Scalping Trading Strategy - 3 GOLDEN Criteria To Increase Profits

scalping is not easy you could make fast money quick but it could also be extremely risky if you don't do it the right way welcome back to another humble Trader video where I have made hundreds of day trading videos including step-by-step trading strategy tutorials and pro tips a lot of you guys are still asking me to teach a very specific trading strategy which is scalping I get it who wouldn't want to make some quick profits in a couple of minutes and sometimes even a few seconds in this video you are going to learn the three key criteria for scalping the best indicators and chart setups and how to find the right stocks to scalp once again make sure you smash the like button and subscribe to the channel especially if you want to learn more trading strategies that actually work if you're relatively new to trading I really hope you pay 100 attention to this video because it's is really going to help you out let's go let's start with my scoping criteria number one I would only scalp if a stock is having a daily break out or breakdown so looking at the charts here etmb this one is you can see gapping up to pre-market around six dollars from prior day skills of five dollars now if you look at the dating chart around the six dollars mark this is what I call the intraday key level this is a huge breakout on the daily chart looking at a chart you don't have the prior resistance around sixes until the beginning of the year so this is a huge level this is essentially a breakout about 52-week highs the reason we want to look for stocks are breaking out of a daily key level like this one is so we can have a lot of range to the upside so you can see this thing once broken above the six dollars resistance pre-market this thing ran all the way to seven dollars pre-market around here and at the open the spike to 770s in order to get the range we want we need a daily breakout now this will be crucial whether you want to loan the stock or short the stock because once you have that range that's broken out you can see you have a dollar Gap to a downside once I decided to short the stock and if you're looking to scalp you need range to make your money right when you're scalping you want to see stocks I'm making 50 cents move a dollar move or more you're not gonna be in here trying to scalp like five cents for me um I looked at how the stock is opening into um the 770s area from the key level so that gives me around a dollar downside if I were to short the stock so that's why I got in the stock short around 750 760s right at the open and look for the downsides to word view up breakdown to what seven dollars and six eighties area so this big of a range is what we're looking for and you can see after about 10-15 minutes after the open my trade is closed I got it why I wouldn't look 4 on the scalp side and the trade is done the second must-have criteria when scalping stocks is above average trading volume on a particular stock we talked about range earlier for the stock and while that is important in most of all you need the volume without volume you will not be able to get in and out of a stock really quickly which is really essential if you're looking to scalp and using the scalping strategy so back to the example we have here on etmb you can see the stock on the daily today um trade around 35.9 million shares volume and that's that's above average you can see on the daily this in trades on average about like 1 million at most on the high end and usually trades about 500 000 shares so on any normal day you will not look to trade the stock at all not even just to scalp it so looking at the scanner for the stock pre-market you can see etmb was the second gapper on the day gapping up to around 35 since prior day is closed and the volume on the day was 14 million a pre-market and on the average daily is only trading about 300 000 as we can see right here so this is how you can really quickly find out if a stock is trading above average volume and when it is it's usually going to give you above average range on the stock and that'll be perfect for scalping another very crucial thing to mention about the volume is that usually when you have above average volume you're gonna get no more spreads meaning that the spreads and most you'll get on this example here you get a one cent or two cent spread the spread is the difference between a bid and the ask so if the spread is really thin that means you have less chances of getting slippage and losing money when executing so looking at this other example here nrbo you can see the spread is about 50 cents and that's already really high but earlier it was actually around 70 cents to a dollar so if you are looking to scalp a stock this is the kind of stock you want to avoid higher spreads lower volume and lower range so you definitely want to avoid it now the third crucial criteria for scalping is that you want to make sure you're picking stocks that can give you minimum of one to two or even greater risk a word so here's my true opinion about scalping strategy and this is one of the reasons I almost never talk about it on my channel is because scalping strategies usually the risky word is only one to one or sometimes even less so meaning you can be risking one dollar to make one dollar or one dollar to make 70 cents so that's the reason I think in my opinion don't hate me I think scalping is not a reliable strategy long term I think it's one that's enough to get you around for you know a couple of small trades here but also long term you want to develop your scalping strategies into a big good picture kind of trade so here's an example of a scalp short side I did on Oracle and I didn't do that well on it because as you can see the risk award is not that great I risked it about 70 cents to make a dollar which it's okay but it's not exactly one to two essentially you want to look for entries around key daily levels so if I was looking for the short on the stock which I did short around the pre-market areas around 78 80s and above it you have a small resistance around 79 dollars here as you can see on the daily so that would be your short entry and ideally once you enter the stock short you want to use the higher day as your risk so if I entered around the 7890s area my risk is about 50 60 cents off the Hyatt day so I'm risking 60 cents now we're looking at a downside for the stock can the stock have a lot more downside than 60 cents ideally I want to see a dollar a dollar 20 or more so if the entry is here let's see the downside you have the after hours small level here around 78 dollars so that's 80 cents to a downside and then after that yeah prior days closed area around 77 so that means I could potentially make about something to do a math really quick I could potentially make 80 cents or a dollar eighty cents so downside so that means I could potentially make one to two risk a word so this is a trade for a scalp that makes sense now that we cover the three key criterias for scalping now I'm gonna show you guys how to set up a chart and the Heidi Heidi requested indicators for scalping so make sure to smash the like button and make sure to share this video with your friends who are also looking to get into scalping strategies so in order to do the scalping strategies well you need to make sure you have a very fast execution on your broker platform no