October « 2011 « Logical Forex Scalping & Trading - Forex Scalping System Strategies

Archive for October, 2011

Is Forex Scalping like a Video Game?

Friday, October 28th, 2011

Back when I was a child, I loved playing video games. My favorites were Donkey Kong, Ms. Pac Man, and Galaga. I used to spend more hours than I should have at the arcade — putting quarter after quarter into those machines. It sure does bring back memories. One of the things that I could always count on is for Mario to jump every time I pressed the jump button – or Ms. Pac Man to move left, right, up, or down whenever I directed her path. My video game characters responded just as I wanted – every single time.

Is forex scalping like the video games I used to play a long time ago? There are buy and sell buttons. But do they always respond exactly as expected? Do we always get a fill at the exact price we want?

In terms of the buy and sell buttons always responding, they should always respond to your request. In fact, we go into some depth in the Premium Videos as well as Mentoring to make sure you have your trading environment set up optimally – so the broker quote panel will respond as expected.

Regarding price fills, however, anybody who has done forex scalping knows that we don’t always get the exact fill that we want. This is our trading reality. It’s not a video game. Why is it, do you think, that fills sometimes aren’t what we expected? Consider the fact that trillions of dollars are being transferred back and forth in this global trading exchange known as forex. Imagine all that has to occur to make this happen. You are connected to your broker through the Internet, your broker is connected to various banks, sometimes orders need to get bundled together, and all this has to happen in mere nano-seconds. When you think about it, it’s truly impressive what happens. Certainly way more impressive than getting a cartoon character to jump when we press a button!

Now, there are better brokers for the type of scalping trading that we do – and we will freely offer up the names of our preferred brokers upon request. Just set up a support ticket. While we cannot expect our forex broker software to be as responsive as our favorite video game, we can do everything in our power to get the most responsive experience available. Even if you are not forex scalping with Logical Forex, any forex scalping needs to be done through the right type of broker.

*** EURUSD MARKET STRUCTURE ***

Market Structure - Click to Enlarge

Market structure showed that the USD was very weak against the EUR – as represented by a huge run up over the course of the day. Price was starting to interact around a decision point where I anticipated that something could happen – causing me to take a closer look.

*** EUR/USD TRADE ***

EURUSD Scalping Short - Click to Enlarge

This setup caught my eye as price was starting its’ flow down, then consolidated (as can be seen by the stacking of yellow) and then started to interact around the Magnet Line. Because this was a continuation trade of sorts, I checked the Logical Forex Phase to ensure that it was tracking with price – which it was. If it had been out of sync, I would have re-evaluated the trade.

Since price didn’t do its typical dance before the Magnet Line, I did decide to wait for it to do so on the other side of the Magnet Line. Had I chosen to just jump in, I would have needed to tolerate a pullback to the Magnet Line, as stops were being cleared out. But, because I was patient – I got a got fill as price started its way down.

*** Scalping Exit ***

Scalping Exit - Nice Profit - Click to Enlarge

Typically I like to get out as price starts to go against me. However, given the huge run up that EURUSD saw over the course of the day, I was willing to be just a little more lax in my exit. Once price pulled back to the Logical Forex Groove (the black dotted line) I was surely getting out – for a nice profit.

#####

If you have been reviewing our blog posts for a while, or are just new to this site, you should quickly start to see the consistency of patterns, times of day, stress-free trading we have every day with Logical Forex.

Just because forex scalping isn’t like a video game doesn’t mean it still isn’t a whole lot of fun!

-Scott

Tags: forex mentoring, forex scalping, Magnet Dance, scalping forex
Posted in Pondering, Trade Setups | 4 Comments »

Always Ready to Scalp Forex

Monday, October 24th, 2011

Are you always ready to scalp forex?

I just had something rather entertaining happen. I was preparing this blog post, and saw some things in the charts that made me want to make a video for you. I knew there was no time for me to get my broker software running – because I was recognizing a pattern that was forming… and I wanted to get the video started “in time”.

So I clicked the button to start the video recording, and just about that time, the market started moving, both the EUR/USD and the EUR/JPY.

