Best "Scalping" STRATEGY in 10 MINUTES l $500/day l Stocks Futures Options Crypto Forex (FULL GUIDE)

Summary

In this YouTube video, the host outlines a scalping strategy for making $250 to $500 daily, emphasizing no need for a large portfolio. The tutorial covers risk and trade management, starting with observing market trends for the first two hours to establish highs and lows. It then uses the previous day's price action to identify liquidity zones and employs the VWAP indicator for entries and exits. The host demonstrates practical application with a trade example, including trimming positions at the VWAP band and setting stop losses to breakeven. The video concludes with an invitation to join the host's Discord community for live trades and analysis.

Takeaways

• 💼 The video discusses a scalping strategy for making $250 to $500 per day without needing a large portfolio.
• 🔗 The presenter encourages joining a free Discord community for daily trade posts and analysis from a team of analysts.
• ⏱ The strategy involves using a 5-minute timeframe on TradingView for trading decisions.
• 📈 It's advised to avoid trading during the first two hours of market open to gather data and establish market structure.
• 📊 The presenter outlines the importance of identifying highs and lows within the first two hours of market open.
• 📉 The strategy uses the previous day's price action and wicks to identify buy-side or sell-side liquidity.
• 🔍 The presenter demonstrates how to use liquidity zones and the volume-weighted average price (VWAP) indicator for entries and exits.
• 📉 Trades are entered on a retest of liquidity zones and managed using the VWAP indicator for take profits and stop losses.
• 📈 The video provides an example of a trade taken by the presenter, including entry, management, and exit strategies.
• 💹 Trade management involves taking multiple contracts and trimming positions at different profit levels to secure gains and reduce risk.
• 🔗 A guide on how to trade options is promised in the video description for viewers interested in learning more.

Q & A

What is the scalping strategy discussed in the video?

The scalping strategy discussed in the video involves making consistent $250 to $500 per day by trading in the stock market. It emphasizes not needing a big portfolio and focuses on risk management and trade management.

Why is it suggested not to trade during the first two hours of the market open?

The first two hours of the market open are not used for trading because it's a period to gather data and understand market structure. This helps in identifying the sentiment of the day, price action, and marking out potential highs or lows for the day.

What is the significance of mapping out highs and lows during the first two hours of the market?

Mapping out the highs and lows during the first two hours helps to identify potential areas of resistance or support for the day, which can be used as entry or exit points for trades.

How does the presenter use previous day price action to identify trade opportunities?

The presenter uses previous day price action, wicks, and candles to identify buy-side or sell-side liquidity areas. These areas are then used to anticipate price movements and identify potential entry points for trades.

What is the role of the 5-minute time frame in this strategy?

In this strategy, the 5-minute time frame on TradingView is used to execute trades. It allows traders to focus on shorter-term price movements and execute scalping trades effectively.

What does the presenter mean by 'liquidity' in the context of this strategy?

In the context of this strategy, 'liquidity' refers to areas on the price chart where there is significant buying or selling pressure. These areas can act as support or resistance and are used to identify potential entry points for trades.

How is the VWAP indicator used in this trading strategy?

The VWAP (Volume Weighted Average Price) indicator is used to determine entry points, stop-loss levels, and take-profit levels. It helps in identifying overvalued and undervalued price levels relative to the average price and volume on the day.

What does the presenter suggest as a good practice when taking multiple contracts in a trade?

The presenter suggests taking multiple contracts and trimming them at the VWAP band to reduce risk and secure profits. This practice is recommended to manage risk effectively and maximize returns.

How does the presenter manage risk in this strategy?

The presenter manages risk by setting stop losses to break even after securing profits on some contracts, using the VWAP indicator to determine entry and exit points, and by trimming positions to reduce exposure as the trade moves in the favorable direction.

What is the importance of the Discord community mentioned in the video?

The Discord community is important because it provides a platform for the presenter to post trades, analysis, and interact with a community of traders. It also allows for real-time sharing of trading insights and strategies among members.

What advice does the presenter give regarding the selection of contracts for trading?

The presenter advises against taking zero DTE (days to expiration) contracts and prefers to have some wiggle room, suggesting to take one or two DTE contracts for a more conservative trading approach.

Outlines

00:00

💼 Introduction to Scalping Strategy

The speaker introduces a scalping strategy for making consistent profits of $250 to $500 per day. They emphasize that a large portfolio is not necessary and promise to cover risk and trade management. The audience is encouraged to join a free Discord community for daily trade posts and analysis from a team of analysts. The speaker then guides viewers on how to set up the 5-minute timeframe on TradingView and explains the importance of observing market behavior for the first two hours of market open to gather data and establish market structure. They also discuss marking potential highs and lows during this period.

