I started trading 7 years ago and I tried so many different scalping strategies it took me 3 years to learn and perfect how to scalp profitably and fast forward to now I trade less than 2 hours a day and have made over $100,000 a month consistently for the last 3 years in this video I will show you why you don't need a complicated strategy or to sit in front of the markets for hours to make money trading we will go over everything I learned in the last 7 years from the lessons I learned losing money to the simple strategy that you can start trading today to make money and then I will show you real examples using the systems that I teach you in this video so you will have a real strategy that is profitable that you can start trading today to make consistent profits so in this video we're going to go through the full course on exactly the steps you need to take to become a profitable scalper and actually make a living through scalp trading now there's a couple basic things we need to understand about scalp trading before we get into the strategies number one we are trying to catch the quick movements in price therefore we are not trying to stay in the stock too long the purpose of scal trading is let's say we have a stock and it comes back into our key level well based on where we bought it we want the stock to work in our favor right away if the stock starts consolidating or moving down then we simply exit the stock and look for the next opportunity that may present itself however the benefit of scalp trading is because we're looking for these quick movements in price we do not have to sit in front of the screen for hours number two we want to catch the big move not the full move the problem with a lot of Traders is when they see a stock coming back into a key area of support they will try to capture the absolute bottom and then they will try to time the absolute top to sell and because of this they are trying to capture this full move that happened when in reality the most profitable Traders understand we're not going to be able to capture the absolute bottom on this stock or the absolute top however our goal is to capture the majority of the move meaning that as long as we can capture the big piece of the pie even if the stock continues to the upside it doesn't matter because we got our scalp trade in for the day and we made our profit and finally number three we want to be done the day early this is one of the biggest benefits in scalp trading because we are scalp trading and we want to trade when there's the most volatility in the market we are most like going to be done our day early and we don't have to sit in front of the screen for hours trying to actually trade because at the end of the day you guys know the reason we want to trade is for freedom and you don't get Freedom by sitting at the charts all day long because we want to be done the day early so we can enjoy the things we actually want to do with friends and family or even if you work full-time you can still do this right in the morning now with this being said a couple more important concepts for scalping like I said we want to capture the quick movements in price and to do this we need trending markets this is extremely important now for trending markets this simply means when we are looking at an uptrend all we want is a stock to make a high and as we move to the upside the stock creates a new high meaning that this low right here is higher than this previous low and the stock continues in Trend this way even if we mess up our entry a little bit on the stock because we are still trending to the upside and we are buying this position for that move to the upside we still have a higher probability chance of this trade working in our favor now the other way you want to look at the stock is a downtrend now for the downtrend all we want is lower lows meaning right here and we want lower highs so as a stock continues to move to the downside we simply want these lower lows and lower highs to be put in once again the same formula as an uptrend even if we mess up the entry for example we end up buying right here which is already past low of day because this stock is trending to the downside we have a higher probability chance of this trade working in our favor even with a scalp rather than it just consolidating the one thing you do not want to trade when you're SC trading is range action and that is simply when the stock is in fair price and moving up and down like this this is where most scalp Traders end up blowing their accounts and this is most likely the price action that you've personally experienced before and you have not seen good results therefore for me I only trade in uptrend and downtrend when we actually get to the examples in this video we'll demonstrate this much more clearly now number two like I said we want to capture big moves not necessarily the full moves and to do this we need stocks that are liquid and have volatility you have to understand not all stocks are liquid meaning you can get in and out of the stock quick and along with this some stocks are simply not volatile therefore for me if you've been watching this channel for a little while you understand I trade the same stocks every day this consists of spy QQQ Tesla Apple Nvidia a lot of the big Tech names that you guys may know of and also I trade Futures as well sometimes so I'll trade es or NQ Futures if you trade mini contracts you can also trade mnq and Mees as well however these are stocks that actually do have volatility and liquidity therefore it is very easy to get in and out to actually make profit and therefore for myself I like to stick to the same basket of stocks now with this being said the scalping strategies that I will explain in this video do work for any instrument type may that be options shares Forex crypto whatever you really trade however for myself I specifically trade options and Futures and finally we want to be done the day early this is key now the reason this is is because the highest probability chance of the trade working out usually occurs from 9:30 a. m. eastern to 11:00 a.
m. eastern and that's because the New York Stock Exchange opens at 9:30 a. m.
eastern therefore this is when the most volume comes and this is when we can capture the big moves early and just be done the day rather than sitting in front of the screen for hours so for myself I only trade from 9:30 a. m. to 1100 a.
