I am WAY too tired to have traded tonight. I did take one trade about an hour ago…and still continued to diligently watch the market, but nothing else setup that I liked. So, I’m done.

Plus, the market has not been very easy to trade. In fact, it’s been quite challenging the past several WEEKS. This is quite typical of the summer months!!! — Well…summer in the Northern Hemisphere

This just means that I have to be even MORE selective on my trade setups. It also means that I will NOT get as many trades as I might like. But, that’s okay. I *must* take what the market gives me. I simply cannot “push the market around” and make it give me anything.

One of the things that has made the EUR/JPY so challenging to trade is that when price is nearing a Logical Forex Magnet line, price seems to bounce quickly and “big” away from the Magnet Lines…price is “repelled” in other words. What that means is, I need to be VERY convinced that price is going to continue it’s movement in the direction I’m trading…and that means I will have to be even more patient…perhaps giving up a few more pips…but truly trading with the momentum of the price. If it stalls or is moving slowly…it’s just too dangerous to try the trade.

I’m going to show you the only trade I took, around 1am US/Central. And, then, I’m going to show you a chart and I want you to determine what YOU would do.

Here we go…but before we get started, I want to remind you that you can click on any chart to expand it in another browser window (or tab). Just close that window (or tab) to return here. Okay…let’s go…

### EUR/JPY Market Structure Zoomed Out

Look VERY closely. What do you see? Is there a reasonable flow in the market? Is there structure to the flow? Here is a hint…”divide” the chart. Do you see some structure now? Is there any relationship of that structure to the Logical Forex Magnet Lines? Of price?

Oh…and by the way…what time is it?

*** TRADE #1

Do you see how patient I was? There were lots of little “semi fake outs”…or were they really?  Yep, this wasn’t easy…espeically if you’re the type of person that “shoots everything that moves. That’s a FREQUENT Trader…NOT an Agressive Trader. There is a HUGE difference. But…perhaps the biggest thing that helps is…do you REALLY know your currency pair? Are you willing to WORK AT IT to KNOW your currency pair like you do your spouse or your best friend?

Exit #1

With the market so, well, jittery, and me so tired, I didn’t trade max lots…but enough to make it worthwhile. How much is that? Well…ANY profit is Good Profit. Remember The Secret Forex 4.2 Formula? Profit is Good. Compounding Profit is even better.

Anyway, I exited as soon as price went against me. The static chart just doesn’t show you what I was seeing on my broker panel. There was this little pause in price right after it moved away from the Magnet Line…but was presenting itself in a real “fast” move…but not so fast that I couldn’t trade it. So…I took it, and exited with about 6 pips net. (Remember The Secret Forex 4.2 Formula!) Notice I did not hesitate to get out, either. I like these “instant profit trades”.

Now, before you look at the next chart…scroll back up a bit and look at the zoomed out chart.

Do you see that Magnet Line near the bottom of that chart image? Might that be a reasonable place for price to reverse?

Go ahead…scroll back now and look at that chart again…and then look at the next one.

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Here is an image zoomed out that show the trade I took. Do you see what it was a Good Idea to get out when I did…in addition to the regular reasons I exit? You need to have a little bit of “memory” about what you have sen in the market…because the market sure has a memory! Maybe that’s something else Logical Forex Magnet Lines show you? Maybe they really show more than simple support and resistance?

And…here is what happened…the zoomed out version that shows the trade I took…the exit I made…and what happened shortly afterwards. Do you see any “structure” to this “flow? Do you see how price is continually attracted and repelled near thos Magnet Lines?…and the Flow, too? Does this give you an edge? Do you need to “predict” this? (NO!!!) Just let price tell you what it is DOING…not what it is GOING to do!

Are you beginning to more clearly see how all of this “works together”? Do you include YOU in that equation? EVERYTHING…the market AND you MUST “work together”. If anything, and I mean ANYTHING is “out of sync”…don’t trade!

Now it is “test time”.

Think back what the context (zoomed out) of the market is from that immediately previous chart.

Now…some time has passed…and we’ll say you haven’t zoomed back out in the past few minutes. Do you still remember that structure and flow of the market? Good.

Given the following chart…would you take this trade? No cheating…look at JUST this chart…make your decision — no predicting! no over-analyzing, no hesitating — QUICK — what are you going to do?

Did you pay attention to everything I’ve shown you in the Trade #1 above (the one I actually took)? What about from the other numerous trading examples I’ve posted on this blog?

What was your decision? Why?

Okay…now I’m going to show you the power you can have with the Logical Forex Phase. You DO realize this is all covered in the Quick Start Online Training Videos, right? The Quick Start Videos are included free with your trial. And, you know that I cover all of this in an entirely more intense and deep way in the Online Private Forex Workshop, right?