05:02

📈 Trade Execution and VWAP Indicator

The speaker elaborates on the scalping strategy by focusing on the use of the VWAP (Volume Weighted Average Price) indicator for trade entries and exits. They demonstrate how to identify buy-side or sell-side liquidity using previous day's price action and wicks. The strategy involves waiting for a retest of the liquidity zone to enter short positions and using the lower band of the VWAP as a take profit level. The speaker shares a personal trade example, explaining how to manage the trade by taking partial profits at the VWAP band and setting stop losses to break even after securing initial profits. They also discuss an alternative entry strategy using the upper band VWAP for potential trades.

10:02

💹 Trade and Risk Management

In the final paragraph, the speaker discusses trade and risk management, using a hypothetical example of taking 10 contracts of SPY puts. They explain the process of scaling out of positions by trimming contracts at different profit levels, starting with a 15% profit and ending with a 40% profit. The speaker also addresses the decision points for whether to wait for a sweep of lows or a retest of the liquidity zone, or to secure runner profits at the lower band VWAP. The video concludes with an invitation to join live trades and a reminder to like and subscribe for more content.

Keywords

💡Scalping Strategy

A scalping strategy in trading refers to a short-term trading approach where traders aim to make small profits from frequent trades. In the video, the presenter discusses a scalping strategy that they claim can consistently make $250 to $500 per day. This strategy is designed to be accessible to traders with varying portfolio sizes and emphasizes risk management and trade management.

💡Risk Management

Risk management is a crucial aspect of trading that involves strategies to minimize or mitigate potential losses. The video outlines a scalping strategy with a focus on risk management, indicating that it's not just about making profits but also about managing the risk associated with each trade. An example from the script is setting stop losses to break even after securing a profit on some contracts.

💡Trade Management

Trade management pertains to the process of monitoring, evaluating, and adjusting open trades. The video script mentions trade management in the context of entering and exiting trades strategically. It discusses taking profits at certain points and adjusting stop losses to lock in gains, exemplified by trimming contracts at the VWAP band and setting stop losses to break even.

💡5 Minute Time Frame

A time frame in trading refers to the duration over which a trader analyzes price data. The script specifies using a 5-minute time frame for the scalping strategy, which is shorter than other strategies might use. This implies a focus on very short-term market movements to identify trading opportunities.

💡Liquidity

In trading, liquidity refers to the ease with which an asset can be bought or sold without affecting its price. The video discusses identifying buy-side or sell-side liquidity using previous day price action and wicks to determine areas where price tends to reverse, which is a key part of the scalping strategy.

💡VWAP (Volume Weighted Average Price)

VWAP is an indicator that shows the average price a security has traded at throughout the day, adjusted for volume. The video uses VWAP as a key indicator for entries and exits in the scalping strategy. It's used to determine overvalued and undervalued conditions, and to set take profit levels, such as taking profits at the lower band VWAP.

💡Stop Loss

A stop loss is an order placed with a broker to sell a security when it reaches a certain price. The video script mentions setting stop losses to break even after taking profits on part of a position, which is a form of risk management to ensure that any remaining position is risk-free.

💡Trim

Trimming in trading means to close a portion of an open position to lock in profits. The presenter in the video talks about trimming contracts at the VWAP band, which is a strategy to secure profits while still leaving some contracts open to capture additional gains.

💡Confluence

Confluence in trading refers to the meeting point of multiple technical indicators or patterns that suggest the same market direction. The video script mentions confluence as a trigger for entry, where multiple factors like liquidity, daily highs, and VWAP alignment come together to signal a strong trading opportunity.

💡DTE (Days to Expiration)

DTE is a term used in options trading that refers to the number of days until an option's expiration date. The video script mentions preferring contracts with one or two DTE, indicating a preference for options that still have time before they expire, providing some flexibility in case the trader wants to hold the position longer.

Highlights

Introduction to a scalping strategy for making consistent $250 to $500 per day.

No need for a big portfolio to execute this strategy.

Risk management and trade management will be covered.

Invitation to join a free Discord Community for daily trades and analysis.

The importance of not trading during the first two hours of Market open.

Using the 5-minute time frame on TradingView for the strategy.

Mapping out highs and lows within the first two hours to establish Market structure.

