okay now that we've talked about position trading we need to talk about what's in between position and scalp trading and being a grinder which is swing trading swing trading is obviously the in between of scalp and position trades it's the trades that can last anywhere from four hours to a few days and so forth right it's it's kind of the in between of you don't quite want to actively be taking every single position or every single trade as a position turning it into these kind of long-term position trades you don't want to be taking every single scalp trade and exiting it exiting it constantly right so we're simply going to continue working off our chart here and we have our first hole level here which is hit right against the uh the trend that is created so we've created trend we've um hit our whole level so so kind of what do you do you're in this this kind of weird spot where there's not really any position uh trades to take you're looking for kind of maybe some of these marginal dumps you're looking to be in a trade for maybe one or two days this is something where you have to scale your amount that you're trading with off of your active account right so your active account has to include your swing trades so for example we had 150 on a position trade we have 500 in our active account right so we're gonna go like this 500 active we are going to go 93 50 as our total account right so it's 10 000 but we have 93.50 left in the total so so now what do you do right okay so so now you're looking at these positions and you're saying okay well i need to take a trade not in here and maybe we're gonna break down some technicals first so we're gonna look at this we're gonna say okay this hasn't been holding it's obviously targeted this whole level next and it's kind of caught in this spot right now where it's if it continues to hold this range it's it's most likely going to hold this range up and through this trend right like you're most likely if if you continue holding the top of this range for long enough you're going to slowly ladder against it like this you're going to come here and then you're going to come here and here and maybe like this and then like that and then you're going to kind of go like that and float through the top right like what do you do here because there's not really any position traits to take there is kind of all these little in between traits to take like what what do you do right so you have to start taking on the trades that are that are in between right so you have to say okay here's a hold level i want to buy this and and this is kind of the management of stop losses right like this is kind of where you perfect your management of your stop-loss so in your 500 active account you should take possibly to start with you guys should also use a relatively low number if you're taking 200 in in your active trade per grind or per scalp right this kind of covers scalp trading per grain scalp trade that's fine you're going to want to take a hundred dollars on swing trades right it's kind of the same idea and it's the same mentality as taking larger position trades more more methodical trades like you have a bit of a bigger payoff so you don't need to risk as much your payoff in your account growth is is going to be a lot better so what do you what are you looking to do here well okay swing trades let's talk about swing trades swing trades can be anywhere from catching a falling knife right so so there's kind of a delicacy there like you catch a falling knife against this trend you come straight down you swing trade this you have two ways you can develop this trade okay you can knife catch like we talked about as a grinder and you can sell for your kind of point spread that we talked about kind of 20 or you know one-fifth of whatever it dropped is like a really good mark so you can just quickly get out of the trade or you can continuously hold it and raise your stop loss i would not recommend that on a knife catch for the first time rather i would recommend that when you're starting to do something like this you have this here you're going to come pull back knife catch stabilize here i would recommend a swing trade here not on the knife catch the knife catches quite simply catch the knife sell the inverse take your points or or you know set your criteria out take your free trade and and be on your merry way right this isn't really smart to be taking a swing trade on on a nice couch like that it's it's more of a sculpture and then when you come back and stabilize right because you're gonna you're gonna always have that where you have a falling knife and you need to stabilize you're either going to test it again and fail down right or you're going to knife catch test it and and hold some range above the actual bottom of that knife catch right this is where swing trade comes in right so if we kind of were to break down the queue of trades it looks like this a grind trade or or a scalp whatever you want to call it take your position here you re-short the top you upon this holding above here that's that's kind of the trick so let's talk about that step number two right so step number one is you have the knife catch okay step number two is we're gonna say this is the inverse right here so we're gonna sell the inverse and reshort it okay so the inverse is saying that we're going to go down unless we enter a pandora's box so you already have the first trade here number one right number two becomes the exit of your trade here and the re-short because two things are going to happen now you're going to hit the inverse and you're either gonna pandora's box and hold this up right you're simply going to inverse into big failure so your swing trade starts in two spots okay your swing trade starts either okay let's keep that up this is number one this is already complete your knife catch your swing trade either starts on number two where you are having the inverse level and it is going to hit the leg and you are going to fail down and you can leave this open and and kind of readjust your stop loss as you go to secure profits right you can readjust your stop loss as you go and secure your profits that's where the first swing trade exists the second swing trade exists on trade number three which is kind of right here which if it holds above this it's holding a higher range that's where you can take your actual swing trade number three right so you have three trades already on on this knife catch there's kind of three trades in there that happens there's a knife catch scalp there's an inverse position trade that can either turn into [Music] it doesn't have to be a position trade like if this if this holds if number three holds if you actually hit a whole level this isn't going to be a position trade you're just simply going to exit the trade and and look for the spot to restabilize and relong the confirmation of the move right it starts the knife catch as a scalp it then turns into get out of the trade at the inverse take your short against the position trade to see if that position is going to continue moving down or if you are going to hit a whole level and move up so you you are now looking to say okay position trade is open let's close the position trade therefore making it another another scalp so number two turns into a scalp when number three becomes true so one number three becomes true and you actually have a new position trade opening as a long number two is simply just a scalp so you actually have two scalps in there and a long or one scalp and a short right or i should say two scalps and one position trade or one scalp and one position trade the one scalp and one position trade is one scalp here to there and this turned into a position trade down to here that's the one scalp one position the two scalps one position is this you buy here you short here you relong here so it's scalp scalp position right i keep saying position trade guys i'm sorry i'm i mean swing trades swing trade uh i'm i'm in the habit of saying position trade because i just recorded the uh position video so we're not talking about position trades sorry every time i said position trades here replace it with swing trades we are looking to swing trades so