okay today we focus on scalping and we're going to do a quick overview of what we talked about in the last two lessons just so it can tie into this very nicely and we are going to look at how to position trade how to swing trade and how to sculpture it so in this kind of idea of being a grinder somebody who's taking these different trades i think it's becoming a little clearer now the difference between somebody who's a grinder versus somebody who's a scalper somebody who's a grinder is taking all of these trades all the time right they're taking position trades they're taking swing trades they're taking scalp trades someone who's a scalper is simply just taking scalp traits right so we're going to kind of go over this last little bit that we created here and we are going to tie it all together so to start we have our bankroll total we don't need to go over that we've gone over that many times position trades again are going to be these most optimal trades that we take that have extremely low risk high reward they don't really have too much downfalls other than you have to pick your levels properly like the hard part about being a position trader is having the correct technicals right it's easy to just simply pick a trade along it call it a position position training should be done based on the strongest technicals that we have right so so when you hit a very important level you should be taking a swing trade there with a low amount to have an extremely high risk to reward ratio in your favor right and then there's the swing trades which swing trades are kind of those trades you take that can either turn into a scalp or they can continue to be a swing trade and they can be closed whenever you want right so the difference here is something like this we're going to put this on this line here this would be a position trade we're going to simply delete some of these other levels that we don't need anymore and we're going to get rid of this that guy right there and this one right here so a position trade could be here it could be on this second line here i think i'd rather see a position trade over here or or on this trend somewhere between this downtrend here and this level up here so that would be a great position trade anyways to take a stab at and to see where it goes you could always position trade this too this might just be a quick swing trade right what you intend to be a position trade can turn into a swing trade and swing trade can turn into a position trade or a scalp trade and vice versa so they can all kind of scale in and out of each other the swing trades so we're gonna just kind of split this up a bit here and we're going to color this one green a swing trade would be something like this level right here which we are going to clear this up right here it would be a level that's hit and you're looking for maybe you're not wanting to position trade this because it's it's too high to position trade right your position trade should be down here okay so let's oops let's go and take this and copy this so we have position trades kind of on both sides so this would be a position trade right here in between this trend and this level again position trade on on either of those between the trend and the level we're going to hit it on the level because that would have been the appropriate spot right just like it would be on here and then you have your swing trades and another swing trade could be right here when you simply come up and inverse this level wherever that valley is right there i'm going to assume it's kind of right here so what we are going to do is we are going to color these the same color green just to make this clear right so you've got this here you've got this as a position right here right you've got that's fine the position can be on the purple the swing can be on the green here let's put the magnet tool on get this nice and coordinated this is the valley here we want to go inside of this little area right here and see exactly where the inverse would have been to that valley right so that's the valley there that means the inverse level is right here right so so that would have been our level where we swing trade there right and so you can see it voila it's perfect that would have been a swing trade this level back here would have been a swing trade so you have your two different swing trades and these can turn into like if your swing trade is failing we'll just go over that again say if it starts to hold this level and the uh the swing trade you took a short rate here it's starting to hold this level you can simply turn it into a scalp exit the trade and and relong it when you break trend right so so very simple so far so so we've defined some swing trades let's see the percentages in here 10 on this side 15 probably on this side so so these are great swing trades right and and this is kind of the way in which again if you're looking at position trades building your bank account in a major way swing trades can do the same thing right now you can scale this between 100 and 200 based on experience right and expertise like this and like this you can scale these 100 to 200 dollars here um using our kind of 500 bankroll rule and i think i'd like to leave the position trade relatively small we could go [Music] we're going to leave it smaller here for experience reasons as you get more experience you can play with scaling and comfortability but this is like a really good way to do it this is a really good rule of thumb and how to take these trades and then now we go into the scalp trading so so now we have defined kind of where we're taking position trades where we're taking swing trades and swing trades can kind of scale into scalps and they can also just stay as swings and and you know when you close your position and you add to it then you or sorry when you close your position and and reopen then you've just successfully completed a swing trade and you're opening up a new cycle right so whether you're taking shorts and adding to your position with scalping we're going to talk about that whether you're taking position trades and adding to your position with longs all these different things we're going to talk about that within scalping so we're kind of going to just take this back to here because we've kind of defined the smart spots to be buying right and we're going to go maybe two hourly candles so so you would have had your buy here right and this you would have opened up as just a first scalp trade like we talked about this buying the level for the first time catching a falling knife and we talked about this in the last video on how you're just going to simply sell your inverse level right so so you're going to take this trade and it's going to happen very fast right so you have this to this you've got three percent which is insane that's uh you