So…what was your decision again? Did you enter? Did you stay out?

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If you decided to enter…do you want to change your mind now?

If you decided NOT to enter…is this little “hint” something you considered?

Wanna see what happened?

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Surprised? Well…there is no reason to be! The Logical Forex Indicators will give you the best possible way for you to identify high probability trades…and know when to enter, when to stay out…and you can do it without predicting, without over-analyzing, and without hesitating!

Are you willing to break out of your old way of thinkng that hasn’t been all that successful (most likely)? Yes, this DOES take a bit of work and time to adjust to a new way of thinking about the MARKET. If you’ll just go back to THINKING LOGICALLY — the way you NATURALLY think(!) — then forex scalping can be fun again…and give you those consistent profits you seek. But…are you willing to REALLY do this? Are you REALLY determined? I know some of you are. And, you know who you are, too. And for your determined and dedicated efforts, I truly respect you….and will do everything I can to help you become the trader you KNOW you can be.

I have a LOT going on. Keep watching the web site. Soon I’ll be announcing some VERY interesting things, mostly related to even better equipping you to trade Logical Forex.

As this is still one of my favorite times to trade, I did find a little time to focus on my trading.

I’m not going to comment much, as I have some things I must take care of right now. But, if you compare these forex trade examples with the other ones I’ve posted…the comments will be very similar. Isn’t that the idea…consistency?

### EUR/JPY Market Structure, Flow, and Context Zoomed Out

*** TRADE #1

Exit #1

*** TRADE #2

Another session overlap.

Exit #2

IMPORTANT: Notice how on this exit, as price stalled near a Logical Forex Magnet Line, I exited without hesitation. This keeps the stress VERY low. Even though price still went down a few more pips…notice how the “ride” would have been a bit unpleasant…especially compared to my calm exit. Keep it low stress! ANY profit is good!

For those traders who have been in a One-on-One Forex Workshop with me…do you see how “it all comes together”?…and then TRY the trade…with no predicting, no over analyzing, and no hesitation…and maybe most important of all, no stress.

I have been uncomfortably busy with “other things” this entire week, leaving little time for me to trade like I want to do.

I have been in meetings all morning, and just returned to my computer a few minutes after 10am US/Central.

It was fairly obvious the market was turning when I looked at the standard zoom. It looked a little different from a zoom-out. But, overall the setup was decent enough for me to CONSIDER trading.

You might want to zoom out a little more on your own charts for another interesting view of the market. It might look like I’m taking a trade that I don’t normally do…and you’d be right if that’s all you considered at the zoomed out level. However, at any zoom level, and especially at the normal zoom level where the trading decision really occurs, be sure to notice the Logical Forex Phase. It looks okay, doesn’t it?

### EUR/USD Zoomed Out Market Context

*** TRADE #1

As Price approached the Logical Forex Magnet Line, it has a LOT of momentum. The Quote Panel was moving with a nice pace, but it wasn’t moving so fast that I was concerned about getting a good fill. (That’s ALWAYS a consideration with a “fast move”.)

When price moves with authority toward a Magnet Line, I’m always cautious…because price could snap back just as fast. But, I was willing to TRY the trade. Remember…a large part of my decision to enter was based on what I saw on the LIVE chart and more importantly on the LIVE broker quote panel! Trading a live market ALWAYS looks different and “feels” different and gives you different (and better) information on your trades than these static chart images can do.

Exit #1

On a fast move, I always want to be ready to exit fast, too. “In and out quickly, whenever it goes against me.”

Well…I have meetings the remainder of the day, and late into the evening. I wish I could have traded more today, but…I just have to “go with the flow”…the Logical Flow…of the market…and my business…and with “life stuff”, too.

I hope you have been carefully reviewing the trade examples I have been posting recently. Do you see some common things that happen regularly, both with the market AND with how I trade it?

What time is it?

What happens to price around a Magnet Line most of the time?

What do the other Logical Forex Indicators tell you?

Why would I have confidence to hold on to a trade longer than my usual 4 pips or so?

I assure you…these questions can be answered on your own if you REALLY study these blog postings…the Online Training Videos (and the new Written Supplement)…and, of course, in amazing detail in the Private Workshop. In fact, anybody who has taken the Logical Forex One-on-One Private Workshop with me can see things in these charts that other traders simply can’t see. They have a BIG advantage over everybody.

This is going to be my only trade “for the day”. It was completely stress free.

Carefully compare this trade example with all the others. Use your detective skills…and notice the obvious…and I’ll help you see the “less obvious” in a Private Workshop.

*** TRADE #1

Price did it’s little dance at a Logical Forex Magnet Line…except it was more of a Limbo Dance instead of it’s regular Foxtrot. Be patient…let price dance…and then TRY the trade….

