Logical Forex Scalping & Trading

First, I want to tell you some really “Good Stuff”. It has been a few days since I’ve been able to post anything. Just like with forex trading, your patience will soon be rewarded. I’ll tell you more in an upcoming post.

I was unable to setup the video recorder on this trade. I have found a couple of setups that work quite well. However, I just didn’t want to run the recorder on this trade. You know what that means from my previous posts.

So, I’ll describe the trade to you here. I’ve learned that some of our Logical Forex family, for whom English is not their native language, find that reading text is much easier than listening to me talk. I definitely understand (and sometime I’ll post an interesting aspect of my own life…how my own personal struggles learning foreign languages directly relates to forex trading).

With this trade example, I’ll explain why I was interested in it (of course), and explain why I stayed in at a point when you normally see me “get out quickly”.

Ready?

Keep in mind that I have the chart sizes a little smaller for this blog posting than what I typically use for trading. These charts are roughly 640×480, where my normal trading charts are around 1024×768. So, if you open your own charts, you’ll be able to see the context a bit better in some cases.

### EUR/JPY Market Context and Structure

Here are some things I want you to notice:

* What is the market structure?
* Is it a good “time” to trade?

For those who have attended a workshop with me (or who soon will have other ways to learn some “insider tips”), you know more of the specifics of what I am seeing.

The big upward move was related to US Home Sales. It’s amazing how much US News can effect other currency pairs. I do NOT let news “push me into a corner” on my trading decisions, but I am ALWAYS aware of it. Do NOT try to “correlate” a move of one currency pair to another. It is not worth your time and effort. Yes, sometimes there is a correlation…but this will often lead you into the nasty world of predicting and over-analyzing. Simply “trade the currency pair you are trading”. Get into the Flow of the market of your currency pair…and stay in complete focus on that pair during the time you have chosen to trade.

*** TRADE #1

The broker panel was quite clear what was happening.

Exit #1

Okay…go ahead and ask…

Why Did I Hold the Trade Through That “Against Me” Move?

Here are some reasons why I might have held on…

1. Price had not crossed the Logical Forex Groove.

No, although I was aware of the Logical Forex Groove, it did not effect my hold/exit choice.

2. Greed.

No, although I always like to take all the market will give me, the moment I feel stress of any kind, I exit. ANY profit, even very small profit is a good thing.

3. Hope, Faith, and/or Usually “Being Right”

These are all related to predicting and over-analyzing. Occasionally I’ll have the unfortunate experience of “having flashbacks”, but I rarely do this any more. (You can get here, too!)

4. I need to make $xxx or X pips per day

Take what the market gives you. Period. Full Stop for my British English friends. Some days, the market will be fairly easy to trade. Take it. Some days it will not. Adjust with it. If you need $xxx per day, keep your job. Please. But remember, even a job isn’t a “sure thing” either. All we do in ANY endeavor is “find high probability setups”, “asses the risk” and “take the trade”. That’s true of forex trading…and your job…and your marriage…and all of life. (What is insurance all about?)

All of these previous reasons I might have held on had NOTHING TO DO WITH MY DECISION TO HOLD THE TRADE.

So why did I hold?

1. I know my currency pair and the way it behaves. I know it as well as my spouse or my best friend. EVERYBODY and EVERYTHING has certain ‘behavior patterns”. Know them.

2. The market structure was very clear. We were at distinct and obvious decision points. I must simply “decide” with everybody else…without guessing or predicting or over-analyzing or hesitating…by knowing my currency pair, interpreting the Logical Forex Indicators…and TRUSTING MYSELF TO MAKE A CHOICE AND DEAL WITH WHATEVER THE OUTCOME MAY BE.

3. I am ready for ANY outcome…with no “emotional charge”. I know that it was MY choice…and I can ALWAYS deal with THAT…much better than “blaming the broker” or whatever I might do to try to “run away” from MY choice. I am comfortable in my choices, and am ready to deal with the consequences of my decisions…whether those decisions turn out to be “positive” OR “negative”. Whatever the outcome, I “press reset” in my brain, and get ready for another trade.

Okay…so now, let’s go back and look at the Market Structure.

Carefully consider all that I have written in this post…otherwise, you may want to “see something that doesn’t really exist”.

Remember…I know my currency pair…I’m comfortable with my choices and the outcome…no matter what that may mean…

Notice that yellow line?

Do you see how price and market structure are related? If you know your currency pair, could you “hold” here?

Now…here are some CRITICAL THINGS…

DO NOT DRAW A LINE LIKE THIS ON YOUR CHART!

This line is here just to show you some market structure. You MUST be able to see “structure” like this WITHOUT “drawing lines”.

I guaranty you that with some practice…you WILL see structure like this.

Also…

DO NOT TRADE THIS WAY WHEN FIRST TRAINING YOUR BRAIN….

Simply follow “in and out quickly, whenever it goes against me”.

