Rules For Scalping Trading Money Management

Without proper money management and mental fortitude achieving consistent success as a trader is going to be much harder. In this video we will cover how to properly handle trades and size positions. How to set stop loss orders, target profits and maximize potential of your strategy.
00:00 - Strategy Accuracy
02:32 - Risk Capital
04:56 - Risk per Trade
07:53 - Stop Loss Order
09:39 - SL too big?
10:20 - When to exit early?
11:22 - Scalp Trading Management
12:41 - Why to scalp for 8 ticks?
16:30 - Trade Example
17:56 - Contract size
18:38 - Stop and Limit Orders
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[@RashidKhan-mr9mc]

Thomas, I just want to add to your valuable video. I guess it is more beneficial to apply your strategy in a prop account instead of a simulated account. you get the real vibe of live trading, and also you are not putting a lot money up front. thanks for a wonderful video!b

[@TheStrataminor]

Every time I listen to Thomas I am reminded how much he speaks of my experiences....make profits for 7 days, and give it back in one day...ohhh so true!! If you are having a bad run have small losses so you are around to catch that winner....or if you are feeling broken/defeated...walk away and don't revenge trade!!

[@DeltaScalper]

Most traders, including myself are so called (landmine) traders. It only takes one landmine to blow up the account, every single day is a struggle not to setup on one . Thomas , happy new year bud , your content has been amazing , thanks for everything you do for the community.

[@ThomasWade]

🙏 Little more experience and you will get numb to those mines and one hit won't affect you at all. Keep pushing, it just takes time for the emotions to disappear. Learn to read the chart can be done fairly quickly, but those emotions really take time because it go against how we think in real life.

[@lancegahan110]

I wrote about this on Mack's Facebook group just over a month ago. You explain it much better than me. I don't understand why traders still scalp one point. When i was researching this I looked at some charts from the traders on out group. One guy in particular who is the most experienced trader. I looked back on his charts for the previous 2 weeks. Out of 32 trades ever one would have made two points. And the chance of winning a runner being two points away from your entry when you scalp increased massively. I just can't see a downside. Well done for doing this video it's well overdue...Thanks Thomas..

[@emr9411]

I saw your post. This is Michael Rowe from Macks FB page

[@ThomasWade]

🙏

[@mumutrades]

Appreciate this video brotha! Exactly what I needed. My new rule is if I’m up 2-0 I’m done for the day and if I have two losing trades at all during the day I’m closing the shop down and coming back the next day.

[@shadowmania]

This is what I do as well, the next day always seems better

[@TheStrataminor]

Love this material as I am a Al Brooks/PAT Mack and Price Action fan! Thomas makes it so much more understandable (Al B can be very deep and his material is very densely packed!!). I use a fair chunk of Thomas's material to trade and trust me, you follow his principles it will keep you out of a lot of losses! Al Brooks said, "The best thing we can do all day is find reasons not to take bad trades" (or something like that)! Another words, take the best setups, with the trend, minimize losses and you'll be fine!! Thanks Thomas!!

[@ThomasWade]

🙏

[@bombast8237]

Just watched this again as a reminder - shame I can't give any more likes!

[@gezy369]

Thomas, my man ! I've already corrected some bad behaviors in my trading, and I'm on the road for a good 2022 year of trading. I'm finally seing the end of the tunnel after 4 years. And you are helping a lot brother !! Thx

[@MrWoodbreeze]

Your playlist "Trading Tutorials for Beginners" is a fantastic resource and grateful you created it. This treasure was in that playlist, finally I understand why you are ok with missing a trade from using Limit Order.

[@Surfgarage760]

thanks i struggle with money management, i'd appreciate more on this in the future

[@darylbaptie5159]

I like the example you gave of why you scalp for 8 ticks as I just had a day where I had 3 winners at 4 tick target and one loser and had a slight loss overall on the day due to commissions. So far over 95% of my winners would hit 8 ticks so I think I need to make that change.

[@ukulelebatz]

Funny, yesterday I posted exactly the 8 tick example in the comment section of a older video. Thanks for the content!

[@Chartacus_]

Just looking at some older content that popped up in my feed. You have some great content out there that you could refer back to at times in your daily videos. Thanks for all the effort and sharing what you have learned along the way.