Exit #1

So, why didn’t I get out at the little “flat spot” in price? Well…it’s one of those discretionary parts of trading. Perhaps the “right thing” to do would have been to exit there, especially with that nearby Logical Forex Magnet.  Notice that the “flat spot” in price was EXACTLY on that nearby magnet. At that moment, I decided to exit immediately if price went against me…(wait…that’s the thing I always do)…and price continued in my favor…so I stayed in.

Yes, I *do* normally get out on those “flat spots” when price stalls, but remember…what you and I see on the broker quote panel is NOT conveyed in these static charts.

I’m done for the day. This was about a 13 pip net after spreads and commissions.

I have been ridiculously busy the past week or so. As you saw from my previous post, this has been a challenge to my trading effectiveness.

To compensate for this, being so busy and distracted, I have been extremely cautious in my trade selections. In addition, I have been even MORE cautious to NOT trade when I felt “out of sync”…when the market didn’t “make sense” to me or even if “I didn’t make sense to me”. If either wasn’t “making sense”, I simply haven’t traded.

It has been a while since I have posted a “morning trade”. A “morning trade” for me is US/Central time. Remember, the best times to trade are at market opens and market closes. I hope you really pay attention to that.

I am going to show you some “trap trades”, and, ask you some questions to see how you might have traded some of these potential setups. Find these forex scalping setups on your own charts, and then “single step” through each trade using the right arrow key on your keyboard.

So…I got finished with some of my regular “business duties”…things related to running the Logical Forex business…and started looking at my charts around 8:10am US/Central. No, while I was working on my “business duties”, I wasn’t looking at the charts. But, of course, when it was time to for me to begin my trading period, I closed my “business duties” windows (email, etc)  and turned off the phone…opened my charts, and fully focused on my trading. You do that, too, right?….focus EXCLUSIVELY on your trading when you are trading?

I opened both the EUR/USD and the EUR/JPY to see what the market flow and structure looked like. It was just after a US News Release at 8:00am, so I wasn’t very excited about trading the EUR/USD.

Then, when I opened my EUR/JPY chart…

### EUR/JPY Zoom Out for Market Flow and Structure

It is obvious price has been flirting with finding a bottom, and the Magnet Lines demonstrate this nicely.

However, remember….Logical Forex Magnet Lines are NOT simple support and resistance lines. Price can go ANY direction at ANY time, and we use our Logical Forex Indicators to help us “see into the market”, but NEVER to predict! We want Price to TELL us where it is going, and, if “everything makes sense”, then we trade without hesitating.

*** TRADE #1

Do you know your currency pair? I mean…do you REALLY know it’s personality…how it moves…when it might take little “jumps” in price? If you do know these things, you will find your trading to be much easier and much more successful. It will allow you to essentially “know” (without predicting!) what the most likely behavior of your currency pair will be. You want to know your currency pair behavior patterns like you know your best friend or your spouse.

And, that is why I could enter like I did here on the EUR/JPY. The little “dance” around the Logical Forex Magnet Line happens ALL the time.

Now, I’m going to tell you that when I entered here, this was a bit more aggressive than usual for me. I suppose it is still me being a bit more busy and distracted than usual. But the trade setup was “good enough” for me to TRY.

Isn’t that really all we do as forex traders…”try” a trade? Since we NEVER *know* the outcome, ALL we can do is enter the trade, and then deal with the results. EVERY trade is ONLY a “probability”. Really understanding this is CRITICAL to your trading success. One of the best books on this is Trading In The Zone. I recommend that you completely immerse yourself in this book. Read it several times.

Anyway…the trade setup was good enough to “try”. I consider this one a “medium probability setup”. (Check the rest of the blog for “high probability” setups.) The reason why it is only a “medium”? Well, those Magnet Lines are VERY powerful, and there is still a rather substantial chance that price could bounce off the Magnet Lines…like two magnets repelling each other.

Exit #1

Normally, you know that I prefer to exit at “flat spots” in the Price (represented by the White Line). Well, it doesn’t show up on this static chart image…but the price was still moving nicely on the broker quote panel. By “moving” I mean there were several transactions (trade executions by other traders) that were reflected in the quote panel as many quick “fractional pip” prices. In other words, price was “moving” in some sense, in that there WERE transactions, but it was very rapid and at the same price point. This is different from when price “stalls”…where traders basically “stop trading” for a moment.

So, I let the price continue down, and exited at the place where price “went against me”.

*** TRADE #2 (Take it?)

Now, it’s your turn.

What are you going to do at the pink arrow? Is it a good Sell setup?

Notice (at a minimum) these things…the Logical Forex Phase…the Logical Forex Watchdog…the overall market flow and structure (from the zoom out view above)…and anything else you may notice…

What do these things tell you? What are you going to do?

