Forex Scalping Jitters

Today was full of jittery price movements. Much of the movement I didn’t particularly care for. I really only like to trade when the flow of price is something I am used to seeing, and not something wild that needs to be tamed. That’s just not my preferred trading style.

For my available trading time(s) today, this is really the only trade I was remotely comfortable with taking. Even so, I did proceed with caution.

### EUR / JPY MARKET STRUCTURE

EUR/JPY Market Structure

You can see that the market had experienced a significant move up. Knowing my currency pair as well as I do, it was evident to me that the market needed to take a breather, and likely start a descent back down. Once I saw the Spine rounding out and the beginnings of a sustained Flow Flip, I started to pay a bit more attention.

***TRADE #1

EUR/JPY Fast Scalping

This trade occurred just as the NY Session was starting to pick up some steam. As mentioned, I am not a huge fan of the price jitters that I was seeing leading up to this trade. When you see these big swings up and down in forex scalping, it normally means BEWARE. At a minimum, you should consider trading smaller lot sizes and definitely be prepared for a deep pull-back of price before it moves in your favor. That being said, I did like the tight Magnet Line Dance (you will find that a tight dance is often quite high on my list) so I did decide to try the trade.

SCALP EXIT

Exit Jittery Trade with Profit

Fortunately, I didn’t experience any pull back in price at all. In fact, price was a very fast mover.

Part of the analysis I have done on Magnet Lines is when there are two Magnet Lines in close proximity, there is often a power-move through the second. I was prepared to accept a pull-back to that Magnet Line, but would have been out had price pulled above the second Magnet Line. Fortunately, that did not happen and I was able to click out of the trade with a nice profit.

Are you prepared for true forex scalping success?

We often get questions on how many trades Logical Forex gets in a day, how many pips one can make, and on and on. Some people are frustrated by our response – which is that the market doesn’t owe you anything. If you pull pips out of the market, it is because the market conditions were right. Some days there are more opportunities than others. Some days it is better to just sit on the sidelines. Not losing money is a good thing.

I wish I remember where I read this, but this is a quote I have written down and often try to remind myself of:

“Do not trade to make money; make the trade that will not lose money. All of the setups look different from that perspective.”

If anybody has seen that before and knows where it is from, please let me know. I think it is a fantastic way of looking at things and I’d love to give proper credit to whoever said it.

Did YOU have the jitters today? Would YOU have taken the above trade, or sat on the sidelines? What did you like or dislike about the trade? I’d love to hear from you.

-Scott

 

 

Tags: , ,

Leave a Reply