Beginners Guide To Scalping In 2025 (Full Course)

Summary

This video introduces a simple yet effective three-step scalping system that allows even beginners to trade profitably in just 90 minutes a day. It emphasizes key steps: identifying trade levels, waiting for an energetic push to break those levels, and using a fair value gap for entry. The system is applied across different markets and includes real-time examples, mistakes to avoid, and a backtest for validation. The approach is designed for consistency and profitability, with a focus on discipline, risk management, and understanding market conditions. The strategy is demonstrated with a month-long backtest showing impressive results.

Takeaways

• 😀 Simple scalping system that can help beginners become profitable with just 90 minutes of trading per day.
• 😀 The first step in any profitable scalping system is knowing exactly where to take trades by identifying key market levels.
• 😀 Beginners often fail by trading random levels without understanding which ones matter; focus on a consistent strategy instead.
• 😀 Draw the high and low of the first 5-minute candle after the market opens at 9:30 a.m. EST to set key levels.
• 😀 Always wait for an energetic push through the high or low on the 1-minute chart to confirm market control before entering a trade.
• 😀 Step two involves knowing when to enter, with a key signal being the creation of a fair value gap (FVG) between candle wicks.
• 😀 Use a 2:1 risk-to-reward ratio, aiming to risk half of your target profit on each trade, ensuring consistent gains.
• 😀 Consistency in applying the strategy, even after losing trades, is key to becoming a successful trader.
• 😀 Not every day is perfect for trading; avoid FOMO and stick to the system to prevent losses in choppy markets.
• 😀 The strategy showed a 70% win rate over a month, with a total profit of $10,020 and minimal drawdown, making it suitable for prop firms.
• 😀 Discipline is essential—trust the system, avoid emotional decisions, and allow the market to work in your favor while minimizing mistakes.

Q & A

What is the core concept of the scalping strategy mentioned in the video?

The core concept of the scalping strategy is to trade based on the high and low levels of the first 5-minute candle after the market opens at 9:30 a.m. EST, followed by an energetic break through these levels on a one-minute chart. The system is designed to identify high-probability, quick trades in less than 90 minutes per day.

Why is it important to draw the high and low of the first 5-minute candle?

Drawing the high and low of the first 5-minute candle establishes key levels that define the market's initial direction for the day. This helps identify potential breakout points where trades can be initiated, ensuring that you trade from areas of significance, rather than random levels.

What is the significance of the energetic push through a level in the scalping system?

The energetic push through a level is essential because it indicates that strong market participants, either buyers or sellers, are in control. This push signals that the market is likely to continue in the direction of the breakout, creating a high probability for a profitable trade.

How does the Fair Value Gap (FVG) play a role in the entry process?

The Fair Value Gap (FVG) is a gap created between the wick of two consecutive candles. This gap confirms the market's momentum and the presence of significant players, allowing for a reliable entry point once the gap is formed outside the initial range, signaling an ongoing trend.

What is the rationale behind using a 2:1 risk-to-reward ratio in the system?

A 2:1 risk-to-reward ratio ensures that potential profits are double the amount at risk. This approach helps manage risk effectively by allowing a trader to make more on winning trades than they lose on losing ones, thereby promoting long-term profitability despite occasional losses.

What should traders do if the market shows a fake-out after breaking a level?

Traders should avoid entering trades during fake-outs, which occur when the market breaks a level but lacks the necessary energetic push or confirmation, such as a Fair Value Gap. It's crucial to wait for a valid setup, as prematurely entering could lead to losses.

What is the importance of discipline in this scalping strategy?

Discipline is crucial in this scalping strategy because it prevents traders from falling victim to emotional decision-making, such as FOMO (Fear of Missing Out). Traders must stick to their setup criteria, wait for proper entries, and avoid overtrading, especially in choppy or unpredictable markets.

How does the system perform during choppy market conditions?

In choppy market conditions, the system emphasizes patience and waiting for clear breakouts. If the market doesn't show an energetic push, or if a proper Fair Value Gap isn't formed, no trade is taken. This approach ensures that traders don't get caught in sideways markets, where overtrading often leads to losses.

How does backtesting support the effectiveness of this scalping strategy?

Backtesting provides a historical performance review of the strategy, demonstrating its consistency and profitability. In the video, a one-month backtest resulted in a total profit of $10,020 with a relatively small drawdown of $1,150, showcasing the system's potential for sustained success with minimal risk.

How does this strategy perform in terms of win rate and trade frequency?

The strategy has a win rate of 70%, with 17 trades out of 20 trading days in a month. This indicates a high frequency of setups, almost every trading day, making it suitable for traders looking for consistent opportunities in the market.