Scalping: An Effective And Highly Profitable Trading Strategy (part II)
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- čas přidán 13. 02. 2020
- In this video we continue with part II of our series to introduce an effective and highly profitable trading strategy - scalping. Learn more trading strategies here bit.ly/scalpingtradingstrategies
#scalpingtradingstrategy #scalping #daytrading
SMB Disclosures www.smbtraining.com/blog/smb-...
Learn more trading setups our prop desk uses: bit.ly/scalpingtradingstrategies
great videos its identical to how i trade, but i picked up some nuances, thank you !!
Don't listen to this garbage, you can trade E-mini S&P rather then individual stocks these guys are talkin garbage trying to give you a pipe dream to take your money for shit education.
one question, what is time zone MPST which appear in the webinar selection list?
@@shilohJahswarrior Why do shit traders always say SMB is garbage??
Do you have a time stamped daily/weekly P/L we can see to prove you aren't garbage?
@@radjared kkkk
1 Minute Open Range Breakout at market open is my go to scalp play. 1st 1minute candle opening above VWAP ride the upward momentum as momentum stalls I’m out. If pulls back with low volume holds support and momentum picks back up I’m back in for the ride until it stalls.
Dear King Yed Cap: I entertain your firm trading plan; at least, you know what to do and when. However, you will need many more winners than losers. This is tricky.
@@eddyvideostar Trading is tricky but it’s also a probability based numbers game. Take the best set ups we can, risk less than we profit 1:2 1:3 and we’ll be profitable. The only thing standing in our way is our psychology / discipline
How's that working for you now?
What killer content. His explanation and rationalization are as in depth and as bare bones as you could want. I loved that he went into the mechanics of what he saw on the tape and how it actively influenced his decision making while live. The past video helped me significantly and I'm excited to apply what I've learned from here. What a time a trade.
"I don't really need to be a hero here."
That is awesome.
Thanks SMB! a video on the different ways to scale-in or built a position would be greatly appreciated it. thank you!
Trading First opening drives on Low float stocks that are gapping in the pre-market. Always going long and exiting around pre-market high breaks or resistance areas.
These videos are a huge help when it comes specifically to how this trader is scaling in and out of his positions. Thank you, keep it up!
This trader did a wonderful job going over his trade. Loved the part when he
goes over the use of the tape for his trade.
This is the best scalping video I've seen, thank you SMB Capital!
This was a great video. I really like this strategy! You can tell the trader still does his preparation and fights for the best price.
Strategy is easy to visualize. That’s what makes many people think scalping is easy. My experience is that it all comes down to execution, and execution comes down to psychology. Any system can work if you have confidence in it.
Note that this trader speaks of “tiers”. This tells me he has clear money management rules: he knows exactly how he intends to layer in and out.
What’s the REAL lesson here? Start small, take EVERY trade that conforms to your entry rules, and make sure you have a disciplined money management system to ensure your losses aren’t bigger than your wins.
I really wish this shit was as easy as he makes it out to be. My experience is you CAN scalp successfully, but what he’s NOT telling you are the keys to success.
Trade safe.
Thanks a lot esp the last line of the third paragraph.
Now I learn from this video and your earnest mantoring.
At least here is what I found the clearest, the professional and the systematic approaches rather by those phoney and mumble jumble talking.
THNX and Merry Xmas to You as well as Me🙂
I agree, even once you find your edge you it's up to you to not over manage the trade, let it work out as planned.
This has to be the best video or at least top 5 of all time from you guys! Thank you for sharing!
I like the opening dip on a strong stock. Not a plunge or panic, but a brief counter-trend dip that doesn't go below a horizontal trading range established in the latter part of pre-market. These are often good for at least one decent morning spike up. Good as a 2nd day play (as shown here in ROKU) or after an overnight spike up.
I’m really new I just got thinkorswim. I am just diving right in to this side of CZcams. I can consume information like crazy it’s just a matter of understanding. This is a really good honest video even if I don’t fully understand. Thanks Guys!
This strategy is pretty new for me, but he explained it well, thank you for your sharing.
