The Following is a recount of my experience while undertaking my first scalping challenge after graduating as a HODLNOT.
You cannot win with scalping if your nerves are jittery with the potential of losing your hard earned money!!! You won't enter as soon as you see the window, and you won't exit when the window is closing coz you're hoping against hope for that itsy bit more to make the trade and all that nervous stress worthwhile.
For the Comp, it was a game of many many small profits that were positive. I didn't make one losing trade, but I tried not to be greedy. I did however get stuck in about 9 trades, which did complete in the 12 hrs following the comp, but they weren't counted. I currently have 2 incomplete with the BTC pairing to clear.
My methodology was that I had to trade with an amount that I had no emotional attachment to whether it worked out or not. I knew I wasn't playing for profits but percentage gain. This was to prove to myself primarily, whether I could do this scalping thing of not. So I decided I would give it my best shot.
Refreshed on Wendy's PDFs esp the candles, being aware of the shape and amplitude of the MACD and whether the MAs were converging or diverging. Thing is, you can almost pre-empt the move, and you have to, coz otherwise, if you're waiting for confirmation, 2-3 candles have gone and you're then trying to get in behind many other placed orders. All, well most of my orders were Limit as I found the Market orders cost me a good portion of a percent in and out on small $ trades, (appears worse on higher $ trades), so if you only had a 1% scalp move, you lose 0.1 (or 0.075% for BNB paid fees) each way, gains might have only been 0.1%, you might in fact, walk away even after fees in some cases. My worst was literally the above!
It quite literally took me a few hrs to warm up to getting going trying to see opportunity and then to take it, both in and out. Then I got in the Zone. To be brutally honest, I never even had time to use my own coded MAs on Tradingview. Simply no time. I worked from a laptop, with one screen and many tabs open in sequenced order. I had 5 or 6 tabs just for Binance with a different coin on each. My 2 primary ones were BCH and LTC... coz I love them... then the other 3 were randoms. So I would scan the top movers in BTC or USDT, have a look at the coin, if I liked the look, would load it on tab, otherwise went down the list looking for the next opportunity. I would then scroll tab, to tab, to tab looking for the turning of the MACD toward signal line and whether the signal line was bear or bull and how high or low to the median. Have a quick squiz at the MAs and wait for possible entry. If you're waiting and ready, you have no time to analyze, You See it, You Take it. I would load my limit order ready to go and refresh to new limit as it went so all I had to do was execute the order. If it got better for entry, I would place another trade etc, and then to get out in the same manner if had multiple trades active on the scalp. Laddering in then laddering out. If the first exit was the only and best exit price, would jump out with less profit as quick as I could, all at once. Also noticed that a lot of coins ran bull or bear at same time, not always, but quite often. For the trend with golden or death, Same Deal. Golden was usually longer up swing, shorter down swing. Death had very short up swings and longer down swings. (NB, Good for farming incidentally, sell high, buy lower)
I always watched where the candles sat relative to the BB. If it was on a tear, always quickly checked the 3 and 5 min (in Binance) to see how overbought it was. If extremely overbought on the 5, then slightly less on the 3, then I knew was getting close. When becoming overbought on 1 min, was time to ready for the exit, as was likely to turn at any moment. In general, typically, 4-7 candles was the play. Could potentially suffer through a Red candle if all looked still good on the 3 and 5 min if no extreme overbought conditions, and push it a little further.
When I got on a roll, I had 5 tabs going with active buys and sells on each, some with multiple trades simultaneously on each tab, but that mostly was on the big market cap coins.
I'm not sure what else to say. In the down time of say a pinched BB and sideways action with not enough amplitude to make a profit in a trade, that is when I would look at my favs on Tradingview to familiarise myself with the trends and what the MAs were doing in the higher time frames, prepping for next run. All tabs open with BB and MAs and either the RSI or MACD. Two Separate tabs for 1 min RSI and MACD, then tabs for the 3, 5, 15 and 30, each with MACD for BCH and LTC. I also starred (made favourite times) the 1, 3, 5, 15 and 30 min so they all lined up next to the ticker to save time with the drop down time frame selection if needed quick time change.
Now for the reality. That was all with peanuts, for peanuts (small $ amounts). Now having a break for a couple days, which in 20/20 hindsight wasn't a good thing, as now I didn't consolidated my skills enough and have only done a couple dozen trades since Graduation. This Is simply not enough to be able to read or anticipate the market movement with unconscious competence. Also, now with Bigger sums of money, It is the nervousness of getting in at best price and out for the best profit of the scalp, you miss out on the trade opportunity. Resulting in a lot of sideline action. If you wait to confirm the trend, that ship of profits, just sailed...
So now I am nervous in using larger sums to make the same entry or exits. Waiting for confirmed trend change is a bit challenging with the tight, flat BB and a few candles each way, well when I have a look each now and then. Last night I watched the BTC dump. I was watching the BCH chart at the time, was ready to sell, but thought I'd missed it as was waiting for confirmation... expecting it to then snap back and spike back up and then have to buy back for more than I sold for, I missed the opportunity. As it turns out... it just kept going, and going, and going...
For the point of relativity, my best gain was 3.9%, Worst was 0.1%. My average for 39 completed trades in BCH was 2.36% with a best being 3.8%, Totalling 92%. Average for 31 completed trades in LTC was 0.9%, best being 2.2%, Totalling 29.9%. Then half dozen smaller cap coins with a couple trades each totalling 19.77%. So 81 completed trades in the allocated time period of 24hrs for total gain of 141.67%.
I have had no previous experience with any type of trading so this shows what is absolutely possible, on a typical down Thursday market with minimal volotility, and many small gains to make a decent gain overall. My take home lesson through this exercise and now with dealing with larger sums of money, is that you need to Master your emotions and your attachment to the value of the money you are trading! Master that, and the above is a glimpse of what each and everyone is capable of achieving. Imagine what you will achieve in a Bull Run!!
Hope that answers some questions...
Your fellow Master in training...
Thank you to Wendy and Dewald for making this opportunity available to make our Magnificent Life Changes.
Thank you Landon for that very detailed real trading experience for those who need to know - we teach safety and profit is better than greed and stuck. So, you did an excellent job in the mini scalps to end up in over 100% profit for your day. Well done. It's work for sure and yes, your emotions must be in tack for this.
This is why we ask all new people to trade on paper or use an amount they can be unemotional about and learn to double it. As stressed as well.....for the reasons you gave above - we keep it SIMPLE - too many indicators and checking them all you will miss out on the action and you must learn to use your gut and make the call. EXPERIENCE comes with Practice before you are comfortable with the big money. Again, using BCH and LTC is smart - getting STUCK with bigger money in good coins is not a bad thing but the little off coins are tough ride with big money - its a gamble so the more you practice the better you will know.
Thanks for sharing your Einstein indicator with the private group - many have increased their percentages with it.
See you in the trading Den... Appreciate your time to share with us.