earlier whatever but basically what i'm looking for is right at the top of the hour a stock to start hitting that scanner so for instance tklf hit so tklf i type it in and then the next thing i do is i look at the chart tklf all right now when i'm looking at the chart so so when i see a stock hitting that scan i already know if it's 8 am 8 39 i already know that it has news because it wouldn't be hitting that scanner if it didn't have news alright so i already know that there's news on it so as it starts popping up i pull up the chart the reason i pull up the chart is for two reasons number one i want to look at the daily chart to see whether or not i think this is running into resistance sometimes we'll pull up a stock and um i don't know i'm trying to can't think of a good one right now specifically but maybe someone can mention one a stock that's underneath it's 200 moving average so you know you pull it up and i don't know sdig this one's going to be above the 200 i think but no actually it's below but anyways you pull one up and you're like oh it's coming right into this daily resistance level now i don't think i can trust that so i have to do a little bit of due diligence here so i type in the stock the first thing i look at is the daily chart and i want to make sure the stock isn't right at the 200 moving average if it's right into that level i'm going to consider it to be resistance i'm going to consider that to be a little bit too risky let's see we had psi do earlier in the week this one's above it we had dtss let's see what was that one dtss so this is one that um actually was above it but let's just say like on this day here 208 you know that that's the 200. so if i pull it up and i see that it's at 207 or 205 i'm gonna think it's right underneath that critical resistance level so to be to be a good day trader you know you can't just like watch one video like this and then start trading and you're gonna make money it's not it's not that easy yeah there's a lot of knowledge that you have to build up and you build it up by watching lots of videos taking courses reading books and then eventually practicing in a simulator and just doing that again and again and again and i remind everyone as always that you know trading is risky my results are not typical so i don't want you to think that you know you're going to achieve the same result as me i've been doing this for a really long time but one of my goals is to share with you everything that i've learned over my years as a trader in hopes that it does help you on your journey to learn more about the markets so you know being able to understand your 200 moving average that that's a significant resistance knowing that that's an exponential moving average not a simple moving average you know these are important things that are sort of i'm not trying to cover every single one of those in this episode but what i do i look for it to first hit the scanner all right so chicken or the egg what comes first the news of the scanner well it's the news but i'm not going to look at every single news headline that's hitting the wire all day long i'm going to wait for the one that actually starts popping up i'm going to type in the level 2 i'm going to look at the chart and then if i like it what am i going to do zbzt i'll do nasdaq test stock i'm going to press shift 1 just like that and i'm in a thousand shares shift 2 i'm in with 2 000 so 1 plus 2 is 3. this is basic math here shift three is three thousands now i've got six thousand shares and just like that i'm in the trade now i'm expecting of course that i'm getting in a breakout and it's going to go higher and in terms of the actual entry uh tklf what i look for is a um an entry around a half dollar or a whole dollar that's my preference now the reason i didn't take the trade on this one this morning uh it popped up and there were um two issues one the float 36 million shares i thought the 36 million shares that float is a little higher i know and many of you guys know that stocks with floats of under 10 million shares typically are more volatile so you get bigger moves when you have breaking news so the 36 million share float made me a little cautious number two the volume was a little light so i wasn't sure there was gonna be enough volume to really send it to the next level and number three it did a topping tail on this candle here hit 97 drop down and that topping tail is an indicator of weakness so the very initial price action to me looked a little bit bearish i wasn't sure it was going to hold and combined with the higher float and the fact that it's a two dollar stock it's a little on the cheaper side i said no i'm not going to touch that so this hit a high of 210 it then pulled back and then it curled back up all right now as a reminder um sometimes there will be stocks that have higher floats that i'll trade because the price action is so strong we're not seeing topping tail candles it is moving quickly and so that ultimately price action is the most important so if the price action is strong then it's worth it so this did come back up to 224 or 214 it offered a nice uh bull flag right here which again i didn't trade at this point this is um could have been a scalp trading the breaking news so the entry here would have been 214 and there's a move up to 225. it's only about 10 cents a share the next trade here could have been a quick scalp with an entry at 224 225 and then profit up at 2 30. so usually when you're doing these scalp trades you're risking 5 cents a share with the goal of making 10 cents a share you've got