Great video. The trader is explaining well and it's nice to see a well put together trader speak. I don't get expose to many in person so it's nice to hear and process the information.
not only priceless scalping lesson but also great tape reading seminar, thank you!
greg es Do you recommend buying itm options or otm for scalping
SMBU is the best there is! So thankful I found these guys! I scalped $MU on a triangle breakout play, and a dip & rip scalp play this week
Good stuff guys, thanks. Scalping is one of my primary profit centers so I appreciate the content.
The best video I've seen so far with SMB-U. Love this! I hope people have seen this part 2 series...If they didn't, they missed out!
I love the Tape Reading discussion. Thank you!
"Make a plan, stick to the plan: Always Deliver." --- Storks
(Really great example/instruction on this video. If I have a couple red days I try to scalp a green day for some emotional balance. This is a good example of how you can "just" scalp, but do it in a way that improves your trading with 'best practices'. Thanks, as always, SMB.)
I've learned so much from these two scalping videos. I knew about momentum trading but now I also know how to read the tape.
Scalped ROKU off the daily support today at $128 for a nice 3 points. Cant wait to get another 3 day trades next week. Thanks for the video!!!
Great vid. Would be interesting to hear about his stops when he adds to scalp positions. I find this tricky while scalping, you add quickly, your average price changes and all of a sudden your risk looks quite different. I'm personally focused on doing less transactions (ie. bigger initial positions with less adds) to keep my risk under control.
One thing that I got from this video and part 1 is to "not overthink it" when the conditions are right, and when short term momentum is on your side (ie. when we quickly break the high of day). While I understand the general idea, it can be risky to recommend this kind of intuition to a wide audience with different experience levels. In practice, I find myself establishing lists of quick yes/no questions to evaluate whether the short term momentum is strong. Thanks for the vid.
There is some great content here. I trade the Forex market and scalping is my bread and butter. I trade the 5 min charts, and I only enter on reversals at the H/L of the previous day or 21 EMA continuation bounces. A few of the concepts that I've discovered through trial and error have been used here, so that's good to know. My biggest lesson has been to not force the set up, which takes discipline, but my bottom line and mental health have been the biggest benefactor.
after im in a position, i enjoy looking at the tape for big big huge buyers or big huge sellers to further confirim my idea
i set this up for ease of my eyes
by seperating the time and sales into three size brakets
i put small mediums and lage orders so when im in i can monitor the "large buyer" time and sales only
which has the least amount of movements and action anyways!
i learned this "large buyer" time-and-sales-technique from an older SMB video few months ago!
Thank you SMB
I appreciate you all dearly!
Fantastic series, SMB! Hope you'll keep it going. The technical thought process behind the trader's scaling in and out is valuable, but the most valuable aspect for me is his ability to narrate the "story of price," what is likely driving other traders in the move, what is likely to happen given the stock's typical behavior, and how he should adjust accordingly. This is an excellent example of why (I believe) in-tune discretionary traders have a clear edge over more mechanical strategies. Many thanks! Recommendation for Part 3: post-mortem on similar setups that ended up being losing trades.
Thanks Kevin, good suggestions for part 3
Super clip!! Great charts, great demonstration of live action and really nice details about position sizing and thought process, thanks!!!!
I like to trade intraday momentum on Indexes such as Hang Seng, Nikkei and SPI200. I feel that the video is great for aspiring traders in any market as the fundamentals are applicable to scalping in general...thanks for the video!!
I am really loving this guy. His balloon analogy was very good for a noob like me to understand.
Great videos, it is nice to hear real professionals talk about their craft.
Thanks for the video, I started scalping awhile back and now it's the only trading I like to do, because I found I make the most money that way , I use options to scalp with I can go large size with less capital and with active trader on think or swim I can get in and out fast.
Thank you for part 2 was looking forward to it the whole week :)
Wow! really great Video! Crystal clear explanation. Thank SMB for this. If possible bring out some more live real scalp trades in the future.
