Hey traders in this video I'm going to be showing you a scalp trading strategy that you can use
to consistently make 100 500 even a thousand dollars or more per day from the stock market
it is entirely scalable and you can even use it to trade options for these underlying stocks if
you're someone that's just starting off and maybe you have a smaller account so that way with the
options it's not going to require you to have a large amount of money in order to take advantage
of this scalp trading strategy now the entire idea behind this strategy is simply going to be to look
for relative strength or relative weakness when compared to spot so we're not actually
trading SPY which is the ETF for the S P 500 we're actually just going to be using spy as a reference
point in order to make trades in these other large cap stocks uh you know stocks like apple Netflix
Nvidia Tesla Microsoft Amazon and so on and so forth so if we take these two charts that we see
up here at the top this chart on the left is the charge by again just being our reference point
and the chart over here is going to be the stock that we're actually going to be trading in this
case this happens to be the chart for Shopify now we can see that pretty much right at the market
open spy trades sideways a bit and then ends up having a sell-off to the downside on the other
side of the spectrum Shopify over here doesn't trade sideways right out the market open it
actually spikes up so that's telling us right away that there is relative strength in Shopify when
compared to the S P 500 and because of that we want to take advantage of that relative strength
and we want to look to buy into these dips or buy into these breakout points so if we compare
these two charts on a candle to Candle basis right at the market open we see spy forms a low
it bounces up a bit and then it comes back down breaks briefly below that low and actually forms
a lower low right here at the same time we have Shopify formats low here at the open it spikes up
and at this point it has this little pullback here this is when spy was making a lower low all
the way below its opening range point we can see obviously this is well above its opening
range point and it actually forms a significant higher low so that again is a bullish sign that
Shopify is much stronger than the General market is at this particular time so we could look to
buy into this dip here and we can see that as spy starts to bounce back up obviously Shopify being
much stronger than Spa at this point in time it ends up having a nice breakout above that
opening range and spikes from about 42 dollars per share up to about 43 dollars and 65 cents now this
may not sound like a ton of money but this same thing happens over and over and over again in
many different stocks all throughout the market day so because this is a scout trading strategy
we're looking to take advantage of these very quick moves usually under 10 minutes per trade
in my experience using this type of strategy and depending on your position size eyes and your
account balance you're looking to really just lock in you know maybe just fifty dollars one hundred
dollars or a couple hundred dollars per trade in this scalp trading strategy now on the other side
of the spectrum at the same time that this went from about forty two dollars to 43.65. if you're
someone that trades options there were most likely options that easily went up ten twenty thirty
percent within this time frame here so you can see how these relatively small moves in the market can
actually lead to some pretty significant profits in the long run now if we take another example
here this time we have Tesla over here on the right and we're still using spy as our reference
point over here on the left and although it doesn't look like there's much relative strength
here in Tesla a really solid example of this can be found down here at the low of the day we see
that at this point in time spy is still trending to the downside and when it forms this low down
here it breaks down obviously below the previous low before bouncing back up now at this exact same
time we see that Tesla actually formed a double bottom so when spy was breaking down to new lows
Tesla is forming a double bottom and is holding above the previous low that is again a sign of
relative strength that can be a good signal to look to buy into this dip here and obviously we
can see that it did recover very nicely along with spy uh Tesla bounced from 190 180 at the low all
the way up to just a little bit later being up at a high of 196.70 so it bounced nearly five dollars
per share there in just about half of an hour and again being that today is Thursday and tomorrow is
Friday so there are auctions that expire tomorrow for Tesla there were likely weekly options within
that same time frame that went up over 100 percent in this five dollar move in Tesla all right so
those are a few examples of relative strength in the market but this exact same strategy can also
be applied to relative weakness and you can look at those relatively weak stocks as opportunities
to short sell or as an options Trader there would be an opportunity for you to buy some put options
so if we take a look here at the meta chart this is a solid example of some relative weakness that
we're seeing here in meta as compared to when compared to spy and the reason for that is if
we take a look at spy currently its price is just at about the price of this recent Peak here that
happened at about 11 A.M and if we take a look at meta at 11 A.M meta's price was all the way
up here at about 120 dollars and seventy cents now it's all the way down about a dollar lower showing
us again that there is some relative weakness here in meta so in this case what we would do is look
to actually take a short position I'm going to draw a line here and I'm just going to let this
kind of play out and let the screen record this process here we're going to see where meta goes
from here but keep in mind that this line here is where we would look to enter into our short
position obviously we would have a stop loss in place somewhere up here and we would also have
a profit Target down here for our scalp trade we would look to take advantage now of this pullback
and of course the quicker we see spy start to pull back the quicker meta is also going to
pull back and the quicker that this short position is going to become profitable
we can see here meta is already starting to break down nicely spy has only pulled back
a little bit and obviously meta being relatively weak to spy is starting to sell off more quickly
to the downside now so this short position would be coming more and more profitable here
short position would already be up about 30 cents per share again being a scalp trading strategy
this is a solid profit already and we're just going to let it play out here see if we can reach
our you know our example profit Target um in this case what I would do probably would be to move
down my stop loss just to protect myself if it happens to start bouncing back and start to show
some signs of relative strength but we can see again it is you know it is looking relatively weak
pulling back getting closer and closer to that profit Target for this short position
and yeah there'd be a good chance that I would look to actually lock in some profits here
because we can see that this is a potential triple bottom if this starts to hold but this
would have been a very solid quick scalp here to the short side just using this relative weakness
that we were seeing here in meta's chart when compared to spine okay so I just wanted to cover
this strategy very quickly give you guys a basic understanding of how it works this is a strategy
that I use not every single day but mostly on days that there are not a lot of small caps
that are moving uh since I mostly trade stocks that are in the one to ten dollar price range
um it's not every day that those stocks are going to be super active there's not always
going to be 50 or 100 runners in the small cap market and those are really the stocks that I
like to capitalize on the most so if we're lacking those in the small cap Market I might look to take
advantage of a strategy like this one and start to trade some stocks in the higher priced markets
but anyway I hope you learned something in this video if you did please make sure to give it a
like And subscribe to the channel and if you want to learn more about day trading swing trading and
long-term investing and join us in our daily trading chat you can learn more about that at
my website Master the market which is going to be linked Down Below in the description
but anyway thank you again for watching I hope you enjoyed and good luck with your Trading
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thank you