to keep stop super super tight you do not want to hold it and have it roll over on you because your winners when you're doing scalp trades are very small that's that's kind of the biggest um drawback to being a scalp trader is that you have small winners and then as a result when you eventually have losers if they're bigger you've got a negative profit loss ratio and it's really hard with a negative profit loss ratio to do especially well as a trader what i always aim for with profit loss ratios is to have at least one to one and then i focus on having my accuracy as high as i can if i get my accuracy up to 65 75 percent then that's good and i like to be have that um kind of that there's a mental benefit of being right more than you're wrong that i think is really helpful when it comes to scalp trading so having high accuracy with a tight profit loss ratio all right so this continues higher so the fact is even though there so there's two ways one here initially is the algo spike and so we're going to talk about the algo spike more in the class that's going to happen next week but if you miss the initial algo spike that's fine the next thing you have is actively scalp trading a stock that has breaking news you're going to have the wind at your back you're going to have more momentum on these stocks because so many traders are watching it and this was the leading gapper which means it was the leading percentage gainer in the entire u.s stock market today and again i still didn't trade it the float to me was a little too high the price was a little too low and the reality is it made a move but it wasn't it to me exceptional um i traded and i'll i could sell my nasdaq test stock there so bail on that um tblt this is a stock that i traded today this one had a really nice move as you can see here and honestly you can do scalp trades on on this just as well the entry here is going to be a quick break through the high of seven profit up to 710. there's a micro pullback right there at 742 you've got profit now up to 791. now you've got a harder sell off a pop back up and then this starts to form a near perfect inverted head and shoulders pattern do you see how that kind of looks like the inverted head and shoulders there a little bit of the arm the shoulder at the head and then coming back up and then off of that level you've got this double top here which base that bases out for a possible scalp trade through the high which is corresponding with the half whole dollar of eight so micro pullback there long over eight then you've got to pop up to 836. this would have been a little bit riskier on this entry here because you have a tweezer top right there and then you've got another level right up here at nine dollars so nine dollars and this is this just gets into actively scalp trading and even if this doesn't have breaking news you can still take these trades but generally the easiest way to find these is going to be earlier in the morning so between 7 a.m and 9 30 when we're seeing the stocks hitting the scanner so uh so this is the scanner that i use you know you could use whatever you want uh if you have some other scanner that you like or something like that um but this is um this is the software that i use so this is gonna show this is actually searching the market for stocks moving up right now and it's going to show you in real time as that stock is hitting new highs and it's going to focus on stocks that have lower floats because we know that those are the ones that typically make bigger moves so in starting at 6 45 i'm sitting here watching the scan and as soon as something pops up i first am watching the algo spike we'll see how much it pops up it pulls back and then if if it holds that level then we can start doing scalp trades as it's going higher quick entry quick exit because the problem is on a stock like tblt for instance you know this stock is still up 30 40 percent on the day this is too high to just do a long term trade on you can't do like an you can't invest in this for the next three months when it's up 40 in one day you're chasing the move but what you can do is you can scrape little profits off of the move and you do that by identifying areas where typically you'll see volume come in and a breakout and so for me the levels that are the most obvious and you can see them very clearly here are around half dollars and whole dollars you've got seven right here coming up to seven you've got a little pull back around 750 right here you've got another resistance around eight right here you had a little bit of a false break above and below the half dollar of 850 then you have it again here at nine and so when you learn to recognize that a lot of stocks trade in these levels at and around half dollars in whole dollars when you're seeing the stock hitting the scanner you're looking for that next level and you're looking for it to hold support at the previous level so this is a good example of this here on pgy it pops up to six dollars you've got your whole dollar here you could have done a scalp trade at 550 to six you could have done another one from six to six ten hits a high of six twenty drops back down what happens when it gets back over six it rips up here to what level 650 it gets above it it's not able to hold above it and now we're consolidating between roughly 650 and 675. when it breaks that level it came up to seven and if you looked at this on a 10 second chart what you would notice is that it came up to 7 it hit its head on that level it pulled back and then it snapped through seven and that pullback right there