Logical Forex Scalping & Trading

One of the things I have often found helpful in my own “discovery and application” phase of learning is…understanding why a professional trader did NOT take a trade.

Well…I’m going to give you some examples. It has not been an easy time to trade the past hour or so. It’s been “more possible” for an aggressive trader to take more trades than I have, but as you already know, I strongly prefer those Super High Probability Setups.

First, let’s look at the context of the EUR/USD market around 1am US/Central time.

### EUR/USD Context – zoomed out

When I look at this chart, it appears like the market is thinking about changing direction. As always, I am NOT GOING TO PREDICT what the market “might” do. I simply observe the flow, and when the flow and structure of the market is logical and the Logical Forex Indicators are also “logical”, then I’ll trade.

Not much looks logical here.

Look carefully. What do you see? Anything? Nothing? Real structure and flow? Spikes? Nervous uncertain market?

So…now…I’m going to show you in the next chart the “normal zoom level”…and I want you to answer this (QUICKLY! NO HESITATION!)..

Will you enter the trade where the Pink Oval is drawn?

What is your decision? STOP ANALYZING NOW! Choose! Are you going to enter? Or will you wait?

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Here’s what I’m going to do…

I am NOT going to enter. Why? Look at those Logical Forex Activity Lines? Is there really any “momentum” and movement in the market? Is it safe to trade then?

What else? I *really* don’t like those big “jumps” or “spikes” in the price flow. That could happen just as easily when I enter…just as price has just PROVEN it will do in just the past few minutes leading up to this decision point.

Here is what happened…

I’m not too surprised that price “jumped” here a bit, are you? So, if you decided to enter…where did you get out? (QUICK! NO HESITATION! NO PREDICTION! NO “RELIGIOUS TRADING”!)

Had I entered that trade, I would have IMMEDIATELY exited when price headed back down against me. I would certainly have lost no more than a pip or two, and I might have even had a break even trade, depending on when exactly I clicked to exit…and the broker filled my order.

Now…do you see how this really is a NO STRESS way of trading? I’m in and out  so quickly, I don’t have time to be stressed.  Either way…whether I entered this trade or not, I’m now observing the charts, calmly and without predicting, and getting ready for the next opportunity.

Okay…here is a “next opportunity”…just a few moments later…

What are you going to do, where the Pink Oval is with the Green Up Arrow? Are you going to buy? Sit out? (QUICK! NO HESITATION!)

What did you choose? Are you in? Did you stay out of this trade?

Do you have any idea what I did on this one?

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Nothing. I did nothing. I didn’t enter the trade. Do you know why? Well, the market conditions really haven’t changed much.

But, there IS a difference with this trade. SOME Logical Forex traders WILL take this trade. There are some very visible reasons that make this a POSSIBLE trade. It’s not a High Probability trade, but those who are more aggressive than I am would take this trade…and it would be a valid trade! Now, that doesn’t mean it’s going to “work”…but…these aggressive traders are even FASTER at exiting trades that go against them than I am!

So, what happened?

Now remember…I did NOT enter this trade…but some of my more aggressive traders certainly might have entered. And, there are two reasonable exit points, depending on their strategy and how they want to handle their trades. I’ve marked each exit point with a Red down arrow. Do you see why these are exit points? I’ll tell you…one is exiting when the price “goes the other way”…remember…quickly in and out with no prediction or hesitation…and the other exit point could be “holding on” until price interacts with the Logical Forex Groove…the dotted black line.

Now, if you have access to the Logical Forex Indicators, and are viewing your chart around this time period, you may be wondering a few things. You see, the charts will show you some “nice moves” as it moved upwards fairly quickly. There are definitely valid trades there for people who prefer a little different style than me…and it’s EXACTLY these kinds of things that you and I will determine in your Private One-on-One Forex Workshop. I work with you to help you tailor a specific way to trade *logically*…that fits your goals, your needs, your personality, your trading capital, and more. But for *me*, I am SUPER CONSERVATIVE, and I only want to trade those Super High Probability trades. (More on that in just a moment.)

So, at this point, I decided to look at the EUR/JPY. I don’t “change currencies” very often when I trade…but, I did in this case to show you a few differences. When you are getting started with Logical Forex (or ANY trading method) you MUST *truly get to know* your chosen currency pair very well…and that means trading your chose pair almost exclusively. Doing this will help you be able to “know what that pair is thinking”…as you will begin to know it like your spouse or your best friend. Then, you can “add” more currency pairs as you gain experience, but even then…I only trade two pairs…EUR/USD and EUR/JPY. You can trade whatever you prefer…but those are my favorites.

This next chart is for the EUR/JPY at roughly the same “hour long trading session”.

Do you see how price has been flowing in a clear direction? Do you see that there is a real market structure?

How about that Logical Forex Magnet Line…the bright red horizontal line? Do you think that has an impact on my trading decision?

Yes…it certianly does!