know using leverage that's 300 percent of your of your trade your amounts again this is your active account so you have to now scale your active account based on experience right so if we have five hundred dollars in our active account like this and we're going to color this one different color 500 inactive we don't want to be trading 500 the whole thing right we have to scale this based on experience so we're going to make this one you know we're going to do a pink color yeah that looks good this is your active account right so so you want to be using maybe 250 if you're pretty good you know 250 on one trade leaving you 250 left in active trading right so your active trading account should be used specifically to have your swing trades play out and have your scalp traits play out right so your active account should be a split between scalps and swing positions so 500 inactive split this between scalps and swings right so you're splitting that between scalps and swings and 250 on one trade if you're comfortable and then you could do maybe i don't know 150 on a swing trade and then a hundred dollars left over in another position that you're doing again we talked about bankroll management how you have to use what's in your active account based on your experience you don't want to just go and toss in 500 on every single trade unless you're extremely comfortable doing that highly experienced and able to make the best of that and scale your account right if you're using 500 per trade you're you're not gonna have a problem and if you're successfully doing this all the time say you've um let's let's look at this for example say you used 500 you're very um happy doing that all of a sudden your account is now at fifteen hundred dollars or uh this would be two thousand dollars right your account would be at two thousand dollars in one trade within an hour and then you would be taking another position is scaling that two thousand dollars if you're using the entirety of your active account or even half of your new active account right you're you're now going to be making another couple percent and then all of a sudden you're gonna be at five thousand dollars so you could literally ten times your active account one day if you're using 500 now i wouldn't recommend this until people get very experienced however this is something that i would say okay this makes sense let's use 250 if you're decently experienced let's use even less let's start with dollars let's start with 50 if you need to make mistakes and you have errors and you're not able to catch these levels perfectly then you should be starting with 50 or or 75 dollars work your way up to 100 work your way up to 250 one day work your way up to 500 if you if you can there's no rush so just trade with twenty five dollars trade with fifty dollars it really doesn't matter right this it makes no difference because you can make five and ten grand a day trading you can make twenty five thousand dollars a day trading it's not going to matter in the long run what's gonna matter is whether you can get there or not so you can't burn through your account and um you know liquidate your holdings prior to being able to getting there once upon a time it'll be a week or two weeks and you'll be making like 10 grand like like it's nothing it won't even it will look like nothing right so here's kind of a first swing that turns into a scalp sorry scout position you you catch a falling knife right you've hit this pretty important level and you just turn this into a scalp you take your three percent you go away you see this level really short right so [Music] once you see this level getting hit and hit again and hit again then you open up a another scalp here or a position trade right like we talked about earn a certain out of position trade a swing trade we talked about this and uh it trying to hold as a minimum kind of this level down here or maybe even possibly this back up in here so it's going to either hold this right here or it's going to come down to an even greedier level and then you can just simply reopen your shorts so you've successfully hit your scalp you've hit your target your scalp targets exist everywhere right like there would have been a scalp on this right here hit this level you scalp it you turn it into a swing trade you know these exist everywhere you you hit your targets you scalp them and you see if you're you're wanting to turn them into a swing trade or not so you kind of move between opening scalps to possibly turn them into swing trades opening swing trades to possibly turning into the scalps and uh back and forth right because it's the same thing you're doing here all you've done is you've shorted one whole level and simply re-bought the next world level it's very simple right so it's all you've done and you've closed the positions and you're allowing them to mature as time goes on this hits here you should open up a new swing position and if it fails to actually continue shorting then you should just turn it to scout make your profits and move on and open for the next trade right so we're going to just walk through this and there it is so if it continues to hold this level you should simply just take your profits that's pretty nice to see that happen in one candle you've got another 200 percent here another scalp trade 200 it's it's a little ridiculous how straightforward it gets oh let's uh move that and we know that it got even greedier and it even hit this level down here but again this is something that you would open this as a swing trade right this is that really greedy level that we talked about but it's still laddering right so it's still continuing to ladder so this kind of would have been the level to rebuy in here right and then and then you can turn this now we talked about this before in the last video we'll talk about it again when you are knife catching you should be scalping it's too risky to take swing trades on knife catches that's exactly what this is right it's a knife cache you should take this short you should re-swing trade it if it continues to hold above the range you you exit this and turn this into a scalp so actually now you just your intent was to have a scalp and a swing trade but the swing trade your second trade so number two right here let's do it like this number two right here failed to be distribution but you still got to take 200 points on this you still got to take 200 on this trade or 300 points or whatever it was you still got to take oh entirety of your trade as you would and it simply invalidates and now you can turn this into another swing position so so now you should have been in this as a scalper if you were started back here you would have scalped that we're not going to start back there but we are going to reference that because it's a pretty pretty clear trade