ULTIMATE Scalping Course For Ambitious Traders. *Intermediate To Advanced*

learning how to effectively scalp in the market has taken my trading from unprofitable to profitable it took me years to be able to do this though so let me walk you through Basics and what I learned along the way to help speed up your learning curve and get you closer to becoming as profitable and successful at trading as you want to be before we get into the nuts and bolts of an actual strategy let me walk you through some key details when it comes to scalping now first off scalping is looking for small moves in the market you're not looking to hold over long periods of time generally you're looking at one minute charts two minute charts five minute charts and trading based off of those and you can be holding a trade depending on your chart anywhere between a couple of minutes or a couple of hours but you're never holding over multiple days now the first thing to do when you're starting to learn trading and especially scalping is open up a broker that allows you to demo account what a demo account does is it just allows you to practice trading in the Market with fake money and when it comes to trading mistakes lose you money when you're learning anything you're gonna make mistakes but with trading you're gonna actually lose money when you make those mistakes and so making those mistakes when you're not going to lose money is extremely important because if you lose your money that you want to put into trading right away it's gonna wash you out of the game and you're not gonna be able to give it the time that it takes to become successful at once you have a brokerage set up an account ready start demo trading with a specific strategy you have to have a strategy when it comes to trading because if you just try and trade every move in the market you're going to be losing a lot of money because it's very hard to know exactly what the Market's going to do all the time the way I have found to be profitable in the market is look for one simple pattern over and over wait for that pattern to show up and then execute on that pattern and everything else that happens you don't care about it makes trading really simple and boring at times but it actually may made me profitable after the years I spent trying to figure out every move in the market and so the keys to a successful strategy is you need to be analyzing Market structure you need to be looking at key levels in the market and then you need to have a plan for your entries your exits and your risk management these things are going to make you a consistent Trader if you can create rules for them that you follow every time now first to go over some quick Trend Basics a downtrend or a bearish trend is basically just created by lower lows and lower highs in the market now what you can do to analyze these sometimes is you can create a trend line or sometimes they'll create a trend Channel a good example of a downwards trend is this downwards Trend right here that the Mark was in it was in a very clear downwards Trend without many pullbacks and that's what we want to be looking for when we're analyzing the market we want to be trying to figure out what type of trend it is and then of course on the flip side a bullish trend is created by higher highs and higher lows what I mean by a higher high is this swing right here is higher than the previous swing and then this low that it makes in its uptrend is higher in terms of where it is priced on the market is higher than the previous swing low and so what that tells us is every time the market makes a new swing higher that the high that it makes is higher than the previous one showing strength in the market and then every time it pulls back bottoms higher than the previous one that essentially shows that the market has a lot of strength it's more likely that that price keeps going higher and higher and so that's how we identify a trend in the market and a good example of that is this trend over here where the market started to make pretty good consistent higher highs without many pullbacks now when it comes to trading though is these Trends will never show up the exact same every time you know I can draw a trend that looks like this and in reality the trend will more look like this or in a different day the downtrend can look something like this where it's making a lot bigger pullbacks and then it goes into smaller pullbacks and so because of that you need to spend time practicing and reading the market because the market never ends up looking the same all these downtrends and Swings in the market will always look different no matter what is happening and so that's why it's so crucial that you spend a ton of time looking at the charts and reading the market because you have to get used to the fact that they're never gonna fully look the same but even though it never looks the same there's still patterns and things that you can recognize to determine what the trend is now the other trend is more of a range bound Trend where it's just the swings are not really making higher highs they're not really making lower lows and you can pretty much draw a line connecting the highs and a line connecting the lows and the potential idea is you can can bet that the Mark's going to go down when it gets to the higher area and buy the market when it gets to the lower area now what these can actually be called is resistance and support because the idea is the market is coming to these areas multiple times and so there's something that we can keep track of going forwards and potentially look for the market to bounce off of that support level and then push higher and from there we can take a profitable trade what I like to do when it comes to trading is