How to Scalp Trade (with ZERO experience) transcript

All right, everyone. Hey, welcome. Thank you guys for tuning in here. So, this is a live broadcast and we're going to be talking about scalp trading. Scalp trading for beginners. This is a beginner day trading strategy, but it's not just for beginners. Anyone can scalp trade, whether you're beginner, intermediate, or an advanced trader. During this uh free class that I'm streaming here on YouTube, I'm going to break down for you scalp trading as a strategy.

How I find stocks to trade, where I get in, where I get out, the criteria for a scalp trade, and I'm going to show you a bunch of live examples. So, those you guys tuning in live, thank you for being here today. Super excited to be teaching for you guys. Um appreciate you hitting the thumbs up and being tuned in to the channel. You're welcome to subscribe if you'd like. That way you get the notification whenever I go live, but um you know, you you do that when you're ready.

So, let's see. Um since everyone's here, I'm going to give you my disclaimer before we get started, which is a reminder in case you didn't already know that trading is risky. Most beginner traders lose money, so I encourage you uh not to trade money that you can't afford to lose. Take it slow. And I'm going to give you, let's see, whiteboard here. So, reminder, trading is risky. All right? And now let's go ahead. I'm going to run my intro, and then we're going to jump right into the class.

Okay, so here we go. Scalp trading for beginners. And I'm going to keep my whiteboard handy here because I may need it a couple more times before the end of this class. So, I'm going to go um full screen. And by the way, you can see uh today I have already taken a number of trades. So, uh it's about 1:00 in the afternoon. I'm not going to be trading, well, who knows? Maybe I'll trade during this workshop. If we end up seeing a really good example, I'll take some trades.

But I probably won't be trading during this uh live event. I'm going to be focusing just on teaching you scalp trading. But uh VERU, uh v e r u, the biggest winner today, it just in terms of stock selection, this is this one's going to be a good example of the right type of stock to be trading and why scalps uh could have been good opportunities on this particular stock. All right, so let's go ahead and jump in here first.

So, let's start high level. What the heck is scalp trading? Um you know, you're you're probably aware you may have heard of scalping before. Um And there's a couple different types of scalping. Uh there's the the kind where you lose the top of your head. Now, that's the worst kind. Um then there's the kind you might have heard of where someone buys some tickets for a concert and then sells them out front of the concert hall to people going in.

A scalper, right? You may maybe heard that. And typically what they've done is they've bought it, and then they're reselling it for just slightly a higher price. And now sometimes they price gouge, and that's not great, but scalping by itself is um totally legal, and you're allowed to do it both with concert tickets, and you could do it um uh on on the trading side. And so, on the trading side, scalping is when you buy a stock uh and sell it very quickly.

So, essentially it's a quick entry and a quick exit. You're trying to buy it for one price and sell it a few minutes later, maybe a few seconds later, for a little bit more than you paid for it. So, scalp trading is a day trading strategy of taking trades around key technical levels. Key technical areas. And I'm going to show you actual chart examples of this. But, you know, for right now, let's try to keep it high level.

Some of you guys are driving while you're listening to this. Some of you guys are, you know, walking around the house and you've just got this on the headphones. So, I'm going to try to keep it high level, explain it in a way that you can picture it, and then we'll get into the details a little bit further into the video. Those you guys just getting tuned in right now, please do me a favor and hit the thumbs up. Um I wanted to do something special for this uh video, which is for every person that hits the thumbs up, I'm going to donate a dollar to a local charity.

And at the end of this broadcast, we'll see how many thumbs up we've gotten. If we've gotten 1,000 thumbs up, I'll donate 1,000 bucks. If we've gotten 3,000 thumbs up, I'll donate $3,000. I will also donate $2 for every time you share this video. The only thing I want you to do is type in the chat feed that you liked it and you shared it. All right? So, if you like it and you share it, not only will I donate uh $2 for every share and a dollar for every thumbs up, for one person today, and I'm going to randomly choose at the end of this video, the end of the broadcast, I'm going to give you a free membership at Warrior Trading.

All right? So, that'll be for people that have liked and shared. Comment below that you've liked and shared. All right. So, um So, day trading is a strategy of taking trades around key technical areas where you expect to see a surge in volume, taking small percentage gains, but with bigger share size. Scalp traders are typically more active, trading in and out of a stock many times throughout the day. Now, a scalp trade should work instantly.

If the scalper has a good read on the level two and the tape, which is the time and sales, and is correct about the importance of that technical level where they're trading, the trade should work instantly. Scalp traders will often have a one-to-one or even a negative profit-loss ratio. Now, this is a little bit of a drawback and where it can be a little tricky for beginners. The one-to-one profit-loss ratio means your average winners and average losers are the same.

So, and this has always been the case with me in my trading. My average winners are about 1,300, average losers are about 1,300-1,400. It's about a one-to-one ratio. But you can be profitable with a one-to-one ratio as long as your accuracy is higher than 50%. Right? That's just that I mean, that's basic math right there. If you make a dollar on average and you lose a dollar on average, if you're right half the time, you're break even.

But if you're right 75% of the time, you're profitable. So, a scalper typically will have a higher percentage of success, higher percentage of accuracy. And you know what that's attributed to? It's attributed to taking profits quickly. Now, what's kind of interesting here um is that uh you can actually, in a way, adjust your accuracy based on the way you trade. So, for instance, if you get in and you take profits really quickly, your accuracy is naturally going to be higher because it's not super hard to predict when something's going to go up 5 cents or maybe 10 cents.

Now, if you get in and you don't take any profit until it goes up 50 cents, you may have trades where you were initially right, and then they turn around and you end up being wrong and you end up losing money. So, as a scalp trader, anytime you're right by at least 5 or 10 cents, it's going to be a winner, and that's what keeps your average so high. However, scalpers uh scalp traders rarely produce home run trades. Because we're focused on small base hits, consistent small base hits.

And so, sometimes it can feel a little bit frustrating because you might see a stock go up significantly, as we saw with VERU from 8 all the way to 12, and you got in, you got out. You got back in, you got back out. You got back in, you got back out. And you feel like, man, if I had just held my initial position, I would have actually made so much more money. And so, there is a time and place for both being a scalp trader and also going for a trend trade or a longer hold time.

Sometimes it can be hard to do both if you are trading in just one account because, you know, you have to make a decision. Is this going to be a position that I just take quick profit on, or am I going to hold it for the bigger move? So, you know, if you're a beginner trader, you may be more inclined uh to just take those uh those quick gains as you have them. All right, so uh let's see. Let me go back to full screen on this.

Um and oh, I have what is scalping here. And the other um definition of scalping, which uh some of you may be aware of, is uh on the broker-dealer side. So, broker-dealers are not allowed to scalp trade. Scalp trading uh on the broker-dealer definition is when a uh broker buys a position right before they execute the position for a client. Like if they have a client that calls them and says, "Hey, buy 50,000 shares of Apple." If they go and they buy 50,000 or 10,000 shares, then they place the 50,000 share customer order, and then take the profit, that's a scalp trade.

You're not allowed to do that as a broker-dealer. So, that's a form of scalping that is uh not allowed. But for regular traders who are not broker-dealers, scalping is um is totally okay. Uh and scalp trades are typically, I mean, they're short. They can be one to two minutes long, sometimes longer, sometimes shorter. They could be as short as one second, but they could be a little bit longer as well. So, here are some tips for scalp trading.

Trade the hot stocks each day based on the watchlist that you create. These stocks must have a few things in common. They must have high relative volume because that accommodates your ability to get quick entries and quick exits. High relative volume typically means the liquidity is going to be better. It's above average volume, so people are talking about it. You want to be trading the most obvious stock. If you're trying to employ a scalp trading strategy on a stock that has very low relative volume, you're you're going to get in and nothing's going to happen, right?

Stocks that have high relative volume, those are the stocks that at key technical levels will see big moves. Sometimes up or sometimes down, depending on the course of which direction it's going, but that's where you're going to get that quick resolution and that's what you're looking for. So, essentially and I'll uh jump over to my whiteboard here. So, what we're looking for on a scalp trade and I'll move this back as well.

Let's see. So, we're going to look for let's say we have a pattern and we're going to do as a as a line chart here. So, let's say we have an ABCD pattern or a bit of a flat top. So, we have this very clear level of resistance right around here. So, a scalp trade would be trying to anticipate the break through this level with an entry just under it or just as it breaks and then as it surges through, what would we expect?

Volume bar will be high volume. Through this area we might have seen high volume on the move up, high volume and then it moves down a little bit, the volume bars and then it comes back up again. As it comes up for that second attempt, then the volume comes down a little bit and what we want to try to predict is the volume spike that's going to occur as the stock breaks through this critical level. That is a technical level, that's an apex point.

And often times these correspond with uh psychological areas of support or resistance. So, this could be like $6 even or maybe it's 650, you know, 650 half dollar. That's very common. So, in this case your entry is as it's coming up right here, you might be buying right as it it breaks this level. Maybe you see there's a seller for 10, 15,000 shares at six $6.50, whatever the price is. You see it starting to go from 10, then it goes to nine, then it goes to eight, then it goes to seven, then it goes to six and you punch that order because you see on the time and sales, you can see on the tape how it's clearly moving up.