Loved !!!! Waiting for more videos for scalping and reading level 2. Very helpful!!!! Thanks guys
Hopefully more of these coming
I Scalp using Bollinger (set @ 26) and MacD. Quite effective. . Great content ‼️
Excellent follow-on video. Thank you for sharing it with the broader trading community.
Thanks so much for these videos they are really transparent and give excellent advice. Also gives me a lot of belief that you can make money scalping. I scalp at high volume times such as market opens and also I have a one trade on a commodity that occurs at a certain time with major volume and momentum every day. I also scalp that. But I learned so much from these videos to be able to increase my scalping opportunities. I trade FX so I use the Tick Volume as a guide to volume. I see ATR is very important, and is knowing your instrument. I will definitely be practicing on my demo account, trying to improve my skills using the technical levels.
THE BEST trading channel ever. Loved every video, thanks a lot
Thx Gileno! :)
Thank you for the 2nd vid.
EoD squeeze, REXN 02/11/20, long from 14:58, vol. kicked in, tape went crazy, (I think I heard some shorts crying too), scalp move, took it off at consolidation. (Type1 trade & A+ setup) very rare, 10% of them work... the rest just fade. Cheers!
Para/fader, BCLI 02/12/20 short 13:05, para move, (lil squeeze, but inside. my limits) the rest is yesterdays history ... (this time the longs were crying). ;)
thank you SMB, I like seeing how a pro trader uses level 2,
I really like to find a level that has established for at least a couple wicks and then watch the time and sales for the break of that level. Then pay the offer or hit the bids. Whatever I'm risking, ten or twenty cents, when I get that far in the money I like to take off about 1/3 of my size to make it a free trade. Then just like Ryan is saying, play it to the next level and then take off in small portions and get flat into the momentum shift. Things have been so whippy lately, I don't generally hold a momentum lot. Once we get back into a trending market, I'll get back to that.
nice, good process
Your chart gives a whole new meaning to hard right edge. Give yourself a little cushion on the right side of the chart, Player! Good video.
Great teacher and explanation. Thank you as this was help n scalping and the use of level II, time and sale, charts and support and resistance and risk mangement.
Very welcome!
22:00- 23:00 i really like how you addressed those traders who would have accumulated shorts on the bounce. Thats all i was thinking looking at that pattern. Bear flag, bear flag, bear flag. Stop out over the sticky level. I could definitely see myself making that mistake and im glad you take time to talk about those set ups more in depth
Bear Flag??? You can't mean the Roku trade shown on the chart at 20:40, can you? All I see is a textbook Bull Flag - momentum move up (the pole), consolidation (the flag), followed by hitting the technical price target from the Bull Flag (the pole length to the upside). Never mind, I think you were talking about the bullish wedge pattern where he entered the trade. Speaking of chart patterns, he got fully out of the trade the moment that bearish head and shoulders pattern formed, even though he never mentioned the H&S pattern.
23:00 - I actually caught & traded that move the other day! I bought ITM call options on the breakout, then sold them for a profit minutes later.
When it comes to trading I’m completely clueless. How do I get started
@@FullOption Start at babypips, they have a good free course for newbies.
Do you recommend buying itm options or otm for scalping
Love how you show the tape and explain how to use it in these trades
Bård Mannseth what’s the type
Great explanation and analogy of how price works at certain times.
Here's 2 good scalps from me today.. $GNPX 3.93 (10:31:25 CST) added 4.10 (10:36:13) sold 4.17 (10:37:54). GNPX long 4.19 (11:36:39) add 4.20 (11:40:11) out 4.39 (11:43:25). Bad scalps... GNPX near 5, feeler, small L. Any $ROKU long i did today. lol. Most were winners i just let stop me out for ultra smalls over and over looking for bigger move. Did great not causing any damage and sticking to plan though.
*The guy in this video is one of the best communicators/speakers that I have ever heard on the subject of scalping and tape reading. Unfortunately, many other videos (not SMB videos), speak in very vague terms. The guy in this video spoke in-terms of specific actions that he is taking.*
*So a good analogy for the T&S on breakouts is that you wanna think of it as a traffic light. When "in the driver seat" you see the light is green or red but dont necessarily look right at it to determine to stop or keep going !*
The examples given were awesome and informative 👍
Part 3 ......Keep them coming
Awesome video, even better than the first, learned so much, thanks Ryan and SMB!!
