The Achilles heel of a scalping strategy is that the average winners are really small. Now, a lot of beginner Traders are drawn to scalping strategies because of the instant resolution. You don't have to deal with the exposure risk of holding a position waiting to see whether or not it'll resolve in your favor. But the problem is a lot of beginner.

Traders They don't have the experience that gives them the educated intuition which results in having 65 70% accuracy. So with lower accuracy, they're curring more losses. And if they're not good at cutting their losses, they're going to have a negative profit loss ratio, which means they're basically destined to lose money. So the real conversation here is, how do we increase that educated intuition? So beginner Traders can trade with higher degrees of accuracy.

And I'm telling you, it comes down to stock selection trading the strongest stocks each day. Sometimes people who are adopting a scalping strategy think that they should trade all day long. They should take 100 trades in a day. Just scalp scalp, scalp, scalp, scalp, scalp, scalp.

Okay, that is one way to do it, and there certainly are some traders who do that. But what I'm a big advocate of is quality over quantity. So focusing on the best quality setups and that means you're looking for a setup that gives you a 2: one profit to loss ratio. So you're looking at the trade.

You're saying on this setup, I'm going to risk a 100 bucks to make potentially 200. You take the trade and even if you take your profit off really quickly as a scalp trade and you only make $100 on it, that's okay. The setup had the potential for more. The problem is that a lot of scalp.

Traders They end up lowering their quality standard in order to just take more trades each day. and they're taking trades that at best only offer a one: one ratio. and when they only get you know $50 instead of the 100 when they end up incurring the losses, which of course will happen, they find themselves with a negative profit to loss ratio. and this can be extremely frustrating because a scalper might take 20 trades and have only three losses.

but those three losses are so big it wiped out the profit from the other 17 that is. You feel so defeated, demoralized, You just feel like you feel like the worst when that happens, right? So many of you know it I know CU I Was there too when I first adopted a scalping strategy. When I was getting started, I had a negative profit loss ratio of 2 to1. My average losers were twice the size of my average winners and that meant I would have needed to be trading at 66% just to break even.

Well, I wasn't trading at 66% because I was still learning the strategy that's too high of a bar. And so what I essentially did was I set myself up for failure without even realizing it. Scalping is difficult, but trading is difficult too. And there's a lot of things that make a scalping strategy a great strategy for beginners: Instant resolution, reduced exposure time, and just simply the fact that it's easier to predict what a stock is going to do over the next 5 minutes than over the next 2 hours or 3 or 4 days.

Certainly, so, in order to improve your accuracy, what I always encourage traders to do is focus on the quality of the setup, look for high quality setups, and and yes, you're leaving money on the table by scalping that setup instead of holding for it to potentially realize you know the entire move. But you know as well as I do that if you don't take your profit off the table, it can disappear. And that's why so many scalp. Traders Adopt that strategy because they've had enough times where they took a trade and they were up a lot.

They didn't take anything off the table and Boom it goes. not just back to break even, it ends end up turning into a loser. That's the worst now. I Certainly understand that there's Traders out there that are going for home runs and when you're going for home runs, you let it ride.

But those Traders have much lower accuracy. Of course, that's offset by having a higher profit to loss ratio, but I personally emotionally struggle when I have low accuracy. When I have low accuracy, my confidence takes a big hit. I Don't feel confident to step up to the PL with big share size and so a low accuracy strategy for me, even if it has a high profit loss ratio doesn't work.

I Just can't get my head around it. It doesn't work for me. I Need a high accuracy strategy? That's what gives me confidence to step up to the plate for every trade even if my profit loss ratio isn't as good and that's more on the scalping side of things. you've got a a sort of, you know tighter profit loss ratio, but you've got higher accuracy.

So Focus Focusing on quality is number one when you focus on quality. What that in turn does is it improves your accuracy. When your accuracy improves, you're not having as many losers in total, and most likely you're eliminating some of those losers that became the outliers that were really big. So now what happens is accuracy improves.

profit Loss ratio follows. and then consistency follows. and you know what that breeds confidence. This becomes a positive feedback.

Loop And that's exactly what you need as a beginner. Trader So again, I I Implore you focus on quality of the setup that is number one. Try to build up your educated intuition of what is a good quality setup. Sit down every single morning and watch those scanners look at the top gappers, the top gainers look at stocks hitting the high day Momo scan and if you haven't already checked out my full length class on my scalping strategy, make sure you check that out.

That is going to help you a ton. This is really meant to sort of address really: the Achilles heel of a scalper strategy: the fact that you've got a negative profit loss ratio. You've got to be aware of it, and you've got to do everything you can to combat just that inherent characteristic of scalping.