And then you jump in right there for the break through that level. You're long at the ask, you look for a quick extension, high volume bar and take a little profit off the table. Now, if you're a more aggressive trader, you may turn that scalp into a bit of a um a more aggressive trade where you add as soon as it goes higher. Sometimes what we also see, which is very common, we'll see a break of this level, a retest.

So, it breaks, it retests and if it holds support, that's a long on the first pullback for a move higher. So, there's two possible trades here. You can have one trade that's actually on the break of that technical level and then a second trade on the retest as it's proving it's holding. And as a scalp trader, what's important is that you're taking profit, so you're long and then you take profit in this squeeze here, that way if it comes back and flushes down, you've got a green trade.

You've taken profit off the table. And that's what a lot of traders won't do. They'll be in a trade, they'll have 15, 20 cents of profit, they don't take any of it off the table and what ends up happening? It ends up turning into from a winning trade to a losing trade. And that's why it's so important to book those profits. Now, uh Yugander, to answer the question between scalping and trading, they're they're one in the same.

It Scalping is just a subset strategy for day traders. A scalper who's a day trader could be scalping momentum, they could be scalping uh reversals, you know, it's a it's more of an entry exit strategy and a position management strategy that falls within day trading. So, let's see. I'm going to get my um drawing tool. Where's Where's my drawing tool here? Um there's my laser pointer. All right, so a couple more tips for scalping.

We want to be focusing on the leading gainers and gainers each day. Those are the stocks that have the highest relative volume, they're moving the fastest. And we're going to trade smaller moves, 10, 15 cents with larger size, maybe 1,000 to 10,000 shares, maybe higher. And this is where as a scalper you do carry a little bit more risk because essentially what you're doing is you're trying to profit on a relatively small move in the stock.

And the only way you can profit on a relatively small move in the stock is if you take a bigger position. Right? So, you know, let's just do the math here for a second. If you go long with 100 shares, 100 shares times 10 cents, how much does that equal? You're up 10 bucks. $10. But then you do that same trade with 1,000 shares times 10 cents and you're up 100 bucks. You take that same trade with 10,000 shares and now 10 cents equals 1,000 bucks.

Now, as a beginner trader, you're probably not going to feel comfortable managing risk with a 10,000 share position, but the way I've always traded in a small account is by trying to target 10 1,000 shares and 10 cents a share, which is about 10 which is about 100 bucks. That's kind of been my goal whenever I've traded in a small account to focus on a stock where I could afford a 1,000 shares. So, if you have a a $3,000 account, you could buy 1,000 shares times a $3 stock, that equals $3,000 in the trade.

It goes up 10 cents, you're up 100 bucks, right? It goes up, that's 10 cents. It goes up 20 cents, you're up 200 bucks. It goes up 30 cents, you've got 300 bucks. That right there is 10% growth on your account in one day. And that's not even talking about using leverage, that would just be using cash. Now, some stocks might go up more and you could always get back in and keep actively trading them as they move higher.

And that's something that um I do, but as a beginner trader, one of the things that's so important is to focus on one and done. Get green and then shut it down. Don't keep trading. So, another tip for scalp trading is to buy at breakout points where you would look for an instant move after the entry. One of the challenges with buying stocks during consolidation is that the volume is lighter and so during this consolidation, you've got the stock consolidating in a narrow range, the volume is lighter and if you accumulate a large position and it breaks out of the consolidation to the downside, it's going to you're going to see a big spike of selling volume because it's obviously breaking down.

There's not going to be a lot of buying volume and it's going to be hard for you to unwind a big position without taking a significant loss. And so, what I'm more inclined to do is to buy as it's breaking to the upside of that consolidation, which therefore is a breakout trade. You're buying for the break through the highs. Now, one of the challenges here is false breakouts and we'll talk about that a little bit more as we get into this um class and and I'll share with you at the end of this broadcast when I um when I share with you uh who we're giving a free membership to, which will be at the end of this broadcast, I will also share with you a couple of um whole tidbits that you should know about market makers to help you avoid getting caught in those false breakouts.

So, stay tuned for that. Uh now, another tip for scalp trading. So, we talked about trading the high relative volume stock. We talked about trading smaller moves with larger size. We talked about buying at breakouts and looking for an instant move. Now, I'm going to talk about being cautious about scaling into a larger position. When you start scaling into a larger position, meaning you're adding and it's going higher and you're adding higher, adding higher, adding higher, what you're what you end up doing invariably is sacrificing the initial profit.

And so, let's go here. I'm going to do um the split screen here for a second. So, um let's say you have a stock at $6 here. So, the stock's moved up, it's pulled back and you're long right there, which, you know, we would say that that right there could be a great entry for the break of six, right? That's a nice looking entry there for the break of $6. All right, so you're in there at six and it goes up to 615, 625. Now, a conservative trader would take that profit off the table.

They'd say, "You know what? That's my 15, 20 cents, I'm out." A more aggressive trader, what are they going to do? They're going to add right here. Maybe it does a little micro pullback just for a second like this and then it starts to squeeze up again and they're going to add right there as it starts to squeeze up. And what they do in that moment is they're now scaling into the trade. So, their average goes from $6 and if they add at 630, now their cost basis is 615.

So, what they've done is they've sacrificed taking that initial profit off the table in exchange for the opportunity to get a bigger trade. Now, that's fine and if this ends up going up here through 650 and then maybe pulls back again and then goes up to 675 and pulls back again and then up to seven, you could continue doing that. You could continue to scale in. So, now your average is 615. Let's say you add again at 665 and you double your position.

Well, once again, now your average is going up. So, 25 plus 15, so now your average is going to be around 640. Right? Now, if this ends up going up to 670, the the cool thing is what initially was a 1,000 share position at six turned into 2,000 shares at 6:15, and then 4,000 shares at 6:40. If it goes to 6:60, you're ending up with an $800 winner, right? That's great. And that's certainly a lot more than the initial $150 if you were just taking your profit all off the table uh when it broke through six and went up to 6:10.

But getting to the point where you feel comfortable sacrificing that initial profit in exchange for the potential for a bigger move, that takes first at least a month of consistently hitting base hits and consistently hitting base hits mean means getting in, getting green, and getting out, and not overstaying your welcome. That's so important. It's adding adding adding as it goes higher. That's for more advanced traders, and you will see me doing that all the time.

Absolutely. I'm a more advanced trader. I feel comfortable doing that. But as a beginner, that's not the approach that you're going to want to take. As a beginner, you're want to get in, get your profit, and then get out. So, the fourth tip was use caution when it comes into when it comes to scaling into larger positions if you're focusing on being a scalp trader. Begin with one entry before attempting scalping. And sorry, before attempting scaling.

As soon as you have a small profit on that one entry, you're in at six, you take some profit off the table as it goes to 6:15. Initially as a beginner trader, and this is what I always have done in a small account, is I've taken off the table. So, if I'm in with a thousand shares, I'm up 100 150 bucks, 15 cents, I sell the whole thing. I'm done. One trade a day. As a beginner with a small account, that's absolutely got to be the approach because your job is to try to build consistency.

And we know how hard trading is. We know that it's risky, and we know that most people don't find any consistency at all. So, if you can get in, you can get green, and get out, that's the way to do it. And what you want to focus there is on accuracy. Focus on accuracy. Take the best quality setup, get in, get out, and you're done. Now, of course, one of the challenges um with that approach is that, you know, you could have the misfortune that that one trade that you took is a bad trade.

You end up taking a loss on it. But that's that's life. That's part of trading. And if you find at the end of let's say a 10-day period doing that, that you took 10 trades, and you're right on only four of them, well, that tells me that you should go back to trading in the simulator because your accuracy, your ability to choose strong stocks to trade, is not good enough yet. If your accuracy through that 10-day period is 60 or 75% 60 70%, you're right on six or seven out of 10 trades, good.

That's great. You should be green. And do it again for another 2 weeks. If it's 60 or 70% at the end of that 10-day period, and you're red, it's most likely because one of the three trades that were losers or three or four that were losers ended up being a big loss. So, then you have to go back, and you have to ask yourself, what about that trade gave should have given me a little bit of a red flag before I took it? And that's what we're going to talk about um towards the end when we talk about market makers and some of those false breakouts.

So, as soon as you have small profit, sell half, adjust the stop to break even on the remainder of the position. So, that would be your average cost, your average entry. And one of the things that's really cool is um you know, with the trading software, for instance, that I'm using, I can automate all of that with hot keys. So, uh I'll I'll just um I'll show you right here. I'm going to switch to my um my main account.

So, I've got my my retirement account, which is up 10,000. And I've got my main account, which I didn't trade in today. And I'm actually going to give you a um kind of close-up here of my keyboard as well, split screen, so you can check this out. All right. So, got the keyboard right here. So, what we're going to do is we're going to pull up ZVZZT as a test stock, and I'm going to show you how quickly you can do this uh just with keyboards.

All right. So, this is going to be we're going to pretend this is a quick scalp trade. Shift one, just like that. All right. So, I bought 1,500 shares by pressing the button shift and one. All right. So, shift one, press the second time. All right. Now, what I can do if I want to set a profit target, I can press control, and then I can set P for profit target, or I can use the semicolon right there or the bracket. And right just like that, I have profit targets already set.

One is at 10:12 for uh a quarter position. The other is at 10:22. Now, I already set my hot keys to be based on scaling because I don't want to do one entry, one exit. But as a beginner trader, you might set that you might go in and change the settings of that hot key, and say, "No, I want that hot key to be sell entire position up 15 cents." So, as soon as I press control P, sell the whole thing for profit, I'm out of the trade.

