Swing Trading and Scalping Flashcards
What are the two Trader Personality Types?
They’re Scalpers and Swing Traders.
What probability does a Scalper need for the market to reach his reward before his stop?
A scalper needs a probability of 60%-90%; Reward is usually the same as Risk
Are Scalpers willing to trade Minor Reversals?
Yes if he thinks the reversal will be far enough down to make a profit and he thinks the probability is high enough to offset the risk. Even though a Minor Reversal is small a scalper only needs a minor profit.
Are Scalpers willing to trade Minor Reversals?
Yes if he thinks the reversal will be far enough down to make.a profit and he thinks the probability is high enough to offset the risk. Even though a Minor Reversal is small a scalper only needs a minor profit.
Does a Swing Trader have to exit if there is a Minor Reversal?
No a Swing Trader does not have to exit if there is a Reversal; I will rely on my stop
a Horizontal Trend late in a Bull Trend usually becomes the Final Flag before Price Reversal
a Horizontal Trend late in a Bull Trend usually becomes the Final Flag before Price Reversal
If a Swing Trader exits on a Minor Reversal can he re-enter again?
Yes since AIL, bulls buy again above bull bar 50% PB and test of BO
Several different ways to differentiate a Swing Trade versus a Scalp. Swing Trader plans to manage like a Swing Trade
Several different ways to differentiate a Swing Trade versus a Scalp. Swing Trader plans to manage like a Swing Trade
Is it fairly common for the market to turn down before it reaches its final target?
Yes it is FAIRLY COMMON
What type of Reward does a Swing Trader want at a Minimum?
A Swing Trader wants a Reward at Least 2 Times Risk. Without structuring my setup like this for a swing trade I am not following the Traders Equation.
Swing Trade means major Reversal or BO. When a Swing Trader Takes a trade he is hoping for a Trend.
Swing Trade means major Reversal or BO. When a Swing Trader Takes a trade he is hoping for a Trend.
What are the Guidelines for a swing trade
What are the Guidelines for a swing trade
When should I start taking at least partial profits in my Swing Trade?
Start taking profits at at least 2 Times size of Risk
What is a Scalp?
a Scalp is a Minor Reversal or BO. A Scalp means reward is less than twice the risk. A scalper prefers profit within 1-5 bars and no PB
Scalping should not be my main source of income. Swing Trading is a lot more sustainable long term
Scalping should not be my main source of income. Swing Trading is a lot more sustainable long term
Every good Setup is a Good Swing Setup. When the market is AIL swing traders can buy at any time and for any reason. Must use the correct stop below Major HL
Every good Setup is a Good Swing Setup. When the market is AIL swing traders can buy at any time and for any reason. Must use the correct stop below Major HL
Emini Example - 5 Minute Chart
Emini Example - 5 Minute Chart
Strong Trend - Great for Swing Traders
Strong Trend - Great for Swing Traders
Strong Trend - Can be bad for Scalpers (Scalpers need High Probability and likes Low Risk)
Strong Trend - Can be bad for Scalpers (Scalpers need High Probability and likes Low Risk)
Strong Trend - Can be Good for Scalpers
Strong Trend - Can be Good for Scalpers
What market cycle is bad for Swing Traders?
Trading Ranges are BAD for Swing Traders
When Swing Trading it is important to go for a Reward at least 2x your Risk
When Swing Trading it is important to go for a Reward at least 2x your Risk
Swing Trade - Reward is 2x Risk. Most Swing Traders hope to get swing trades last 20+ more bars but the minimum goal is TBTL.
Swing Trade - Reward is 2x Risk. Most Swing Traders hope to get swing trades last 20+ more bars but the minimum goal is TBTL.
What is a Swing Traders minimum goal for the trade?
Ten Bars Two Legs (TBTL)
2x Risk (Actual or Intial Risk)
Scalp - Reward Less than 2x Risk
Scalp - Reward Less than 2x Risk
What do Scalpers hate?
Scalpers HATE PBs, if they see a PB they’re quick to exit or allow only brief small PBs
Swing Traders - Allow only one BO Test of Entry, Swing traders DO NOT want the market to come back to their entry Price a Second Time.
Swing Traders - Allow only one BO Test of Entry, Swing traders DO NOT want the market to come back to their entry Price a Second Time.
TRs usually have 2-Legged Moves
TRs usually have 2-Legged Moves
Sometimes it is Not Clear so it is okay to Exit or Hold Long
Sometimes it is Not Clear so it is okay to Exit or Hold Long
If the market comes back to back to my entry a 2nd time we are entering into what?
