Dowscalper Scalping And Rant

I’ve been receiving quite a bit of email asking if Dowscalper works in the current market conditions.

To be fair, “works” is a silly word when it comes to trading because there’s no proper definition of “works”.

It’s a word people will use when looking for a guarantee that they will make money but anybody whose ever traded knows there is no guarantee.  In anything.

I will give it a shot though and answer a few more direct “works” questions

1.  Does it work in giving you an entry?  Yes it does.  Whether you can follow the entries as outlined in the modules and be consistent is another question altogether.

2.  Does it work in taking profits?  Yes it does.  If you can set a target and take the profits if price reaches it is another question.

3.  Does it work in managing risk?  Yes it does.  If you can follow the trade management modules as outlined is another question.

Dowscalper is scalping and requires you to be extremely disciplined in every aspect of the activity.

Brutally honest?

  • The majority will not be consistent.
  • They will incorporate indicators and other variables that are not addressed in the modules.
  • They will think they have mastered the modules because they can understand the modules.
  • They will think every single day has a solid opportunity when in fact there isn’t.

Trading is hard and it should be hard, shouldn’t it be?

What other career can let you work from anyplace in the world?  What other career can give you the same freedom?  What other career can you give yourself a raise?

It doesn’t matter what method or style of trading you use.  What matters, first and foremost, is going to be your personal approach in terms of “getting your head right” about what trading truly is.

Most of you are tire kickers.  You are not 100% serious and committed to the process. 

I can say that because the majority of emails that come through are just like the “works” emails.  They are questions about win rate which shows that this person does not understand even the basics of multiple risk winners.  It’s a failure to grasp that as a discretionary based method using concepts that have stood the test of time…..the result across the board will be varied.

There are those that come through the course with an outstanding mindset and while some don’t make the cut….others do.  It’s battling through the frustrations and above all else, staying consistent.

Those that come through looking for a guarantee……always flame out.

Which one are you?

 

facebooktwittergoogle_pluspinterestmail

Scalping YM April 21

I haven’t posted in a while because my trading plan has been altered to basically eliminate scalping.

Scalping, especially influenced by the method outlined in the Dowscalper course, is still viable as you are looking for something specific.  You are not just guessing when to get in and out of the market.  There is a method to the madness.

Day trading and to a larger extent swing trading, gives more bang for the buck plus I don’t miss much if I step out for a coffee.

Today was not textbook Dowscalping but it does implement one of the key components when we look for a Dowscalper trade and that’s momentum.

As usual, there is no audio and I’ve taken some flack from those who want to know exactly why the trades were taken.  Defeats the purpose of having a course if I were to talk through the entire trade now wouldn’t it?

Here’s a brief breakdown of the trades in text form:

  1. Trend line break and then support break at the open.  Buyers step in and bring price to the underside of the trend line.  Expecting a test and then a retrace of the momentum push to the upside of the large pin candle.  Short
  2. Traders were short on the initial break of support.  More shorts that rode along during my short trade.  Once breaks broke the support zone again and lost momentum to the downside to test the lows, a long was taken.  Could have extended the profit target to a test of the highs but taking the quick money is the name of the game in scalping.

facebooktwittergoogle_pluspinterestmail

Scalping March 11

The morning started off with price in a bull flag and the opening price action took us out of the flag.  We don’t trade the first minute even when moves like we saw today can happen.

After the breakout, price does what it often does when breaking out of a flag/channel….it pulls back and attempts the other side.  When price runs into bulls supporting price and turns red-green, I got ready to front run a  long once price breached the open of the previous bear candle.

Dowscalper Breakdown

Price hit first target and kept punching north and once a green candle started to turn bearish, I tightened the stop to the close of the previous candle (opens/closes can often offer support/resistance).

After the run up and a clear reversal, a short was taken and my first thought was to use the previous candle open as target.

Price had different ideas and barely moved 5 points in my direction.  Trade management got sloppy and reactive mainly due bears giving control back to the bulls faster than I anticipated.

In pure Dowscalper terms…..

The first trade would have been taken when price breached the close of the momentum bull candle. I front ran the trade but DS traders would have waited and still quickly banked the standard targets.

The reversal would have been trade managed or the targets taught in the course would have been used.

Sign up today

 

 

facebooktwittergoogle_pluspinterestmail

Follow The Rules In Dowscalper Trading the Dow E-Mini

Part of having a trading course with a refund guarantee is that you are going to have refunds.  Dowscalper is no different.

I don’t hold any ill-will to those that request a refund but I can tell you that many of them share a common trait.

We get people from all backgrounds including people never exposed to the markets and those who come with trading “knowledge” they gleaned from other avenues.

One thing we ask is that people come with an open mind which means to virtually clean the slate and be open to a new way of doing things.

 

Scalping Is A Different Beast

Dowscalper is about scalping the YM.  Scalping is a different beast especially when you use faster time frames.

The course has several modules and they all tie in together.  Once you start picking and choosing what to follow, you are trading a hybrid of the method and your results will not longer be reflective of the course.