And now, what you can also do is you can press um I can cancel this, and I can press uh control B, stop at break even. So, that's going to stop the rest of my position at break even. So, once I've taken a little profit off the table, stop at break even, and I can hold the rest. Now, I personally don't use stops in any of my orders, and the reason that I don't do that is because market makers can see your stop orders.

And I don't want to show them my cards because I know how market makers will abuse retail traders through stop hunting. So, so I don't do that with 10 20 30,000 share positions. I never use live stops. But as a beginner trader, as you're trying to manage your risk, and this is what's really important with scalp trading, is that you keep your losses really tight. So, for a scalp trader, beginner scalp trader, you may want to use live stop orders to help you manage your risk.

All right. So, um and then I can press um back on this one, control Q to cancel orders, and control Z, sell the whole position at the bid, and I'm out, just like that. So, you know, very quickly you can move in and out of positions if you're using the right software. And so, this is another area where um we'll we'll we'll talk about that in just a second. So, um So, as soon as you have a small profit, you can sell half and adjust your exit um to your entry point on the re- remaining position.

And then, the next tip for scalp trading is to hold until the momentum slows down as you're getting better. So, you can jump in, and if the stock is is squeezing, and it's really strong, there's no reason to sell. I mean, if you're up 10 cents, that's great, but that by itself doesn't need to be a reason to sell, right? If you have profit, but you're only seeing green on the tape, and this thing is ripping up, then that's where I say, "Let's let it ride.

Let's see if this turns into a bigger move." And often times, it will because you got the timing right on your entry. It was at a a key technical level. And then as soon as I start seeing some red on the tape, or I I feel like it's a little extended, or maybe it's approaching a psychological resistance point like a half dollar or a whole dollar, that might be my cue to sell half, and then I still might not sell the rest until it comes either back down, or until it's it's just clear that it's not looking like it's going to keep going higher.

Again, that requires a little bit of intuition because you have to have a sense of is this the type of stock that is going to go higher, or is this the kind that's just going to reverse hard? And so, you know, you have to spend some time actively trading and practicing the strategy just like any other before you're going to get to the point where you feel comfortable holding winners a little longer and kind of letting them ride.

Uh if the trade doesn't work out immediately, get out. Quick exits. You've got to just bail on these because the problem, the biggest risk with scalp trades, is that if you're taking profit at 15 cents or 10 cents, you can't have 20 30 cent losses. They're going to ruin your profit loss ratio, and then you're going to need three winners just to make back that one loss. So, you've got to be really disciplined about cutting your losses, and you have to be really careful not to get in too high because if you start getting in too high, you can really um you can end up digging a hole, and it can create a real problem.

So, again, you know, this is just something that through all my years of experience trading, and you know, scalp trading is just a a subset of momentum trading where I'm getting in, getting out, taking quick profits. You know, I I have to remind myself not to hold the losers too long. Just to be really disciplined, and just let them go. And I know that it's easier said than done because as a beginner trader, you know, when you get into a trade like that, you get frustrated, and you think, "Oh, I'm just going to hold this.

I'm just going to I'm just going to let it keep going. It'll probably come back up." And the next thing you know, you can be really um you can be really underwater on a position. And then, generally a scalp trader, while as a very beginner, you might be focusing on just one trade a day, you know, get green, and then that's it. Once you have a little bit more experience, you may end up starting to take three five trades or more a day, being a little bit more aggressive, and that's totally okay.

All right. So, uh some of the skills and tools required for scalp trading. All right. This is important. You need to be super good at tape reading. Your tape reading and your level two skills need to be on point. Understanding the bid and the ask movement, understanding the spread, being able to read and clearly see when there's big sellers on the ask, this is going to be critical for you being a successful scalp trader.

If you're not good at tape reading, you're not good at reading the level two, practice. Keep practicing. Try to get better, but it's going to be hard to be a good scalper if you're not good at that. Scalp trading is not a strategy where you're just going to trade based on charts. It's not going to be a strategy that's going to be easy to trade if you're just on a mobile phone. You're going to want to be trading using desktop trading software, and you're going to want to be really good at tape reading.

And you need an ability to make quick decisions, and that means jumping in quickly and jumping out quickly, cutting losers. So, if you're the type of trader that finds yourself being kind of deer in the headlights and you freeze, you're going to want to try to break through that pattern so you don't keep doing that when you're trying to get aggressive as a scalp trader. You you don't want to get caught at the very top of a move and then unable to have the discipline to cut those losses.

And then uh lastly, a platform that enables fast order execution through hot keys and routing. I really think that this is important. You know, again, I'm not saying you couldn't scalp trade with Robinhood or Webull or something like that because I'm sure people do, and I'm sure you could, but I don't think that you would be serving yourself really well if you tried to. I think that you would find more success if you're on a platform that offers direct access routing and has the hot keys.

And you can see, you know, in the little example I showed you on my trading platform how quickly I can move in and out trades, how quickly I can set profit targets. You want to be able to do all of that. If your platform is holding you back, you need a better platform, right? All right. So, um now let's talk for a second about predicting algo spikes. Um I was going to save this to the end, but um why don't we talk about it here, and then I'll show you a bunch of live examples.

Uh before I do that, um so during this class, I'm going to be showing uh you guys a bunch of live examples, and if you want to download those live trading archives, you can do that through this link right here. So, um on this link you will get a copy of my micro pullback strategy PDF, a copy of my small account strategy worksheet, live archives showing the order execution, and a lot of those are going to be live archives of scalp trading.

So, I really encourage you guys to download that. You'll get my pre-trading checklist, and you'll get a special video that I recorded on holding losing trades too long. All right. So, right on point with what you need to make sure you're not doing as a scalp trader. And you guys will also get a copy of my best-selling book titled how to day trade. All right. So, make sure um if you're enjoying what I'm talking about so far that you go ahead, and I'll put a link, I'll pin it in the top of the comments for those watching this later, and I'll also put this link in the description so you guys can check it out.

And it's basically continued learning that you guys can focus on on your own time after this video's done. So, big advocate of you guys trying to educate yourself as much as possible. So, I'm going to empower you by giving you uh some more um some more resources to help you do that. So, let's now talk for a second about algo spikes. Um And by the way, for those that are tuning in to this broadcast um a little bit late who weren't here at the very beginning, I mentioned that at the end of this broadcast I'm going to give away uh one membership to Warrior Trading, a full year of membership to Warrior Trading uh to one person.

We're going to do um I've got a member of my support team who's going to be pulling names. We're going to do a random giveaway, uh but only for uh the people who have commented in here that they've liked and shared the broadcast. So, please hit the thumbs up and share the broadcast, and then for one of you guys, we'll do something special for you because you've been doing something special for us by helping support this channel.

So, thank you so much. So, what are algo spikes? Well, algorithmic trading accounts for over 60% of the volume in the markets. Now, algorithmic trading um these are um trading algorithms that are running and generally are being run by institutional traders and or market makers. All right. Now, uh we look for key technical levels where we are expecting a breakout. A breakout takes the form of a surge of buying volume caused by a combination of short sellers stopping out and long bias traders going long plus buy stop orders triggering long positions at the market.

And also manually entered uh limit orders for buying at the at the limit maybe, but just above the current price. So, how do market maker algos respond to spikes in buying and selling? So, let me let me pull up the whiteboard here for 1 second. Uh and I'll just give you kind of a little lesson on this. Um So, let's see. Let me move this back over here. There we go. All right. So, let's just talk for a second super high level about the purpose of a market maker.

So, a market maker is making the market. All right. So, when we're looking at a stock, we have the bid and we have the ask. Right? And so, if we have a stock that's trading um $6 by 605 or well, yeah, let's just let's do 605. Um 605, you've got a 5 cent spread on this stock. And most likely you will you have market makers that are on both sides of the level two. Now, a market maker has to register with um regulators with the SEC.

They've got to register, and they at the end of I don't know what period it is, maybe every month or quarter or something, they regularly have to um provide transparency into their order execution and things like that. Uh but yes, trading is in a lot of ways us against the machines. The machines dominate the market in terms of volume. So, we've got to be really mindful of how they work. So, and I'm going to talk about this just briefly.

I will have There's some other videos on my channel, and I've got another one that's going to be coming out soon where we're going to go into a little bit more detail on this, but I haven't posted it yet. So, stay tuned for that coming soon, or if you're done when you're done watching this video, maybe you could go search for it. Um but when we're talking about market makers, um a market maker sits on both the bid and the ask.

And what they do is they if you want to sell right now, let's say you want to sell 7,000 shares of this stock at $6. Well, in the entire world, there may not be someone out there that wants to buy exactly 7,000 shares of this stock at $6. And that's where the market maker comes in. They say, "You know what? We'll buy your shares. We'll take your shares from you." So, they buy your shares here for 7,000 shares at $6. And then what they do is when someone comes along and says, "Hey, I want to sell my shares at or sorry, I want to buy shares at 605." The market maker says, "Oh, here you go.

We'll sell you these shares that we just accumulated at seven or at six at the 7,000. We'll sell those to you at 605, and the profit that they make is between the spread." So, a market maker's job is basically to be buying and selling, buying and selling all day long, and as long as they buy, let's say, you know, a 100,000 shares. They buy 100,000 shares at the bid price, and they sell 100,000 shares at the ask price.