look for support levels in the market bet that the Market's going to go up off of that support level and make money based on that now I purely trade off of just looking at the candlesticks in the market and reading what the market is telling me I don't actually use any indicators like moving averages because I have found that a lot of the time those are very easy click bait in a way it's very easy to think that oh if I have this and cater a lineup with this indicator I just buy and I'll make a profitable trade it's very easy to think that and have people tell you that and in reality trading is nothing but easy I'm definitely not saying you can't be profitable trading with indicators but any strategy when it comes to trading takes a lot of hard work and you really at the bottom line is you have to be able to read the chart of what the trend is telling you and those indicators are based off of the price of the candlesticks moving up and down and so if you can read the candlesticks what they're telling you well you can basically figure out what an indicator would be telling you anyway and so for me I have found that just focusing on the candlesticks and reading the trends of where the uptrend lines are where the support and resistance are and just reading these swings of the market has made it a lot more profitable for me as a Trader and so one thing is it's important to know when the market is going to reverse it's pretty easy to know okay I have an uptrend and the Market's in an uptrend that I can expect it to keep going in that uptrend and there's a couple key ways to know that that is going to shift now a super basic version of that is if we just look at our simple higher highs and higher lows when the Market's going up well when the market shifts to a downtrend well it's going to eventually shift to making lower lows and lower highs and so essentially as soon as you see a lower high in a swing get put in you can start to assume that the trend is going to potentially shift that this uptrend over here is now broken and the market either is going to start going in a downtrend or go sideways it could continue an uptrend for a little bit longer but the key signal here is that the trend is starting to break same thing on a downtrend is if you have a nice clear downtrend drawn and the market starts to break that downtrend and then make a higher high it's more likely that it's going to signal that the downtrend is breaking a really good indicator of that right here is this downtrend right here you can see we have a pretty clear downtrend and the Market's hitting this downtrend nicely and then your next couple signals for this is well it breaks your downtrend right here where these candlesticks break above the downtrend line and then as well the market eventually makes a higher low right here as well and so I think that's in a really really powerful signal of looking at when the Market's going to reverse and it's extremely extremely simple same thing with this uptrend that we had right here is then the market switched into an uptrend started going up you can see we can kind of just confirm that uptrend off a couple swings right here came back touched that again touch it again touch it again but you can look before is just looking at the swings is they kept making higher highs right the main swings were making higher highs and then all of a sudden it starts just kind of petering out it starts losing momentum the highs here aren't really getting much higher this one right here is a little bit higher but it's pretty much same and then these next couple ones they don't really make a new high and then you have that Trend break it makes a push lower it does push one more time higher but you can see it pretty much Peters out at that point and so that's a good signal that the trend is over and so you'll hear us saying a lot of time the trend is your friend and by all means this uptrend is your friend until you start to see a reversal signal so it's extremely important if you're wanting to trade with the trend is that you pay attention to the signals that the trend is ending and it's going to reverse it's very easy to spot these Trends because if you just see over time you know they're making a couple touches there and you can bet off of this downtrend here that the Market's gonna go lower but as soon as you start to see these signals the trend is slowing down you need to be aware of that and understand that the trend might shift in a big way now the key when it comes to trading is having a strategy that you stick to every time there's so many different ways to analyze the market even if if you use indicators read price action or the candlesticks like I'm doing here there's still so many different patterns and ways that you can trade the market you can look for continuation trades off of trend lines or you can look for reversals when those break and there's a dozen of other things you could be doing between those and the key is to focus on one thing when you start out and in reality you could just focus on that one thing for your whole trading career and just scale up how much you're betting every time because the biggest trap that Traders fall into is trying to capture all those moves in the market and so what I have found that works for me is focusing purely on reversals when the market is looking like it's gonna stop its Trend in Reverse now when you're entering into trades you need a clear checklist or strategy that you follow every time you need to something for an example you wait for the market to get to a support level you analyze when it looks like it's made a double bottom and that trend is slowing down and looking to reverse and then you jump in when it's confirmed that that trend is going to break