Posts Tagged ‘scalping’

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.