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๐Ÿ“‰ Chapters ๐Ÿ“ˆ
00:00 Intro
00:51 Quality Over Quantity
02:31 When I First Started
03:04 Why Scalping is Great for Beginners
04:58 Focus on Quality
In this video Ross talks about the importance of quality setups over quantity, mistakes he made when he first started trading and the three reasons why the scalp strategy is a great strategy for beginner traders.
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Warrior Trading // Ross Cameron // Day Trade Warrior

The Achilles heel of a scalping strategy is that the average winners are really small. Now, a lot of beginner Traders are drawn to scalping strategies because of the instant resolution. You don't have to deal with the exposure risk of holding a position waiting to see whether or not it'll resolve in your favor. But the problem is a lot of beginner.

Traders They don't have the experience that gives them the educated intuition which results in having 65 70% accuracy. So with lower accuracy, they're curring more losses. And if they're not good at cutting their losses, they're going to have a negative profit loss ratio, which means they're basically destined to lose money. So the real conversation here is, how do we increase that educated intuition? So beginner Traders can trade with higher degrees of accuracy.

And I'm telling you, it comes down to stock selection trading the strongest stocks each day. Sometimes people who are adopting a scalping strategy think that they should trade all day long. They should take 100 trades in a day. Just scalp scalp, scalp, scalp, scalp, scalp, scalp.

Okay, that is one way to do it, and there certainly are some traders who do that. But what I'm a big advocate of is quality over quantity. So focusing on the best quality setups and that means you're looking for a setup that gives you a 2: one profit to loss ratio. So you're looking at the trade.

You're saying on this setup, I'm going to risk a 100 bucks to make potentially 200. You take the trade and even if you take your profit off really quickly as a scalp trade and you only make $100 on it, that's okay. The setup had the potential for more. The problem is that a lot of scalp.

Traders They end up lowering their quality standard in order to just take more trades each day. and they're taking trades that at best only offer a one: one ratio. and when they only get you know $50 instead of the 100 when they end up incurring the losses, which of course will happen, they find themselves with a negative profit to loss ratio. and this can be extremely frustrating because a scalper might take 20 trades and have only three losses.

but those three losses are so big it wiped out the profit from the other 17 that is. You feel so defeated, demoralized, You just feel like you feel like the worst when that happens, right? So many of you know it I know CU I Was there too when I first adopted a scalping strategy. When I was getting started, I had a negative profit loss ratio of 2 to1. My average losers were twice the size of my average winners and that meant I would have needed to be trading at 66% just to break even.

Well, I wasn't trading at 66% because I was still learning the strategy that's too high of a bar. And so what I essentially did was I set myself up for failure without even realizing it. Scalping is difficult, but trading is difficult too. And there's a lot of things that make a scalping strategy a great strategy for beginners: Instant resolution, reduced exposure time, and just simply the fact that it's easier to predict what a stock is going to do over the next 5 minutes than over the next 2 hours or 3 or 4 days.
Certainly, so, in order to improve your accuracy, what I always encourage traders to do is focus on the quality of the setup, look for high quality setups, and and yes, you're leaving money on the table by scalping that setup instead of holding for it to potentially realize you know the entire move. But you know as well as I do that if you don't take your profit off the table, it can disappear. And that's why so many scalp. Traders Adopt that strategy because they've had enough times where they took a trade and they were up a lot.

They didn't take anything off the table and Boom it goes. not just back to break even, it ends end up turning into a loser. That's the worst now. I Certainly understand that there's Traders out there that are going for home runs and when you're going for home runs, you let it ride.

But those Traders have much lower accuracy. Of course, that's offset by having a higher profit to loss ratio, but I personally emotionally struggle when I have low accuracy. When I have low accuracy, my confidence takes a big hit. I Don't feel confident to step up to the PL with big share size and so a low accuracy strategy for me, even if it has a high profit loss ratio doesn't work.

