Posts Tagged ‘forex scalping’

What Are The Best Forex Indicators?

Sunday, November 13th, 2011

I spent a lot of time many years ago on a quest to find the best forex indicators. I’m not sure something like that exists, at least not until we can define what “best” means. In the forex markets, or any other trading instrument, when you look at technical forex indicators, that only shows you part of the picture of what is happening in the currency markets. The other critical part is how well you can interpret what the trading indicators are showing you, and knowing exactly how to apply what you are seeing.

So what makes the best forex indicators?

Primarily, the forex indicators you use must clearly show you what the market is doing right now. And, even though you may have come to believe that “predicting the future” is something you have to do to be successful with forex trading, it is pretty much pointless to try to do that.

Even with the biggest most powerful computers, it’s very difficult to “predict” what the markets will do. Why? Because, the markets are represented by Real People with Real Agendas, Real Fears, and Real Goals. And, yes, even the computer programs carry some of these biases with them.

Now, if you can see exactly what the market is doing Right Now, then you can make a much better informed decision on how you will carry out your trade (or pass on it completely). Your forex indicators must show you where the high liquidity traders are making decisions (which is not always at support and resistance points). Then, you will simply take a trade in same direction that the Big Money Traders do.

Yes, it really can be that simple. The best forex indicators always have some math involved, but you will also always have to interpret what you see, and you can enjoy some phenomenal success with some practice and experience.

How To Clarify Your Forex Scalping Techniques

Friday, October 28th, 2011

Your forex scalping techniques are the most critical aspect of your trading success in the currency markets. You have to be confident in your analysis, swift in your execution, and always have a good perspective of your money management.

Surprisingly, your forex broker also will play a role in how well you do. With a small account, such as $1,000 USD, it can be difficult to apply the proper methods, but it can be done, as long as you have the right tools and techniques.

If you know how to scalp the forex pairs with a style you are comfortable with, then you’re much more likely to be make money faster. A forex scalper must know many special aspects of the foreign exchange market to be successful, but having a scalping technique that works, and works for you is the most critical thing you can do.

Forex Scalping Techniques Identify Trading Setups

When you are scalping, you have to be certain that when you identify your setups that you will be able to take the trade with a calm confidence, while still being prepared to get out with a loss. The issue is, how can you rarely have a loss. I know, that’s not news to you.

As long as you can see on your chart an obvious price movement, where the potential pips are really “there” for you to take, then you can make money. And to be able to do that your forex scalping techniques must be refined to show you what is really happening in the currency market. We’ve found that, although you can scalp almost any trading instrument, pairs such as the EUR/USD and EUR/JPY are the smoothest in price movments, and generally have the best spreads. And, we have found that any session open or session close is a good time to trade. That means you can be scalping the Asian session (Tokyo, Sydney), or the European session (London), or the US session (New York) with much the same profit potential.

You’ll need to make sure you only scalp when there is activity and liquidity in the market, and then you’ll want to make sure that price is really flowing on your charts. Finally, it’s best if you are scalping forex when the banks and other large-equity traders are moving the market. Then, you’ll use your forex scalping techniques you have with Logical Forex to execute your trade, and enjoy the money you have made from the effort you have made to be a superior FX scalper.

So Many Forex Scalping Strategies: Which is Best?

Friday, October 21st, 2011

There are so many different types of forex scalping strategies available, it can be very confusing to which one works best. There really is only one thing that matters, and that is, which forex scalping strategy works best for YOU.

Any time you are selecting a forex trading system, the inherent strategy must be something you comprehend and are comfortable trading. This is especially true when you are forex scalping. Your actions are typically faster, meaning your interpretation and analysis of the indicators must get started faster, and conclude faster. You are not investing in forex, you are scalping forex, and there is a huge difference.

Coordinate Your Forex Scalping Strategies, Forex Indicators, and Broker

When forex scalping, some tools that brokers provide, such as Metatrader, and not designed to be your friend. Your forex broker has to make money, and their trading servers are designed to extract as much profit as possible, while still allowing you to win a few scalps, too. The trading strategies that you use often determine which broker will work best for you, too.