I will tell you what I’m going to do….NO MATTER WHAT HAPPENS to the price…I am going to….

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Stay Out.

Because of my conservative nature, there are things that tell me that I don’t want to enter. But do NOT let that stop you from entering! If you like the trade…take it! Remember…”in and out quickly, whenever it goes against me”.

Exit #2

If you decided to take this trade, and exited at the next pink arrow…congratulations! I am truly happy for you! You did well. Although this wasn’t a very high probability trade…EVERY trade is just a representation of probability and the outcome is uncertain. The difference between you and me is…you were willing to TRY the trade, but I wasn’t…only because of what I saw in the Phase and the WatchDog, and a few other things…and because of my more conservative nature.

How does it make me FEEL when this happens…when I “miss” a trade?

Well…did I REALLY “miss a trade”? No! You simply took a trade that I didn’t. (Remember that previous trade was very profitable!) The market moves whether I am “in a trade or not”. I’m not ALWAYS watching the market, and it moves ‘without me”, right? Why would it bother me any more that it moved “now” without me?

Do you know there is a specific source for you having those feelings about “missing a trade”? Do you know what it is?

It’s simple. Because of the way you have most likely been trained, you are sensitive to “missing trades”…because…you have always had to “wait for the close of a candle” or “wait until your lower timeframe chart must be going in the same direction as the higher timeframe chart”..or some other  ”mostly artificial” limitation. These “waiting periods” are PAINFUL…and especially so when the happen when you’re not “watchin the market”. Ouch!

THERE IS ABSOLUTELY NO NEED TO THINK THIS WAY when using Logical Forex!!!

We are trading with The Flow and within a good market structure. We don’t have “mostly artificial” limitations. We simply look at the charts, make sure it all “makes sense” and there is good price flow…and we trade without predicting or hesitating.

Do you see how POWERFUL this is?

Do you understand how now there is no reason to “wait” for all sorts of dis-associated things to line up on different chart views and dozens of unrelated indicators?

Do you really, deeply, feel how much Logical Forex FREES you to trade with the Flow and ENJOY your trading?

*** TRADE #3

Yes, this trade is also a little more aggressive for me than usual, as all of the Logical Forex Flow Lines are not yet all on the same side of the Spine. But, as I’ve said before, there is some level of discretion that you will ALWAYS apply to ANY circumstance in trading…and even in your life. This was one of those times. I am only going to TRY the trade.

Exit #3

Price moved very quickly…and I exited when price stalled. Yes, this time, my broker quote panel was basically “stitting still”, so I exited.

Well…after this trade…I am “done for the day”. However, I still had my charts running as I was preparing this post, and I saw some excellent examples of some “trap trades” and some “good trades” I want to show you. Ready?

### Market Flow andStructure for EUR/JPY

The current market flow has strong clues (some which you might only know about if you have experienced a One-on-One Private Forex Workshop with me).

*** TRADE #4 (Take it?)

What are you going to do at the pink arrow?

It’s your call. Pay attention to everything you already know, and what we have talked about in this post.

What would I do?

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There is NO way I will enter here.

Exit #4

If you did enter, especially on this kind of setup…remember…”in and out quickly, whenever it goes against me.”

Okay…what about now?

*** TRADE #5 (Take it?)

Carefully look at all of the indicators. Did you take it?

What if we add some more context? What if you had waited…been patient…LET PRICE TELL YOU WHAT IT IS DOING…

Did you notice how closely together those Magnet Lines are? Is this a regular pattern you have seen, especially when the market is changing directions (the Flow Flip)? Are you patient? Will you let price do it’s “little dance” around the Magnet Lines, knowing that is a common behavior (and you know because you know your currency pair like your best friend or your spouse)?  What else do you see? What else have you seen before?

Yes, that is a long paragraph above. Read it again. And again. And then review this entire posting again. There is “gold” in there.

Exit #5

There are 3 different exit points on this trade (maybe 4), depending your trading style. I would have likely gotten out at the first downard pink arrow.

Do you see why some traders would “hold on” longer, and exit at the other points?

Just from this one example chart…do you see how there aren’t really any “rules” than one can apply to EVERY trading situation? Since we are all different in our personalities, our approaches to decisions, what we can and can’t see (that others can and can’t see), and so on…it is critical that you make Logical Forex sink deeply into your brain. BY this I mean that you practice, use Market Replay, and trade regularly.

Really make Logical Forex become a “part” of your “whole” being.

You will be able to “trade in the flow”…without predicting…without hesitating…and truly without stress.

YOU CAN DO IT! — How many times am I going to say that? Until you believe it!

Read this post several times. Then read it again. Then, watch the Online Training Videos again. Then practice some more. You are probably very close to your “Aha!” experience.

Go! Enjoy! Have fun!