gave the opportunity for a quick entry so i actually bought that for the break of seven right there i added for the break of seven and then we get this move here up to 750 it hits 754 it pulls back it surges a little higher it pulls back and now the price action here is repeating what it just did between 650 and 675 but now it's doing it between about 550 and 575. sorry 750 and 775. so these patterns repeat themselves again and again and again and so the better that you can get at reading this price action the better you'll get at scalping the trades so you take the quick breakouts now some traders are going to take a longer approach on it you're going to try to buy dips off of moving averages and that's fine too one of the things and i actually i did an interview with a um a trader just this week so for warrior members it's in chapter 17 the interview with was with a profitable trader his name is nick so that in chapter 17 we have um a ton of interviews that i've done with profitable traders because i want to share with you guys and have them share with you some advice that they would give to beginner traders some of the tips and tricks what's worked for them what's the biggest takeaway and one of the things that nick was saying um you know which i i thought was really interesting um we were talking about scalp trading and what he said is your job is to find just one strategy don't try to do everything don't try to scalp and do dips and do breakouts and do bull flags just just try to find one try to find just one setup that is working consistently for you and then just do that and then once you've gotten comfortable with that then you can start to branch out and do others and actually um marcelo was reiterating the same point when i talked to him in one of my other interviews so i'm a big advocate of that and it doesn't mean that you shouldn't try to learn how to do dip trades off of moving averages or to dip off a v web or things like that but you've got to find one that works for you and so for me the one that i feel like is has been the most consistent in the last uh the last month or so has been this breaking news um type of trade so psydu for instance this was one where we actually got a trade on this yesterday let's see let's go back so right here this was the initial algo spike so the initial algo spike the stock goes straight up we're going to talk about that more in the next class and then it pulls back and then that's where you can base out for the next trade let's look at this um two days before let's see so let's go back here this was on it was tuesday okay so here you get this initial algo spike on this and it pops from 290 basically straight to 380. so again it's like a 30 squeeze in three minutes it goes straight up now if you missed this move you missed it and if you don't have the scanners if you don't have the news you might not be able to find it in time that's okay what you can look for is the first pullback and this is where you get the first pullback where you can take that quick scalp trade first calendar make a new high here then for the move back up and this corresponded with 350 half dollar right this is one of these levels where we again we just see this again and again and again dtss this was another one that we had this week um let's see this one was a little bit cheaper i see tblt going a little bit higher so dtss this one here same pattern initial algo spike it goes from 190 up to 240 it drops down first camel to make a new high boom good that's a great trade next trade right down here let it pull back again to the view app or you could take the trade through the high this is first candle to make a new high setup as well so you've got first candle on the pullback and then you've got the second pull back here and that's the first candle to make a new high in that pattern you'll learn these patterns and one of the things that nick also mentioned during our interview which i would encourage you guys to do is to print out these as charts print out these charts and take notes on them and put them all over your desk have these charts everywhere you want to study these charts study the charts of stocks that have worked really well you know stocks like tblt where you get this nice curling and you get this nice break higher you can see this level right here that snap through 867 and that curl right there it's not surprising when you have that double top right at that level and then it starts to pull away and next thing you know you've got this magnet back to the highs you've got pgy this is another chart that you should definitely print out i mean this is a really nice breakout right here back up to the highs this is what we would call a descending resistance line that broke really nicely right here gets back above 10 psychological resistance becomes support and then straight up to 12. two dollars a share right there on that breakout over this level i think one of the goal and you know it's not a bad idea also to print out um the trades that you actually took so you can compare what you did that has worked and what hasn't worked because the goal is to keep improving i've been doing this for a long time and i feel like i'm still getting better there's still more to learn there is no such thing as you know perfect level of trading like you can't get better you can always get better tblt you can see how it has this magnet up at the high and the question on this is whether it's going to double top here or you're going to get that squeeze through 9.33 this is a stock with a low flow 2 million shares it's got a