As long as they're balanced between their buying and their sells, they'll be profitable between the spread. They just keep buying, selling, buying, selling, and they profit from the spread. So, market makers create the spread. But remember, they do compete with each other because whoever gets the order gets the opportunity to make the money on it. So, sometimes the spreads can be very tight, but on other stocks, especially small caps, we'll see that um the spreads can be a bit wider.

And and this is very common. Not as many market makers on the stock, a a wider spread. These are stocks that carry more risk, just not just for retail traders, but also for institutional traders. And so, I've talked with my broker about this pretty extensively because something that I kept finding was I would press the buy button, and we'll go back here. I press the buy button to buy 10,000 shares at 605, and I would see that there were shares at 605 and maybe 606 and 607, and then when I would get my order back, it would show that I got filled at 608.

As soon as I bought, all of a sudden those orders that were sitting at 606, 607 seemed to disappear, and I get filled higher at 608. And I asked my broker, I said, "What the heck is going on? What's the deal with this? Why does this keep happening?" And he said, "Well, the algorithm, as soon as it sees your order coming through and starting to execute, they're going to pull their offers. They're going to pull the orders that they have to sell stock." And so, if you're trying to buy a big position, for instance, it's very common that you're going to get slippage.

And he gave me some um tips of different ways I can route my order to mitigate that slippage. But let's think about why they're doing that. They're doing that because they're seeing a surge in volume. They're And as a breakout trader, I'm usually buying at breakout. So, I'm buying at the places where volume is coming in. So, they're seeing that surge in volume, and so to mitigate their risk, to keep their position balanced, they can't just sell an unlimited amount of position an unlimited amount of shares at 607 or 608.

They could become imbalanced, right? They've now sold a huge position, and this thing rips up to 650 and gets halted up. Now, their risk profile is imbalanced on the stock. So, they move with the algo they they programmed it so it you get this slippage as it's going higher. So, as these stocks start to move faster and faster and faster, those market makers are pulling their orders more and more and more and more. So it becomes a self-fulfilling prophecy, but this is also part of managing risk.

Now, this is where you want to be a buyer. If you're a buyer right at this creek this this critical technical level here, and this is a very obvious level, you're going to see as it breaks 605, as it pulls away from 610 up to 615, you're going to see it start to move faster and faster and faster and faster. And this is a combination of retail traders buying. It's a combination of short sellers covering, and the algos, which as we know are running the market, moving out of the way as they're trying to manage their risk on a fast moving stock.

And if you're using market orders, those are the type of orders that you're giving to the market maker where you're saying, I want this stock, but I don't care what the price is. And there's an interesting article that I read recently where they were talking about how market makers prioritize limit orders ahead of market orders because the limit order you're putting a limit of how much you're willing to pay, whereas a market order you're saying, Oh, I don't really care.

I just want the shares, and that gives them the right to give you not as good of a fill. Now, they they obviously you know, they have competition. And so among market makers you have to be compete they have to compete against each other. And some stocks like a Tesla or a Facebook, these are stocks where there's going to be a lot more market makers on them. There's a lot less risk in holding positions on those types of stocks compared to small cap stocks.

So they may allow position on a Tesla or something like that to go further out of balance on a risk on a sort of on a risk profile than they would on a small cap stock all of a sudden squeezing up 30, 40, 50%. Because if they've sold an unlimited number of shares at six 605 they're short, right? Now their their position is that they're short. And so that's not going to work. And then if they decide they want to buy back, then what's going to happen?

So So how do market makers respond to spikes in buying or selling? They pull the offers or they pull the bids depending on whether it's spiking up or spiking down. And you can get a ton of slippage on your orders. That's why if you're seeing a stock approaching a key technical level, critical level, I often want to buy as it's approaching that level before it really starts to spike. That way I can be capitalizing and profiting on the spike.

But the very least I want to make sure that I'm getting in at the very beginning of that spike, which should be very close to the technical breakout. So in the case of like $6 or $6.50, that's where we'd expect it. And don't worry, I'm going to show you not just chart examples. I'm going to show you some live examples of these types of patterns today during this episode. So sometimes we'll see really really big moves, and that can even be on lighter total volume, and that rate of change is fueling that algo spike.

We see it most frequently on breaking news and around key technical levels and on small cap stocks that aren't experiencing as much market maker competition. Spikes can become self-fulfilling prophecies where the more they go up, the more market makers pull the offers, but then it can reverse right back down, and you can have these drops. There has definitely been criticism of how algorithmic trading can fuel volatility in the market like flash crashes.

But there's also the argument that the market makers provide liquidity because they're there taking the risk. They're getting in you know, if you want to sell, they're there to buy your shares. And then when you want to buy, they're there to sell you shares. So they do provide liquidity, and they get compensated for that, but their job really does carry a lot of risk. And so, you know, they try to mitigate that risk with these automated um you know, algorithmic trading um programs, but we've seen as was certainly highlighted in the case of GameStop that these can go wrong.

Things can get a little crazy. All right. So um a question here before you start scalp trading is always to ask yourself, Am I trading the right stocks? So first of all, the time frame, and this is sort of the criteria for the strategy that you're trading, but your time frame generally for scalp trading is going to be when you have peak volume. That's typically going to be in the morning, the early hours. Um the stock type you want to be focusing generally on stocks with lower floats, they're parabolic, that have some type of breaking news.

You want to be focusing on a stock that has a range of at least 10% today. It should have at least two times if not five times relative volume. The daily chart should be above the 90 EMA and above the 200 EMA. The stock should have a catalyst or be a former momentum stock. But technical breakouts can be okay. Uh the price range preferably between $1.50 and $20. You can scalp on all price ranges, but higher price stocks carry more risk with big big spreads that false breakouts could really hurt your profit loss ratio.

Um and the entry will be some of the setups that we'll discuss today when I get into the live examples, but parabolic setups are also valid when the stock is up 50% or more. The way I find these types of stocks is using scanners. So many of you guys already know this, but I have a development team that I've that I hired that built out the scanners that are part of the Warrior Pro membership. So one of our goals is building out this software for traders, and this is the software that I use every single day.

So Viru, which was the one that I made the most on here today. If we switch back, you'll see my my last trades on Viru there. So on Viru, this one was on our gap scanner right here. It was gapping up 37% this morning with news. The relative volume today on Viru is let's see, relative volume is 931. So that certainly exceeds five, which was our minimum criteria. Um it's float of 64 million shares. It's a little bit higher, but that's okay in this case. 270 million shares of volume.

It's got a tremendous amount of volume. It's really insane. I mean, it's got over a billion dollars in in in in money traded trading hands today. This is a huge amount of volume. And if we look at the chart briefly uh you'll be able to see that this is a stock that really did respect some of these critical levels quite well. Uh one of my first trades on it was a long on the break right here of this blue line, which was a high of day break.

That gave me a squeeze up into this eight 40 850 level all the way up to nine. It runs into psychological resistance there at the whole dollar. Continues up then to 950, psychological resistance, pulls back, breaks through, goes to 10. And notice if you mark out half dollars and whole dollars, that's eight. This is 850. That's nine. That's 950. That's 10. Look at how right at these critical levels it runs into little bits of resistance.

Do you see that? And you get these quick moves in between those levels. So that's the type of area that we really want to be watching. So I found Viru on this scanner here. IVDA, someone just mentioned is squeezing up a bit. So, you know, this is a stock moving a little bit higher right now. Your high right now. Now this is a little extended. Your high is 469, but you've got room on the daily chart up to five 24. And this is a stock that we did talk about this morning, and I also traded this morning.

So as it's hitting this scanner here, the float is 10 million shares. It's got a relative volume of 20. 38 million shares of volume, right? So it's a stock that is clearly the right type of stock to be focusing on. The only problem with it is that it's the wrong time of day perhaps to be taking that trade. Now, it's not to say you can't take trades in the afternoon because you certainly can. Uh but I prefer to trade earlier in the day.

Okay. So your entry and just to step back for a second, I I saw a comment on um on YouTube yesterday. And by the way, those of you watching this later after the fact, um please leave comments down below. We respond to every comment that's posted on the channel. So don't hesitate to post some questions if you have them. But someone said, Ross, um I'm a beginner trader, and I'm having a really hard time finding stocks to trade.

And I said, You know what? To be honest, finding stocks to trade is the easy part. That is the easiest part. And so the good news is that's easy once you learn the right tools. You're not most likely in his situation, he wasn't using the right software. So he was sitting down each morning and and genuinely didn't know out of thousands of stocks to trade which ones to trade. And someone recently said, You know, I trade forex, so I know to trade the US dollar euro pair, but I I don't know how to find stocks, and there's thousands of stocks to choose.

How do you choose which ones to trade? It's easy. It really is easy, and it doesn't mean that being profitable is easy cuz that's not, but finding stocks to trade is the easy part. I do it by looking at what's the leading gainer today. And that points me almost every single day to the right stocks to trade. This morning we had on the back on the scanner here, we had Hoth, GNCA, IVDA, Viru. Those are the top four. And I traded two of those four, and that's where my profit came from today.

And that's generally where my profit comes from on any given day. It's from focusing on leading gainers, and then from that from the sort of early part of the morning, watching that high day momentum scanner for what's moving up right now. So, that's the easy part is finding the stocks to trade. The hard part is back over here, timing your entries and your exits. This is where it gets a little bit tricky, and especially when it comes to scalp trading because you have to be so disciplined about getting in quick and getting out and taking your profit and not overstaying your welcome.