Now, when I see a “big move” in price like this, I am EXTRA cautious about entering a trade. Why? Well, at SOME point, price MUST change direction and “re-balance”. So, very often after a price move  like this, I’ll just wait for the market to change direction, and trade a “Flow Flip”. (You’ll find dozens of examples of those trades posted in this blog…as they are my favorite trade.)

But, this time…there was a BIG clue (Logical Forex Phase) that this was a REASONABLE trade. I wouldn’t classify it as a SUPER High Probability trade…mostly because it’s an “old move”…price has moved a lot in a short time period…but it is DEFINITELY a High Probability trade setup!

And, you know what that means, right? No prediction! No hesitation! Low Risk! High Probaibilty! No stress!

QUICKLY! ENTER THE TRADE…and be ready to exit just as fast as you entered. Yep, that’s exactly what I did!

Here is what happened…

WOW! That was a FAST move! Price kept it’s steep downard momentum, and I stayed in the trade until…NO HESITATION….NO PREDICTION…price changed direction, and I exited!

That was a FAST, NO STRESS trade that gave me a net of about 16 pips after spread and commission. I was in that trade about 20 seconds or so.

Do you see how ENJOYABLE trading this way can be for you? Logical Forex can truly open your eyes to a much more fun and consistently profitable method of trading than you might have ever imagined before. It really isn’t possible for me to express to you how much fun I have doing this…and how much fun it is to share this with YOU…the indicators, the online training videos, the workshops…I have a very sincere desire to help you accomplish what you want to do.

If you’re struggling and frustrated, I have been where you are. I know *exactly* how it feels…and I know how it feels “on the other side”…and THAT is what motivates me to help you move to the next level in your trading life…and your “regular life”, too.

I hope this has helped you. I now have to go re-groove my fingertips. I believe I have typed so much, I have made my fingerprints fall off.

If you carefully review my last few posts and pay attention to, well, EVERYTHING on ALL of the charts, you’ll see some things that I am doing over and over and over and over and…

I’m very tired, so this is going to be my only trade. My weekend was filled with many things that kept me far busier than I had planned, but I did have a chance to get a little rest-time with family this afternoon for a few hours. It went fast, and I’m still a bit sluggish from the recent “extra effort” I’ve been doing with Logical Forex…so as you’ve heard me say before…dont’ trade unless you’re “feeling good”…where the market “makes sense”, and YOU “make sense”, too.

I have to tell you…I’m SO determined to make sure Logical Forex is working for my clients, and making sure that *everybody* can see how Logical Forex Trading is so different from everything else “out there”. Trading with the LOGICAL structure and flow of the markets, without having to “study” and predict and hesitate and so on…well…I want to make sure it’s something that you, too, can enjoy as much as I do.

By the way…both the EURUSD and the EURJPY were moving about the same patterns and same ways. You could have traded either one…smaller spreads on the EUR/USD is about the only reason to choose that currency pair instead of the EUR/JPY…and perhaps that was a “good enough reason”, but I was paying more attention to the EURJPY at the moment the trade developed.

### The Context of the EURJPY zoomed out

*** TRADE #1

I literally had opened my charts about 2 minutes before this trade setup. I was in the trade less than 2 minutes…and there was a 15 pip net profit after spreads and commissions. Even with just 1 full lot, what does that translate to “per hour”? I like my job.

Exit #1

“Flat spot” exit.

Okay…one more time…review the past several days of charts that I have posted here, and I *really* believe you’ll see some excellent examples of how to have a LOT of fun trading and scalping forex!

It has been another fun session of forex trading. I took one easy trade, then “took a break” and then another nice scalp a little less than 1 hour later.

Here’s what the market looked like when I took my first trade…

### EUR/USD Market Context – Zoomed Out

*** TRADE #1

Could I have entered a little eariler, like when the Logical Forex WatchDog first “barked”? Sure…but I know this currency pair (and the EUR/JPY) *very* well. They are “my best friend”…and they behave in the “same way” so often that I don’t “predict”. I just wait for them to “do their thing they usually do”. In this case, I waited for that cusotmary tiny retrace back to a Logical Forex Magnet Line. No, this doesn’t ALWAYS happen…but I’m ready for it, and when the price momentum is moving strongly, then I don’t wait. It really is this easy when you trade with the LOGICAL flow of the market…and it is much easier to see in a Live Forex Chart than it is in a static image that you are looking at now.

Exit #1

*** TRADE #2

The market context helped define the structure of this trade. (You can see that by zooming out on your own charts.) The market had changed direction from the earlier trade I showed, and was making a nice flow, quite easy to see with the Logical Forex Flow Lines and Indicators.

Exit #2

No hesitation or predicting of any kind. I’m trading with the flow of the market, and paying attention to the always important Magnet Lines.

Over the past few forex trading examples I have posted, there are MANY things that I have either outright showed you, or given some pretty strong clues to show how to take profits by scalping forex. For those of you who have taken the Private Workshop, you can see even deeper into the reasons why I have entered and exited the trades.

Bottom line for me is…LOGICAL forex scalping and trading is fun!