high level of short interest you've got let's see tblt it's a 57 today i mean this is phenomenal this is really nice momentum and when you're trading a stock like this it's up 54 i feel like you get you sort of box yourself in where either you don't trade it at all because you're like it's up too much and i miss the move or you say i'm willing to do scalp trades i'm willing to do a quick breakout i'm in at nine dollars i'm out at 9 15. i'm back in at 9 25 to anticipate the break of 9 33 i'm out at 9 35 or 40. you know where you're just actively trading it and if you're gonna do that you have to have the discipline to keep your losses super super tight to bail out when it's not working and to be willing to get back in and if you can keep your your stops really tight then when you do have losses they're small and the winners when you get nice winners when you have that one that ends up really ripping you know those make up for several of the small losses so you know at this point tblt i wouldn't call it a um really like a breaking news type of scalp trade this would just be actively scalping a momentum stock which is more like what um pgy was as well all right so let me put that there um one of the things that um i'm going to give you guys a link too and i'll just actually put this um in the chat so uh those who are tuned in a bunch of you guys tuned in a little bit late to the broadcast thank you guys for being here today i want to remind everyone that uh for every thumbs up we get i'm gonna donate a dollar to charity so thank you guys for hitting the thumbs up there that makes a huge difference for the channel and what i'm going to do is i'm going to put a link here where you guys can download a couple of pdfs that i think will help you as you're learning a little bit more about scalp trading so there'll be a link um to download my micro pullback strategy pdf the small account strategy worksheet and you'll get some live trading archives which show video of my order execution and that's actually what we have um right here if you guys are interested in watching some of this or this but i'll give you a link where you can watch it as well and download it so check this out right here i'll put the link there and let's do a little poll um would you guys like to see a um a live trading video you could say yes or no for those that are uh that are tuned in all right um let's see and i'll put the link here for you so you can download that and let me switch here so this was an example here this is a news um spike that happened in the middle of the day so on this stock this went from 560 up to about seven dollars and so this was kind of interesting the stock first um hits the scans so the first thing that happened was it hit the scan as it was squeezing up that was at 1104. then at 1106 the news it actually appears on the news feed that i was using so the fact is the reason it started going up was because it had already hit some news feeds earlier and in algo these algos respond to certain types of news headlines so apple exclusive deal with this company that was a strong catalyst and it resulted in immediately the algos buying the stock so the stock starts moving higher now after the stock started to move higher it's the same news headline starts going and circulating among other news sources other traders start seeing it and that's when we as retail traders get the opportunity to jump on being able to actually participate and trade during the initial algo spike is going to be super difficult most traders um i'd say most beginner traders won't be able to do it i i can uh although i don't always it sort of depends on the the stock specifically and sort of what the liquidity is how much it's already up i try if i can but i'm not always able to um so let's see all right so um you guys wanted to see the um the live trading so i'm going to put that up here and by the way just for those that are tuned in on the the chat feed i just put the link to download uh the scalp trading pdf all right so let's look at um so let's look at the dash uh ipo because this is going to be a good example of taking a quick scalp trade there's no question about it trading ipos is like trading um it's it's like a breaking news scalp all right so we're gonna look at this here so what i'm doing with ipos uh basically it's honestly pretty much the same as the way i'm trading um breaking news so i'm sitting down for breaking news in the morning i'm sitting down at 6 45 and i'm watching the the my scanners at 8 a.m 7 a.m 7 30 8 a.m 8 30 9 a.m and then 9 30 going into the open so i'm watching for a stock to start popping up but i don't know which stock it's going to be right it could be it could be any stock it could be any stock that starts popping up that just happens to have news today i don't know which one it's going to be with an ipo it's a little different i already know that the stock is ipowing today but and i already know the price that it's going to be ipoint at i know the price that the shares were offered at so you have your ipo price the ipo price uh let's say a company ipos at ten dollars but then the first day of trading they start trading at 15. well the way that works is that the the company sold shares during its initial public offering at ten dollars a share but then between when those shares were sold and when the stock actually starts trading on the exchange enough uh investors and traders out there are hyped up enough about it that they're bidding to buy and get in on it even higher than the initial ipo so this is very common now when a stock is about