right just just like this one would have been here too you could have taken a short on this level here too either one right it's the same thing but super greedy right here actually the valley starts right here right there so that would have been the level two uh short well it's it's fine any one of these two levels you would have had great results so we opened this as our first the scalp position so we knife caught this level we move up hit the inverse we opened up a swing trade that turns into a scalp so we were actually in two scalp trades now relonging a swing trade so you can see how the intent is to open these things as scalps because the levels make sense and then as time is going on and the trade is maturing you have to decide whether you want to keep it as a swing trade if you're entering it as a swing trade without intention or if it's just going to be a scalp right or vice versa if it's a swing trade that needs to turn into a scale so scalping becomes kind of this marriage between understanding which way the relationship is going right which way is is it continuing to move in one direction is it going to show you failure right and so forth so we're just going to play this out right and there's your chance for re-entry uh this is stabilizing we're just going to draw a very simple trend here got that trend there and then it would have come up to here and then it would have been right here so you've got a very i guess we could just find we're just going to attach it to the swing high for this example we're not doing trend work here today this is not what we're doing you've got a very simple trade here right um you you have a very very simple trade to sit here and see how it reacts to trend you've already entered your position you can stop out in profits and you can see how it reacts to trend right so you should have already been back here on this level right you can um use use any one of these two levels here as you you should have already been there in terms of in your position right and then you have your inverse here right there which tried to hold the move back and it continued to ladder so so let's go and talk about this so so when you guys are in scalp positions right let's go and talk about this for a second so we enter our first scalp here and we're going to take this line off for now right because we already knife caught that and uh that's fine we already knife caught that or you know we went up nicely we took another trade um this is now laddering so we have to dissect this and say oh okay we have a ladder here we have another ladder right here um we're going to inverse this level in failure so you can reshort this level and if it holds above this and continues the ladder you're most likely going to ladder against trend and break out of it right so that's it right there you should have exited your scalp now and reopened a new position you don't have to do this this is this is if you're scalping you have to make that decision if you want to um if you want to be safe this is what you do because because there's another you know one percent 100 percent here or whatever 150 or 130 percent there's another 130 percent here to be made and then how would you assess this move going forward you would say well okay um there's going to be a level inside of here somewhere that this needs to hold right so we're just going to mark this one for um ease of use right now just because i don't want to break down the candles okay you know what we'll go and find it we're gonna go break it down let's get rid of this and we're gonna say you know what as long as it can kind of hold this range in here as long as it doesn't come and back attack the leg then you're fine so the level pulls back you hit your your buy right that's perfect and you're now in your next scalp right you're already now in in in the uh in the water you've hit your target perfectly you've now re-entered another trade you're probably up five or ten percent on the day which is insane um well okay what was this we won't start from there we'll just start from here so sixteen hundred to three o'clock so what is that nine hours and you're probably up five or ten percent yeah that's about right all we're doing is dissecting because there's three percent there there's another that's four percent four and a half um come on [Music] that's another half a percent there we're just gonna call it five percent for now and we're in five percent profits maybe we're in four and a half there should be no reason why you can't take this full five here these are very straightforward levels and um even even here it's still laddering off its target so we can go back here and we can see okay where's the greedy level here if you want to get super greedy on the trade it's right here did it hit the leg of a move no so it's it's most likely still laddering so there's some kind of greedy entry here but regardless you're still in the trade um you know it's laddering still there's no there's no worries to get out it simply ladders off that you could get it again right you're still on the same trade it's still laddering up here [Music] at that point it has now hit this leg which we need to start looking at the higher time frames right you have hit this leg on the 15 what about the hourly what are you doing on the hourly come on come on trading view yeah you're still you're still laddering up on the hourly so this just became a really greedy entry right here so it just became a really greedy entry off the hourly right and then you have a huge bounce up because that's what everybody's going to buy right they're going to take say that hourly is there people are going to be exiting the trade and they're going to be right back in it right so i don't know maybe you lost half a percent there on that trade we're just going to kind of go with it maybe instead of four percent you're at five percent now because of fees and everything and you re-enter the trade right so you would have re-entered on the ladder right you're still laddering up again off of this so you're looking for re-entry and i think everybody knows where this is going it's going to come up towards trend best trend and then take it's larger move up here go to the hourly candles right as soon as it starts hard closing this trend um you're gonna start to see some movement yeah hard close a trend have your pullback enter your trade right here and you're gone and and then you're you know shorting this level right here so you you guys can see very simply very straightforward the uh the scalping positions and how how quick and fluent they are and how easy they become right so you have been able to easily identify where your scalp trades should be you might you know win four lose one like we we kind of made one bad decision there but for the most part of it we made all correct decisions