Considered Scalping EURUSD, But Went With EURJPY

One of the things I have often found helpful in my own “discovery and application” phase of learning is…understanding why a professional trader did NOT take a trade.

Well…I’m going to give you some examples. It has not been an easy time to trade the past hour or so. It’s been “more possible” for an aggressive trader to take more trades than I have, but as you already know, I strongly prefer those Super High Probability Setups. :-)

First, let’s look at the context of the EUR/USD market around 1am US/Central time.

### EUR/USD Context – zoomed out

EURUSD Currency Market Structure

EURUSD Currency Market Structure

When I look at this chart, it appears like the market is thinking about changing direction. As always, I am NOT GOING TO PREDICT what the market “might” do. I simply observe the flow, and when the flow and structure of the market is logical and the Logical Forex Indicators are also “logical”, then I’ll trade.

Not much looks logical here.

Look carefully. What do you see? Anything? Nothing? Real structure and flow? Spikes? Nervous uncertain market?

So…now…I’m going to show you in the next chart the “normal zoom level”…and I want you to answer this (QUICKLY! NO HESITATION!)..

Will you enter the trade where the Pink Oval is drawn?

EUR/USD Possible Scalp #1?

EUR/USD Possible Scalp #1?

What is your decision? STOP ANALYZING NOW! Choose! Are you going to enter? Or will you wait?

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Here’s what I’m going to do…

I am NOT going to enter. Why? Look at those Logical Forex Activity Lines? Is there really any “momentum” and movement in the market? Is it safe to trade then?

What else? I *really* don’t like those big “jumps” or “spikes” in the price flow. That could happen just as easily when I enter…just as price has just PROVEN it will do in just the past few minutes leading up to this decision point.

Here is what happened…

EUR/USD Possible Scalp #1?

EUR/USD Possible Scalp #1?

I’m not too surprised that price “jumped” here a bit, are you? So, if you decided to enter…where did you get out? (QUICK! NO HESITATION! NO PREDICTION! NO “RELIGIOUS TRADING”!)

Had I entered that trade, I would have IMMEDIATELY exited when price headed back down against me. I would certainly have lost no more than a pip or two, and I might have even had a break even trade, depending on when exactly I clicked to exit…and the broker filled my order.

Now…do you see how this really is a NO STRESS way of trading? I’m in and out  so quickly, I don’t have time to be stressed. :-)  Either way…whether I entered this trade or not, I’m now observing the charts, calmly and without predicting, and getting ready for the next opportunity.

Okay…here is a “next opportunity”…just a few moments later…

What are you going to do, where the Pink Oval is with the Green Up Arrow? Are you going to buy? Sit out? (QUICK! NO HESITATION!)

EUR/USD Possible Scalp #2?

EUR/USD Possible Scalp #2?

What did you choose? Are you in? Did you stay out of this trade?

Do you have any idea what I did on this one?

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Nothing. I did nothing. I didn’t enter the trade. Do you know why? Well, the market conditions really haven’t changed much.

But, there IS a difference with this trade. SOME Logical Forex traders WILL take this trade. There are some very visible reasons that make this a POSSIBLE trade. It’s not a High Probability trade, but those who are more aggressive than I am would take this trade…and it would be a valid trade! Now, that doesn’t mean it’s going to “work”…but…these aggressive traders are even FASTER at exiting trades that go against them than I am!

So, what happened?

EUR/USD Possible Scalp #2?

EUR/USD Possible Scalp #2?

Now remember…I did NOT enter this trade…but some of my more aggressive traders certainly might have entered. And, there are two reasonable exit points, depending on their strategy and how they want to handle their trades. I’ve marked each exit point with a Red down arrow. Do you see why these are exit points? I’ll tell you…one is exiting when the price “goes the other way”…remember…quickly in and out with no prediction or hesitation…and the other exit point could be “holding on” until price interacts with the Logical Forex Groove…the dotted black line.

Now, if you have access to the Logical Forex Indicators, and are viewing your chart around this time period, you may be wondering a few things. You see, the charts will show you some “nice moves” as it moved upwards fairly quickly. There are definitely valid trades there for people who prefer a little different style than me…and it’s EXACTLY these kinds of things that you and I will determine in your Private One-on-One Forex Workshop. I work with you to help you tailor a specific way to trade *logically*…that fits your goals, your needs, your personality, your trading capital, and more. But for *me*, I am SUPER CONSERVATIVE, and I only want to trade those Super High Probability trades. (More on that in just a moment.)

So, at this point, I decided to look at the EUR/JPY. I don’t “change currencies” very often when I trade…but, I did in this case to show you a few differences. When you are getting started with Logical Forex (or ANY trading method) you MUST *truly get to know* your chosen currency pair very well…and that means trading your chose pair almost exclusively. Doing this will help you be able to “know what that pair is thinking”…as you will begin to know it like your spouse or your best friend. Then, you can “add” more currency pairs as you gain experience, but even then…I only trade two pairs…EUR/USD and EUR/JPY. You can trade whatever you prefer…but those are my favorites.

This next chart is for the EUR/JPY at roughly the same “hour long trading session”.

EUR/JPY Scalping

EUR/JPY Scalping

Do you see how price has been flowing in a clear direction? Do you see that there is a real market structure?

How about that Logical Forex Magnet Line…the bright red horizontal line? Do you think that has an impact on my trading decision?

Yes…it certianly does!