Anyway, I show you in this video some quick “analysis” of the market. Actually, it’s more of a “regular pattern recognition” than any kind of traditional “analysis” (that’s too much effort, especially when compared with the Logical Forex scalping strategy).

Notice how in the video, I’m simply recognizing a pattern (that I have seen SO many times before) and that the regular Logical Forex Indicators are telling us to pay attention… (1) the market is active (at least “enough” since we are just opening in the “first part” of the European open) [and I recognize THAT pattern too]; (2) there is a reasonable flow of price; (3) price is interacting with a Magnet Line; and (4) the WatchDog is barking at us.

Keep in mind… this is all happening in real-time. The video is “live” as the market is opening. This is very often how my trading days are. I know where to look. I know when to look. I know what to do when I see “something”. Of course, I disclose these things in the Logical Forex training materials.

What I also covered in the video is a bit of a comparison to what I posted a couple of days ago concerning the Asian Session. It seems that I may have confused a few traders because what I posted “looked so different” from what I normally post. Yes it did, and that was intentional. I cover that a bit in this video.

The main thing I want you to absorb is that… YOU CAN DO THIS. It takes practice and commitment, and even tossing some “old ways of thinking”. This will be easier for some than for others. But, if you stay committed to yourself, Logical Forex IS something that you CAN do. And, Scott and I are here to help you according to your commitment level.

Always have fun trading. If it’s stressful, you just need to be able to identify trade setups better. Let that sink in. That alone will open your world of trading and forex scalping success. Go through the Checklist. Again. And again. However many times it takes. It WILL sink in. Allow that to happen.

You can click the little “box” in the bottom right corner to expand the video to full screen, and then hit the Escape Key to return here.

I would love to hear your comments.

-Greg

Tags: european session, forex scalping, scalping forex, scalping setup
Posted in Scalping Setups | No Comments »

Scalping Forex in the Asian Session

Thursday, October 20th, 2011

The other day I was with some friends at a little late evening gathering. One of my friends, actually more of an acquaintance at this point, knew about Logical Forex, and a little bit about forex scalping. Several months ago he had “prowled around” on the web site and this blog of forex trading examples.

When I first told him about Logical Forex, he expressed a strong interest. But… I could see it in his eyes. That interest he told me he had, was quick for me to identify. It was more based in a type of “fantasy”. I’ve seen that “look” so many times. I’ve “heard it” in the support tickets. And, I do understand it!

We all want to have instant success with little effort and work, but that’s not going to happen very often, and certainly not for very many people. That “forex fantasy” is really equivalent to the fantasy of winning the lottery. And, it’s that fantasy that all the marketers use to suck you into those things that promise you riches without “work” or “risk”… or whatever it is. I don’t tell you that that kind of junk. It’s a lie. (Well, like I said… some people do win the lottery. But what are your chances?)

I like to be in control of my decisions… my forex trading… my money. What we do with Logical Forex is NOT any kind of gambling or game playing. We look for patterns. We look for Flow – that price is moving in an orderly flow. And, we look at Decision Points – Logical Forex Magnet Lines – where banks and institutions are almost certainly going to “move the market”. And then… we do what they do and trade with them in the direction of their trade.

Of course, my friend had taken a very quick look at the site those several months ago, but he did remember a few things. A comment he made the other night was…

“I haven’t looked at Logical Forex since my first time. I remember seeing that most of the trade examples you put on the blog tend to be around 1:00 AM or 2:00 AM US/Central time. I’m never awake then. I can’t trade at that time.”

I asked if he had looked at much else on the site, like maybe even more than a couple of examples here, and he said he hadn’t. That’s further “proof” of “looking for fulfillment to a fantasy”. In other words, even though his eyes lit up initially, he wasn’t really willing to put in the effort to actually review the materials I have on the website.

Well, I couldn’t let him suffer, could I?

I asked him what time he got home from work. He said usually around 5:30pm (US/Central). So, I asked him if he could be sitting at his computer from 7pm until 8pm at least a few times per week. He said yes, he could do that most evenings.

You probably can see where I’m going with this, right?