All right, so these are a few of the entries that you could trade as a scalp trader. And I'm not going to go over every single entry because I have more of them in our curriculum than I could possibly fit into this class right here for the sake of concise YouTube video. But, I'll tell you that these are four of my favorites. These are four that usually perform pretty well for me. Um this scalp trade setup would be buying the first candle to make a new high after a sell-off.

That could be either a reversal or a dip trade. This is a micro pullback setup right here. This is a break through a flat top right there, which I know is somewhat blocked by my video, but I can move that there and you can see it better. And then this is an ABCD pattern. So, you know, these are These are a few of the patterns and for each one of these patterns, I have a separate chapter that has examples that are just of those patterns and including screenshots, but also live trading examples.

So, for this, let's try to be a little bit more concise and let me show you uh some live examples here. So, let's see. I'm going to jump out of this slide deck and we're going to go on to live examples. So, I've got one right here on GBR that we'll look at. And let's see if these help put a little bit of the the pieces together here for you. All right. So, I'm going to go full screen. By the way, those who tuned in a little bit late, I keep seeing people trickling in.

So, thank you guys for joining us for the live broadcast. This will be saved as a playlist on YouTube so you can rewatch it later if you'd like. That's fine. I want to remind you of a couple things. Number one, first thing is there's a link posted pinned comment to download the live trading archives so you can keep learning. I want to encourage you guys to keep learning as always. And you can also, when you download, you're going to be on our newsletter and we'll send you a copy of my best-selling book.

We'll send you a copy of my micro strategy PDF. And let's see. We had a couple other things that we were going to send you as well. Where is it? Um I had the page up. Let me just click it and put it back up and go back to full screen. Here we go. All right, so you're also going to get Oh, that's right. My small account worksheet and my pre-trading checklist and the video on holding losing trades too long, which is very topical for a lot of beginner traders.

All right, so that's number one I want to remind you of. Number two, please like and share. If you like and share the video, comment that you liked and shared it, we're going to be putting the people that comment and doing a random giveaway at the end of this YouTube live where I will be giving away one year-long membership to Warrior Trading. All right, so number three, and this is important, you must be here for the giveaway because if the person isn't here to claim the giveaway, then we're just going to go and choose the next person.

So, make sure you stay to the end of the broadcast so if you've if you're hoping to get to win a year-long membership at Warrior, you can you can claim it. All right, so now let's go ahead and jump back over here. I'm going to go full screen. I'm going to move this out of the way and let's look at this example. So, this is a stock. We're going to get acclimated here. What are we looking at? Okay, so we've got a lot going on.

This is GBR. This is a stock that I have traded a few times over the years. On and off. The float on GBR today, so I can just check in my software here on this. So, let's see. GBR, the float is 3.74 million shares. We can see that right here. So, this is um a pretty low float. The float's low. And on this particular day, it was curling back up. And so, on this trade, we're going to watch this here. I'm going to go back.

So, this is a stock that is approaching psychological resistance of four. And what you notice already on the level two, you can see a couple of sellers stacked at four, about 20,000 shares. That's not that much. The stock is up 20%. And watch this for a scalp trade. Okay, so for those that are listening in while they're driving, and we have so many folks on YouTube that subscribe to this channel and are driving semi-trucks.

So, thank you guys for driving across the country and doing everything that you do. I know that this is going to be audio only for you so your eyes are on the road. So, let me describe what we're looking at here. We're looking at a stock that's up 24% that has squeezed up from 350 up to $4. It hit four and at $4, there were 20,000 shares for sale. On the time and sales in green, we just saw 12,000 shares get bought. So, we're seeing some buying and they were bought at $4 on the ask.

And so, the ask went from 20 down to about 10,000 shares. So, now here, I'm about to press the buy button and I just bought 7,500 shares at $4 exactly. Now, initially, my P&L shows minus $375. It says that I'm down 5 cents because the bid is 395. Remember on these types of stocks, I buy at the ask and I want to sell at the ask. Why do I want to sell at the ask? Because the last thing we want to do is feed the algo. We never want to feed the algo.

That's a big no. Feeding the algo means hitting the bid because that's where you're going to get slippage on your order. Now, I suppose I feed the algo on the ask when I buy at the ask, but I'm not going to feed the algo on the sell side by hitting the bid. I'm going to avoid that as much as possible. I'm going to always try to buy at the ask and sell at the ask. So, I'm in here at four and immediately this squeezed up to 407 and in 2 seconds, in 2 seconds right there, I sold half of my position on the ask at 407.

So, I took half off the table, which locked up about $400 of profit. And now we're going to watch uh Actually, no, sorry. I locked up about $265 of profit. And then I sold a little bit more at 409. And now I'm holding only 676 shares. I've already locked up $472 and in this moment right now, it's now hesitating. So, it's starting to hesitate a little bit, which is a good time to either bail on the bid at 402 or maybe keep trying to sell on the ask, but it's got to hold over four.

And I sold on the bid there at 403. And just like that, in a period of about a total trade of 20 seconds, I made $492. Okay, so this was a stock and again, what kind of level was this at? This was at a key technical level. All right, so let's see. So, we're going to go just draw this out. So, remember, the stock approaches a key technical level. In this case, it was $4. So, $4 is the key technical level, pulls back for a second, and then it breaks through.

There was a seller of 20,000 shares. I bought as those were getting bought up. I waited first to see green on the tape and then I bought. We got that immediate pop up to 410. In this case, only to 410. And as soon as it broke through that level, I took half off the table at 407. So, plus 265 and I took the rest off the table at about 409 and then the rest as it came back down. Now, in those spikes, that's where we're seeing peaking volume.

You see on the chart how we had peaking volume right on that candle at as it broke through $4. That's important. That peaking volume is what gives you the liquidity to get in and out with a big position. If you're trading these when they're not moving very quickly, you're going to have a harder time moving in and out with larger positions. So, you want to be trading them around key technical levels if you're focusing on scalp trading, which you probably are you know, you're watching this video.

But, if you if you end up taking big positions when the volume is light, you're not going to be able to move in and out as easily. So, that that was that whole example. That was a real example of trading almost $500 real money stock around in that case $5 or $4. Okay, so that was our first example. So, now let's go back to the second example. All right, so let's see. Second example here, we've got and we've got a couple that are going to get a little crazy.

So, I hope you are buckled up because this is going to get wild. All right. So, this is titled huge break of VWAP and rip to $29. Well, the stock's currently at 19, so I can't wait to watch this. Okay. So, what are we working with here? Again, let's get kind of oriented. So, we've got a stock that has a pre-market high of 17.55. It is up 313%. The float is let's see. I'm not sure what it is on this particular day. I'm not seeing it on my screen.

So, I'm not sure what the float is, but I think it's a pretty low float. Um did have some news it looks like. The stock sold off and went below the volume weighted average price. And now it's curling back up. Uh a question there on YouTube, why don't you buy the retest after the breakout? I will. I will have be happy to buy the retest after the breakout, but I'm also going to trade the breakout. So, I'm going to trade both.

I'm going to do the breakout and I'm going to do the retest. Now, on that that example of GBR, I didn't do the retest and the reason was because it sort of just declined in volume. So, you got that breakout and then that kind of just sort of just petered out. It was sort of like that was it. Which sometimes happens. So, I'm going to be more inclined to keep trading it aggressively when it's still you know, moving quickly.

So, when you stop high volume, it dips down and then for the next leg up. Okay. So, on this example right here, the stock is currently at $12.45. Note the last green candle broke over the volume weighted average price and what it's doing right now is a micro pullback. So, it the VWAP is right here. And it curled up to about 12.40. And then it did the the retest on a micro pullback and right now it's coming up right there.

And I'm drawing this out on my whiteboard. So, right here as it comes up, this is where I'm going to punch the buy button. So, let's watch this. So, I punched the buy button here. It looks like I filled uh three orders of a thousand shares at 12.28. So, I'm in with 3,000 shares. All right, let's go back to the main screen. So, 3,000 shares of this is my position so far. All right. So, boom. In with 3,000 shares and we already are seeing 12.50 on the ask.

On this one I got in a little early to anticipate the break through that half dollar. I probably wouldn't have gotten in that early on a $2.50 stock, but on $12 stock, willing to be a little bit more aggressive. Um thank you guys. Uh looks like we've got a a bunch of folks from Florida here today. Thank you. Um feel free to comment where you're logging in from. Everyone from Florida just wanted to say at the same time that they're all here.

So, uh it looks like that's that's great news. I'm really I'm proud of you guys. You guys are from Florida. It's a great state. It's warm all year round. You have no income tax, so you're you're living the life, living the dream. Thank you. I'm I'm in New England where 9 months out of the year the weather is miserable and everyone is sick and we dream about living in warmer places, but we don't because our family is all here and we don't want to leave our family and they're just like a big, you know, cinder block around our legs just holding us back day after day after day.

Uh so, uh we probably won't go to Florida until our all of our family has died and we're going for retirement. And that's what it's like living in New England. Well, that's one way to think of it. It's actually not that bad, but uh thank you guys. So, all right. Uh so, let's see. We've got 12.28 here. And so, I'm long with my 3,000 shares and immediately we're coming up to 12.50. What level is 12.50? It's psychological resistance.

