Logical Forex Scalping & Trading

This trade shows you a typical setup I often look for on the EUR/JPY. Price had been meanding for a while, then had a quick downward move and essentially established a base, with the Logical Forex Magnet Line representing the base. The trade execution plan was that if the price stayed below the Magent Line and made a “fairly fast” move continuing the overall most recent downward move, I would enter.

Here’s what happened. The Logical Forex WatchDog wasn’t too impressed, mostly because price was still above the Logical Forex Groove. I could have waited for the WatchDog to become “bright yellow”, but this was one of those times where experience told me things the WatchDog couldn’t see yet.

*** TRADE #1

EUR/JPY Magnet Magic - Click for Scalping Method

Exit #1

I had taken some profitable trades earlier, and my plan was to hold until the WatchDog changed color. I don’t always trade this way, but I wanted to show you what’s possible. Oh…I also reduced my lot size a bit on this one, partly because I had some nice profits from earlier trades (that I didn’t want to risk too much), and, like I said, this isn’t my normal method to “hold on for more pips” like I did here.

It turned out nicely though…even at a reduced lot size, it was a nice money making “scalp”.

EUR/JPY Magnet Magic - Click for Scalping Method

I encourage you to watch the EUR/JPY currency pair and learn it’s movements. The patterns regularly repeat. They can be very rewarding. But beware…they can also be difficult to interpret, with frequent “spikes”, large slippages on order fills,  and jittery price patterns…until it gets on a run. And, then, when price is really moving, this pair pays well.

For regular in-and-out scalping, without quite the same level of jumpy moves, stay with the EUR/USD.

I wanted to show a few more EUR/JPY trades. I’m continually attracted to this currency pair. It’s almost always active. It just takes a bit of patience to select the right trades so as to not get “faked out” by false moves. This is critically important on this pair, as the spread is higher, and the “spikes” more frequent…but the reward is some BIG moves that are fairly easy to stay in with decent exit signals.

I took several trades earlier this evening, around 6:10pm US Central, went to dinner, and when I looked again at around 8:10pm US Central, there was another trade. For those Logical Forex Family Members who usually trade “after work” or “in the evening”, I hope you were trading then. If not, just scroll back in your charts and see how easy this was to trade…then trade this way “tomorrow” looking for the same kinds of setups. They happen regularly…you just have to be able to see them and identify them. You have the tools! Use them!

After some “rest time”, I got back to trading around 1:30am US Central, and that’s what these forex charts below reflect.

I believe the charts I’m showing here will give you some pretty decent clues as to what to look for to keep from being faked out. And, yes, I still get faked out from time to time. That’s just part of the business of trading.  One thing that does happen frequently with the EURJPY is there will be a spike against you, then it will “recover” and continue in the “proper” direction…the direction you traded.

Winning trades with the EUR/JPY pair basically comes down to

(a) are you patient enough to wait for setups,

(b) “how good are your nerves”, and how do your manage your own MIND during this period.

So much of trading is mental. I hope to cover that more in a future post, but it’s your trading psychology, risk tolerance, and mental profile are something I cover deeply with you (and tailor just for you) in a private one-on-one Logical Forex workshop.

I’m not going to comment on these following trades at all. If you really observe the charts carefully, you’ll see many specific details of how to trade using the Logical Forex Trading System. Use the Clues!

*** TRADE #1

Scalp For Nice Pips - Click to Enlarge

Exit #1

Scalp For Nice Pips - Click to Enlarge

*** TRADE #2

Wait for Bounces - Click to Enlarge

Exit #2

Wait for Bounces - Click to Enlarge

It’s been a long half-hour day of trading. I’m going to stop now and enjoy the “rest of the day” doing other fun stuff.

Last Friday was not easy to trade, so I didn’t. It seems that many European banks were closed, and that usually makes the market move in awkward patterns due to liquidity issues.

I saw on the Forex Factory Calendar that today the UK Banks were closed. I thought trading might be slow and full of spikes. Wrong!

The moves today were frequent…and beautiful. There were many…all through the night (for me) and during the New York Session. I took a few more trades in the wee early morning hours, but in the interest of time  — mine — I’m only going to show the last 3 EURUSD scalps I made.

These were a bit more than my regular “scalps…for just a few pips”. I had made some decent money earlier, so I reduced my lot size so that I could be a bit more aggressive and “hold on” a little longer for more profit (using a little different exit strategy than usual). That’s what I’m showing in the following trades.

As these trade setups are fairly obvious, both entries and exits, I’m not going to comment on them very much. You’ll probably find them quite obvious as to why I entered and exited when I did.

*** TRADE #1

Logical Flow Flip - Click to Enlarge

Exit #1

Logical Flow Flip - Click to Enlarge

*** TRADE #2

The previous major trend was up – a buy. The trade I just took (shown above) was for a rather deep retrace, but that made sense given the size of the previous move. This move is a continuation of the prior upwards trend. Patience.

Continue Previous Trend - Click to Enlarge

Exit #2

Powerful Magnet line…at least powerful enough for me to exit (with profit, and no stress) even though price continued upwards a bit longer. I put the profit in the bank, and then just wait to see what happens (a big drop happened next, not shown here).

Continue Previous Trend - Click to Enlarge

*** TRADE #3

Continuation Continues - Click to Enlarge

Exit #3

There were many more pips available in this move, but as I prefer to trade with no stress, I’m very happy with the exit and feel absolutely no remorse in my profit, nor in “missing out” on anything.

Continuation Continues - Click to Enlarge

This has been a suprisingly fun day to trade. It’s just another example of why we don’t want to predict or guess what the market will do. We just trade the times that we have allocated, and if trades are available, we take them, and if not, we don’t…and either way, we’re thankful that we’ve had the opportunity to have a good life in forex trading.