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Scalping Dow Jones Video 9th July 2019

Day Trading Price Action Scalping Videos

11/7/2019

VIDEO LENGTH = 43 minutes

Read the document below side by side with watching YouTube. I say to begin with that the video is 1-2 hours long, but I cut a lot of waiting away.

 

In this video I am attempting to show live how I scalp. The problem with this video is that scalping is not what you may define as scalping. Scalping has been described as moving in and out of positions very quickly.

This is not necessarily my definition. I agree that scalping is not holding a position for hours, but it doesn’t necessarily mean you hold the position for a few seconds either.

If I was going to attempt to find a suitable definition of scalping, it would center around the definition I have outlined below:

Scalping is the art of trading intra-day with no real deliberation on the overall major trend of the market or the day. A scalper like myself, when I am in scalping mode, will gladly buy even though the market is down strongly on the day, if the individual 5-min bars dictate it to be the right move.

Conversely, the scalper will happily sell short a strong market, if he believes there is a compelling reason to do so. This does not mean he is forecasting a major trend reversal, but perhaps is simply anticipating profit taking or temporary weakness.

Scalping has two weaknesses:

1/ If you get into the frame of mind that you are simply trading for very short-term moves, you may lose out on larger moves.

2/ You are often required to initially risk more than you perceptibly think you can make in profits.

 

This video should be watched side by side with this document, because what I have omitted in the video, I have had a chance to include in the document.  Here is the whole day on a chart.

Of course, stating the obvious I know, I don’t know this. So, I have to deal with what I am seeing one bar at a time.

When I start recording, I am already in some longer-term positions. I am closing them because I make a mistake on the trading platform. I will comment on the price action – referencing it to the minute and second count on the video.

1:47        Dow is now open.

I then immediately edit. You can see that in the TAB. It jumps. The Dow is trading 10 min into the session, and we see the following pattern:

In the original video I am talking about how this pattern makes me want to look sell short Dow on any strength in the next 5 min bar. Unfortunately, I mess things up here because I already have a position going. I meant to use the “hedge” function at TD365, but I didn’t, and I ended up closing my longer-term short positions. As a stroke of luck that turned out to be the right thing to do.

So, I basically cut the video until 15 minutes later. You join me at 2:21, where the time is 14:56:56, and I am short the Dow with a 14-point stop loss.

I see the big red candle at 14:40 as bearish, and I am selling into any strength after that candle. The next bar is inside bar – green – and the next bar is an “inside – inside” bar, and it is red. I get stopped out for minus 14 at 4:17. The time is 14:58:50.

I am beginning to think the market is not negative. I buy at 26,688 with a stop loss at 26,674. I add to my position at 97, anticipating new highs. My average is 26,692.50. It is now 15:01 on the clock.

At 15:02:30 I make a comment that when you are in a position like this, you just got to try to hold on.

At 15:06, I made a comment about DAX and its correlation to Dow. This is 11 min into the video. I am not so sure how informative this video is. Because I am typing a lot to Telegram, while I am waiting. I am sat watching the chart and the trading ticket, but what else can I do. Sitting makes money. I am not guessing where the high is.

But at 15:08:20 – 13:00 into the video – I see a significant signal in DAX, and I talk about shorting the DAX index. I close Dow for about 50 points. I now short both Dax and Dow.

I manage those trades, and then the video finishes.