Using previous day price action and Wicks to identify liquidity zones.

Waiting for price retest of liquidity zones to enter trades.

Using the VWAP indicator for entries, take profits, and trims.

Setting take profit at the lower band VWAP to reduce risk.

Taking multiple contracts and trimming at the VWAP band is recommended.

Trade management example with 10 contracts of SPY puts.

Trimming contracts at 15% profit and setting stop losses to breakeven.

Taking more contracts out at 40% profit and deciding on next steps.

Options for exiting trades: waiting for a sweep of lows or retest of liquidity zone.

Encouragement to join live trades and analysis by clicking the link in the bio.

Reminder to like and subscribe for more content.

Transcripts

welcome back to another YouTube video

guys in this one we are going to be

going over my scalping strategy and how

I make consistent $250 to $500 per day

now you absolutely do not need a big

portfolio to do this strategy and I'm

going to be going over all the risk

management and trade management for this

strategy in this video as well so make

sure you watch this video to the end

click that like button subscribe and

let's jump right into it before this

video begins I want you guys to click

the link in the bio and join the free

Discord Community I post my trades in

there every single day go live post my

analysis we have a community of almost

13,000 people and I have a team of over

10 analysts posting trades daily so make

sure you guys take advantage of that

click that join the Discord and I'll see

you guys there let's get back to the

video okay so jumping into the chart I'm

going to go over each step in order so

make sure you guys pull out your

notepads and take notes um I'm also

going to have the steps on the screen

simplified down for you guys so if you

guys feel like you know one step more

than the other you guys can kind of skip

around and hop around so first and

foremost I'm actually just gonna go to a

random day like September 20th for

example and I'm going to show you the

strategy my thought process and the

actual step that you need to execute and

then once we're in the trade how I like

to manage the trade first and foremost

you want to hop on the 5 minute time

frame if you go up here on trading view

you're going to be able to set the time

frame to 1 minute 5 minute an hour one

day now different different strategies

have different time frames for this one

specifically you're going to want the 5

minute cool now once we're on the 5

minute time frame the first part of the

strategy is very similar to the RV model

the reversal model you're not going to

want to trade for the first I'd say two

hours of Market open now I know that's

very hard for some people some people

like entering trades some people are

very impatient but why the step is so

important is because we need data and we

need Market structure to actually take

trades from so when you have that two

hours of Market open it's really going

to kind of give you an idea of for one

what the sentiment is that day two it's

going to give you some price action for

that day to play around with and then

three you're going to be able to kind of

Mark out your lows or highs for the day

within those two hours so for example

coming into September 20th first two

hours of Market open kind of is on a

downtrend here to about 8:30 I'm going

to say we are not going to take any

trades we are going to let price just

play out see what happens and to mark

this out for you guys I'm just going to

create a box for the first two hours of

Market open so now you guys could do

this on your own or you guys could just

simply map out the highs and then down

here we have what's the lows so these

highs and lows are not confirmed yet

it's just basically what we have or with

the data we have so far um obviously we

could sweep the highs break it and

continue up or sweep lows break the lows

and continue down but for now this is

the only piece of information we have so

we're going to take advantage of it and

we're going to try to use it now once

you have the highs and lows mapped out

this is where you're going to want to

zoom out a little bit and now you're

going to use previous day price action

and Wicks and candles to identify a buy

side or sell-side liquidity in this case

if we look at our highs here you can see

it lines up pretty nicely with this Wick

and it lines up pretty nicely with this

Wick so what I'm seeing here is as soon

as price hits this area price is moving

it is not staying that is something we

want to draw in on our charts so I'm

going to also pull out my box tool for

this and I'm just going to take it from

the top of this Wick to the bottom of

this Wick right

here and dragging this out you can see

it actually lines up pretty nicely with

the price action that we have for the

day so far so we initially opened near

the top of this liquidity Zone and we

ended up downtrending on the day

eventually creating a low and then

bouncing up and reversing back into that

liquidity after I see that for one we

hit liquidity rejected off of it created

a low created our lows here reversing

back up into liquidity this is where I

want to patiently wait and take my scalp

trade so I'm going to want to wait until

we retest this liquidity to enter and

once we hit the retest I want to enter

short positions putting a stop slightly

at a high there is a strategy for take

profits in this case and we're going to

use a very simple indicator called vwap

if we go to the top here where it says

indicators and then simply type in

vwap you're going to get what's called

volume weighted average price just add

that to your chart and once you do that