Thx!
Exciting that I know all of this, and I'm able to act on about 75% of it in real time. This is only 3+ years in the game... Can't even imagine at 5, 10 yrs in!!! Stay humble, stay green!
How are you now
@@JohnathanTotten-oh9vy Definitely better off than I was a year ago when I posted this! I woke up one day and realized I finally had to commit to a risk management strategy that made sense, instead of stopping out way too early/late, and taking profits way too early. The way I've been able to start turning a corner is to set up a trade to take partial at 1:1 and move stops to b/e. If/when 2:1 hits, I trail stops in the money. Am I where I thought I'd be at 5 yrs in? No... but I'm right where I'm supposed to be. Thanks for asking. How are you doing?
@@tradingarsenal9767 getting there about 7 months into trading getting to a point where being semi profitable is within my grasp just a lotta info to take in honestly
this guy is a good teacher thanks
AMZN was heavy on the tape friday
i got killed not recognizing that!
great word for what i saw thank you
this guy is good at explaining the thoughts and ideas behind the different aspects of this trading strategy
Best trading content out there imo
Thanks for the content. I am a U30 trader. I don't currently trade any other instruments. I am currently on my own journey to becoming a Prop Trader, and utilize a pretty effective scalping strategy. I look for opportunities around High Timeframe Demand and Supply Zones, HTF Trendlines, and Support and Resistance. I typically use the 20/32/50/ 200 MA's to help determine my potential setups, and look for hard reversals at the zones characterized by large wicked candles, which usually sends price in the opposite direction( e.g bullish and bearish Pin bars). As well simple Break and Retest entries in a trending market.
You do all strategies at the same time huh 😅
Thanks for sharing - great episode.
The second time you were up two tiers in ROKU, what was your stop (previous high?) ?
Any reason for the volume bars being the same color?
Really love your videos. I have a couple of questions though regarding numbers. Shark did 4.5M in a year, but how much capital does he have to trade with? What kind of annual or monthly returns in percentages makes a good trader? I've listened a lot to Mike but I never heard about that. Please let me know
Great video as usual. I was a little surprised there was no discussion about placement of stops; which seems critical for scalping.
most of the time traders will set stops automatically when the order is placed (they can create special orders that get them out below a certain $$ loss) or they will just have a general area where they hit out quickly
As a rookie I've learned to establish a stop as soon as I get in, sometimes with a 'one triggers another' order (with scalps just under the recent low or .5-1% depending on stock variables). A couple of my bigger losers early on came from mentally saying "here's where my stop will be, and I'll get out if it hits there", only for the excitable in the moment version of myself to say "well, maybe just a little lower, you know, 'cause it could go back up". If I could go back in time I'd slap that version of me.
Thank you. Generosity is admirable.
Fantastic knowledge, I learned a lot and thank you for that
Cheers
This video changed my life about 8 months into it now
This is a very nice setup which I am probably gonna test and build upon. Great video.
got a Dip & Rip today off FFHL. thanks guys!
Love this guys. Appreciate this!
A LOT of GREEEEAT nuggets in this vid!!!
thx Bryant!
God Bless all you SMB Teaching by example, congratulation what home run
Ryan is a great teacher!
he really is
Thanks for these 2 videos! I can't read the tape but after watching last week's video I put 10MA on platinum futures and it looks sooooo good even if only trade the cross, will keep testing, thanks again!
dominika nykyforuk what is reading the tape
@@dancer1 Level 2 quotes and T&S
Thanks a lot for the Balloon example..
I like the balloon example !! 🎈
Love the content ❤️ thank you guys
Saving so I can do this training. The dude with the pick shirt " you the man "
The first trend trade on ROKU looks more like sequential ABCD patterns in my view. Most of my scalps are 1 to 3 minutes - especially on MEME stocks. Some Halt scalps are only 5 seconds. If more than that then there usually is a pattern that I am trading - ABCD, Reversal, Trend.