Now, when I see a “big move” in price like this, I am EXTRA cautious about entering a trade. Why? Well, at SOME point, price MUST change direction and “re-balance”. So, very often after a price move  like this, I’ll just wait for the market to change direction, and trade a “Flow Flip”. (You’ll find dozens of examples of those trades posted in this blog…as they are my favorite trade.)

But, this time…there was a BIG clue (Logical Forex Phase) that this was a REASONABLE trade. I wouldn’t classify it as a SUPER High Probability trade…mostly because it’s an “old move”…price has moved a lot in a short time period…but it is DEFINITELY a High Probability trade setup!

And, you know what that means, right? No prediction! No hesitation! Low Risk! High Probaibilty! No stress!

QUICKLY! ENTER THE TRADE…and be ready to exit just as fast as you entered. Yep, that’s exactly what I did!

Here is what happened…

EUR/JPY Scalping

EUR/JPY Scalping

WOW! That was a FAST move! Price kept it’s steep downard momentum, and I stayed in the trade until…NO HESITATION….NO PREDICTION…price changed direction, and I exited!

That was a FAST, NO STRESS trade that gave me a net of about 16 pips after spread and commission. I was in that trade about 20 seconds or so.

Do you see how ENJOYABLE trading this way can be for you? Logical Forex can truly open your eyes to a much more fun and consistently profitable method of trading than you might have ever imagined before. It really isn’t possible for me to express to you how much fun I have doing this…and how much fun it is to share this with YOU…the indicators, the online training videos, the workshops…I have a very sincere desire to help you accomplish what you want to do.

If you’re struggling and frustrated, I have been where you are. I know *exactly* how it feels…and I know how it feels “on the other side”…and THAT is what motivates me to help you move to the next level in your trading life…and your “regular life”, too.

I hope this has helped you. I now have to go re-groove my fingertips. I believe I have typed so much, I have made my fingerprints fall off. :-)

8 Responses to “Considered Scalping EURUSD, But Went With EURJPY”

  1. Greg says:

    Hi Robert. I hope you don’t mind that I edited the numbers you posted to keep your information a bit more, well, private. :-)

    I know exactly the path you have been down. I went down the same path. It was not very pleasant.

    Those stops you refer to can be so disappointing. It seemed like when I was trading the ILL-logical way, my stops would always be hit “just perfectly” to take me out of the market…then immediately price would jump to my previous Take Profit order…but I wasn’t in the trade any more as I had been stopped out. And, to make matters worse, I always had studied and analyzed and evaluated and calculated…to setup the “perfect trade”.

    And you know what? … I was always right it seemed. Yep. I *had* understood the PERFECT “target” for price. It would go exactly to my stop, then reverse…and go to my PERFECT “target” for the Take Profit. I was right on both sides of the trade…”just a little bit off”, I though. So I’d make that stop just a little deeper…only to find that, once again, I had an uncanny ability to find *that* PERFECT “target” again.

    Enough!

    So, now I just trade with the flow of the market, allowing the Logical Forex Indicators to help me clearly see the price movements…and when all of this is logical, I trade it. Otherwise, I stay out. And, if I happen to have a trade go against me…I’m in-and-out so quickly, I rarely lose but a few pips…and since I trade only the highest probability setups, I don’t have many trades that go against me. Sure, the market will surprise me from time to time, but, like knowing your spouse or your best friend…the market is the same way…most of the time following the same behavior patterns, but sometimes going a bit crazy. That’s okay…I love my spouse/best friend/dog/FOREX enough that I’ll just “go with the flow” when they do crazy ILL-logical things..and “come back later” when they’re in a better mood. :-)

    If you have a good determination (and it seems like you do)…and you continue to practice and build experience the Logical Forex Trading System…watching the Online Videos…taking a Private Workshop…yes, Robert, I believe that Logical Forex will help you…and make your trading a lot more enjoyable…with a lot less stress…with decent consistent profits…and a lot more fun!

    -Greg

  2. Greg says:

    Hi Zeeshan.

    First, I want to thank you for your continued interest. It is obvious that you know Logical Forex will work well for you, and that is exciting.

    There is, well, NO chance I will reduce the Private Workshop fees. In fact, there is a High Probability I will raise this fee significantly. I’m not exactly sure when, but it will happen.

    I’m sure you remember when you setup your original trial, that I offered a nice discount to the Private Workshop. I will let you in on a little secret. There is a still nice discount offered when you setup a trial. (Shhh! It’s a secret!). Now, since you had other obligations previously and had to cancel, now would be a good time to restart your subscription, and claim a very deep discount on the Private Workshop.

    Just like I’ve mentioned before, taking advantage of a One Time Offer is exactly the same as trading forex. If you hesitate, the moment will pass you by, and you won’t be in the trade, and “lose”. That same thing is true for the One Time Offer you’ll see when you start your trial again…and it is going to be especially important because, as I said, I will be raising the price for the Private Workshop soon, so you will be getting even more value than you can probably imagine right now.

    But, I do ask you to do this…don’t feel “pressured” into anything. Just as with the way I teach about trading forex. Go with the LOGICAL Flow of the market…and do the same thing with your purchase of the Logical Forex Indicators and the Private Workshop. The “timing” of all of this has to be Just Right for you. There is no need to feel pressure to have to “earn anything back”, nor any pressure that you might “miss out”. Just remain calm, believing and knowing that you will make the right choice…and you will.

    -Greg

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