Watch what happens when we break over it. If we can hold over it, we're in good shape and holy moly, we just went straight to 13. We just went straight to 13 bucks. That's called a 50 cent breakout. Matt, I'll see you at the show. All right. So, we went from 12.73 on the bid. We've got now 13 on the ask and the halt up is at 13.08. This thing is on fire. It is moving fast. And so, if you look at our whiteboard on this one, we got the good luck on this stock of a instant rip through 12.50 all the way to 13 in like 10 seconds.

So, the algo is moving out of the way. They're pulling the orders and now you're squeezing up and if you're short on this, uh-oh, cuz this thing is moving quick. All right. So, we've got 13.08 as the halt level. And I actually let's see what happens. Um I'm taking it looks like a little bit of profit off the table at 80 something. Um and then actually I added back at So, I took first a little bit of profit off the table at 89 and 92.

But of my 3,000 share position, I only filled like 270 shares. And then I changed my mind. I said, "You know what? I'm actually going to go and add on this thing." So, I added another 2,000 shares at 12.92 and 12.94. And I noticed that the halt level has moved up to 13.42. Watch the break of 13. It's not breaking, so I take half off the table right underneath 13 at 12.97. And is it going to break 13? There's 13.42 on the ask.

We're into 13.42 and I take a little bit more off as we come up to that level. So, you've got 13.41 on the bid, 13.42 on the ask and I'm still There we go. I was holding still 800 shares, but I took the rest off the table. In this position here, you can tell that I'm still being a little bit conservative with my scalp trades. I'm adding and then I'm getting out. And then I'm adding back and then I'm getting out. So, I'm not trading this um super aggressively, but watch here.

The new high is about a 13.80. And the halt level is 13.90. Right there I just bought the dip at 13.32. Which dip trading it can be you can scalp a dip trade. You could get in and get right back out. Remember, scalping doesn't refer to the entry. It just refers to getting in and getting out quickly. So, on this, we're now back to 12.50 on the bid. We've pulled back almost well, a full dollar a share off the high, which was right around 14.

I'm holding 1,200 shares at 13.32 and I'm down right now about 50 cents. Okay. So, let's watch this trade. The high is about 14 and we're going to look for this to curl back through that high. And because this video is um live trading, I might have to speed it up a little bit so we can kind of jump to the more exciting areas. But what we're watching right here is a perfect retest of volume weighted average price, which is around 12.25.

And now watch this over 13.50 for the first candle to make a new high into 14. So, in this case right here, you can see that I'm flat on the trade. And I have my hand on the buy button. And I'm watching to add back to the position. I'm up $39,000 on the day. Reminder as always, trading in case you don't already know is risky. My results are not typical including uh the results of this day, which were from a little while ago.

This is a live trading archive. So, we're going to look for this to squeeze back through 13 and I'm going to show you here the first candle to make a new high on the one minute chart. Watch right here. I just added back 4,500 shares for the break through 13.50. Look at the volume coming in there. There's 13.78. There's 13.99. I added another um partial fill. My order was for a thousand shares at three at 13.79. I filled uh 350 and I filled a thousand shares at 13.84.

Now I've got six thousand almost six thousand shares long for the break of 14. The halt level is 15.26. Added another thousand shares there. This is first candle to make a new high. We're looking for the squeeze through $14. If we could break through 14, we're going to look for a move back up towards uh the pre-market high or the high of day, which is around 17-18. So, this is an area right here where you can see it's kind of slowing down.

We we got that surge back up and then it kind of slowed down again. And then we'll get another surge back up and it sort of slows down again. This is a stock that is mid-range. It's not at high of day and so, while it's definitely active, it's not super easy. So, I ended up stopping out of that as it came back down at a only a little bit above break even. Instead of taking profit at 13.84, I added. And as a result, you know, I I ended up with a little bit of a cost basis with a little bit too many shares and I had to sell break even as it came back down.

So, now we've come back down. Uh and and let's just look at this. So, the level that we're watching now is an ABCD pattern that's forming at $14. We have a double top at 14 and we're right between 14 and uh volume weighted uh average price. So, here we go. So, this is the ABCD pattern now breaking out. The high there is 1478 actually. And watch this over 1478. There's 1478, there's 1544, there's 1588. My average is 1497 with 2000 shares.

Halt level is 1601. This is up 430%. I added to my position there. And looking for the squeeze through 16 up to the halt level 1644. Holding 8000 shares at 1550. That's 16 on the ask. There's 1610, there's 1630, 1644. And you can see the open P&L is $6200. I added at 1598 and $16. Now going into the halt level, I'm taking a little profit off the table. Holding 7000 shares. Note here, something important happened on the level two.

You can see that the halt level moved from 1644 up to 1709. Why'd that happen? It's at exactly 10:36. It's at the top of the minute and halt levels are routinely updating. So, the halt level has updated as this has moved a little higher. So, now watch for an add at 1642 for a break through that level and continuation of the squeeze. Watch what happens at 1640. There's 1640 on the ask, there's 44. There's immediately it pops to 88.

So, what's happening there? The algo is pulling the sell order and moving it up. So, the order on Nasdaq is at 1688. All right. So, I'm holding 6800 shares. Are we going to break through 1688? There's 89, there's 90. And this is a spot to be taking some profit off the table into those surges of buying volume. So, taking a little off the table for over a dollar a share at 16, 1709. My average is 1603. Now the halt level's moved up again.

Why? It's 10:36 and 30 seconds. The halt level is updated again, it's moved up. The new long now is 1709 for a move up to 1790. Which is the new halt level. So, now what we're doing on this stock is scalping as the halt level moves higher. The long here is going to be 1709. Oops, sorry. Back to full screen. 1709, watch this. So, in this case for whatever reason I didn't add there, but I should have. Because we just went straight and see that there's that seller at 1750, but we blew right through it.

Almost 1744. Halt level is 1779. New order. Watching for an add at 1750. Added there for the break of 1750. There's 18 on the ask. Halt level moved up, there's 1848. My average is 1667. This stock is up 500%. 500%. So, each of these trades are quick entries around key technical levels and then profit as it breaks through. Now some of these I've been a little bit more aggressive by continuing to add as it goes higher.

And if you have the cushion and you have the experience, that's fine. If you don't have the cushion, you don't have the experience, then you know, obviously that makes sense. Not to do that, not to be as aggressive. Now we're coming up to $19. So, there's 1884. And as this goes higher, each time it goes a little higher and breaks through a new high, that's a scalp opportunity. There's up to $19.16. That's another 3000, 4000 dollars of profit.

Each time it breaks these levels. So, watch now. Watch the clock. It's coming up to 10:38. If this halt level updates, now it looks like it might be a real halt. So, we're pinned right here. And halt level updated, but makes it look like a false halt. How do you distinguish the two? This is why, just as, you know, a sort of a side note. This is one of the reasons when you have stocks like this, it is so helpful to be trading with a group of traders that have been doing this for a long time.

Because this is some really wild stuff and being able to listen, so like when I'm trading for members over at Warrior, they have our scanners, but then they can also, um, they can be tuning into my live broadcast. So, they can be listening to me as I'm giving that commentary of false halt, new halt coming up, halt levels moving and you don't feel like you're doing this on your own. All right. So, the halt level's moved up to 1985.

And watch over 1950. Right there you go, 1975. And we're coming up to 1985. So, now we're going to watch that halt level to move up again. There's 1985, but it's coming up to the bottom of the minute, so halt level may update here in just a moment up over 20. Still holding 9, uh, 959 shares in this example. But look, there's the new halt level moved up to 2044. So, you could add right here at 1986 and your target's 2044.

Watch what happens. Just like that. Now it's at 2044. Right? And you could take profit off going into the halt if you wanted to. Or you could hold. It's whatever you want. And this one just continues to go higher. It continues to go higher. So, we get the high there of about 20, then it pulls back. Now we've got right here, this is a flat top breakout setup for the break through $20.50, $21. This has, you know, outrageously high relative volume.

The percentage gain is crazy. It's up 600% now. We're looking for the break through 21. There's 2120 right there. 2140. But you can see how volatile it is. See right, see how much that dropped? So, this is one where if you're in too high, all of a sudden you've got to be really careful. And that's why one of the things that's really important as a scalp trader is to make sure you're taking profit along the way and reducing your share size the more you trade.

Because the longer you get into the day, you start positioning yourself where, you know, one tr- one bad trade could really be bad. It could really cost you. And when a stock is up 600% on the day, you know, it's obviously extended. How much higher is it going to go? So, on this one you're still in consolidation. But then it breaks here through, uh, 21, goes up to 24. And again, I'm just continuing to trade it. So, that on this day I probably traded it, I mean, a hundred times.

I I I just kept trading it. I just kept getting in, getting out, getting in, getting out. So, let's see. Um, now we're at $24. And you can see each time I'm buying, looking for the break of whole dollars. So, I just added 2377 for the break of 24 and there's 2425 on the ask. Then I'll look for a break of 25, 2450 and then a move up to 25. And I'll just keep trading it as it goes higher and higher and higher. So, there's 24, 25.

So, the critical level that we want to watch, there's 2450, there's $25. Boom! I'm holding 5000 shares in this example from $23.16. $23.16, I'm up 10 grand just on that one trade. And so, this is where it kind of, you know, the the lines can blur between which one is really a scalp trade and which one is like becoming a bigger, kind of a bigger momentum trade. Right? It can it can get a little bit confusing. But this one is just it's really wild.