[@jenjuni_]

I'm really glad I found this channel

[@marclearchansa7309]

it always feels as if am in a classroom whenever am watching your videos,great one sir 🙂🙂🙂🙂🙂

[@gamingwithdad4564]

Third time watching, it always helps after a tough trading day. Ty Thomas!

[@traderboi2662]

Excellent advice throughout the video! 🙏

[@joelmattsson-boze3266]

Good description. I needed the reminders. I will be reviewing this. Thanks.

[@makbari6522]

Thanks Thomas for sharing The most important factors of trading. Well done man. Wish you a very happy new year.

[@RyanSmith-lz4is]

Perfect video, thanks.

[@p.e.3953]

Another one of your videos I classified as "Best of the Best". Again, so much information in this video that I will have to watch it multiple times in order for it all to sink in. Not sure if you have considered this or if you even feel it's necessary, but one of these type of bulleted videos focusing just on the Psychology aspect of trading from your perspective, including your own personal experiences, would definitely be the icing on the cake! Thanks Again, Thomas

[@ThomasWade]

Hey Pete, glad it resonates with you. Honestly I feeldthat people would not be so interested and mainly want to learn about the setups but it is good to know these videos would be wanted. Because the psychological aspect of trading is much more important to be honest.

[@zenoo514]

@@ThomasWade i'm interested :) Thx for everything Thomas

[@yur.vsaibo9187]

Thanks. Great video.

[@ShafaqIftikhar-pw9ld]

Beautiful video and tha thankyou for your knowledge!!!!

[@jayjay-br3xv]

Happy New Year Thomas! Your video is great!. Thanks so much

[@ThomasWade]

Happy New Year man!

[@joelbrock6561]

Amazing Video !! Thank you

[@silvermom5513]

Bravo! This one of your all time best videos I've seen on explaining patterns and the story behind what's happening. Thank you so much for producing this content. I have plans to learn the strategy behind the stock market on how to make millions from the financial markets consistently because trading a good side hustle now.

[@dianaalbert32]

I love trading consistently because am always making huge withdrawal from the live markets using his strategy. $600M+ but confidential.

[@Marryjohnson44444]

Thank God

[@samathanolivia5618]

He is very active on all Tele-gram

[@splinter2804]

This was very good sound advice...thanks very much

[@mickeyflanagan4019]

Happy New Year. Thanks for your help in 2021. Looking forward to 2022.

[@ThomasWade]

Happy New Year!

[@ChompskyChompChomp]

Solid video. Would love to hear more about how/when you scaled up.

[@daytradinglikeapredator8941]

great video

[@fatimaWr2]

golden

[@afonsopereira3081]

great video!! Its recommended to start with 1000 as risk capital in forex?

[@justinbarnes5498]

Question: Have you ever experienced a time when there was slippage in filling your stop-loss order? Not just a tick or so, but numerous points due to massive market swings or irrational moves related to news events, etc? Thanks Thomas! Love spending time watching your videos over the weekends!!

[@ThomasWade]

Thinking about it from top of my head I haven't experienced it. Maybe maybe when I was starting out and I tried trading the high volatile news like FOMC, you can for sure experience slippage but if you don't trade news you are good.

[@yur.vsaibo9187]

Which program do you use? Where to store your screenshots of transactions. Where you conduct the analysis.

[@ThomasWade]

I use ninjatrader software for trading. Screenshost are made just by snipping tool.

[@behinddoornumber1]

How would $2500-$3000 be enough for 20-25 trades on the ES? You'd only have enough margin for 5-6 contracts.

[@an742_]

if you're trading 1 contract at a time with a 2 point stop, it will be enough

[@ThomasWade]

Margin for 1 contract is 500. You need minimum 500 to trade ES. Your stop loss with 1 contract will be on average 100 bucks. Meaning you can lose 25 trades in a row. If you loose 100 usd from 3000usd account you are at 2900. Margin is still 500. You can go down to 500 with just 1 contract.

[@jonathanbrasfield4022]

Do you have a Discord or a Live Trading KZbin or Zoom channel where I can wait and learn from you?

[@ThomasWade]

Hi, you can email me via my website for more details.

[@angelmaldonado2751]

How do you determine when you go for 8 ticks and when you go for 10 ticks ?