to ipo i'll have the chart up and i'll have the level two up and i'm just waiting for all of a sudden the gate to open and for it to start trading and it's all they're always delayed they're always delayed they say they're gonna ipo around 10 a.m the ipo like one in the afternoon so and when it first ipos in this first um 10 seconds already 5 million shares of volume have traded so they open the gate and it's like the flood gate opens and by the way so the news that i use um there are some questions about news so we have a news um feed that's right here in our um uh as part of this um the software that warrior uses so we have um this news that that's put right into the room it's an api that we have with a news provider so that news goes right in the room and that's where i see a lot of headlines i can also jump over here if i want to pull up a stock i can scroll down and then i can see news headlines right here all right so i use these two sources for news headlines primarily all right so now let's go back to today this day here okay all right so um we have ipo'd and now i'm watching this for a long based on the way it's currently trading i think it's a possible long over 81.88 okay now the reason i think that is because it's just opened it's pulled back for a moment and then we're gonna look for the pop over this level so i bought right there 800 shares at 81.87 this this video by the way was years ago but i can already tell you that those are the levels that i'm watching because if this was ipoint today this is what i would be doing i'd watch the ipo and i'd be punching it right there for the breakthrough 82. there's 83 there's 84. that's two dollars a share instantly you can see i'm instantly up right there fifteen hundred dollars instantly now watch the break over 85. there's 84.50 85. notice how this is already trading at half dollars in whole dollars 84.50 on the bid 85 84.99 85 on the ask so i actually added up here for the breakthrough 85. we get this pullback this is not uncommon and this is why ipos are a lot riskier to try to day trade than standard breaking news standard breaking news there's 85 on the ask there's 86 goes right to 86 up to 86. are we gonna break and then 86.50 it dips down again we've got this one minute setup here where we're looking for the break over a hundred and eighty six dollars a share so i'm up six thousand on it already and that's in less than two minutes of trading that's scalping and ipo that was just the first trade now this is going to give us more opportunities i can continue to trade it so we can fast forward a little bit if we want um so let's back this up for a second all right so now we're pulling back here so we're going to dip back down and then we're going to watch first one minute candle to make a new high bottoming tail we know our high was 186 so we're certainly going to watch the level over 186. here we go one look at that look at that rip look at how fast that just went to 186 187 i mean these are wild you've got 6.8 million shares of volume now there's 190. buying the dip here for the break over 190. you can see how we're trading pretty much really look how stacked that is it's a big stack of sellers right there at 96. so you've got some algorithmic trading going on on this type of stock that's that's not uncommon there's 88 there's 89. there's a surge look at that look at that surge of volume there's 94 there's 95. there's 95.50 so as you go back and look at stocks like this you know again ipos these are particularly um risky because of how volatile they are but you had a couple opportunities you had first that first entry at um 182 and then you got that pop up to 85 that pullback it then rips back up here you did have a bottoming tail which would have been a dip entry for the first um pop their back over 8250 and then get a nice micro pull back there at 190 and then that continues higher the micro pullback um that's probably it's definitely one of my favorite ways to jump in these fast moving stocks it's not the only one but it's definitely one of my favorites so that was um the dash ipo let's look at uh airbnb real quick all right so airbnb and it's really the same it's this well actually let's hold off on that for one second i'll show you that in a minute um let me check let's see so there's dash there's uh airbnb there's that buyout headline we looked at that this is another one this was actually to the short side so this stock dropped from 43.50 down three dollars a share and it was pretty much instant so mobilized mobile shares selling off over a dollar instantly trading under 42 citron research short of the year 2016. this was years ago this is this this happens again and again and again it's the same setup you have that news instantly the market reacts and you get that flush and you know that was years ago but it was a the type of trade that we would see even today an initial drop pop up and then the short below 42.50 and then it just rolls over down to 42 down to 41 41 50 41 and then down below 41 down to 40 50 low then it curls back up down back to this moving average which where we so often see you know this kind of level of pullback and then curling back up um and for what it's worth i'm not going to say that this is a beginner's strategy you're taking you may think that this is a beginner strategy if you think about that's on you this is not a beginner's strategy scalp trading ipo scalp trading and ipo is high risk this is going to be very aggressive it's something to work up to what you'd probably be better off doing is starting on the breaking news trades