and you can bet that the Market's gonna go higher you need to have this down to something every time that it's repeatable the bottom line is trading is a numbers game if I take 100 trades and I only win half of them but when I lose I only lose a hundred dollars and my wins are 200 well you're gonna be a profitable Trader over the long run it's not about the ego of being right every time it's about just consistently sticking to something that over time statistically comes out ahead it's all about having that edge in the market and consistently executing that edge and so that's where having a good exit strategy comes into play as well to where if you jump in a trade right here betting that the Market's gonna go up where is your profit Target going to be I think a great spot to start out is having a two to one risk reward ratio where you risk a hundred dollars to make two hundred dollars because again it's gonna give you that wiggle room of hey if I'm right only half the time I'm still consistently profitable over the long run and so your platform that you have will have the ability for you to when you're entering a trade it'll automatically put in a profit Target and a stop loss for you this is called a bracket order or an Oco order and it's very beneficial for keeping your trade consistent and the same now a stop loss is where you want to get out of the trade learning where to put this can be pretty tricky as well but for me I have realized with at least when I'm looking for reversals I like to put it below the most previous swing because the idea with how I read the market is I like to go with the swings and if the market comes up here and breaks this previous swing well I think it's probably gonna keep going down in that downtrend because that's how I read the market and so try and find a logical spot to put your stop loss some people like to just use a a fixed amount but I always have found it very beneficial to keep it below an actual significant area in the market and then adjust my profit Target based on that to be two times my risk down here now as you get better at trading you might find that you want to adjust how you manage a trade over the years I started out doing this type of fixed profit Target and fixed stop loss but now I like to use a more fluid management style where I like to try and read the market and see okay do I think it's going to keep going up I'll stay in or do I think it's going to reverse on me and come back down well then I should probably get out and so that's what I like to do but that's taken me years and a lot of analysis to get good at and so I definitely suggest sticking with more of a fixed strategy right away is so complicated it has so many things throwing at you right away stick to a fixed profit Target first when you start trading you'll realize trading is extremely emotional and that's really the the challenge when it comes to consistently sticking to your strategy is the emotions that come up either the doubt that oh am I even trading a profitable strategy or you know even just having that 50 win rate being wrong half the time is really hard to deal with even if over a hundred trades you would be profitable with a one to two risk reward ratio and so dealing with the losses makes it hard to try and stick to your strategy but that's what you have to do with trading is deal with those emotions and stay with your strategy one thing that is extremely important when you are trading is have a fixed loss for the day it can either be something like four losers or a certain amount but let's say that you risk a hundred dollars per trade and you set a 400 Max limit the whole idea of this is some days you're just not going to read the market well and you might be frustrated about that and you might let's say lose two or three trades right away very quickly and then you start trying to make it back up you're trying to look for spots in the market to take trades and essentially you start over trading and you start Revenge trading and you could dig yourself a massive hole when it comes to trading and what this Max loss limit does is it stops you from blowing up your whole account losing is a part of the game but if you get out of control and blow your account up or take a significant loss for the day it's gonna make it that much harder to climb out of and your progress is going to be even more setback and so that's where the risk management really comes into trading is stopping yourself from blowing up your account because you over trade or starting out with as much money as you can right away you know for example let's say you want to invest ten thousand dollars in trading and you want to try and see what you can do with that and there's a lot of good strategies out there that seem like they make a lot of money and you want to start making money right away well when you first start out you're going to be losing and making mistakes right away and it's way more important to learn from those mistakes and stay in the a game of trading instead of blowing up your account and not having money to continue trying it trading in so start out with a really small account of 500 or a thousand dollars and build up from there you can always scale up your account and how much you're risking per trade but if you blow up your account you can't scale back down very easily and so let me quickly walk you through the strategy that I use to give you an idea of what a scalping strategy can look like and so I use a one minute chart to trade off of and you can either use a one minute chart or a five minute chart those are generally pretty good starting points I do not recommend going smaller than that don't go to a 30 second chart or 15 second chart those are way too crazy but for my strategy