m. eastern now let's talk about systems and strategies for me every single strategy that I'm going to talk about in this video with the examples as well that you guys will see and by the end of the video you'll actually have the actionable steps to actually trade this system it all revolves around the break and retest what does this mean well we can see that there is a clear Trend here we had this high up here which was a key level we can see this High kept getting rejected but as we had this High we were creating this low and then we created a higher low and now we can see we got the breakout this breakout gives us a brand new high showing what an uptrend right so high High highs higher lows and what do we want now well after a breakout the healthiest thing for a stock to do is pull back but pull back into a key level now where is that we get the exhaustion or the retest and we retest what this previous key level when we come back for this retest we can see that there are some sellers sitting here however when the buyers step up as we can see here on this candle buyers are stepping up then we see a nice move to the upside so in the most simp terms all I'm looking for is simply going to be a break above a key level the retest of that key level because this is going to be where buyers need to hold the stock up this is now resistance turn support and then I want continuation in the trend to the upside now if you don't understand price action and exactly how candlesticks form I have a full in-depth video on that along with the full playlist on exactly how you can start trading from scratch so if you do want that full playlist and course that's going to be in the link in the description but with that being said the three most profitable scalping setups that we'll talk about in today's video is going to be the 5-minute opening range the previous day high and low and the pre-market high and low strategy now for all of these I'm going to give a quick summary on exactly how they work and then we'll hop onto the charts and look at real examples of every single one of these setups so by the end of the video you'll actually have setups that you can trade today to see consistency now the first thing we have here is a 5-minute opening range what does this mean well here we are on the one one minute time frame and on the one minute time frame all we're going to do is we're going to Mark out the first five candles that form so 1 2 3 4 5 as we can see here is the 5-minute high this is the candle's High and the first candle was the 5- minute low so we Mark out with the green line the 5 minute high and with the red line we Mark out the 5 minute low and all we're waiting for the stock to break out of this key level come back retest for the entry as we can see here we got strong price action this is very key to understand strong price action but as we can see very simple entry and if we entered in here with our stop loss simply at a break below this candle right here and our profit Target at at least a 2R multiple in this example it was actually a 3r multiple we can see this trade worked out extremely nicely and this was a three-hour trade meaning for every $100 of risk we made $300 of profit now this is very key because as a scalp Trader you don't need the highest win rate as long as your risk to reward is at least a 2R multiple so one of the main things that I look for is every single trade I take if I'm risking $100 that means I have to make at least $200 if I'm risking $1,000 that means I have to make at least $2,000 so every trade that I take my investment essentially has to 2x on that trade with that being said let's go over to the next setup here we are on the previous day high and the previous day low all we do for this strategy is Mark out the previous day high now the previous day high occurs from 930 a. m.
eastern to 400 p. m. Eastern so from 9:30 a.
m. eastern to 400 p. m.
Eastern you mark out the high and low of the day and once again all we're waiting for is a breakout of that key level the retest with strong price action once we get strong price action we can Target high of day or at least a 2-hour multiple in this example the two-hour multiple was at high of day meaning for $100 of risk on this trade that we put on we would have made $200 in profit now if any of these strategies or setups you don't understand don't worry when we do get to the examples in this video you'll be able to see this much more clearly and finally here we have the pre-market High and the pre-market low for pre-market here all we do is we Mark out the high and low of the pre-market session pre-market session is from 4 a. m. eastern time to 9:30 a.
m. eastern and as you can see this is just the gray shaded area right here we're going to Mark out the high and low of the pre-market session once we actually enter in on the day all we're waiting for is the break breakout as we can see the key level we have a clear uptrend we're making higher highs and higher lows we come back for the retest we get very strong price action here once we see that strong price action we enter in with our stop loss simply at a break of this key level and our profit Target at least at high of day at this high of Day level we get the 3. 28 r multiple meaning for every $100 of risk we would make $328 of profit this also means if you were to risk $500 on this trade you would make $1,640 or if you were to risk a $1,000 on this trade you would make $3,280 so because of this technically if you lose three trades in a row and win the last trade you would still be Break Even or even profitable on the day and that's why with these scalping strategies it's not really about the high win rate but rather managing your risk to reward and understanding the good setups now with this being said I explained exactly how scalping works the key things you should be looking out for but now with all three of those setups that I just explained let's go look at real examples on the chart while they were happening so you can actually see how you can execute these trades on the real chart and by the end of the examples you'll have enough information to actually Implement these strategies in real time all right so here we are on our first example in this example I'm going to show the 5 minute opening range retest so all we have to do for this example as we can see we have pre-markets here we do not have to mark out anything until the first 5 minute candles form so 1 2 3 4 5 now that the first 5 minute candles have formed formed all I'm going to do is Mark out the high of the first 5-minute range and I'm going to Mark out the low of the first 5minute range now with this scalping setup what we're looking for is at least a 2hour multiple meaning for every $100 of risk we need to make at least $200 and to actually form the setup all we're looking for is a break above this key level a retest and a move to the upside or we can even look for a break below a retest and a move to the downside if you don't understand by now with this setup you don't need a daily bias you don't need to come into the day with a very strong bias on which way the stock will move for myself personally I can come into the day with a thesis of what I think should happen but it's very important that you remember when you come into the day what you want to do is react to price action we never want to predict but rather react to the same patterns that we see on a daily basis now with this being said let's play this chart out and see exactly what happens and if we do get that 5minute retest so far we can see we actually moved down into the 5-minute low but we did not break that level and one of the great things about the 5-minute range retest is that it actually allows you to not be stuck in this consolidation or chop as you can see we had some consolidation here but we were not stuck in it we did not have any entry but now when we're actually coming back into this area what is happening what we can see here we have the 5-minute range we broke above and now we are retesting what does this mean this was first resistance it is now turned into support we see buyers stepping up showing that buyers understand that we need to hold this level for a continuation move to the upside and therefore I would be interested in a long position here for my stop loss my stop loss would simply be a candle closure below the candle that I entered in on this also aligns with this pivot high right here and for my profit Target I need at least a 2our multiple at high of day we get only a 1.
