Scalping was Hard Until I Found these 5 PRO TIPS | Scalp Trading Strategy

Summary

The video script challenges common misconceptions about scalping as a trading strategy, asserting that it can be highly profitable with the right approach. It features insights from successful traders, Lance Bright Stein and Christian Kouami, who represent intraday and swing trading styles, respectively. The speaker emphasizes the importance of trading volatile instruments, having a well-defined playbook, and being aware of market catalysts. They also discuss the pitfalls that often lead to beginners' failures in scalping, such as lack of a clear strategy and overtrading. The script concludes with a call to action for traders to find mentors with a proven edge and to refine their trading skills through education and community engagement.

Takeaways

• 💰 Scalping can be profitable: The script refutes the myth that scalping cannot generate significant income, citing examples of successful scalpers making millions consistently.
• 📊 Swing trading can offer an edge: It suggests that sometimes, trading on the smallest time frames can provide the most advantage, contrary to the common belief that scalping is less profitable.
• 🤔 Confirmation bias in trading styles: The video discusses how traders may fall into the trap of confirmation bias, only recalling information that confirms their preconceived notions about scalping or swing trading.
• 📚 Education from multiple sources: The speaker emphasizes the importance of gaining knowledge from a variety of sources, such as books and mentors, to form a neutral perspective on different trading styles.
• 🚀 Success in scalping requires specific conditions: It is highlighted that successful scalping involves trading volatile instruments with high momentum and clear catalysts for movement.
• 📉 Avoiding choppy markets: The script points out that beginners often fail by attempting to scalp in choppy, ranging markets instead of focusing on symbols with strong momentum.
• 📝 The necessity of a trading playbook: Scalpers need a clear, documented strategy with rules that have been backtested and proven to provide an edge.
• 🤖 The challenge of ALOs: The presence of Algorithmic trading can make it difficult for scalpers to profit in non-volatile markets, as they may end up competing against efficient trading algorithms.
• 🔄 Importance of multiple time frames: Aligning trades with larger time frame trends can increase the chances of success, as it leverages the momentum of institutional and position traders.
• 🧠 Personality fit for trading style: Not all traders have the personality or cognitive skills suited for scalping, suggesting that some may find more success with other trading styles.
• 🔗 Building an edge through community and mentorship: The speaker offers resources like webinars and a journaling platform to help traders refine their strategies and find their edge.

Q & A

What is the main argument against scalping as presented in the script?

The main argument against scalping in the script is the misconception that it's not possible to make a significant amount of money through scalping, which the speaker refutes by mentioning a successful scalper making $500,000 to $600,000 consistently each month.

What does the speaker claim about the profitability of scalping versus swing trading?

The speaker claims that both scalping and swing trading can be profitable, and that the profitability does not depend on the trading style but rather on the trader's ability to identify and capitalize on high-quality trading opportunities.

What are the five reasons the speaker believes beginners fail at scalping?

The five reasons are: 1) Not scalping the big movers, 2) Lack of a clear, documented Playbook with back-tested and forward-tested rules, 3) Trying to scalp in markets with no catalyst for aggressive movement, 4) Ignoring multiple time frames and potentially fighting against larger trend movements, and 5) Not having the right personality or fast-thinking skills for scalping.

What is a 'Playbook' in the context of trading?

A 'Playbook' in trading refers to a set of documented strategies, entry, exit, and trade management rules that have been back-tested and forward-tested to provide an edge in the market.

Why is it important for traders to focus on the big movers according to the script?

Focusing on the big movers is important because these are the volatile instruments that have large momentum and are more likely to provide profitable trading opportunities, especially in the context of scalping.

What is the significance of trading with a catalyst in the script?

Trading with a catalyst, such as a strong news event or a significant market trend, provides an additional layer of confidence and potential profitability because it indicates a higher likelihood of the market moving aggressively in one direction.

What does the speaker suggest about the role of personality in successful scalping?

The speaker suggests that some traders may not have the personality or fast-thinking skills required for successful scalping, implying that scalping may not be suitable for everyone and that personal attributes play a role in choosing a trading style.

What is the role of 'ALOs' in the script's discussion about trading?