They will be reflective of you.

I write this today after some reflection on those who have come and gone and those that have realized success from the method.

If you are not prepared to follow the method when first starting, please do not sign up.

If you are not prepared to push to the sidelines all that you know (and have not found success with or you would not be here), please do not sign up.

  • Have people modified it?  Absolutely.
  • Have they traded different markets?  Absolutely.

But they did it after seeing some results from the method as written.  They did it after seeing the market and price in an entirely different manner.

Trading is never easy but it can be simple.  The problem is that we have been lead to believe that the more complex something is, the better it is.

That is not true.

You don’t need 10 different things to look at when considering a trade.

Dowscalper was designed to take advantage of certain times in the market using concepts that have been around since the markets existed.

Will you lose?  Certainly.  Can you lose many times in a row?  Of course.  If you understood probability you’d know that losing streaks can be quite common.

Let me cut to the chase….

All of this came to a head for me recently with a customer who decided to refund.  I asked for examples of where the issue was (because I was only contacted once through support and it was in relation to an issue they had about S/R) and he was kind enough to present them.

The truth was….that he shared the same traits as those that came before him. 

Of course this is not an indictment of him or of any of the others.  We all carry baggage and for some reason not having the discipline to follow the rules is something we all suffer from.

We must shed those issues or at least get a handle on them before success in anything, especially trading, can come.

I want to touch on a few of the areas where I saw an issue.  It is my hopes that this will serve two purposes:

1.  If you are just browsing and already have a method, it will hit home the importance of sticking to the plan.
2.  If you are thinking of signing up, it will filter out those who will be selective in the rules they will follow.

The common traits are better explained simply by my comments to his reasons.

1.  I was sent examples of failed trades that fell outside of the limited session time that is described in the course.

There is a reason why we like to see the trades in the first 15-30 minutes of the session.  Looking outside of that time frame, you are no longer using the “driver” for the trades that Dowscalper is built around.

2.  I was told that there was no instruction on modifying the fixed targets or that you should even think about it.

Dowscalper is, in part, a discretionary system and it is made quite clear in the modules that you can use the fixed target or discretionary especially if you see the move faltering.  It was this traders lack of attention that lead him to write what he wrote.  Traders must be laser focused on all aspects of this business.

3.  There were charts that had open positions underwater although price did move in the favored direction but the stop was not tightened.

When these trades work, they work.  When they fail, most often you will get a push in your direction.
Stop management is very clear that when the trade moves in your direction, you will move the stop 2 pts behind the entry.

Scalping requires tight and quick trade management.  It is vital to keep the losses small so you can bounce back with the next winning trade.

4.  This trader reported earlier that they had a problem buying/selling into support/resistance.  That is what the masses are taught. This caused him to ignore legitimate trade opportunities leading into potential resistance, he traded the breakout and then failure.

What many don’t get about support and resistance is that first off, they are potential areas.  They are not definite roadblocks.

Second, if they hold such significance that a trader expects price to be held up in those zones, you are saying they are targets for price to hit.

That would mean that not only are they places for trade opportunities…but they are also targets to be traded into.  In the example I was given, price did exactly that.

His bias in regards to support and resistance was clear and this prevented him from capitalizing on certain trades.

5.  I was told he has an issue with Dowscalper.

I responded, “You take issue with parts of the module instruction yet parts of the instruction are not followed. It’s not really fair to pick and choose and then take issue with the results that occur.”

 

The Turtle Traders

This all reminds me of the Turtle traders although their setups were a little more obvious.  That should have made it easier for all of them to follow the rules.

All were given the exact same rules when it came to trading the method.

The results were vastly different.

The point is that trading rules are the start and ending place for all traders.  If you choose to modify or ignore the rules, the failure is not the method, it is you.

This applies to any system you buy.  Any method you trade….even when it is your own design.

Keeps things as simple as they can be.  Follow the rules.  Remember that much of what you have been taught holds little water in the trading game.

 

 

facebooktwittergoogle_pluspinterestmail

Two Trades And Done

It’s been a while since I not only recorded the YM but also really looked at the market.  My focus has been on other markets just because I get more “bang for my buck” trading other ones.

That’s not to say the Dow E-Mini is a bad futures market to trade.

It’s actually a great market for those starting out and also for those needing a break from the faster moving markets.

This video is from Feb 29 and we started off the morning in a consolidation.  On higher time frames, the 9:30 NY start time would have been difficult to trade.

Dowscalper calls for the one minute chart and when looking at those chart, you not only see better detail than higher but also find scalping opportunities.

The market spent over an hour in the area of our downward channel as well as an area the was acting as support in about a 50 point range.

The back and forth movement in this zone is actually conducive to scalping opportunities with the channel giving points of reference.  Given the range of price movement we were in, grabbing our 8-9 points of profit was not too much of an issue.

Check out the video below and feel free to look through this Dowscalper scalping blog.

 

facebooktwittergoogle_pluspinterestmail