Most forex scalping strategies are some kind of modification to a regular trading system that was designed for a long time frame. If you attempt to use forex scalping tactics on the short term by using these long-term strategies, you may be in for some unpleasant times.

If you are a trader who likes taking lots of trades, then you need to have a system that will not put you at risk. Just because we are forex scalping does not mean we are going to trade more frequently. Watch some of the currency scalping examples on this website, and you’ll see that our scalping system shows you how to interpret the market quickly, and execute trades with confidence. Our strategies for forex scalping are unique among other trading systems, and you’ll find a freedom with Logical Forex found in few other systems.

Properly designed forex scalping strategies will match your desired trading frequency, and match it to your risk, and then with a simple glance at a chart, you’ll be scalping forex for profit without having to wrestle with your indicators.

Can You Trust Forex Scalping Indicators?

Tuesday, October 18th, 2011

When you are able to establish complete trust in your forex scalping indicators, then you will be able to trade with much less effort, and enjoy your forex scalping success much more, too. If you are trading without forex indicators that you trust, then it can be a miserable experience, with many surprising losses (well, they feel like a surprise), and hesitation that will cause much grief, too. Unfortunately, most indicators are designed to make you predict what will happen in the future currency pair moves, and that is a mistake to avoid at all costs.

Consider one of the most prevalent software platforms for currency trading: Metatrader. There are an extensive number of forex indicators available for you to you, but most are based on the same basic set of principles. In general, these indicators (as with any other charting and trading platform) are based on statistics and probabilities. Mostly they are designed to show you what has happened in the past in such a way that you can see a more smooth representation of how price has moved. Then, in most cases, you are supposed to take that information and translate those numbers into an action.

Now, don’t get me wrong, this style of trading does work, and it’s what most traders use, including most forex scalpers. But there is a better way.

With forex scalping indicators designed to show you exactly what the foreign exchange market is doing Right Now, you can avoid predicting and over-analyzing the current pair. Scalping the old way, with traditional indicators, you are forced to essentially play a game with your broker. In essence, the broker is the controller of the entire game, and the not only set the rules, but they (compared to you) have and endless amount of money to trade… and against you. And if you are forex scalping the wrong way, like exposing your stops, then can can even play with the quote and take out your stops. This is what most market maker brokers do, but that is a different thing we will cover elsewhere.

Logical Forex Scalping Indicators and Trading System

But, with Logical Forex, our forex scalping indicators are designed to show you exactly what is happening in the market, and give you an edge, even against your forex broker. With our forex scalping strategy, we primarily look at the flow of the currency price and the place where the banks and other financial institutions are making their decisions. Then we wait on them to actually make their trades (after they have cleared out those unaware scalpers who have set stops). When they are actually moving price, then we join in the price movement and execute our scalp, then like a professional forex scalper, take our profit without trying to “hold for the longest run on price”. Of course, some forex scalpers enjoy holding longer than others, depending on their risk profile, but I prefer to take a small piece of a long price move, holding as long as I feel no stress.

So, with the best forex scalping indicators, like Logical Forex, we can enjoy our forex scalpling with low stress, a great deal of confidence, and a nice consistent profit.

Forex Scalping For Futures Traders

Sunday, October 16th, 2011

You can get an almost magical feeling of freedom when comparing how you trade futures (even currency futures) with the forex market, and forex scalping can be an extreme pleasure. Although it may seem that you have a lot to learn about forex scalping when compared to your experience with futures, you’ll quickly find that the similarities are close enough to keep you grounded, and the differences are not so profound after all.

There may be cases where you can trade less expensively by scalping in the futures marketplace. However, some of those limitations are lifted or do not exist in the foreign exchange market. When scalping currencies, whether as a futures instrument or spot forex, the principles are still the same.

Forex Scalping Is Best With Good Market Flow

The most important things to look for on your charts is to make sure there is good market flow. Some call this a trend. But, a trend is not the same as market flow. In fact, seeing price flow patterns is much easier than trying to select the right points to draw a trend line. With a powerful forex scalping indicator such as Logical Forex, you can quickly glance at your chart, and you’ll know immediately if the market is flowing or not, and also be able to know the market structure of what has been happening prior to you finding your potential FX scalping trade.

