This is my Trading Diary for my Scalp trading activities for the 15th January 2015 and shows the three trades that I entered with varying degrees of success. The order below is from first to close during the US market session to last to close. The Scalp Trading strategy I use is on already known stocks that I have recently worked on or indeed still have open trades on longer time frames. I use the 5 minute time frame for all my Scalp Trading activities and look for various setups that will be individually explained below. During these very volatile markets, Scalp trading is a strong trading style to use as long as you understand the underlying Trend Direction of each individual Stock you are Scalp trading. My NET Profit for these three trades was 4% on my trading account balance and this was a flurry of activity try to manage all three trades around the same time. You can find out more about my Scalp trading strategy on the mytradingbuddy blog HERE
1. ALTR-NASDAQ – This is a high momentum “momo” stock that is good for Scalp trading in these volatile markets. I did enter a trade on a Daily Time frame this week for this stock but was stopped out when the markets turned south and the Full Trade Diary for this can be read HERE . My Priority for this Scalp trade was to hedge against the 1% loss on my trading account balance from this failed trade on the Daily time frame.
15/01/15 – 09:50 – ALTR NASDAQ – A Bullish Harami Candlestick pattern was formed on the 5 minute chart along with the Stochastic crossing over in the over sold zone and the MACD Histogram crossing the zero line from -ve to +ve. All these three indicators together make for a high probability there will be a short bullish. Entry strategy was reasonably aggressive with a Stop Buy Order @ 34.17, which was above the high of the large Red Candle Stick forming the first part of the Bullish Harami. The Stop Loss was placed @ 34.01 which was just below the low of that same red candle. No Take profit Limit order was placed as i wanted to manage with an aggressive trailing stop strategy.
15/01/15 – 10.05 – ALTR NASDAQ – My Stop Buy Order was triggered and the Scalp Trade entered.
15/01/15 – 10:20 -ALTR NASDAQ – After a large movement up over the last 15 minutes (3 candles) the price broke through my 1.6% profit level so I placed my Trailing Stop @ 34.33, locking in 1% profit on my trading account balance and leveling out my recent loss on this stock.
15/01/15 – 10.30 – ALTR NASDAQ – The price went through my 2% profit line so I closed out the trade as i had just entered another Scalp trade on ADI NASDAQ and was very happy taking 2% profit on my trading account balance. Chart s below for my Scalp trading activity on this ALTR NASDAQ Stock.
2. ADI NASDAQ – This was another stock that was a strong candidate for a Bullish move but I got in too early on the Daily time frame and was also stopped out. Again the priority was to hedge against my 1% loss this week on this stock by Scalp Trading on a strong setup in a Bullish direction. The Trade Diary for my loss making trade on this stock can be read HERE .
15/01/15 – 10:10 – ADI NASDAQ – After a Bullish Harami was formed on the previous candle, there was a rejection at the previous support level nd a Hammer Head Doji Candle was formed. The Stochastic was crossing over in the oversold zone against a false bar stochastic (yellow horizontal line in Stochastic sub chart). The rejection at the support level gave me confidence of a high probability Bullish move from these levels so I quickly setup my entry strategy.
15/01/15 – 10:15 – ADI NASDAQ – I manually entered the trade @ 53.37 which was just above the highs of the two candles forming the Bullish Harami candlestick pattern with my Stop Loss just below the support level @53.12. Again no Take Profit Limit Order as i want to manage with Trailing Stops.
15/01/15 – 10:35 ADI NASDAQ – A flurry of activity after just closing my first Scalp trade of the day, this new candle gapped up above the 1% profit line so a quickly placed my Trailing Stop @ 53.62 to lock the 1% profit I needed to level out my loss earlier in the week with this stock. Within a couple of minutes my Trailing Stop was taken out giving a 1% profit on my trading account balance. The use of scalp trading can vary and in this case my only aim was to level loss previously on this stock as my first scalp trade of the day was a good winner and to accumulate a good profit for the day was in the back of my mind. Chart as Below for this quick Scalp trading win on ADI NASDAQ.
3. PENN NASDAQ – Unlike my first two Scalps of the Day this stock has been very good to me with a great trade on a Daily time frame closing this that was entered during Christmas along with two strong scalps combining to give 8% profit on my trading account balance and the Ful Trade Diary for these trades can be read HERE . After such success I wanted to get in on any scalp trading opportunities on this stock as long as the initial Bullish momentum continued.
15/01/15 – 10:05 – PENN NASDAQ – A Bullish Harami was formed at the low of an Elliott Wave 4 pull back that had found resistance at the Fibonacci 0.5 retracement level taken between the Wave 2 and Wave 3 extremes. Although the Stochastic had not crossed in the over sold zone, it was pretty close and against a very strong false bar stochastic showing the momentum was Bullish. I placed a Stop Buy Order @ 15.23 which was above the high of the large Red Candle forming the first half of the Bullish Harami, with the Stop Loss @ 15.07, below the low of the tail of the Green candle forming the second half of the Bullish Harami. No Take profit Limit order as i wanted to manage the trade with a trailing Stop.
15/01/15 – 10:20 – PENN NASDAQ – My Stop Buy order triggered and I tip toe entered the trade as the candle then turned negative to close. the candle after was a green Doji which softened initial fears I was going to be stopped out of this trade pretty quickly.
15/01/15 – 12:20 – PENN NASDAQ – After two hours in this trade and the price just being above the 1% profit line for the last 5 candles (25 minutes), it was obvious this trade wa snot going to fly like most scalps so I decided to place my Trailing Stop @ 15.39 to lock in 1% profit on my trading account balance.
15/01/15 – 12:30 – PENN – NASDAQ – With a large move down my Trailing Stop was taken out giving a 1% profit on my trading account balance. Not a very spectacular trade but more accumulation of profit for the day and goes to show that scalp trading on these shorter time frames is all about trade management and accumulation of profit during the day. Chartas below for the Scalp trading activity on this PENN NASDAQ Stock.