Archive for the ‘Pondering’ Category

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.

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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!

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Happy Trading!

-Scott

To Scalp or not to Scalp

Friday, February 10th, 2012

Today, there weren’t many scalping trades presenting themselves that I really liked. In fact, I saw no high probability trade setups that I would have risked large lot sizes on. That doesn’t mean that you couldn’t have traded and made money, it just means that I didn’t see anything that enticed me enough to want to jump in and try a trade. I prefer to not take risks with my trading account.

I do think it takes a lot of trading maturity to WANT to trade and yet to still choose to NOT trade. It is truly a good thing. Your trading account will thank you. You will be less stressed. Tomorrow is another day. I should point out that this has taken me years to realize. It’s not something that I grasped right away.

I should also mention that if I look at my charts long enough, it is still possible for me to talk myself into a trade. That is not a good thing. So, what do I do? I either scroll through charts and train my brain, or I walk away and do something else. That’s it.

So, what do YOU do when you have the trading ‘itch’ – but don’t really find any good trade setups? I’d love to hear from you.

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Happy Trading!

-Scott

The Impatient Forex Scalper

Friday, December 30th, 2011

So, it is a few days before a major holiday. You are a store owner. You’ve been open for nearly half the day and hardly anybody has walked into your store. What’s worse, of the few that have walked in, only two have purchased anything – and what they bought isn’t even enough to cover the cost of the electricity and the staff you have on hand.

So, what do you do? Do you shutter your business, fire your employees, and move on to something else?

Of course, you are likely thinking that would be a very stupid thing to do. It’s only temporary, you say. More customers will come in. Maybe just close up early today, and try again tomorrow. Maybe tomorrow will be a better day.There are ups and downs in any business. You can’t make a great profit every single day.

That’s the way a true professional, a business-person, looks at things.

Do YOU look at your forex trading like a business? Sadly, many people do not.

For instance, I can’t tell you how many people will have forced a trade during this week – one of the lightest liquidity weeks of the year – just because they WANT to trade. Nevermind the fact that the market (their customers) aren’t in the store – and definitely aren’t ready to buy. Wouldn’t that be like walking out onto the street in front of your business – and forcing people into your store against their will? How would that go over? Not so well, right?

Or, those folks that say, “but I need to make 30 pips per day today.” I am sure the business owner also need to make $300 USD today, but, again, sometimes it just doesn’t work that way. Today, you may lose money. Tomorrow, you may break even. The next trading day, you may sell that big, high-priced whatever to some out-of-town visitor to your store.

This reminds me of something I read not that long ago: “Keeping your money in cash (i.e. just sitting in your trading account) is sometimes the very best position you can take.”

Remember, it’s all about how much you have made over weeks, months, and years. It’s not how much you made today, yesterday, or tomorrow. I do think that is the hardest thing for folks that scalp the forex market to remember. Even though we are only in trades for mere seconds or minutes – we are watching our account grow over time. Looking at it any other way is, in my opinion, putting far too much pressure on you. Pressure is not good. Scalping in a relaxed, almost zen-like fashion is better. In fact, once you reach that level, you will have officially graduated to a professional business-person (forex trader).

So, tell me, do YOU view your forex scalping as a game…or a business? As we ready ourselves for 2012 in just a few days, really think about this.It could make all the difference in your trading.

Happy New Year!

-Scott