ALOs, or Algorithmic Order Execution, are mentioned as a factor that can make it difficult for traders to profit in the absence of a catalyst for aggressive market movement, as they can create noise in lower time frames by executing large quantities of small transactions.

How does the speaker address the issue of confirmation bias in trading?

The speaker addresses confirmation bias by emphasizing the importance of having a neutral perspective and being open to the possibility that both scalping and swing trading can be profitable, rather than relying solely on personal experiences or pre-existing beliefs.

What is the speaker's advice for traders who are interested in scalping or swing trading?

The speaker advises traders to find a mentor with a real edge, use a journaling platform to refine their strategies, and participate in community webinars for deeper insights into building a Playbook with an edge.

Outlines

00:00

💰 Debunking Scalping Myths and Successful Strategies

This paragraph discusses the misconception that scalping cannot be profitable, highlighting the success of a top intraday trader who consistently earns half a million to six hundred thousand dollars a month through scalping. It emphasizes that swing trading may offer more edge on smaller time frames but refutes the idea that consistent money cannot be made through scalping. The speaker aims to provide a balanced perspective by referencing successful scalpers and swing traders, including Lance bright Stein and Christian kouami, and discusses cognitive biases that may skew traders' perceptions. The paragraph concludes by outlining five reasons why beginning scalpers often fail, such as lack of a clear playbook and understanding of catalysts, and the importance of trading with the right size and quality setups.

05:01

📈 Identifying Key Factors for Scalping Success

The speaker identifies the first reason for beginners' failure in scalping as not focusing on the most volatile instruments with significant momentum. Successful scalpers are advised to seek out 'big movers' and avoid choppy, ranging markets. The importance of having a clear playbook with documented, back-tested setups is stressed, as is the need to understand and trade with catalysts that can cause aggressive price movements. The paragraph also touches on the challenges of trading without a catalyst, where market movements can be influenced by algorithmic trading, making it difficult for scalpers to compete without a clear advantage. Additionally, the speaker mentions the importance of being aware of multiple time frames and aligning trades with larger market trends to increase the probability of success.

10:03

🚀 Advanced Scalping Techniques and Personal Trading Fit

This paragraph delves into advanced scalping strategies, such as capitalizing on opportunities where multiple time frames are aligned, creating a high-probability trade scenario with the support of larger market participants. The speaker also discusses the importance of personality traits and cognitive skills in scalping, suggesting that not all traders may be suited for this style. The paragraph concludes by emphasizing the need for a real edge in the market, whether through scalping or swing trading, and encourages traders to find mentors with proven track records. The speaker also promotes a journaling platform and community webinars as resources for traders to refine their strategies and gain deeper insights into trading techniques.

Keywords

💡Scalping

Scalping refers to a trading strategy where traders aim to profit from small price movements by making numerous trades within a single trading day. In the video, it's mentioned that one of the myths is that you can't make a lot of money scalping, which the speaker refutes by citing examples of successful scalpers who make substantial monthly profits.

💡Intraday Trading

Intraday trading is the practice of buying and selling financial instruments within the same trading day, typically within minutes, hours, or at most before the market closes. The video discusses the profitability of intraday trading, particularly scalping, as opposed to swing trading.

💡Swing Trading

Swing trading is a style of trading where positions are held for several days to weeks, aiming to capture gains from short-term price swings. The video script contrasts swing trading with scalping, discussing the potential profitability of both and addressing common misconceptions.

💡Profitability

Profitability in the context of the video refers to the ability to earn a consistent income or profit from a particular trading strategy. The speaker argues against the notion that scalping cannot be profitable, citing examples of traders who have made millions.

💡Confirmation Bias

Confirmation bias is the tendency to favor information that confirms one's preexisting beliefs or values. In the video, it's discussed as a potential reason why some traders may dismiss the profitability of scalping if they have not personally known successful scalpers.

💡Availability Heuristic

The availability heuristic is a mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic. The video mentions this concept, suggesting that traders may underestimate the profitability of scalping based on their limited personal experiences.

💡Anchoring

Anchoring is the cognitive bias that describes the common human tendency to rely too heavily on the first piece of information encountered when making decisions. The video script uses the term to explain how a trader's initial negative experience with scalping might influence their overall opinion of the strategy.

