Welcome back everyone! Today we're going to be talking about scalping. Sounds cool, doesn't it? Um, but it is a listen. It's one of those strategies that it can work if you're a Hft, you know a highfrequency Trader with like a bank of computers in the basement of a hedge fund. but I see so many newer Traders Kind of like fall in love with it because they think it's quote unquote.

easy money. Remember there's no such thing as easy money in the stock market. but when when we think of scalping, the idea is that you know you'll see stocks like like an Apple or something. you know it'll go up 10 cents.

it'll go down 10 cents. You know, like a lot of these real stocks, they don't move that much. they just kind of like other than days with earnings or news, a lot of these bigger companies and those real names. as we say, they just don't do a whole lot all day long and then people will see like this up and down tick between the bid and the ask and they'll be like well I could just trade the up ticks and don't trade the down ticks and you know, a thousand trades later I'll make a th000 because I'm just making you know a dollar a trade and it sounds good.

like if I mean some of you might even be listening to now and you might be F have your charting up and you'd be like yeah I just trade the downt and trade the upticks and it sounds alluring and again I'm not saying it can't be done if you're a supercomputer with you know, billions of dollars and you're just scalping in and out all day long. but with a new with a small Trader with a small account with poor risk management, it's never going to work. I I wish I could tell you better Now you might be commenting right now. Well, Tim you know Joe Shiken Jansky I see him on Twitter He's scalping all day long and he's doing well.

Listen: I bet you Joe Shiken Jansky ain't no new Trader and I bet you he doesn't have a small account, that's the Allure You have to understand that there are trading strategies that are not feasible for you as a new Trader with a small account part-time Traders limited risk management and I see so many people fall into this scalping fallacy. I would say it where they just see this Allure of doing this in and out a thousand times a day and what they do and this is the Trap There's a lot of survivorship bias. Okay, they look at this chart and they see all the upticks but then they don't think about well. what happens if I'm wrong? Okay, what if buy the wrong uptick and I'm wrong and then what happens if the stock sells off at the end of the day and I you know and now my losses are magnifying and that's the biggest by far.

The biggest issue with scalping is you can be right a lot. but because when you're right, it's such small gains. It's 10 bucks. It's 50 bucks.

It's maybe it's a hundred bucks, maybe it's probably going to be more like 20 bucks. You make one mistake like some news comes out, or you break a stop or you walk away for a few minutes. and the stock and there's profit taking. All of a sudden, you've got days, weeks, possibly months of loss, or of gains that are gone in one shot because all of your gains are so pitifully small that it just takes one not even terrible trade like I'm not saying you, you're down 50, 60, 70% If you're only making 1% One mediocre, poorly planned, broken stop, it's all gone.

poof, it's gone. And then what is doubly frustrating. And this is why basically everyone gives up. Everyone gives up is okay.

I Screwed up I Broke my stop I I gave back months of gains. Guess what? Now you need months to get back to break even because of these pitifully small gains. So now you're like six weeks in and you're still like geez, I'm I'm still a You know if I keep going like I'm going I'm still a month away from getting where I was and most now maybe you're a better man than I or a better woman than I. Most people are just like, well forget it I'm done.

You know this doesn't work and I've seen that hundreds of times. thousands of times. I did it myself. Listen I've been day trading for 18 years.

Okay, 18 years I have made every single moronic mistake hundreds of times. Okay, I got the scars to prove it. Okay and I fell in love with it for a while I thought oh you know I would you know this is back when I was a part-time Trader I was very business busy, growing my business and with family and a lot of the times I you know I' just kind of get back to the computer it'd be 3:00 I'd be like hey if I just scalp open and out for an hour here. call it a day and you know again it just it doesn't work over time.

It might work for a short period, but even when it works the gains are so small. So my friends what I would tell you to do and this is so important And this is what got me to the point where I was profitable, where I was able to sell my business, where I was able to become a full-time Trader and now a mentor. Um, focus on trades with a minimum a minimum of three to one risk of reward. Okay, because what's happens when you're writing out those trade plans and you're capitalizing on stocks that can pay you out As we say, three times what you're risking? Now you can make a few bad trades and you don't give it all back.

Okay, because now you're progressively growing your account, you're maybe maybe you're catching a few really big moves. And now when you make mistakes, Which mistakes are part of the game? Now when you take stops, which stops are part of the game, you don't give it all back and then take months and months to get back with work. So 3 to1 risk of reward Understand charts, understand volatility, understand past performance of stocks. Okay, one of the reasons we focus on stocks that are what we call former Runners is stocks that have ran in the past tend to run big in the future.

History does not repeat, but history does rhyme. And if you know the signals, if you know what to look for, if you know how to read charts, if you know how to interpret price action, if you know to manage risk, you can be a consistently profitable Trader The best way to get there. Hit that link below. Check out the Daily Income Trader system multiple times a day, even on weekends.

We're giving Live tours of the Daily Income Trader System it can. It includes an algorithm. It includes a platform. It includes news feeds.

It includes chart charting. It includes scans. It includes education, ebooks, live webinars, everything you need to become a consistently profit able Trader And you get access to a free tour simply by clicking that link Live. 100% interactive.

Check it out and we'll see you on one of the webinars.