39 so in this example here we can use the 52950 level this is a previous day pivot level from the day before and now all we're going to do is enter into this position and see exactly what happens like I said this is a 2. 29 risk reward trade meaning for every $100 of risk we should make $229 so let's see what happens and as we can see in 1 2 three candles or essentially 3 minutes into the trade we made $1,150 now the market opened at 930 and we are done our day at 101 we only traded for 30 minutes on this specific day and we made $1,150 by understanding this simple scalping setup this is the 5-minute opening range you can use this either to the bullish side or the bearish side but now let's go over to the previous day high and low strategy all right so here we are on the previous day high and the previous day low example all we did was Mark out the previous day high as you can see the previous day high starts from 9:30 a. m.
to 400 p. m. Eastern and we marked out the previous day high and the previous day low pre market we are actually breaking above the previous day high so what do we want we simply just want the stock to break Above This previous day high come back and retest this previous day high for the continuation move to the the upside so let's play out this trade and see exactly what happens in tray so far we can see we are getting that break to the upside and really what we want to see is the retest into this key level so that's what we're going to be waiting for and so far we're just really seeing consolidation near this previous day high level and here we can see we came into that previous day high level and what happened this is where it's important to understand price action when you're scalping now like I said I have a full depth price action course for free on my channel the link to that is going to be in the description for that playlist but as we can see so far we moved to the upside we came back for the retest we already broke out and now we're simply just waiting for this retest to happen now we can see the retest already happen at this previous day high and we had to wait for a little bit of price action to confirm that buyers are stepping in near this previous day high area a lot of Traders simply don't wait for that confirmation of buyers stepping in but as we can see we created this lower Wick and on top of that we are seeing that extremely bullish price action so how would enter into this trade well I would enter into a long position here my stop loss will have to be a break below this key level or this candle that was the low of Day candle or the retest candle and I need at least a 2hour multiple in this example the 2hour multiple comes at the 678 whole psychological number if you don't understand where I'm getting these psychological numbers from these are simply whole numbers so in this example it would be 678 that's a whole number that's where most institutions are going to be buying and selling because we know institutions and hedge funds buy at psycholog iCal numbers rather than numbers like 678 54s or 678 66 those are random levels where big institution orders are usually placed at whole numbers so with this being said we can enter into a long position here and let's see exactly what happens for this trade and just like that we were able to capture this entire move back to high of day and we even got continuation into our 678 key level like I said this was a 2 R trade and it was a very simple way to capture this movement on meta now this was the previous day high and low retest let's go over to the final example which is the pre-market high and pre-market low so here we are on our final example this is going to be the pre-market high and pre-market low setup now for this setup all we're going to do is like I said from 4: a.
m. to 9:30 a. m.
eastern this is going to be the pre-market low and we're going to Mark out the pre-market high now once we have these levels marked out all we're looking for is a break above a retest and continuation to either side this could either be to the upside or to the downside all we're looking for like I said is the break first and then the retest the beauty of the setups that I'm teaching you in this video is that you don't have to put too much mental focus you simply wait for the key level to break once it breaks then you wait for the retest if you get strong price action on the retest you enter in and you look for continuation it is really that simple you do not want to over complicate your trading with a bunch of different indicators and a bunch of different confirmations you want to keep it simple and repeatable every single time so with this being said let's play out this trade and see exactly what happens here we can see we got the breakout right away and we are also getting the retest right into where this pre-market High area so we would simply enter into this trade here where would our stop loss be our stop loss can simply be a little bit below this candle right here that actually had that impulsive move to the upside and our profit Target needs to be at least a 2R multiple in this example here we can simply just aim for that 204 psychological number like I explained in the last example we use this because this is where institutions are placing their orders as well and this would be a 2.