it should look something like this up

here right now I have it hidden but I'm

going to show you and uncheck it and it

looks something like this yours may look

a little different it might be different

colors all you have to do is go into the

gear icon right here go to style and

then you can change the color of your

vwap as well as the colors of your upper

band and lower band for me personally I

don't like the fill it has so I just

click here and I change the opacity to

zero so once we have that it should look

something like this and vop is going to

be a very essential indicator for your

entries as well as your take profits and

trims as you guys can see we actually do

not bounce off the lows here we're

actually bouncing off the lower band

vwap so what we could do is to be safer

we can set our take profit to our lower

band vwap this is going to significantly

reduce our risk to reward ratio but in

this case that shouldn't be a problem so

once we have the trade lined up this is

actually a trade that I personally took

and I called it out in the Discord

server and you guys are able to follow

it scalp it with me and make some money

so what we did was we ended up taking

trims at the vwap band itself and then

once you guys see we broke the vwap band

we actually come back and retest it and

then continue down to our lower band and

that is when you want to fully exit the

trade also for better confirmation there

is another strategy to enter using vwap

catching an entry using vwap we can

actually wait for a break of the upper

band vwap in this case I'm going to turn

this lesson into kind of a vwap lesson

as well I want you guys to get really

comfortable with this indicator it's

going to help you a lot in the future

since this is the average price right

here that spy is trading on comparative

to volume on the day when price is below

our lower band vwap that is telling us

that price is undervalued and when price

is above the upper band vwap that is

telling us that price is overvalued risk

reward wise you're going to want to take

puts off the upper band and calls off

the lower band so in this case there's

actually three things that line up for

this trade not only do we tap liquidity

tap our daily highs we also end up

trading above the upper band vwap and if

you guys pay attention right here we end

up cracking that and breaking below it

and this can also be a Confluence or

trigger for entry obviously it is going

to be less profit because it is not as

good of an entry as catching it at the

highs so that is an example of a trade

we

took so once again we have the lows and

the highs mapped out for the day so once

again we have the lows and the highs

mapped out for the day as you guys can

see first two hours we are not going to

be trading so from 6:30 a.m. to about

830 a.m. we are not taking any trades

all we're going to do is sit patiently

now once we map in our highs and lows

we're going to want to wait until price

plays out to about 8:30 to 9:00 a.m. is

and I'm going to show you guys once

again where entry would be entry is

about right here and then you can set

your stop loss at new highs with your

take profit at the lower band vwap and

this trade is going to be easily a three

risk reward ratio and trimming at vwap

is recommended so entering multiple

contracts and trimming at the vwat band

is highly suggested now when I told you

guys I was going to go over trade

management and risk management I'm going

to go over that for this example and

then you guys can apply it for all the

other ones so hypothetical let's say I

take 10 contracts of spy puts here so my

initial entry is going to be 10

contracts and once we hit the vwat band

here um and for reference guys I'm sorry

but I don't take zero DTE contracts I'm

a very conservative Trader I like having

some wiggle room if I do want to swing

it into the next day so what I like to

do is take one DTE or two DTE contracts

if you guys don't know what 1 DTE or 2

DTE is I'm going have a full guide

explaining how to trade options check

the description I'm going have it linked

in there go look at that video it's

actually going to help you get started I

would typically take let's say 10

contracts here for example um once we

hit our lower band vop I would probably

trim about maybe three contracts so

three contracts we'll say that's

plus that looks like it would be about

plus 15% % give or take not exactly so

three contracts are going to get trimmed

at 15% and this is where you're going to

want to set your stop losses to Break

Even Now worse comes to worse in this

trade it becomes risk-free we secured

15% profit on three contracts and we

have seven contracts running at complete

risk-free um with uncapped potential so

next stop is going to be at

our VW band itself this is where you're

going to want to take

more contracts out so it's going to be

about four cons over here would probably

be about 40%

profit and that is going to be four

contracts cous so so far we are scaling

out seven contracts and we are only in

three more contracts for the trade or in

other words our Runners now you have two

options here whether you want to weit

for a sweep of the lows or you want to

wait for a sweep of or retest of the

liquidity Zone or you just want to

secure your Runner profits at the lower

band vwap that is also a good option so

this pretty much sumbs up the video if

you guys want to come live trade with me

every single day see my analysis see the

trades I take and why I take my trades

click the link in the bio if you guys

did find this video helpful make sure

you guys click the like button subscribe

and I'll see you guys in the next video

take care