Of course, you’ll also want to be sure that you’re not the only one trading. ;-) You need to be certain that there is activity and liquidity in the market. Again, good indicators will show you this information clearly and specifically. For example, the Logical Forex Activity Lines will show you at a glance when a currency pair safe to scalp.

You will also want to trade WITH the flow of the price movement WHEN the big money traders (such as banks, insurance companies, etc.) are making their decisions. I’m sure you have experienced a time when you were taken out of a trade, especially if you have been forex scalping with strategies other than Logical Forex. I’m sure it felt like the broker was “hunting your stops”. Maybe they were. However, if you have the ability to actually see where their “decision points” are (with the Logical Forex Magnet Lines), then it’s much easier to wait on them to clear out everybody ELSE’s stops, and then you simply trade in the direction they go with their price movement.

If you follow some simple rules within a forex scalping strategy that works for you, then you’ll find that spot currency scalping is much the same as scalping the futures market, and Logical Forex works great with both spot and futures.

Can You Scalp Forex All Day?

Saturday, October 15th, 2011

Sometimes it is easy to get carried away and get so absorbed when scalping forex that you lose track of time, and even your profits (or losses). It’s important that you have realistic limitations to how many trades you can make in a day, what lot sizes you will trade, and so on.

How much forex scalping is too much?

With Logical Forex, we prefer to take one, maybe two, VERY large-lot size trades. We’re comfortable doing that because we are confident in our forex scalping strategy. When forex scalping in a way that you can identify proper trade setups, it’s generally best to just take your “big trade” and then go do something else for the day.

Now, if you just like forex scalping so much that you want to sit at your computer all day, you still need to be sure and take a few breaks, but even more important, reduce your lot sizes. After my “big lot” forex scalp, I typically reduce my lot size to about 10% of what “big lot” scalp. That gives me 10 times I can be wrong while I am being Mr. Frequent Forex Scalper.

Keep in mind, too, that you really only need to be scalping forex a few times during the day: at every market open, and every market close, are generally the best times. I consider New York “noon hour” and sometimes a bit past that as the “close” of the US forex trading session.

So, yes, you can scalp forex all day… but you don’t have to do that unless you just enjoy it. And, if you’re forex scalping for a living, be sure to reduce your lot sizes after your “big lot” trade. You always want to protect your profits, and remain cautious in scalping any more after you have made money. After a while, you’ll begin to enjoy your forex day trading activities, and know that forex scalping is a lot of fun, whether you trade once or multiple times per day.

Forex Scalping Requires Commitment

Sunday, October 9th, 2011

One of the things that I find puzzling is how little effort and commitment most people are willing to do to become a professional forex scalper and forex trader – even though forex scalping is a serious business. Risking money is, for most people, a serious proposition, and care must be taken to preserve your capital.

Forex Scalping and Fantasies – A Bad Match

It seems that most people want to hit a magic button and have all of their trades work out for them. Yes, that kind of system will work, but it generally requires a lot of cash, and a lot of patience, and a lot of tolerance to drawdowns and risk.

It’s usually better to actually participate in your own financial choices. That’s especially true with forex scalping, where you want to make your own personal decision about a trade… when to get in and when to get out. YOUR choices. YOUR profit. YOUR control.

Forex Scalping, when done right, takes very little time

If you have the right forex scalping strategy, and the right tools, then you can be finished with your trading day very quickly. It’s the old adage: use a hammer as a hammer to drive a nail, but don’t try to screw in a nail with a hammer. Equipped with a forex scalping system that provides the right stratgey and tools will take you a long way toward accomplishing your desires.

Explore what is "out there" of course. You have to find a method that works for you. But, when you’re convinced that you are committed to yourself, and are ready to become a consistently profitable forex scalper, get started with Logical Forex, a forex scalping strategy with an easy-to-understand tool that you can learn and apply, just like your own personal forex hammer.