Let's see. So, you've got 25 on the ask. See all that buying volume? As soon as it breaks through 25, we're going to look for a squeeze up to 2550, then 26. When you get into these higher price ranges, you start to look for bigger moves. Not just 10 cents on the breakout, but 50 cents, maybe a dollar a share. Watch the break of 25. There's 2502, there's 2525 on the ask. There's 46, there's 2550, there's 2585. There's 2650.

Holy moly! 2650. That's $2 a share. I mean, it's just it keeps going up. So, the fact is stocks are not always going to be super strong like that. There are times where we get some phenomenal opportunities and we can do really well. And then there's times where, you know, they're just they're more difficult to trade. So, on this particular day, uh, I finished the day on JFIN up, uh, almost $100,000. Almost $100,000 on JFIN. $101,000 actually before fees and commissions.

And I just kept trading it as it went higher and higher and higher. So, these are the types of stocks. Certainly, it's the right type of stock to be trading, and this one definitely highlights some pretty aggressive scalp trading. And it's it's definitely a different example from uh the first one that we saw on um GBR. You know, GBR was like one trade, one entry, one exit, just kind of like, you know, one very sort of simple trade.

And I have I mean, I have so many examples. Um I don't even know how many is um are going to want to see like, wow, this is okay. Obviously, I have to learn how to do this. Um I can show you I'll show you the Airbnb IPO. I traded the Airbnb uh IPO and made 20 grand on it, and that was definitely scalp trading. Uh aggressive, for sure. Anytime you're trading an IPO that's expensive, you've got some some high risk there.

Uh again, thanks for folks tuning in. Uh those who uh haven't um uh haven't already hit the the like, the thumbs up, or subscribed, or shared the video, would love it if you do that. Uh at the end of this video, I'm going to be giving away a 1-year membership to one lucky live attendee who is still in attendance at the end of the video, and it's going to be um for someone who has hit the like and shared. So, type in here if you've hit the like and shared.

If you haven't already typed it, um please do that. I really appreciate it. So, let's look now at uh Airbnb. All right. So, Airbnb is getting ready to IPO. It's initial public offering. And IPOs can present really good opportunities for uh some trades. So, um in the meantime, it looks like Oh my gosh. I'm looking at this SLS chart, uh which is kind of crazy. So, SLS, you could see on the side, is up 100%. Uh and looks like the high of day is about 1320.

And it's moving up pretty quickly. There's 13 on the ask. So, looks like I start trading SLS while I'm waiting on the Airbnb IPO. And so, naturally, where's the first level that I'm watching? It's at $13, which is psychological resistance. So, watch this long right here for the break of 13. All right. So, I got a partial fill. It goes up to 1320. New order 1320. If it breaks through the high, there's an add right there at 1320.

There's 1339. So, once these start breaking through the highs, I start to step up to the plate. On this one, we've got some range. It's volatile. Holding on the pullback right now. It dropped down to 1261. So, I'm down about 2600 bucks on it. I sold for a loss. Looks like I'm down on SLS. I'm green on SLS, but I'm down uh on the day on this particular day. So, where's the next level to watch? Back over 1340. If it can come back through the highs.

And my goodness, this thing came back through the highs. Looks like I missed um part of the video, but So, now it's up at 1585 for the break of 16. Up $33,000 on SLS. All right. Let's look for Airbnb. Um So, let's see. Airbnb All right. So, there's our Airbnb IPO. So, let's back this up here real quick. So, I'm a big fan of trading big IPOs like Airbnb. Um these ones I can do really, really well on. Okay. sorry. Let's just back that up 1 second.

So, you could see So, I might I started the video looks like All right. So, I just went long on Airbnb at $47, $147, 2,000 shares. So, looking for the break of that psychological resistance of um 47. And watch what happens when it breaks 47. You can see on the ask is 46.99. S- And now it's at 48. It went straight to 48. It jumped a whole dollar a share. So, I'm immediately up 2 grand. Now it's at 48.99 on 94 on the ask.

There's 49 on the ask. $2 a share, that's 4,000 bucks. There's 70,000 shares for sale. Again, that could be a market maker providing some liquidity, but they want to be careful about going short. Next thing you know, they have to got to maintain balance on their position. So, it dips down. Now watch for the break through 49. I added there for the break of 49. Let's see. Took half off the table. And we've got 49 on the ask.

Then it dips down. You can see how volatile this is. Putting the new order at $150 a share. Holding just 269 shares. So, I took my profit. It's pulling back. Now we're going to watch it to come up again. So, there's the chart. You can see we have a pivot at 49. So, I put the order at 149. There we go. Added 3,000 shares long for the break of 149. My average is 148.79. There's 150 on the ask. 200,000 shares for sale. They're getting bought up.

There's 250,000 on the ask. 220, 190, 140, 130. Watch the break of 150. 100,000 on the ask. 39,000 on the ask. I added another 1,000 shares at 150. I'm looking for the break through $150. My average is 149. 150 is a big psychological level. If we can break that and hold over it, I'll be in good shape. There's 150 on the ask. What happens when it breaks? I took uh some of it off the table because I'm afraid it won't break.

Added back 1,000 share uh What did I add back? Um And there's 151.92. There's 152 on the ask. There's 152.34. 153. It broke a critical level. Now it's pulling back. Will it hold support at 150? There's 153. 153.50. 154 coming up. 13 million shares of volume. 155 on the ask, and I just added. 156 on the ask. Adding 156.90. 157. 157.50. 158. Up 12,000 on it. 159. 159.40. 159.50. New orders at 160. Watching for a pullback.

Added there for the break of 160. 2,000 shares. 3,000 shares. There's 160 on the ask. 50,000 shares. Watch. Let's see. For some reason, my uh for a second. Um Let's back up. So, watch the break through 160. Now, a technical level here is that this is uh holding ascending support right here. Uh holding ascending support, I bought right there, and now I'm looking to add for the break through 60. I now have 4,500 shares.

So, that's um over half million dollar position on Airbnb. There's 160 on the ask. Immediately. Look at that algo spike. It immediately breaks 160 and goes straight to 162. So, that's $9,000 of profit on that trade. There's 162. There's 163. 163 on the ask. There's 164. Holding 4,000 shares. 164.50. 165. Taking profit at 164.40. Holding 2,000 shares. So, you know, when you have a stock that's making a big move and that puts me at um 30 20,000 in profit on Airbnb and 32,000 in profit on the day on that in that account.

So, when you have something like Airbnb that is volatile, that is moving quickly, that provides a lot of opportunity. Other traders would have a different approach. Other traders would say, "Ah, I don't want to be jumping in and out." You know what I'd rather do is I'd rather just take um you know, one entry and just hold it and let it work. And that's fine. One of the things that um So, here's the deal. So, when I was learning how to trade, one of the things that was really challenging was having a small account and not feeling like I could take a lot of risk.

I couldn't just get loosey-goosey and just hold something and just kind of let it work. I needed trades to work out immediately. I needed instant resolution. Profit or I'm out. And so, I got zoned into trading around these key technical levels, like half dollars and whole dollars, the top of a flat top breakout, the first candle to make a new high on a bull flag, things like that, because that's where I found instant resolution.

The trade either worked immediately or it didn't. And, you know, when I was first trading, I was using margin on and leverage on a lot of my trades. So, you know, let's get out the whiteboard here for a second. So, you know, let's just say here um I'll move this camera over just a little bit. So, let's just say that you've got um you know, well, you know, even on a stock that's 160 bucks. Um you know, but let's just use a cheaper example.

So, let's say you've got a stock that's $5 and you want to buy 5,000 shares * 5. So, you've got $25,000 in the trade. Well, if you're trading with, let's say, an account that has a balance of $5,000 and six times leverage, you've got $30,000 of buying power. So, that means you can day trade with that money. Now, why would a broker let you day trade with borrowed money? It's really simple because the broker wants you to trade more shares.

The more shares that you trade, the more commissions that they make. The more shares that you trade, the more for brokers that sell order flow, they can sell your your order flow based on shares. And for the brokers that have these relationships with clearing firms where they're trying to have um volume discounts, they get more discounts when their firm is producing more trading volume. So, they're incentivized to allow you to trade more.

So, in this instance, you know, you're you're trading with 4 * 5 * borrowed money. And a lot of traders will do this. And I did it when I was getting started, also. I was trading with borrowed money all the time. And so, I might be okay with getting in at five and selling at 5:15 for $750 profit if I could do that within 1 minute. Because then I felt like I'm managing my risk by only holding this amount of money on leverage for a very short period of time.

Because one of the ways you can calculate risk is your exposure time. So, the longer you're holding a position, the more exposure you have uh to you know, something bad happening. So, I'm a big advocate of those quick breakouts. It for me helped me feel more comfortable when I had a smaller account. I would get in, I would either get instant resolution or I'd be out. Now, having said that, obviously trading with leverage and trading with margin is aggressive and risky and you shouldn't do that with real money unless you already have proven that you're a profitable trader.

I would also say that the level of trading that you just saw in a couple of those videos was extremely aggressive. So, I was being very aggressive on those, which is appropriate for someone with a lot of experience, not going to be appropriate for a beginner trader. A beginner trader, you're going to want to be more dialed in on finding one, two, maybe three really good trades each day. And honestly, that's going to be the same whether you're scalp trading or you're taking trades where you're going to hold for a bigger move.

