Swing Trading and Scalping

Question 1

What are the two Trader Personality Types?

Answer 1

They’re Scalpers and Swing Traders.

Question 2

What probability does a Scalper need for the market to reach his reward before his stop?

Answer 2

A scalper needs a probability of 60%-90%; Reward is usually the same as Risk

Question 3

Are Scalpers willing to trade Minor Reversals?

Answer 3

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.

Question 4

Are Scalpers willing to trade Minor Reversals?

Answer 4

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.

Question 5

Does a Swing Trader have to exit if there is a Minor Reversal?

Answer 5

No a Swing Trader does not have to exit if there is a Reversal; I will rely on my stop

Question 6

a Horizontal Trend late in a Bull Trend usually becomes the Final Flag before Price Reversal

Answer 6

a Horizontal Trend late in a Bull Trend usually becomes the Final Flag before Price Reversal

Question 7

If a Swing Trader exits on a Minor Reversal can he re-enter again?

Answer 7

Yes since AIL, bulls buy again above bull bar 50% PB and test of BO

Question 8

Several different ways to differentiate a Swing Trade versus a Scalp. Swing Trader plans to manage like a Swing Trade

Answer 8

Several different ways to differentiate a Swing Trade versus a Scalp. Swing Trader plans to manage like a Swing Trade

Question 9

Is it fairly common for the market to turn down before it reaches its final target?

Answer 9

Yes it is FAIRLY COMMON

Question 10

What type of Reward does a Swing Trader want at a Minimum?

Answer 10

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.

Question 11

Swing Trade means major Reversal or BO. When a Swing Trader Takes a trade he is hoping for a Trend.

Answer 11

Swing Trade means major Reversal or BO. When a Swing Trader Takes a trade he is hoping for a Trend.

Question 12

What are the Guidelines for a swing trade

Answer 12

What are the Guidelines for a swing trade

Question 13

When should I start taking at least partial profits in my Swing Trade?

Answer 13

Start taking profits at at least 2 Times size of Risk

Question 14

What is a Scalp?

Answer 14

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

Question 15

Scalping should not be my main source of income. Swing Trading is a lot more sustainable long term

Answer 15

Scalping should not be my main source of income. Swing Trading is a lot more sustainable long term

Question 16

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

Answer 16

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

Question 17

Emini Example - 5 Minute Chart

Answer 17

Emini Example - 5 Minute Chart

Question 18

Answer 18

Question 19

Strong Trend - Great for Swing Traders

Answer 19

Strong Trend - Great for Swing Traders

Question 20

Strong Trend - Can be bad for Scalpers (Scalpers need High Probability and likes Low Risk)

Answer 20

Strong Trend - Can be bad for Scalpers (Scalpers need High Probability and likes Low Risk)

Question 21

Strong Trend - Can be Good for Scalpers

Answer 21

Strong Trend - Can be Good for Scalpers

Question 22

What market cycle is bad for Swing Traders?

Answer 22

Trading Ranges are BAD for Swing Traders

Question 23

When Swing Trading it is important to go for a Reward at least 2x your Risk

Answer 23

When Swing Trading it is important to go for a Reward at least 2x your Risk

Question 24

Swing Trade - Reward is 2x Risk. Most Swing Traders hope to get swing trades last 20+ more bars but the minimum goal is TBTL.

Answer 24

Swing Trade - Reward is 2x Risk. Most Swing Traders hope to get swing trades last 20+ more bars but the minimum goal is TBTL.

Question 25

What is a Swing Traders minimum goal for the trade?

Answer 25

Ten Bars Two Legs (TBTL) 2x Risk (Actual or Intial Risk)

Question 26

Scalp - Reward Less than 2x Risk

Answer 26

Scalp - Reward Less than 2x Risk

Question 27

What do Scalpers hate?

Answer 27

Scalpers HATE PBs, if they see a PB they're quick to exit or allow only brief small PBs

Question 28

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.

Answer 28

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.