💡Playbook

A playbook in trading refers to a set of rules, strategies, and tactics that a trader follows. The video emphasizes the importance of having a well-documented playbook for successful scalping, including clear entry, exit, and trade management rules.

💡Catalyst

In trading, a catalyst is an event or piece of news that can cause a significant price movement in a security. The video script uses the term to highlight the importance of trading with symbols that have strong catalysts backing their price movements, especially for successful scalping.

💡Momentum

Momentum in trading refers to the rate at which the price of a security is increasing or decreasing. The video discusses the importance of trading with momentum, particularly for scalpers looking to capitalize on rapid price movements.

💡A+ Scalps

A+ scalps, as mentioned in the video, are high-quality trading opportunities with extremely high win rates. The speaker suggests that successful scalpers are adept at identifying these opportunities, which are characterized by strong momentum and clear catalysts.

💡Multiple Time Frames

Trading across multiple time frames involves analyzing and trading based on different time intervals, from minutes to days or weeks. The video script explains that successful scalping can involve aligning trades with larger time frame trends, which can increase the probability of a profitable trade.

💡Personality

In the context of the video, personality refers to the individual traits and skills necessary for a trading style. The speaker notes that not all traders may have the fast-thinking skills or personality suited for scalping, suggesting that other trading styles might be more appropriate for them.

Highlights

Scalping can be profitable, contrary to common belief, with some traders consistently making $500,000 to $600,000 a month.

Swing trading offers more edge on the smallest time frames sometimes, challenging the notion that scalping is more profitable.

Successful scalping is possible with large capital, debunking the myth that it's only for small-scale trading.

The importance of trading big movers with high momentum for successful scalping, rather than focusing on choppy markets.

The necessity of having a clear, documented playbook with back-tested and forward-tested setups for scalping success.

The role of catalysts in creating opportunities for profitable trades, especially in the context of scalping.

The misconception that all scalps are equal; the distinction between A+ scalps with high win rates and others.

The potential for growing a smaller account with scalping, contrary to the belief that it's only for large capital.

The impact of confirmation bias, availability heuristic, and anchoring on traders' perceptions of scalping profitability.

The argument that beginners often fail at scalping due to a lack of awareness of multiple time frames and larger trends.

The importance of trading within the context of multiple time frames aligned for higher probability trades.

The role of personality and fast-thinking skills in determining a trader's suitability for scalping.

The presence of A+ scalping opportunities that arise when there are inefficiencies in the market.

The comparison between individual traders like Lance Bright Stein and Christian Kouami, highlighting different profitable trading styles.

The discussion on the role of AI and high-frequency trading (HFT) in the challenges faced by scalpers.

The emphasis on the need for a mentor with a real edge for aspiring scalpers and swing traders to refine their trading strategies.

The offer of free webinars for community engagement and deeper dives into trading strategies and building a profitable playbook.