that happen at 7 7 30 8 8 39 those are a lot slower they don't i mean something like airbnb facebook twitter snapchat these ipos are so huge they're hyped up so many people are looking at them so many people are watching them you're gonna have huge whips and you're gonna have you're gonna have flushes and then you're gonna have rips and if you can't handle that level of volatility you certainly shouldn't trade and certainly not with large size so what i would have what i would focus on is watching during the pre-market session watching the stocks that have news watching the stocks that are hitting these scanners and they're moving up and you can look at the top five top ten leading gainers each day today our leading gainer is pgy this one is hanging out up here around 12. and just look at the price action look at the pattern print out the chart and ask yourself where were the best places to trade this and realistically you know that when you're sitting down actually trading just because of how volatile things are that it often find you know it often feels for me at least easier to just jump in and jump right back out you know i don't know a lot of traders who are going to be like oh i bought this right here and i didn't sell any of it until right here it's like you're telling me you just held through this pullback and didn't sell even though you're up you know you held through this drop here you know it that that's not really the type of day trading that most people are going to do that's just like buy and hold most traders are going to be a lot more aggressive trying to get in and then get out so the reason that scalp trading appealed to me when i was getting started is because i was afraid of risk i was afraid of taking a lot of risk and basically from the second i took a trade until i closed a trade i'm in this state of kind of tense anxiety i'm afraid of it turning into a loser and so for me having my trade times be as short as possible helps alleviate that tension and that anxiety so when i was getting started doing a quick breakout like getting in a stock at 5.95 to expect an immediate breakthrough 6 and taking profit at 6 10 615 if i do that with 2000 shares and i had 400 of profit i was like boom i'm done two minutes long and i'm done and and for me that worked now there's other traders that are going to say no i'd rather take 100 shares and try to get three dollars a share or something like that and that's fine but i honestly think that you're trying to do something a lot more difficult pulling three dollars a share out of the market consistently you know i mean if you can scale that up you could be making 90 000 a day and that's not realistic to me to be able to get that much out of the market every single day there's a lot of traders out there and i've interviewed so many traders who are profitable there's a lot of traders out there who are making a living on 15 to 20 cents a day 15 to 20 cents per share per day but think about it with 5 000 shares 15 cents is 750 bucks right that's over 100 grand a year so 15 cents a day it doesn't feel like a lot but that could be the difference between being a successful trader and being one who who struggles and so for me focusing on where are the most obvious places where i can pick up 10 or 15 cents right that's just like bringing it back to basics and that's going to be at obvious breakout levels and it's going to be scalping stocks that have breaking news those are going to be the places where is absolutely going to be for me the cleanest and the most obvious and you know if you try to do you know 100 share positions and you're going to do that for the rest of your life and that means you need to make a dollar two dollars three dollars a share out of the market each day i think you're setting the bar really really high for yourself and i think that you're i think that you're probably setting yourself up for failure that's just my two cents that's just me i you could maybe there's people out there who have done it but like i said i've i know a lot of traders i've interviewed so many traders profitable and also one struggling and i just haven't found uh many people who have been able to consistently pull dollars a share out of the market each day and the fact is if you can then because the thing is if you make 10 cents a share out of the market with 100 shares you're only up 10 bucks but with a thousand shares you're up a hundred with ten thousand shares you're up a thousand but you can't buy a hundred thousand shares on most stocks and for ten and make ten cents a share because you're gonna get slippage buying and you're going to get slippage selling so it's you know 5 10 15 cents a share there's a there's a ceiling to how much money you can probably make as a trader if you're making dollars a share that's like hedge fund stuff that's where you know you're gonna get hired to work at a hedge fund and be trading millions of dollars a day because the people who can pull dollars a share out of the market every single day consistently i mean they're rare they really are so i just you know some i've met traders before who have been like you know i'm just gonna i'm never gonna trade more than you know 100 shares and um the at least the one trader that i'm thinking of that had that belief he would it surprise you to know that he's no longer trading that he gave up he set the bar way too high he didn't want to take big size he only wanted to trade a hundred shares and you can't make a hundred dollars a day with 100 shares unless you're getting a dollar a share out of the market that's a