Over time, as you truly begin to know your currency pair and your brain has thoroughly assembled and consumed the patters of the Logical Forex Flow…you WILL see this easily and “automatically”…and this will allow you to “hold” *SOME* trades a bit longer.

But, don’t be fooled into thinking I trade this way “all the time”…like the example I’ve posted here. I do NOT. I trade “in and out quickly, whenever it goes against me” at least 90% of the time. Remember that!

Small pip wins are powerful, with low-to-no stress…and no real “choices” have to be made…simply seeing the setups, and without predicting, over-analyzing or hesitating…you click the button in…then out…and have a profit with no stress. No THAT is how I prefer to trade!

Okay…I’m going back into my cave to complete the additional things that I know will help you be able to trade Logical Forex with even more success. Realize that what I am preparing is not “replacing” ANYTHING. I am ADDING to what we already have…and as you continue developing your Logical Forex trading abilities, the additional things I have planned will help you even more than you might imagine. We’re having fun! We’re going to have even more fun!

-Greg

I believe I may have a “mostly reasonable” video recording setup now. It took roughly 330 different combinations and experiments for me to “get it”. Each one of those “different combinations” took quite a while to do. But I did them. That’s something like determination and commitment, isn’t it?

I still have challenges with the rendering, but, at least I can record now without my system spewing nasty words at me…or is that the other way round?

I want to give those of you who offered ideas and possible solutions to me, both as comments on the blog and in support tickets…a heart-felt thank you!

Now…on to the trade.

I don’t want to spoil the fun by posting a chart image here.

Just watch the video for a VERY quick 7.7 pip profit scalp. I did this on my FXCM Micro account with 1 full lot. I’m still not comfortable taking larger lot trades until I have the video recording “stuff” stabilized, and even then, I still don’t want to take large lot trades while ANYTHING else is running on my computer other than NinjaTrader and my broker trading platform.

For people who have been in a One-on-One Workshop with me, you’ll see very quickly SEVERAL things that SCREAMED at me that this was a good trade setup. I don’t know that I’d classify it as “super high probability”, but it’s “fairly high” in the “probability” category.

It’s all of the “things combined” that make this a good trade. Just look at what all of the Logical Forex Indicators are telling you “in total”.

You’ll be able to tell, I had absolutely NO STRESS in this trade. None. I did, however, experience a moment of stress prior to the trade, as I wasn’t sure that the video recorder was going to get started fast enough. It did.

I’m certain that you’ll enjoy this video. Now…DO THIS…KNOW THIS…

YOU CAN TRADE THIS SAME WAY

The only difference between you and me is…I’ve just been doing this just a little bit longer than YOU have.

And, take notice! Soon I will be posting something that one of our fellow Logical Forex family members has put together…an amazing “proof” of sorts that will further show you that consistency, patience, and determination is going to give you the edge you deserve…and that you will have…just as he has done.

Super Quick 7.7 Pip EUR/JPY Scalp
Play Video (in new window)

-Greg

First, the “frustrating news”.

I made 3 different videos.

Only one of them worked.

The one that worked was a very advanced setup. More about that in a moment.

One of the trades that wasn’t successfully recorded was a nice “medium probability” setup on a EUR/USD Continuation Trade around 7:50am US/Central.

For me, ALL Continuation Trades are “medium probability”. They work fairly often, but not with as much likelihood of success as the high probability setups. Duh.

And, yes, if you’re wondering…I will post a High Probability setup soon…but remember..I have to give up my “trade of the day” to record a video for you. What I mean is…I’m only going to trade low lot sizes while recording a video…so I won’t be able to make my money in my high probability/large lot size trades like I normally do But, I’ll do that soon for you…make a video of a High Probability trade.

Then again, you can see many, many high probability setups in the trade examples I’ve already posted on this blog. This gives you something to learn from Right Now…and is the same material that all of the currently successful Logical Forex traders have been using for some time. No excuses.

Okay…back to that trade…

There was a nice “dance” around the Logical Forex Magnet Line and a nice easy trade that netted about 7 pips. It was right after a news event…so it was a little more risky than I normally care to do..but everything looked interesting enough to me to get my attention. Price had stabilized into a reasonable flow. The Logical Forex Phase was okay (which is always important in Continuation Trades).

What is a Continuation Trade? It’s when price basically “takes a breath” and then continues in its original direction. They are often not “the highest probability” trades, but with the proper interpretation of the Logical Forex Indicators, they can be quite profitable. Of course, you always have to be ready to…to…sing it with me now! — “In and out quickly, whenever it goes against me!”.

So, why was this frustrating?

Well…the video recording simply did not work. There were awful delays, my charts and mouse were out of sync, and my narration was out of sync even worse. (This was partially caused because of the way I had my broker software as the highest priority task in my computer.) I worked for over an hour to try to “repair” this, but never was able to do so. Naturally, I wasn’t able to see how bad it was until I had tied up my computer for 2+ hours while the (bad) video rendered. Oh well. Go with the flow, right?

I’m still not sure what I’m going to do to improve the video recording ‘success ratio’. My “probability” isn’t very high right now for getting a good capture. I’ll continue working with this to see what I can figure out that will work for all of us.