Transcripts

you can't make a lot of money scalping

one of the very best intraday traders

that I know who makes consistently 500

$600,000 a month every month guess what

he does for a living he only scalps he

scalps with size he only scalps one of

the myths is that you can't make a lot

of money scalping all right that's not

true swing trading offers more Edge on

the smallest time frames sometimes

offers the most Edge you can't make

consistent money scalping and I've known

traders that are profitable even a

Trillium there's people that are

profitable nearly every single day you

can't scal with big Capital there's

going to be some headlines where you can

make a million plus if you are an

aspiring scalper and you've heard bad

things about it in this video I want to

share what I've learned early in my

trading career from verified

multi-millionaire scalpers it is the

complete opposite of what I've heard on

social media also I will detail five

reasons beginning scalpers fell and at

the end of the video I'll mention the

one thing that makes all styles of

trading profitable please like And

subscribe and send this video to an

aspiring scalper or someone that is

confused about scalping versus intraday

versus swing trading to start I want to

address the big question what is more

profitable swing trading or scalping and

I want to offer a different perspective

here on the right you have Lance bright

Stein a verified eight fig lower time

frame Trader and on the left you have

Christian kouami a verified self-funded

eight fig swing Trader I'm going to

leave the Jim Simmons and Paul tutor

Jones types out of the argument because

it may be hard for you to put yourself

in their shoes because they're running a

fun right so these are individual

Traders but I do want to tell you you do

have lower time frame trading firms that

are making hundreds of millions as well

as funds that are swinging the reason

why I bring Lance and Kola Magi is

because most of the time arguments go

like this the swing Trader says hey man

swing trading is more profitable the

scalper says no scalping is more

profitable and the swing Trader says I

have more payouts than you my job is to

bring the true to the independent Trader

that is at home trying to walk this walk

trying to lead their job trying to

become a successful Trader so I bring

both perspectives to my podcast and my

videos because many times people suffer

from confirmation bias or availability

heuristic or anchoring right so

confirmation bias is the tendency to

recall only information that confirms

your pre-existing beliefs availability

heris occurs when people estimate the

likelihood of something based on how

easily things come to their own mind

right so a swing Trader may say I don't

personally know any successful scalpers

so they erroneously they make the error

to conclude that scalping isn't

profitable or vice versa and anchoring

is the tendency to rely heavily on your

first impression of a thing so maybe

someone failed at scalping or had a

mentor that suggested that it didn't

work so that anchored their belief about

scalping I'm bringing Lance and kouam

Magi to show that both can make big

money both are profitable so stay tuned

and remember to share this with an

aspiring scalper that you know is

failing because now I'm going to jump

into what I learned from Pro verified

scal when I first started I spent about

20,000 on education and I read about 50

books the exposure to the market Wizard

series and the different trading styles

that I read about in the books and my

education through SMB helped shape my

perspective on all styles of trading if

I would have only had YouTube uh

Instagram or maybe one Mentor my

perspective may be different but finding

the professionals helped me form an

Outlook and a more neutral perspective

about the different styles because you

have major players that make money from

different styles so now here's what I

learned about scalping from prot Traders

number one you can be consistently

profitable over several years scalping

number two you can make multi-millions

scalping number three all scalps are not

equal there are A+ scalps that have

extremely high win rates number four you

can scal with large size and number five

you don't have to take a lot of Trades a

lot of times people argue that if you're

scalping you have to take hundreds of

Trades a day but actually some of the

best opportunities that you want to

scalp out quickly when you have those

inefficiencies that show up a lot of

times the traders that are putting large

size on those opportunities they aren't

trading those particular types of

opportunities every single day even

though they scaled it they actually

waited on that opportunity to form and

they took a high quality scalp setup now

if they would have tried to swing that

particular opportunity where Edge

appeared The Edge would have disappeared

on the higher time frames there's a

misconception that all scalps are equal

and number six you can grow a smaller

account with scalping now why are so

many people failing if these things hold

true here are the five reasons why I

believe scalpers are failing let's go

back to Lance and kouami after sitting

down with Lance and hearing his

perspective on what makes an A+ Scout

and examining kulam magi's trading style

which I'll try to bring them on in the

podcast they are both looking for the

same thing just on different time frames

and that brings me to point number one

in my opinion the number one reason I

believe beginners fell is because they

are not scalping the big movers they're

not scalping the very volatile

instruments that have large momentum in

the Forex space many of the spelling

scalpers that I met Center their scalps

around very choppy and ranging markets

now to be successful from the pro

perspective you need to find the big

movers you need to find those that are

going to be moving aggressively in One

Direction as a scalper if you develop

your playbook in a way to find

indications that your symbol is going to

move this is the very first and most

important step in my opinion and this is

held in high regard by most of the

successful scalpers that I've met so no

matter what time frame you are on you

have three types of Trades you have