what I do is I have that very simple strategy entry checklist all I look for is a support level where the Market's bounced off of previously I like to create a Zone instead of a level because you you know you can see the market will come to the bottom of the zone or it'll sometimes just bounce off the top of the Zone like it did here and so what a Zone does is it allows me to think okay when the Market's down in this area anywhere in this area I can expect that it's going to find some level of support and then once the market gets that level you want to see where it is in its Trend and so to see that we're making sure we're not really in a downtrend you can see that the swings are starting to get higher on the lows and you know we haven't created a new swing High yet but that's okay you know sometimes it doesn't do all of that in play right away but the key is that the market kind of made a double bottom here and it was higher than down here and now there is this downtrend line here that I'm kind of betting into and we'll get to why I did that in a minute but so to quickly talk about getting into this trade what I like to do is once it's kind of made that little bottom here in a pullback I like to get in once I see that signal and then again put my style stop loss or where I'm gonna get out on the trade below this swing because again I think if the market breaks this swing here it's probably likely it's going to keep going lower and so I want to get out at that point just move on there's totally times where the market can break right here and then swing back up and start its new trend going up and that's totally possible but what I have found is it's less likely that that happens and it's just not worth the extra risk that you have to add on to try and get those couple outliers I try and approach training with trying to just get the easy money and get out because that is a lot easier to do I found that it's way easier to do that and so for this trade what I saw was there's a little Candlestick double bottom right here as well and so what I like to do is I like to get in on a really bullish Candlestick and so what that is is just a really extreme bullish candle is like this green one right here where the market essentially just opens here and closes all the way at the highs or this bullish reverse Candlestick right here is it essentially looks like this is the market basically opens up here tries to sell off and then reverses and closes at the high so that's a really bullish indicator for a reverse one so I like to jump in right when I saw that and then again let the trade play out and so quickly to just zoom back here of why I felt okay going into this downtrend is that I take a more fluid management style at this point because I'm going to read the market and adjust my stop-loss base on that and so my reasoning is well if the market does go all the way up here I can move my stop loss to break even and I can take all risk off the trade and there's no more risk for me in the trade and so once I see the market kind of get up to that trend line here I move my stop loss right there to break even and so if it decides to come up to this trend line and reverse and knock me out that's okay I haven't lost any money but taking this trade allows me to catch the potato potential move that we have higher and so that's a little bit more of an advanced management and strategy style but that's why I felt okay going into this pretty clear downtrend that the market has here and then from there you can see I'm analyzing in real time I'm thinking okay there may be a resistance level up here as well that the marker might be butting into and then I like to draw trend lines and analyze what the trend is as well you can have bigger trends like this as well but you can also have smaller trend lines like this and so this right here is a really tight trend line and so I want to get out of the trade when it potentially breaks that and so the market keeps kind of chugging along up here and I elect to to get out at these highs because it's pretty much over extended at this point you can see based on just the swings in the market is the Market's been making moves up and moves down okay we've made kind of a move up it's likely that we're going to get overextended and have a pullback at this point and so I am getting out a little bit before this downtrend line here potentially but that's okay I'm almost three or four times my risk with this trade I found that when I am up three or four times my risk I actually want to be a little more tighter with my tighter with my management style because the Market's likely to have a pullback once it gets up there and making that much money is a really big win and so essentially get out at that point and so the market kind of just keeps chugging along here for a while and I'm just using the previous Candlestick as a trailing stop loss at this point so you can see I'm just moving it up slowly and essentially waiting for it to have a pullback because I want to allow it to run and keep moving up like it is but as soon as it has a pullback that's a pretty big bearish bar I think it's good to get out right the easy money is over and that's the importance when it comes to trading and so I am not actually trading stocks here I am trading Futures and Futures allow you to day trade with a really small account and so if you want to learn more about Futures and have a deeper dive into the strategy that I'm showing here check out this video right here it will go way more in depth into the nuts and bolts of Futures in this strategy

Channel: Riley Coleman

Views: 265,871

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

Id: 0HYc839Hl24

Length: 22min 17sec (1337 seconds)

Published: Sun Apr 23 2023