You want to get in, you want to get your profit, and you want to get out. Now, if you know, you're going for a longer hold time, that's fine, but you know, in this market we just see so much choppiness that I've just found if I don't take the profit off the table, it's gone. And then, you know, of course there's times where, you know, you have a stock that goes, you know, up 5 10 dollars a share and you're like, "Oh, man, I wish I just held longer." Uh but, you know, for every time that happens, you're going to have 10 more times where the stock ends up tanking and you're going to be really glad you took your profit off the table because it otherwise would have turned into a loser.

Let's see. So, um you know, I I hope that you guys have um enjoyed everything I'm covering. This is some fairly you know, on the one hand, um it's a it's a bit complex, but when you think of it sort of high level, it's really fairly simple. Your goal is to look for quick entries and get in and get out quickly. And the places where that's going to be the most obvious are going to be around psychological areas of support and resistance, half dollars, whole dollars, and around levels um such as near the uh um the apex of a pattern.

So, a VWAP breakout or something like that. So, let me show you another uh pretty fun example here. So, this one's pretty crazy, too. And then I have one where, let's see. This one might be a little slower. Let's see. Uh Yeah, let's try it. Let's try doing this one first and then we'll come back to that one. By the way, those who haven't already uh downloaded some of the live trading archives I'm going over um for you guys, make sure you go over to this page.

You can when you're on your our newsletter, the first thing that we'll send you since you joined the newsletter from this page, we'll send you the micros pullback strategy PDF, we'll send you the small account strategy worksheet, some live trading archives, which is what I've been showing you today, but you can go back and rewatch them like real slow. Um uh my pre-trading checklist and a special video on holding losers too long, how to avoid doing that.

And then once you're on our email list, you get first dibs when we have special events going on, you get notified when I upload new content and stuff like that. So, make sure you check that out. And for those that haven't already liked and shared the video, uh everyone who likes and shares and says in the chat that you liked and shared, we're going to put your name into a little giveaway and we're going to be randomly choosing one of you to give a full year membership uh or at Warrior, which will give you access to these scanners over here on my screen.

Uh you'll also have access to the chat room and our curriculum for a full year. So, the only thing is you got to still be here at the end of um uh at at the at the very end of this broadcast cuz that's where we're going to do the announcement and I need you to say, "Yes, I'm still here." And then we'll give you the the year. If the first person that we put it up to doesn't claim it, we're going to go right on to the next one.

All right. So, thank you for those getting tuned in. And, you know, videos like this, sometimes they run a little bit long. Feel free to watch it again if you find that helpful. Um I I really I try to be concise, but at the same time I want to be really detailed and make sure I'm not missing anything for you guys. All right. So, uh BTSI, this is a stock, as you can see, that halted going up at $7.77. So, resumption on this stock is going to present a possible opportunity to do a dip and rip setup.

All right. So, it's about uh let's see. Resumption, looks like this is going to be a 10-minute long circuit breaker halt. So, we're familiar with those. All right. I'm going to fast forward this video a little bit. Oops. Okay. So, um let's see. So, the halt time was at 9:36 and 26 seconds. Resumption will be at 9:46 and 26 seconds. It's 10-minute long halt. All right. So, let's see. We've got um the halt up. Again, just to get oriented, we're at 62% gain on the day, 8.8 million shares of volume.

The stock has news. It's clearly moving. Relative volume, you can see, is off the charts. The previous day's volume was like 100,000 shares and now today you've got 8 million shares of volume. So, this thing is going bananas. All right. So, watching here for resumption. And this is what I do when I want to take a scalp trade on resumption. When I want to do a scalp trade on resumption, I look at the high of the resumption.

Sometimes I'll let it dip down and I'll buy the dip. So, in this case, we've resumed at 8:46. There's two ways I can trade this. One way is to simply buy the break of 8:50. If I buy the break of 8:50, I could go long right here for psychological resistance. My target, 8:65, 8:70, a quick 15 20 cents. I can already see the next halt level at 9:16. Alternatively, I could let it dip down and then buy the dip. So, let's watch this.

So, in this case, I bought 7,000 shares at 8:50. All right. So, let's get the whiteboard. So, what's the setup here? We've got a um this was a red to green move. So, we got a red to green move into a circuit breaker halt. All right. So, we got our circuit breaker halt right here. And let's see. It resumed a little bit higher and it dipped for a moment and this was right at 8:50. So, the long was right there at $8.50.

I bought 7,000 shares. All right, so now let's see what happens. Let's see. All right, so I'm in at 8:50 and there's immediately 8:75 on the ask. That's 25 cents. So, you could instantly instantly take this profit off the table and that's it. You're you're good. You've got your you've got your 25 cents, one trade and you could be done for the day. Now, I might choose to take this with 7,000 shares. As a maybe beginner trader, a newer trader, you might prefer to take this with 1,000 shares.

That's still 200 bucks, 250 bucks. Right? So, within your risk tolerance, this is the right type of stock to focus on. All right, so there's 70 So, I'm taking a little profit there uh at 67 and then look there it goes a little higher. New order goes up the high of this candle. So, what I'm doing with my mouse is I'm going to put my mouse over the high of this candle, check to see what the high is and then I'm going to buy that break.

In that case, I just did a dip at uh 43 and a quick profit at 63, but that's a dip trade which is you can do as a scalp trade if you want. Uh the high is uh in the 70s. It looks like 80s. So, watch right here. I put my order at $4, 4,000 shares. So, I'm ready to buy. Looking for the break of 75. Added right there at 74. We've got 82 on the ask. There's 87. Can we break through $9? Added again. I'm anticipating the break.

Now, took a little bit of profit at 91. It pulls back a little bit. Taking probably a little loss on the rest of the position at about 70 69. So, it dips down again. So, showing a little choppiness here. And this is where you have to be careful getting aggressive uh because when you start getting aggressive, you can start over trading these and we start over trading, you can end up losing money, right? Easy come, easy go.

Cuz once you've broken the ice and you've gone red, then you start feeling like okay, I'm going to keep trading. Let's see if I can get back to green. All right, so uh So, now watch this level here. Orders at $9 and I'm looking to see if this can break through nine. If it can break through nine, then we're looking at a move up to 925, 950. Again, thinking about those sort of psychological levels. So, it looks like I bought on this um as it came back up.

Holding in the red right now. It's coming down to the volume weighted average price. And you know, if I was going to look at this trade, I would say not super great risk management. It came all the way back down to VWAP. Let's keep watching. Let's see. Oops. So, it looks like we came up to $9 which provided an exit. And let's see if this goes higher. Now, so you can see that this one's starting to get choppy. And this is this is exactly this is the type of algo stuff that we've been seeing a lot of.

So, what we've been seeing are these stocks that break out and then immediately reverse. So, I'm actually going to do a separate video uh that I'm going to upload if not later this week, I'll upload it uh next week. And I'll put the link in the description once I upload it. So, those of you guys watching this days or weeks down the road, you should check it out. It's going to be specifically on um market makers. So, it's something that we'll talk about a little bit more.

So, all right. Um let's see. And uh students uh students who are over at Warrior, we're going to do a raffle uh later this month. I already have some uh pasta and cactus sweatshirts set aside for you guys. So, we've got something coming up this month for students. We've also got a new IRA class coming up this month. And what I want to do uh right now is go ahead and um do the giveaway for one person during this live broadcast.

And I also want to recommend everyone who's checked out this video to check out the video on the simplest day trading strategy. So, I'm going to post um the link probably in the top corner right up here for the simplest day trading strategy. That video breaks down for you how to find the right stocks to trade and what I choose as my entry and exit. Now, if you want to apply everything you've learned in this video of scalp trading to the simplest trading strategy which is trading the leading percentage gainers, leading percentage gainers, do it and let me know how it works for you.

Absolutely. You have to sort of combine strategies to get something that works really well for you. Some of you, scalp trading's going to be too quick, but I think for a lot of you who are into trading and this is why you're here, you're going to really enjoy it. Okay, so um Craig Haddock uh sorry, Greg Greg Greg Haddock. Is Greg here? Let's see. If Greg is here, uh Greg is uh the first name out of the hat. So, let's see if Greg's here.

We'll give him a second to uh say he's here. And if he is, the win is for him. The one year of membership. Greg, where are you? All right, so I'm not sure if Greg's still here. He's got a couple more a couple more seconds. Greg, are you here? Hmm. Well, looks like he's not. So, oh, there he is. There he is. Greg Haddock. He's there. All right, very good. So, we're going to give you a year of membership. Um what I want you to do is um send an email uh with just your um the proof that that's your username on um YouTube.

Send that over to us team@warriortrading.com and we will get you uh squared away with one year of membership. Thank you guys all who tuned in today. This is um This has been a fun a fun class. It's not the last one. I'll do another class real soon and again, for those that have watched the whole video, you're here because you want to learn. I want to be able to keep teaching you. So, make sure you check out that video uh top corner on the simplest day trading strategy.

Keep studying, keep learning. Make sure you subscribe to the channel, hit the thumbs up and remember as always, trading is risky. Most beginner traders do lose money. My results are not typical. So, I want you guys to take it slow and practice in a simulator. All right, congratulations Greg and I will uh see you guys back here tomorrow for the morning show right around 9:00 a.m. All right, I'll see you first thing tomorrow morning.