momentum Trend trades you have you have

reversal trades and you have ranging

trades regardless of the time frame so

when I took this trade on NAS 100 and

profited around 7K in a few minutes on

one of my funded accounts this was based

on the announcement of nvidia's earnings

Nvidia grew 16% within 1 hour if you're

scalping here all you need is a little

piece of the momentum with the right

volume with the right price action you

can just take a nice amount of that

money out of the market and you have a

huge Edge when your symbol is moving

aggressive in this way way now it's hard

not to make money when pric is moving

that way so in my opinion most beginning

Traders are trying to scout the choppy

markets instead of scalping a symbol

that is backed by a strong Catalyst now

let's take an example with Euro USD it's

hard to have Edge in this choppy ranging

Market even for a swing Trader let's say

a swing Trader enters into a Buy on this

choppy daily chart like we see here with

Euro USD the swing Traders have no edge

here a swing Trader like Kula Magi is

looking for evidence that there will be

an event that causes his trade that

causes his symbol to aggressively go in

one direction for example look at the

Tesla trade it's trading a tight range

and there's a strong Catalyst to break

out of that range for about a 20 R swing

trade this is what is missing for both

beginning scalpers intraday and swing

Traders they don't know what a catalyst

is and they are not trading something

that's going to have large momentum

that's my opinion now on to number two

question for you have you ever known a

losing scalper to have a Playbook with

clear rules most struggling scalpers

that I know rely too much on their own

intuition which they have no historical

intuition right they have no real

Playbook it's like if I were to go and

swing a golf club for the first time

trying to do things trying to test

things out and I'm basing what I'm doing

on no experience I have no historical

reference versus swinging the club based

on hard rules that have been proven to

make all golfers that played the game

before me successful so scalpers need a

Playbook they need documented setups

with Edge that have been back tested and

forward tested to be successful most

scalpers don't have a documented and

back tested Edge and that's necessary to

be successful they don't have entry exit

and trade management rules so I'm

currently hosting free webinars on how

to build a Playbook based on Mike B

Fury's book The Playbook right because

it's such a critical skill that the

community needs so click the link in the

description to sign sign up for free

webinars you can come ask questions and

we dive deeper into these topics as a

community as a group number three have

you ever watched a symbol on the lower

time frame and it seems like it's moving

up and down all day but there's no

consistent pattern if so those are alos

that are running alos run all day long

and buy up large quantities through a

bunch of small transactions or sell

through a bunch of small trades the

reason why is because large funds deploy

alos to buy and sell large quantities

through small transactions so that they

can buy or sell at the best price if

they sell too much or buy too much the

market will move and prices will go

higher or lower right so when there's no

Catalyst for your symbol to move

aggressively in one direction to have

volatility you're literally trying to

beat the computer this is why people say

the lower time frames are noise because

if you're trying to scal something that

doesn't have volatility and more

participation than normal you'll be

fighting a losing battle against alos

now people have had beginners luck for

maybe a month or two or three maybe six

months but to profit over the long term

from this particular style it's going to

be pretty hard number four have you ever

entered into a scout and gotten run over

stop loss hit and price goes

aggressively in the opposite direction

of your trade you may have been fighting

the larger Trend a lot of beginners they

have no awareness of multiple time

frames I believe the best Scout trades

the best opportunities with the highest

RNR can come within the context of

multiple time frames when you have

multiple time frames aligned you have

larger institutions trading you have

position Traders trading you have

intraday Traders intra week Traders

they're all aligned and trying to push

that symbol higher because they're

buying so you're aligned with multiple

participants and these are the

opportunities these are the scal

opportunities that start off as scals

where you eventually start to hold these

longer these are where you have smaller

risk and the reward goals maybe six R

seven are at sometimes are even higher

just because you have a smaller

stop-loss entry but you have the larger

time frame and larger Traders on your

side pushing the market aggressively in

your direction so many times scalpers

get run over by the larger time frame

Traders by trying to counter those

larger time frame moves for example if

we look at this gold chart you'll see

that the daily 4H Hour 1 hour all

trending and at this time there was also

a geopolitical catalyst to move the

market so the one minute offers an entry

model for an opportunity to catch the

buy but it's not only this entry model

it's that we have a fresh news Catalyst

it's that we have higher time frame zone

is that we have and it's that the higher

time frame itself is in an uptrend so

all of these edges start to stack so

that we have a higher probability trade

number five personality some Traders

don't have the personality or fast

thinking skills for scalping so another

style may be better for them bringing

Lance and Kola Magi back right the

bottom line is to be a successful

scalper or swing Trader you need real

Edge the symbols that are moving offer

the most Edge moving in One Direction

aggressively if you're interested in

scalping or swing trading find a mentor

with real Edge if you need a journaling

platform that will help you refine your

Edge check out trade zela you can get a

discount by using my code in the

description now here's my last point I

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