[@ThomasWade]

Under normal volatility I go for 8 ticks. 10% of a time market will be slow due to holidays or FOMC.. at that point we could go just for 6 ticks. Going for 10 ticks is good when market is really volatile. Usually you can tell the volatility by number of bars. Pre market session will contain plenty of bars compared to normal market. Also I use my zoom out trick. I keep my chart zoomed in the same all year round and the incremental difference on the right axis is 2 points. When I see difference of 5 points I can go for 10 ticks.

[@magma3525]

What would 1 tick S/L be in pips? Is it 2.5 pips? Thanks for the video.

[@ThomasWade]

I don't know from top of my head. I have been trading ES for long time now, not forex. Cannot you place stoploss 1 pip below? 1 incremental smallest price change below/above.

[@magma3525]

@@ThomasWade One pip stop loss used to be suggested, but I noticed that lately price moves 1.3 pips beyond previous price before pullback. I think Al Brooks says one tick is around 2.5 pips. I was just interested in another opinion. Anyways, thanks for your reply.

[@jhoss24]

Hey Thomas quick question if you don't mind. I'm having trouble with trend reversals. Let's say we are in downtrend, with 2 leg correction to EMA then going downtrend again. How do we know when that 2 leg correction is a real reversal turning into an uptrend? And where do we start our counting on that reversal? Sorry if that was confusing. Thank you

[@francosegura5806]

I think one clue could be how strong do the bull bars cross the EMA. Sometimes they make a correction, barely crossing the EMA, maybe not even leaving space between EMA and the bars, then it reverses. But when the bars cross the ema with strength, usually the bears try to reverse it giving the bulls a higher low (reversal pattern or failed 2 entry short) which is one of the most probable setups. Happy trading!

[@jhoss24]

@@francosegura5806 gotcha. So when we see a new low made and begin a 2 leg correction, but we correct with bullish momentum over the 21 EMA, we count that new low made as leg 1 of a bullish entry right? Then we obviously would get in on the 2nd pullback to the EMA

[@jhoss24]

@@ktanner8994 thank you. So a close outside a major trendline, then retest of lows (either making a new extreme or a higher low) the ideal setup would be for price to go up, pullback, then go up again with bullish strength above the EMA then pullback for our 2nd entry long (and also a failed 2nd entry short) correct?

[@jhoss24]

@@ktanner8994 both legs to fail above EMA? I was thinking we are in a downtrend, with a trendline. We break that downtrend trendline, retest lows and start going back up. We are still below EMA. We make one leg up and pullback. Then our second leg up we ideally want that to blast through ema to the upside, and come back down for our second retest. That would be our 2EL correct? I guess I'm asking, what if price didn't shoot up through the EMA on that second leg. What if it is still below EMA? Would still be a valid second entry, just not as ideal as it shooting through EMA correct? Sorry I'm really new with all this. Just trying to soak up all the info I can. Appreciate your responses

[@jhoss24]

@@ktanner8994 thank you man

[@danielvutran]

✈

[@manu-kt5wf]

How many ticks should be my TP when trading nasdaq futures? 8 ticks are way to fast. And is it okay to trade micros to be able to split up my position? how many ticks should it be here on S&P500 micro contracts?

[@ThomasWade]

When trading different market I recommend observing what the average signal bar is and trying to start with 1:1 RR. Once you figured out 1:1, just make TP slightly smaller. This would be equivalent to 8 ticks on ES. You can see when bar is small on ES, 8 ticks looks close to 1:1. When bar gets bigger 8 tick TP is slightly smaller then 1:1 RR.

[@manu-kt5wf]

@@ThomasWade Alright, Thanks!

[@AlexLifeson1985]

placing your stopp above the signal bar pretty much guarantees your R:R will be at best 2:1.

[@ThomasWade]

1:1 is a goal we strive for, doesn't have to be perfect. Using limit orders you can get close to 1:1.

[@jonathanbrasfield4022]

I meant watch and learn from you...

[@thousandlocks3258]

If you go for 1 point what should the stop loss be?

[@ThomasWade]

Stoploss is always 1 tick above/below the signal bar regardless what your target profit is.

[@buchirstya]

Entri in one minute