I’m using top of the line software, and a good computer system, but my trading platform and NinjaTrader charts takes up a HUGE amount of resources…and I still want my broker platform to be the highest priority task running on my computer. I really don’t want to risk money because “my computer is busy”…even with 1 lot. But, I do it anyway…so I can show you even better how I trade.

So, instead of the video of that trade (I still have a different video for you below)…I’m going to post the trade setup and results…in the usual format the past many months…chart images.

### EUR/USD Market Structure

Do you see why I might have been interested? Divide the chart. Are we at a decision point in the market flow and structure? Does the market flow and structure make sense to you?

*** TRADE #1

Everything looks okay here…except maybe the Logical Forex Activity lines immeditely prior to the trade entry were a bit “small”, but that’s just the market “resting”…especially true during a Continuation setup. See how it makes sense…and how you logic shows you how to see things that you’re pattern matching brain might not? And the other way round, too…your pattern matching brain sees things that your logical brain doesn’t. Everything MUST work together…calmly, smoothly, without hesitation…and YOU CAN AND WILL be able to do this better, too! That’s why you are here! To BE a professional forex trader!

Professionals can see things and act on things that amateurs can’t! And, ONLY dedicated and commited people EVER become professionals. YOU ARE A PROFESSIONAL!

Exit #1

No doubt about this exit, is there? Sing it with me…”In and out quickly…”

Now for the Advanced Setup Video and some background…

Most importantly…DO NOT ATTEMPT TO TRADE WHAT I SHOW YOU IN THIS VIDEO.

I have a very specific reason for showing this to you. It is NOT so that you will think it is a high probability trade, nor is it to “show you” a trade you should even be considering right now!

What I show you in this video is something that we will cover later…much later…as you continue to advance in your professional growth as a forex trader.

And…here is the absolute fact…

You do NOT need to EVER know how to trade with Advanced Setups like this. Never Ever. As in Never. You can become incredibly wealthy and make spectacular income TRADING ONLY HIGH PROBABILITY SETUPS. ONLY. As in ONLY.

I wanted you to have another peek “inside my cave” at some of the things I can trade, but rarely do. I, too, as you know, focus on HIGH PROBABILITY TRADES and rarely anything else.

But, the forex world is “big” and offers many opportunities for each of us…in the times of day we trade, the ways we trade and so on. A “good” trading method exists for everybody…you just have to “find it” and “perfect it”. Well, you have “found it”, and now we are “perfecting it”.

You will see in this trade…the same things you have seen and heard all along…I have no stress in the trade. I don’t predict, and I don’t hesitate. And, there certainly isn’t time (as you’ll see in the video) for me to “over-analyze”.

So…think about this…if I can trade this way on an Advanced Setup, with a fairly low probability setup…How confident do you think I am when I take a High Probability Setup?

REALIZE THIS !!! YOU TOO CAN BE THIS CONFIDENT!

You simply need to practice, apply what you are learning, and continually progress along…just like anybody who is determined to be a  professional…one step at a time.

And, that’s what I’ll tell you a little bit more about in the video. I’m getting much closer to having more materials available for you. They won’t be “thrown at you all at once”. I’m going to deliver them to you at the appropriate time and the appropriate pace…and this makes it VERY important that if you are serious about trading Logical Forex, that you get started right now and “get in the family”. I’ll certainly offer everything to other people over time, but those of you with me now will benefit in more ways than you can probably dream.

Keep in mind (again) when you’re watching this video, it is NOT important that you understand what I am doing. In fact, don’t even try to figure it out. Just realize that there are many things that I can teach you and share with you…and I will…but the absolute most critical things we MUST do RIGHT NOW…is…

1. Help you TOSS OUT those “old habits”

2. Replace them with “new ways to observe the market” and trade calmly, with no predicting, no over-analyzing, and no hesitating.

3. Be able to “put together” your ENTIRE “being”…your pattern matching brain, your logical brain, and your physical “clicking” to execute a trade.

4. Identify and calmly enter and exit high probability trades, with your maximum affordable lot sizes…which you can do because of your confidence (but NOT arrogance and “certainty”).

5. Understand how to continually practice to become even better and more fluid in your actions.

6. Expand into being able to see and calmly trade “medium” and “low” probability setups….and for some people to take more aggressive trades.

7. Enjoy the freedom in your forex trading, your mind, and your life.

This is a very realistic path…and one that I can guide you through…as I have been down the path…and live this way EVERY day. It IS real. I am living it. You will too.

These first series of videos I have posted on the blog have given you only a bite-size nibble of what I’ll be helping you with.

With your sincere dedication, determination and commitment to YOURSELF…you really can be A Professional Forex Trader. Allow that to happen. Believe that it will happen. Make it happen.

You are doing that Right Now. Excellent!

Watch the video…and follow it through all the way to the end…as I share some specific things about how you can improve your Practice method, too.

Have fun!

Play Video (in new window)