By the way… 7pm-8pm US/Central is 8pm-9pm US/Eastern (New York) or 5pm-6pm US/Pacific (Los Angeles)… and… it’s generally the Asian Market Session Open period… with a bit of room depending on where you are in Asia/Australia. For many people, this is the time they trade, and for others (like US traders getting home from work) it is an optional time to trade. If you’re in Europe, or other parts of the world, then this time period likely won’t be a good match for you… but you have the ideal time slot anyway.

So, what’s the point? Well, there are several…

If you’re serious about trading… a particularly forex scalping… there IS a time period when you can trade. It will not be ideal trading conditions (usually) and there won’t be trades every day, no matter what time slot you have to trade. That’s just the way the world works. The market doesn’t owe you anything, nor does it work around your own time schedule or your “need to make 20 pips per day”. But, if you are willing to make yourself available to the market… and take what the market gives you, then you can become a consistently profitable forex scalper and trader. Here’s what you need to do…

Get serious and commit to yourself. REALLY REVIEW THE FOREX CHARTS with the Logical Forex Indicators applied to them. You WILL see regularly repeating patterns. You will need to review charts for a while for these patterns to become ingrained in your brain. That’s how you learned to read, remember? Those letters you are reading now, when you first were trying to read, we just a jumbled mess of lines and curves… and they didn’t have any meaning. Ultimately, you started seeing patterns in the letters, the words, the sentences, the paragraphs… the concepts and applications…. and it’s the same with Logical Forex.

And now… I’m going to help you. In fact, I’m going to show you something very valuable, if you are willing to “dig in” a bit. In a way, I’m going to “cheat for you”.

For those of you with the Premium Videos… notice in these charts “certain things” that I disclosed to you about markets. I’m not going to give you any more “clues”…. because if you have seriously and with dedication gone through those Logical Forex Premium Videos several times, then you will see a specific “pattern” in these charts. If you don’t see the obvious, then you need to review the Premium Videos again. Now.

And, for those of you who are in our Logical Forex Mentoring Program, you will recognize even more things… depending on which section of the Checklist we are working on with you right now.

And… for everybody else… PAY ATTENTION because what you will see in these charts MAY open your eyes to many things.

Of course, that depends… it depends on if you have a “fantasy perspective” like my friend HAD (notice the past tense). After I showed him these charts (well, actually similar ones… these are from the past 3 trading days… but I showed him charts from almost every single day for the past month, with only a few exceptions). Anyway… he has tossed his fantasy and is NOW willing to work a bit, and actually absorb and apply the things I make available with Logical Forex. In fact, he has gone a step further. He as promised me that he would NOT alter anything. He would trade EUR/USD and EUR/JPY. He would setup his charts like I show in the training materials. He would follow the Checklist. In other words… he will follow the recipe for success, and not the recipe for failed fantasies and time-wasting tweaking.

Ok… so now… review these charts closely. You will see some things that are a bit different than what you might expect. For example, you may notice that the Logical Forex Activity Lines aren’t always “perfect”. Well, that’s part of trading during the Asian Session. After you’ve looked at the charts for a while and established the patterns, yes even patterns with the Activity Lines, it’s clear what to do.

Keep in mind, too, that liquidity is not at its highest during the Asian Session Open, and you may have to allow for larger spreads and more spikes (or jitters as Scott called them in a previous post.) And, yes, make sure you focus on EUR/USD and EUR/JPY particularly during the Asian Open. There are many reasons for that… some of which you will simply not have a clue about (most likely) unless you are in our Mentoring Program.

And remember, do not “look” for a trade. Don’t force it. You need to make yourself available to the market, and take what it gives you. Go with the flow. Literally. Figuratively. Always.

With all of that… review these charts. Remember that you can click on a chart to expand it “full size” in a new browser window (or tab). Just close that window (or tab) and you will return to this page.

Do you see it? Do you see other things in the charts that I might not have marked? Do you see the patterns… the patterns AT the time of scalping AND just a few minutes before? The charts are speaking to you… screaming at you… listen… watch… feel the flow… scalp like a pro.

Where you see the “green line” is the general area you need to closely review. Pay attention to everything near that line… and a little before and after, too.

Enjoy. You may not have a full appreciation for what I’m showing you here… unless you truly are committed to yourself… to becoming a consistently profitable forex scalper and forex trader.

*** EUR/USD