big move especially in a bear market so anyways that you know that's um that's the approach obviously uh those trades on um doordash and airbnb those are particularly volatile trades you know the profits pretty good but the risk is high certainly had the risk of being down 10 000 on either one of them and uh managed to be up 10 000 on both of them but it could have gone the other way um most of the trades that i take something like a tklf this morning um you know this is a stock that i might have had i decided to pull the trigger probably would have bought six thousand shares uh maybe nine thousand maybe ten that would have been a nice trade here probably getting in just before the breakout to anticipate it at 214 pops up to 220 micro pullback goes up to 224 that could have been a thousand dollars right there this initial trade i like i said i wasn't because the first candle had this topping tail that was already a little bit of a red flag for me uh but if i'd gotten in as it moved higher 225 another 10 000 shares up to 235 240 it could have been a couple thousand dollars i i know some traders were talking about having made some money on it today so i just you know the fact is you're never gonna catch every opportunity some you're just gonna miss it you're gonna choose not to trade it it ends up going and you can either chase it or you can say well i missed that one i'll get the next one and that's my approach so if i miss one and i don't feel like i can chase it it's up too high it's too extended i wait for the next one and we ended up getting it on um on pgy and you know in this one we got the rate of change which was phenomenal you know it went up uh 75 cents 10 percent in the first two minutes of the day pulled back and then rips up another 20 i mean this thing ended up moving very very quickly so this this paid paid off pretty well let's see so uh two other things here um for those that uh have just gotten tuned in reminder there's a link that's pinned to the comments that you guys can check out if you want to watch more live trading archives if you want to see the micro pullback strategy as a pdf with the steps of where to get in where i get out how i find the setup what the pattern really looks like in more detail you can check out that pdf that you can download i've also got my small account strategy worksheet for those you guys um trading with smaller accounts so you could check that out and um oh i want to remind everyone that for every thumbs up on the video uh donating a dollar to charity so thank you guys on the live broadcast for hitting the thumbs up i really do appreciate you guys we've got the stock market algo and then we've got the youtube algo so thank you guys for helping feed the youtube algorithm all right so um i wanted to keep this as kind of a shorter class i think that um the the one other thing that i would mention which is probably really um important for you guys those you who are at the beginning of your learning curve i want to encourage you to do something that most of you probably won't do but i'm going to tell you you should do it anyways you should practice for at least a month at least a month practice in a simulator now if you lose money that first month in a simulator don't trade with real money the next month but wait till you've had your first profitable month in the simulator and if you've made money in the simulator whether you're using td ameritrade or using you know whatever simulator doesn't matter just practice for a month with pretend money because you know the stock market as you know is it's pretty brutal you can lose money very very quickly so practice for a month in a simulator and then when you're ready to flip the switch i always encourage traders during the first couple weeks of trading with real money to use 100 shares not because i think you should try to get a dollar a share i still think even with 100 shares you should do 5 cents 10 cents 15 cent type of quick quick trades get in get out it's proof of concept and for those first few uh weeks of trading in a trading with real money with 100 shares if you're consistent then you go to 200 then to 400 then to 500 then to 800 then to a thousand you start working your way up scaling up you want to move up pretty quickly you don't want to sit at 100 shares for forever you want to scale up but what you don't want to do is your first week of trading with real money take 10 000 shares and lose 30 grand you you know i can tell you that you will be a more experienced and more knowledgeable trader six months from now than you are today so save that big high-risk trade for the you of the future because that person will handle it better than you could possibly handle it today so take it slow the market will be here for you it's not going anywhere i'll be here and if you want to keep learning we'd love for you to check out more episodes i'll put a link um i'll put it right up in the top here for the other video that i did on scalp trading which i think you guys will enjoy and i'll put a link to a second video right here which has also been really popular so check out those two videos to keep learning and i'll see you guys for the next episode really soon thank you for tuning in today i hope you guys have a great rest of the day so you

Channel: Ross Cameron - Warrior Trading

Views: 22,790

Keywords: live trading, ross cameron, scalp trading breaking news, trading, trading warrior, warrior trader, warrior trading, warrior trading live, warrior trading scalping

Id: cafLK0I1NdQ

Length: 51min 0sec (3060 seconds)

Published: Fri Jul 22 2022