I Just can't get my head around it. It doesn't work for me. I Need a high accuracy strategy? That's what gives me confidence to step up to the plate for every trade even if my profit loss ratio isn't as good and that's more on the scalping side of things. you've got a a sort of, you know tighter profit loss ratio, but you've got higher accuracy.

So Focus Focusing on quality is number one when you focus on quality. What that in turn does is it improves your accuracy. When your accuracy improves, you're not having as many losers in total, and most likely you're eliminating some of those losers that became the outliers that were really big. So now what happens is accuracy improves.

profit Loss ratio follows. and then consistency follows. and you know what that breeds confidence. This becomes a positive feedback.

Loop And that's exactly what you need as a beginner. Trader So again, I I Implore you focus on quality of the setup that is number one. Try to build up your educated intuition of what is a good quality setup. Sit down every single morning and watch those scanners look at the top gappers, the top gainers look at stocks hitting the high day Momo scan and if you haven't already checked out my full length class on my scalping strategy, make sure you check that out.

That is going to help you a ton. This is really meant to sort of address really: the Achilles heel of a scalper strategy: the fact that you've got a negative profit loss ratio. You've got to be aware of it, and you've got to do everything you can to combat just that inherent characteristic of scalping.

By Stock Chat

where the coffee is hot and so is the chat

31 thoughts on “3 strategy tips for profitable scalp trading”
  1. Avataaar/Circle Created with python_avatars Tronghung Dao says:

    โคโคโค๐ŸŽ‰๐ŸŽ‰๐ŸŽ‰๐ŸŽ‰๐ŸŽ‰

  2. Avataaar/Circle Created with python_avatars TM says:

    Great advice. Young traders need to imagine what it was like before โ€˜scannersโ€™, before instantaneous p&l feedback and sexy charts with indicators galore. Iโ€™m a high frequency scalper with multiple small share size entries and exits but I am ALWAYS looking for a strong stock that pulls away on higher than average trades per minute. When it happens that is the time to scale up in share size but maintaining a comfortable profit range. If it slows down take half off and look for another support level to hold then add back going towards the stall. If it breaks add or close out if it doesnโ€™t. The KEY is picking one or two stocks that you KNOW are getting plenty of attention and NOT trying to โ€˜inventโ€™ demand.

  3. Avataaar/Circle Created with python_avatars Buttery Jack says:

    How long do you hold your positions for Ross? I think yours was also 5 minutes hold time right? Isn't that scalping too?

  4. Avataaar/Circle Created with python_avatars miloinator says:

    Ross, great show. Why take profit off the table instead of steadily raising your stop-loss and waiting for it to dip? I was able to chase FEMY from 1.80 to 3.09 on Friday with this strategy.

  5. Avataaar/Circle Created with python_avatars Omsun says:

    Rose you are the best at explaining all these important details. So clear! Thank you for everything you do for day traders! Bless you!

  6. Avataaar/Circle Created with python_avatars VaderStock says:

    Hi Ross, Im a member, but have been away from trading for about a month, since my TD moved to Schwab. I've been waiting on DAS Trader to finally work with Schwab but they still tell me they don't have a date. Any alternative you can recommend. I need my customizable hot keys. TOS isn't cutting it. Help. ๐Ÿ˜ฌ

  7. Avataaar/Circle Created with python_avatars AlissaASMR says:

    Is there a penalty with buying and selling same stocks over and over ?

  8. Avataaar/Circle Created with python_avatars Lynn Lynn says:

    SLNO

  9. Avataaar/Circle Created with python_avatars seamus ugochukwu says:

    What broker and chatting tools do you use. Is it custom or public

  10. Avataaar/Circle Created with python_avatars isaac caissie says:

    Can you make a video on when to identify bear traps? There was a very aggressive bear trap on BPTS today. Dip below VWAP to 1.37 then a RIP into a halt at 1.79

  11. Avataaar/Circle Created with python_avatars Music Beats says:

    Day Trading is not even worth it right now. The stock market is crashing like crazy. ๐Ÿ™

  12. Avataaar/Circle Created with python_avatars Lynn Lynn says:

    RNAZ

  13. Avataaar/Circle Created with python_avatars fate says:

    Will i get filled with a 20k long order at any price level when trading a top gainer pennystock with a lot of volume or could It be problematic because there may not be as many sellers ?

