Archive for May, 2012

Trading for Insomniacs

Saturday, May 19th, 2012

Sometimes, when I cannot fall asleep for whatever reason, it is nice to pull up some charts and take a look. Yesterday, when I pulled up my charts, I saw a pretty cool setup.

Take a look and see what you think.

 

*** EURUSD Market Structure ***

Dance

EURUSD MARKET STRUCTURE

 

Price had been making its way down for quite a while. I wonder whether it will continue.

 

*** EURUSD Scalp Enter ***

Magnet Line, Dance

EURUSD SCALP ENTER

 

Let’s see what the Indicators can tell me…

  • Logical Forex Activity Lines – Starting to widen, as it gets closer to the European open.
  • Logical Forex News Alert – None showing.
  • Logical Forex Flow Lines – Price had a very quick move down, as it went through one Magnet Line, and then danced around the second Magnet Line. As the Dance occurred, the Flow Lines fan out a bit and the Spine is now fully revealed.
  • Logical Forex Phase – It would appear that there is Divergence showing, but with such a fast move this Indicator is not revealing of much. As you likely already know, Indicators do tend to lag Price – particularly in a very fast move.
  • Logical Forex Bias – Pointing down.
  • Logical Forex Magnet Lines – As mentioned previously, there is a nice Dance of Price, in this case on the other side of the Magnet Line.
  • Logical Forex Watchdog– It is barking yellow just prior to the trade opportunity.

As momentum was clear to see on the Broker Quote Panel, I enter a SELL trade and see what happens.

 

*** EURUSD Scalp Exit ***

Pull back

EURUSD SCALP EXIT

 

Price continues down at a nice pace. By the time Price had pulled back a bit, I was already in profit by 5+ pips so I was plenty happy getting out of the trade.

 

***

The more you watch the charts, the more you will realize just how often such high-probability trades occur with the Logical Forex Indicators. Maybe it’s your turn to see if you can really compete against the big boys – using Logical Forex.

 

Happy Trading!

-Scott

 

 

 

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Why Force a Trade?

Friday, May 4th, 2012

Well, I just wrapped up a very grueling week of travel. I didn’t even have time to open charts once this entire week. That’s ok, because forex scalping with the Logical Forex Indicators will always be there – ready and waiting – to fit into MY schedule.

***

One of the most significant things we try to get across in our training and instruction is this – DON’T FORCE TRADES! If more people would listen to this simply piece of advice, they would be consistently more successful in their trading. Anybody who has it in their heads that they need to make a certain amount of pips per day – or even per week – is mentally setting themselves up to force trades. Think about that for a minute. Can you see how truly self-defeating that could be?

With Logical Forex, you have the ability to wait for an optimal super-high probability setup. Sadly, many people will trade Logical Forex simply as a breakout system – whenever price breaks the Magnet Line, they take a trade. Why? Because they are not patient. Because they can’t sit by and pass up a possible trade. Because they need to make their daily or weekly pips. I say, stop the madness!

  • Trade forex like a business.
  • Quit treating it like some sort of hobby or mindless entertainment.

Some business owners will go through an entire day and not make a sale. Why is it so hard for somebody trading forex to proceed under the same mentality? Don’t believe all the hype that is perpetuated within the forex industry. Trading take skill and practice, but is also take patience. Not taking a position in a trade is still taking a position – a position to preserve your trading capital. Got that? Sitting on the sidelines is not always a bad thing. Most of the time, it is a smart thing.

If you will sit and wait for that optimal trade, you will amaze yourself at how quickly you can build up your account size. Don’t believe me? Check out the Secret Forex 4.2 Formula. Compounding is one of the most beautiful things in all of finance. Instead of thinking so short-term (I need to quit my job tomorrow, I need to make a million dollars next month) think more medium or long-term. Think thinks like in a few years I can pay cash for a new car, or I can pay my house off much sooner, or I can build my nest egg for retirement. This will take much pressure off of you to perform in your trading every single day or week, and by compounding you will soon see how forex trading can help you fulfill your goals. Honestly, when you take that sort of pressure off yourself, trading does become much more fun – and much less stressful.

Be patient, be diligent, and be smart about your trading. Stop forcing those trades!

***

Happy Trading!

-Scott

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