Question 29

TRs usually have 2-Legged Moves

Answer 29

TRs usually have 2-Legged Moves

Question 30

Sometimes it is Not Clear so it is okay to Exit or Hold Long

Answer 30

Sometimes it is Not Clear so it is okay to Exit or Hold Long

Question 31

If the market comes back to back to my entry a 2nd time we are entering into what?

Answer 31

Odds are we are entering into a Trading Range

Question 32

Answer 32

Question 33

If 2nd Test does not hit my Stop should I exit when it's near my stop or hold long?

Answer 33

I should Hold Long

Question 34

If 2nd Test does not hit Stop - Hold Long

Answer 34

If 2nd Test does not hit Stop - Hold Long

Question 35

Possible Trend Reversal - Swing or Scalp?

Answer 35

Possible Trend Reversal - Swing or Scalp?

Question 36

Consecutive Sell Climaxes usually result in what?

Answer 36

They usually result in a TR or a Reversal (and vice versa for consecutive Buy Climaxes

Question 37

If the Premise is No Longer Valid the Scalpers Exit

Answer 37

If the Premise is No Longer Valid the Scalpers Exit

Question 38

Scalping is Not For Beginners; however many experienced traders Swing their traders a also scalp part of it as well

Answer 38

Scalping is Not For Beginners; however many experienced traders Swing their traders a also scalp part of it as well

Question 39

Beginners are Desperate for Small Risk - So they Sell in a Bull Trend, they believe a correction is overdue and cant go much further

Answer 39

Beginners are Desperate for Small Risk - So they Sell in a Bull Trend, they believe a correction is overdue and cant go much further

Question 40

When Strong Bull - Only Buy (Scalp or Swing)

Answer 40

When Strong Bull - Only Buy (Scalp or Swing)

Question 41

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

Answer 41

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

Question 42

a Scalp Means a Small Profit

Answer 42

a Scalp Means a Small Profit

Question 43

Minimum Scalp Objective

Answer 43

Minimum Scalp Objective

Question 44

What is a realistic minimum profit target when Scalping?

Answer 44

Question 45

Minimum Scalp Objective

Answer 45

Minimum Scalp Objective

Question 46

Is going for Minimum Scalps a Losing Strategy?

Answer 46

Yes it is as you have to win 90% of your trades and that is unrealistic, possible yes but it very difficult to do.

Question 47

Answer 47

Question 48

When should I convert from Swing into Scalp?

Answer 48

If the Premise Changes after entering a swing Trade, exit around Breakeven or will small scalp

Question 49

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.

Answer 49

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.

Question 50

Converting Swing into Scalp - If Premise Changes

Answer 50

Converting Swing into Scalp - If Premise Changes

Question 51

Scalping Using Swing Stops - Exit if Premise Changes

Answer 51

Scalping Using Swing Stops - Exit if Premise Changes

Question 52

Whenever a Trade goes against me but I feel as though my Premise is still good, I can scale in using a logical stop

Answer 52

Whenever a Trade goes against me but I feel as though my Premise is still good, I can scale in using a logical stop

Question 53

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.

Answer 53

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.

Question 54

Emini Scalping In Strong BO

Answer 54

Emini Scalping In Strong BO

Question 55

Strong Bull BO - Repeated Scalping Not as Easy as it Appears

Answer 55

Strong Bull BO - Repeated Scalping Not as Easy as it Appears

Question 56

Swing Trading is Better

Answer 56

Swing Trading is Better

Question 57

Strong Bear BO - Repeated Scalping Not as Easy as it Appears

Answer 57

Strong Bear BO - Repeated Scalping Not as Easy as it Appears

Question 58

If my Swing Trade Quickly Reaches Target should I take Profits or hope it goes further?

Answer 58

If it quickly reaches Target Take Profits

Question 59

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

Answer 59

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

Question 60

Scalping, can it be profitable?

Answer 60

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

Question 61

Answer 61

Question 62

What is one if the biggest reasons traders consistently lose money?

Answer 62

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

Question 63

Is High Frequency Trading a Type of Swing Trading or Scalp Trading?

Answer 63

It is a Type of Scalping