  14. Avataaar/Circle Created with python_avatars options says:

    Are you really a profitable daytrader? If so is there proof ?

  15. Avataaar/Circle Created with python_avatars Stelliumx4 says:

    Educated intuition โ€ผ๏ธ

  16. Avataaar/Circle Created with python_avatars Barack Obama says:

    Hey Ross! Thanks for all the golden nuggets which new traders to be more profitable. Im a 18 yr old student and i have learned pretty much every aspect of day trading and i have also done practices with paper trading and i think to im ready to enter the market now. I have $500 to invest and i wanted to ask, how hard would it be to earn $100 per day or how much time would it take. Looking forward to your reply. Thx Ross!

  17. Avataaar/Circle Created with python_avatars KimBapX says:

    Hi Ross. I am working hard to learn from your videos right now. Currently watching your beginner's guide from 8 years ago. I'm only 17 but so far, the information is sticking. Thank you for teaching very well. Wish me luck!

  18. Avataaar/Circle Created with python_avatars HeavyMusicProd says:

    Hey Ross youโ€™re the best teacher hands down on YouTube! You do a great job explaining stuff to where it makes perfect sense. I got one question for you. What are youโ€™re thoughts on using a 1 min and 3 min chart instead of a 5min which seems to take forever to update. Basically my 1 min is screaming BUY but by the time I wait for alignment with the 5 itโ€™s too late. Thoughts ?

  19. Avataaar/Circle Created with python_avatars Christopher Taylor says:

    If I could live in a shoe box under your desk for a year I would. I really want to be apart of the warrior trading community and learn as much as possible.

  20. Avataaar/Circle Created with python_avatars Movimiento FIRE says:

    Thank you Ross, that's what I learned scalping SPY. I wait for key levels and indicators to give me the green light. I don't trade if I don't see a good setup;

  21. Avataaar/Circle Created with python_avatars Jerry V says:

    Hey @DaytradeWarrior (ross), How long did it take you to get to your 1400+ trades? I understand base hits well and do feel like I'm the right track just wondering what your timeline was like?

  22. Avataaar/Circle Created with python_avatars Mark says:

    How you got the dep today on UPTD at 17.80 with .30c spread for god's sake?

    Where was your Stop?

    It was too risky man!

  23. Avataaar/Circle Created with python_avatars R.J. and Meg P says:

    You mentioned taking quality trades that were profitable 2/1. How do you find those trades? I may be missing a key thought processโ€ฆ is it an educated guess of where you think the next move will go?

  24. Avataaar/Circle Created with python_avatars Lynn Lynn says:

    MURF

  25. Avataaar/Circle Created with python_avatars Nicola Smith says:

    Thank you so much for the videos, Iโ€™m learning so much. A quick question I use Heiken Ashi candles, whatโ€™s your opinion on using them? xx

  26. Avataaar/Circle Created with python_avatars Golden Eagle says:

    Ross. Thank you so much for this short great info !!!

  27. Avataaar/Circle Created with python_avatars Leo Ellis says:

    Best teacher in the business of trading, thank you Ross!!

  28. Avataaar/Circle Created with python_avatars Johnsen Liefering says:

    @Ross hey Ross i am now in youre Trial, first thxs its amazing. But i cant ask wuestions there so i hope you can answer it here :).
    Where do you or can someone see at which price the stock will be halted? And second where to see if its easy zo borrow? Thank you very much

  29. Avataaar/Circle Created with python_avatars Lynn Lynn says:

    BJDX

  30. Avataaar/Circle Created with python_avatars Lynn Lynn says:

    AVGR again

  31. Avataaar/Circle Created with python_avatars Lynn Lynn says:

    Wednesday September 20th…

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