scalp swing or scalp scalp swing that's the way it works right so this is kind of the in between of of being a grinder and having the every single trade all day long looking at these trades constantly right you have to kind of have a even further broken down you have to have an even further broken down criteria here right so so now we're starting to build out a a bigger criteria right we have a certain percentage of our portfolio on a position trade that's going to ger guarantee us large profits with the least amount of risk these are position trades position trades are the largest profit with the least amount of risk we then have swing trades which are in between scaling and position trades we're scalping we're doing all the time and we are trying to take constant 50 points here 40 points there 100 points here and then you have swing trades right the in between where you are trying to set up a larger piece for the move so it's kind of you want to reduce the risk further in your account by having some of these swing trades when you see some pretty glaringly obvious stuff like let's maybe just go to a one hour chart here and pick a random spot we're just gonna drag the screen over to any random spot right here yeah okay that looks good where we have this thing that says total and we're just simply going to look at where something has laddered okay so we're simply going to mark it out here this comes up you have a pullback right so as long as this leg doesn't get hit you have all this big pullback as long as that leg doesn't get hit you're going to be in a position trade right so so then you can enter anywhere in here as a i keep saying position straight as a swing trade jesus i'm almost gonna have to record this video you can enter anywhere here as a swing trade and and this is the swing trade and it goes up and how long does this last from the 29th to this actually turns into a position trade from a swing trade but this started out as a swing trade you're not breaking any sort of big technical you don't have some methodically planned out action that's happening you don't have some large level that's being hit i guess this isn't so bad from july 17 to july 28th so so it took 11 days to materialize and it came back and it pulled back and it it laddered from from one spot to the next right like you have this to here it ladders this would have been the first spot where you have a position trade right and then and then on a larger time frame swing trade sorry swing turn jesus this would have been the the spot where you ladder here and you move up here this would have been a great spot to take a swing trade right because you have a day or two that you're in and you can realize a lot of profits here like what are the profits here you're not going to have position trade profits where you're looking at 30 40 and this is kind of the top of the range for a swing trade usually swing trades are somewhere between five and ten percent this was a rather good swing trade that had seventeen percent so risking a hundred dollars you made seventeen hundred dollars on on a hundred x if you've got it properly now that's a top and bottom so just call it you know twelve percent or even ten percent even if you bought from right here when it started to uh stabilize and move up and you just sold for ten percent you know you just it's still a thousand dollars and all your risk was a hundred so you just gained ten percent of your account for risking one tenth of it like that that's incredible right and it doesn't take a lot to be correct there you have a a very good ratio if you like you know play with ratios you have a very easy ratio and then the same thing happens here as to where all you have to say is oh we have to ladder off this here you have another position trade where clearly this inverse then and it failed down off of this here but that's fine too because you had a you had a swing trade that from here to here you've got your six percent so this is fine this is five to ten percent somewhere um take five percent this is a great result and it doesn't impede your ability to take position trades these swing trades don't impede your ability to take swing trading doesn't impede position trading swing trading also doesn't impede impede grinding or scalping so this doesn't do anything to either it's another completely free position type that you can take and then so fine you inverse the level you would have sold there you would have reshorted here again another position trade as long as you don't wick this leg of the move you're fine to move up again and this turns into a swing trade opportunity that was oh you're right here right and you can see as long as you don't touch it you can you can position trade this so you can just get in down here it takes a little hit down before it moves up big so again it's just a simple swing trade that we can add to our repertoire now we have position trades that we should be managing actively we have scalp and scalp trades that we are grinding out every single day that we're actively managing and now we have some of these swing positions that we can also add into the mix too right so now we kind of are having this repertoire of all these different trades right a good example something i like to do would be like this so this is kind of one of my little cheat techniques that i do it's not really a cheat technique but okay let's just say we had a position open from as long as we didn't hit that and we just let this position open and we just continuously maybe we actually were so good that we sold up here and we were able to buy this level down in here somewhere okay so what's next right you have this position open and you're in you're in a swing trade what's next you you start marking out levels that's what's next you have come on this right here which was this inverse right here right so you have this inverse right here and you can start taking shorts against that inverse so you can leave this position open as a swing trade and when you hit this you can take the short against it and re-stabilize the move and just close your short for profit so you can keep your long open and you can just take a short against that level right so you can actually just short this level right here so you can take your 100 points here or sorry one point g is 100 points you could take your one percent here right like or or what is this let's try to get this without the magnitude this looks like more than one percent yeah so you've got almost three percent there so maybe you took a percent and a half right and then and then you can go here and you can say oh well we have our origin level looks like right i'd here to switch time frames to see where it is going a little deeper here looks like right here is the origin tries to close above it so then you can take a short against here and and so fine you have another 200 or 200 percent there to you know x amount of points and at some point you can decide okay our target has been hit we can exit our swing trade we've still been able to grind out shorts every time we hit one of these targets we want to leave our swing trade open it's turning into a position trade so now we have the best of all worlds now we have positions that we're actively managing longs and or shorts and vice versa right the same thing is here like you could have taken a swing trade here and then just looked for these levels to relong right like you would have been here the first jump right so this already happened we shorted against this level right here where our blue circle is and then we re-bought this level right here giving us this bounce right here or this bounce right here and you could have made another x amount of points while still being in a swing trade that's turning into a position this is another two percent which is which is incredible right and this is where you're you're using a larger amount of your account because they happen frequently they happen all the time and they're easy to control these kind of little kind of bounce trades or these little tiny grinding trades where you can very easily see what's going on in the market you can easily take those trades and and just manage a larger amount on them all day long