Scalping: An Effective And Highly Profitable Trading Strategy (part II)
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- เผยแพร่เมื่อ 13 ก.พ. 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?
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!
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!
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.
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.
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.
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🙂
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!
I’m really new I just got thinkorswim. I am just diving right in to this side of TH-cam. 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 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.
This has to be the best video or at least top 5 of all time from you guys! Thank you for sharing!
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.
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.
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!
I love the Tape Reading discussion. Thank you!
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!!!
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!
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.
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
"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.)
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
Super clip!! Great charts, great demonstration of live action and really nice details about position sizing and thought process, thanks!!!!
*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 !*
Good stuff guys, thanks. Scalping is one of my primary profit centers so I appreciate the content.
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.
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). ;)
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.
I am really loving this guy. His balloon analogy was very good for a noob like me to understand.
Thank you for part 2 was looking forward to it the whole week :)
*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.*
Great videos, it is nice to hear real professionals talk about their craft.
I Scalp using Bollinger (set @ 26) and MacD. Quite effective. . Great content ‼️
AMZN was heavy on the tape friday
i got killed not recognizing that!
great word for what i saw thank you
Excellent follow-on video. Thank you for sharing it with the broader trading community.
Wow! really great Video! Crystal clear explanation. Thank SMB for this. If possible bring out some more live real scalp trades in the future.
thank you SMB, I like seeing how a pro trader uses level 2,
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
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!!
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
Saving so I can do this training. The dude with the pick shirt " you the man "
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?
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.
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 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.
Part 3 ......Keep them coming
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
Would be great to show a trade that did not go your direction and how you handled exiting a losing trade.
This video changed my life about 8 months into it now
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.
The examples given were awesome and informative 👍
Loved !!!! Waiting for more videos for scalping and reading level 2. Very helpful!!!! Thanks guys
Hopefully more of these coming
God Bless all you SMB Teaching by example, congratulation what home run
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.
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.
So basically, you monitor momentum by observing the speed of the bids/offers?
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!
Do you ever monitor and/or trade the options prints in conjunction with the underlying equity for additional visibility?
Love how you show the tape and explain how to use it in these trades
Bård Mannseth what’s the type
When short do you mostly look at the Bid more than the ask in terms of Entry and Exit?
this guy is good at explaining the thoughts and ideas behind the different aspects of this trading strategy
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
got a Dip & Rip today off FFHL. thanks guys!
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.
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.
Nice video.Simple and accurate.May i ask as a begginer,how do we trade a stock when it's running from us?For example it never pullbacks.
Excellent running commentary. It put a lot of things in perspective. The tape on the left with the traders gradient yellow what is that? I use TOS and I use Time and Sales. But have not seen the one he is using to read the tape. And I’m curious as to what the difference is between yellow price action and Time and Sales? Thank you for your content.
I like the balloon example !! 🎈
Fantastic knowledge, I learned a lot and thank you for that
Cheers
Everybody looks like a genius in a bull market.
haha this is true!
this guy is a good teacher thanks
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.
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 😅
Nice as always.A few things which might be to improve maybe if you dont mind :
The first chart shows an 10 ema value at the top of the screen,not a 9,and the colours show up completely different than mentioned,all in a shade of blueish,violet/pink.I can understand people calling pink as red,but still it would be nice to havecolours matching better with so many EMAS.
Even in the best reso the colours are not matching.
And a question : What is necessary to get access to the tape you use ?Who offers this software with time and sales and the orders tape itself?
This is a very nice setup which I am probably gonna test and build upon. Great video.
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?
THE BEST trading channel ever. Loved every video, thanks a lot
Thx Gileno! :)
Awesome video, even better than the first, learned so much, thanks Ryan and SMB!!
Thx!
great vid! but im always puzzeled by the lets call it 3-way split display with the box, prints & price chart...what y guys think of having it all in ONE display with something like the bookmap heatmap display...this way y cld have bids&offers, prints and chart integrated in one single view...esp, if y watch multiple stocks
Thanks a lot for the Balloon example..
You asked us to leave our strategies scalping off the tape. On a stock in play that I have identified the key demand/supply zones, I watch how price interacts with these zones. For example, if it gets bid up hard off the demand zone and is pressing into supply, I hit in anticipating the breakout as soon as I see an irregularly large lot size print. I don't wait for tape acceleration and rapid move away from the bid because sometimes you are too late if it is a false breakout. Instead, I wait for this exact setup, hit in on the irregular large print at the offer, and then I sell the entire position into the break out. I usually take .1-.2 this way. I stop immediately if the break doesn't happen. Accuracy is around 75% on this trading and risk reward is around 1:1. Just starting my second year of trading, but this is working for me. Know I am leaving a lot on the table. Ryan's videos are inspiring me to take this strategy to the next level. If I pick up your course, will it expand on scalping as Ryan has explained it?
Best trading content out there imo
Really like these 2 videos on scalping. A bunch of different scalps in the arsenal too....
Does SMB have a limit on how much a trader can lose on a day? i.e. $500 and the trader is shut down for the day?
If so, what is it for new traders, and are you able to share what it is for this trader?
Thanks!
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"
Thank you. Generosity is admirable.
For a Beginner, is it better do trade Sp500 or a Share Trade. Thanks for your answer
What software do you use for your level 2 and time and sales (Around 5:12)? Enjoyed the video as always!
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?
Hi, I am really enjoying your videos, I have been following you since 2020. I watched the 5 Strategy Scalping Webinar yesterday, but didn’t get the Bonus Strategy at the end, is there anyway I can get it please.
Looking for earnings multiday runners seems like a good idea, thx for the vid guys.
Love the content ❤️ thank you guys
Can you talk about your broker and commission structures? Who is the best broker for this type of day trading on options? How would you use this strategy if you were subject to PDT rules?
Thanks for all your excellent content! This really is SMB University!
Love this guys. Appreciate this!
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