Odds are we are entering into a Trading Range
If 2nd Test does not hit my Stop should I exit when it’s near my stop or hold long?
I should Hold Long
If 2nd Test does not hit Stop - Hold Long
If 2nd Test does not hit Stop - Hold Long
Possible Trend Reversal - Swing or Scalp?
Possible Trend Reversal - Swing or Scalp?
Consecutive Sell Climaxes usually result in what?
They usually result in a TR or a Reversal (and vice versa for consecutive Buy Climaxes
If the Premise is No Longer Valid the Scalpers Exit
If the Premise is No Longer Valid the Scalpers Exit
Scalping is Not For Beginners; however many experienced traders Swing their traders a also scalp part of it as well
Scalping is Not For Beginners; however many experienced traders Swing their traders a also scalp part of it as well
Beginners are Desperate for Small Risk - So they Sell in a Bull Trend, they believe a correction is overdue and cant go much further
Beginners are Desperate for Small Risk - So they Sell in a Bull Trend, they believe a correction is overdue and cant go much further
When Strong Bull - Only Buy (Scalp or Swing)
When Strong Bull - Only Buy (Scalp or Swing)
When the is a Stairs Pattern(PB overlapping the BO point=Stairs Pattern) Scalpers CAN Make Money against the Trend. In general the scalpers will look to exit around 50% of the prior leg
When the is a Stairs Pattern(PB overlapping the BO point=Stairs Pattern) Scalpers CAN Make Money against the Trend. In general the scalpers will look to exit around 50% of the prior leg
a Scalp Means a Small Profit
a Scalp Means a Small Profit
Minimum Scalp Objective
Minimum Scalp Objective
What is a realistic minimum profit target when Scalping?
Minimum Scalp Objective
Minimum Scalp Objective
Is going for Minimum Scalps a Losing Strategy?
Yes it is as you have to win 90% of your trades and that is unrealistic, possible yes but it very difficult to do.
When should I convert from Swing into Scalp?
If the Premise Changes after entering a swing Trade, exit around Breakeven or will small scalp
Even if 60% of Scalps are Profitable - You still LOSE MONEY,
Trading scalps you need a success rate of 90% to make a living and you have to be happy scalping.
Most traders should be swing Trading and scalping only on slow days or on top of a swing trade.
Even if 60% of Scalps are Profitable - You still LOSE MONEY,
Trading scalps you need a success rate of 90% to make a living and you have to be happy scalping.
Most traders should be swing Trading and scalping only on slow days or on top of a swing trade.
Converting Swing into Scalp - If Premise Changes
Converting Swing into Scalp - If Premise Changes
Scalping Using Swing Stops - Exit if Premise Changes
Scalping Using Swing Stops - Exit if Premise Changes
Whenever a Trade goes against me but I feel as though my Premise is still good, I can scale in using a logical stop
Whenever a Trade goes against me but I feel as though my Premise is still good, I can scale in using a logical stop
When Scalping and scaling in,
it is ok to use the same swing stop for all entries as long as the math and premise is still good.
Scale in traders has to trade small due to the stop being so far away.
When Scalping and scaling in,
it is ok to use the same swing stop for all entries as long as the math and premise is still good.
Scale in traders has to trade small due to the stop being so far away.
Emini Scalping In Strong BO
Emini Scalping In Strong BO
Strong Bull BO - Repeated Scalping Not as Easy as it Appears
Strong Bull BO - Repeated Scalping Not as Easy as it Appears
Swing Trading is Better
Swing Trading is Better
Strong Bear BO - Repeated Scalping Not as Easy as it Appears
Strong Bear BO - Repeated Scalping Not as Easy as it Appears
If my Swing Trade Quickly Reaches Target should I take Profits or hope it goes further?
If it quickly reaches Target Take Profits
If I have a great set up DO NOT SCALP - Being aware that I have a great set up in-front of me is powerful
If I have a great set up DO NOT SCALP - Being aware that I have a great set up in-front of me is powerful
Scalping, can it be profitable?
Yes it can but it is impossible for most traders to scalp repeatedly in trend. If it is a if it a great setup manage it as a swing trade do not scalp
What is one if the biggest reasons traders consistently lose money?
They confuse Scalps with Swing Trades. If it is a planned swing trade do not exit at 2pt scalp. If scalping relying on scalp stoop. do not pretend it is a swing
Is High Frequency Trading a Type of Swing Trading or Scalp Trading?
It is a Type of Scalping