I'm doing around ten trades very fast within the hour, new to me, I just kind of ended up going this way, but you need bulk money to make it worth while, I'm going for any profit & not staying long, so I'm ready for the next trade. Small profit per trade but good for the day. Got to stay between the extremes.
This guy is really good.
Fantastic vid, riveting stuff thank you
Looking for earnings multiday runners seems like a good idea, thx for the vid guys.
Reading the tape is great to know especially for newbie
czcams.com/video/miTB6nnASkY/video.html
another smb tape reading video
What software do you use for your level 2 and time and sales (Around 5:12)? Enjoyed the video as always!
when he adds another lot at 218.60s (BABA @ 29:00) and it instantly pulls back into the low 40s but he leaves it on due to lack of volume. That's great stuff right there. This series is save to my watch later and #$tudy this series. Thanks again to all at @SMB Capital for sharing
Favorite scalping setup is a big gapper in the pre-market, wanting the mean reversion back to previous day's close $.50 or more... hold off for the first 5 mins, look at the tape to see if the reversion is on, then hit when it turns with if stocks a penny stock (under $10), entering for 10k shares, if $10 & and up buying ITM calls/puts in the direction of the reversion 20+ contracts
Great video. I don’t know how to read the tape. I’ve been backtesting scalping using the Ema’s , rsi and other indicators just after the open. Having great results but after watching this guy I think I’m kidding myself, I’d probably get slaughtered if I went live.
The best. Period!
Really good educational video! Does any of the SMB courses teach the scalping fundamentals or are the courses more trend and hold all day fundamentals?
Yes i scalp stocks and indexes for a living. Best time to do this hands down is first 90 minutes of market open and the last hour of trading. Great video. I usually do more momo trend scalping with high volatility. Goal is 2/1 risk to reward. This strategy absolutely requires very quick entry and exit capabilities, along with quick thinking math skills. You must also know timing and excellent tape reading skillsets. My average time in a trade is less than 1 minute, unless the momentum keeps running due to an event.
What is momo?
momentum
How do you get out of the trade to quickly capture profit when you have a stop loss in place? Do you cancel it first?
hi, great video i know its fairly old but hopefully you will still see this. how long would or did you wait for these set ups were they "spur of the moment trades" or did you wait all day for them and also how many of these would you typically expect to find per day/week.
When short do you mostly look at the Bid more than the ask in terms of Entry and Exit?
Hi Been practicing for years, getting there slowly! A lot of what you say really rings bells with me, and I love the content in these scalping strategies, and I can really relate to everything you say, only big difference is that I seem to find the Hieken ashi candles work better, but that's probably just me and my preference!!
hi , what candle sticks are these ?
thank you
@@b.iservices3651 Hi, Quite common & found on most charting options, it's an average price of the previous candles so eliminates some noise and I just find them easier to used to determine possible direction !
When you add the momentum lot at that point do you move your stop or your stop always the same price level regardless of size.
Would be great to show a trade that did not go your direction and how you handled exiting a losing trade.
Just found this channel, SUBBED!
THANK YOU SO SO MUCH!!! ❤❤❤ YOU BELLA!!! ❤❤❤ YOU SMB!!!
YOUR WEIGHT IS WORTH GOLD!!! YOURE GOING TO HEAVEN WITH YOUR SHOES ON!!! 😇
Great trades and presentation, Brotha!
33:30 "Out of the position, maybe need it some time, maybe it need to consolidate somewhere, it become a different trade. It's no longer a scalp, as soon as you see a slow in momentum against the direction in the trade, you don't have to overstay, you don't have to be a hero who buy this, buy this, buy into VWAP, trying to get bigger....the trade has change, you have to have your plan, stick to your plan"
hey bud Great Video. when you layer your selling. are you doing so on the Ask? lastly, are you doing so with hotkeys or are you manually entering?
Do you recommend buying itm options or otm for scalping