unfortunately your thing with swim is not going to to do it your Robin Hood's not gonna cut it either they are not fast enough so what I use right here is Center Point Securities connected to dash Trader Pro as my platform so let me show you how I set up my charts I like to have my daily chart on the left side here this is a daily chart I have my volume and the daily candle and introdate I usually actually use around two minute charts sometimes five minutes to do the scalps for my stocks so this is remember intraday chart side by side with the daily chart just because of all the criteria we talked about earlier we need to use the daily key levels so that's why we want to have it side by side for you to spot it really quickly so besides the intraday chart windows I have my order entry Montage window here so this is the level two for Center Point level two this is where you enter your tickers here Oracle um and level two and usually I have time in sales on the side but hitting in the window dough and one thing that's very notable about this broker platform is that they have really extensive lists of advanced routes so if you click the drop down menu here you see a huge list here I actually use only about four of them they have a lot of advanced one for OTC stocks if you trade those I don't trade OTC stocks but they have different ones for adding to liquidity and removing them getting rebates from different exchanges so that's very very useful you can check out the website with a really extensive list of all the routes the descriptions and how much rebates you can get so this is what I use in terms of execution I just really quickly lower the price by clicking the level two bit and ask and click sell or short and buy or cover while I'm doing these really quick scalps again they load really quickly and That's essential if you're looking to scalp and this year in 2022 it's been a heaven for short sellers especially if you are scalping on allow all of these low float pump and dump stocks so you need a broker that can give you all these locates in order to scalp and do these Short Selling strategies so a lot of times I have my locate window open and how you get there is go to trade um short locate that's how you call up the short locate window so earlier if you look at etmb I believe that stock was actually easy to borrow so free to borrow so what you do here is enter the ticker enter the number of shares you're looking for let's say I'm looking for a thousand shares and just quickly inquire all and the stock is already shortable that means it's free to borrow so it doesn't cost me anything to locate the stock so that's a really really great benefit so looking at another example here this is a different stock that ran today aehr went from 14 to 16 so if I was looking at a stock I'd probably look for 17 short on a daily back to retest of the daily resistance so if I want to shorten the stock and scalp it really quickly I need to make sure that I can go into the short locate window type in the ticker how many shares I want and click inquire all and you can see it's gonna cost me um 17 to locate for a thousand shares on the stock so if you're scalping these quick volatility on the stocks just make sure you have access to the easy to borrow stocks as well as the hard to borrow stocks if you're interested in Center Point Securities they're actually running an amazing offer right now giving away a lot of trading softwares and huge discounts so make sure to check check out the promo link down below if you're interested thank you to Center Point Securities for being a humble Trader partner now moving on to the juicy part how to set up your indicators for scalping looking at my platform here on a chart all I have is this purple line here and that's v-wap and that's all I use I also pair that with a volume indicator at the bottom I use a volume average indicator I have the period of I think 13 13 volume average indicated down here so what you do is I look at how the volume is breaking out above the average down here in this black line here a volume is breaking out and consistently holding above the average that means the stock has more downside if I'm looking to short the stock which as the earlier example you recall I was shorting the stock so that's how I use the view up indicator I used to break down as the price Target and I use a retest you can see all these little retests around the viewab area of 680s I use those as my additional entry points if you want to learn more in depth about how I use v-wap the indicator for all of my trading strategies not just scalping then you can check out this video over there I explain how I use v-wap indicator in detail next we're going to talk about how to find the right kind of stocks to scalp we talked about earlier with our three criteria we're looking for stocks that's breaking out of key level trading above average daily volume and also can give you above average risk of worth greater than one to one or one to two so how exactly exactly do you look for them and this is where a technical scanner really comes into play so what I use and I've been using them for many many years now is trade idea scanner so if I show you really quick here this is what my trade idea scanner looks like I have my pre-market gainers so if you scam for stocks that's you know gapping up usually they are gapping up above the key levels or you know the Gap Downs over here on this gap down scanner it's showing stuff that's gapping down below the key level so that's a really quick way for me to scan through all the stocks that could be potentially good to trade and it also shows you the volume on the day pre-market so volume today compared to the daily average volume over here in this column so I can really quickly compare side by side how the volume today compares to the average volume and see whether the stock is trading above the average and this tool trade idea scanner is one of the many tools included in the center point promotion for free so make sure to should take advantage and check out the link down below I used to pay thousands of dollars per year for these tools now I get them for free if you're interested in Center Point Securities you can check out my link below for 50 off on commissions and short locate including trade ideas and many other tools for free for 60 days comment down below if you've been using scalping strategies and if any of the tips in this video helped you out if you want to see more make sure to let me know down below if you want to learn more of my trading strategies Beyond just scalping but looking for the bigger picture trades then make sure to check out the humble Trader Community down below thank you so much for watching as always I'm the humble Trader and I will see you guys next time foreign [Music] [Applause] [Music]

Channel: Humbled Trader

Views: 161,740

Keywords: humbled trader, day trading live, day trading, live trading, stock market, stocks to buy now, trading live, scalping trading strategy, scalping strategy, 1 minute scalping strategy, 1 min scalping strategy, stock picks, stocks to buy, scalping trading, trade ideas live, tech stocks, tesla stock, trade ideas, bitcoin, tsla, btc, top stock picks, penny stocks to buy now, nifty live trading, tesla stock prediction, nifty prediction, bank nifty, bitcoin price prediction

Id: E8jZkhBOmEE

Length: 15min 14sec (914 seconds)

Published: Thu Sep 29 2022