Scalpers Lounge: for scalpers to share thoughts, ideas, and plays

I agree with that, but..the euro has to move.. and I'm seeing a move up right now.. I can be dead wrong.. I have no magic powers and be like its going up 100%, but.. I think a move up is in the works. I'm holding a long, I don't feel comfortable because it does kind of sitting on the edge between up and down..

I rode it a few times, now im out untill we got some direction.. I picked up a long on Eur/chf there is large buy orders at 1.2100 and small but very beefed up positions could pay very good with very little risk

Couldn't have said it better myself. I think this is also one of the biggest problems for new traders. They come into this looking to predict where the market will go for the next 24 hours and trying to bag 50 or more pips per trade. Rather than going with the small predictable movements that provide high probability for profit capturing small repeatable moves.

I will never understand why it is so hard for some to just do the same exact thing over and over and over... Hell even cavemen figured out if yo do the same thing over and over again it provides the same results LOL

I agree wit this. I have attempted to do the Asian session but I have found myself sitting and starring, and finding an entry then sitting and starring some more... realized the grass in the yard grew about 3 inches while I stared... then finally exit.

Trading an active session for the same amount of time provides 3x opportunity and profit.

Its been an interesting day.. at 4 Pm the spain was downgraded, I believe caused the euro to fall from 1.2899 down to 1.2840.. A lot of suprises and stuff happening during illiquid hours, keeping you ready to bang.

I'm currently short on GBP/USD fishing for some pips. Will see how this unfolds.. What else will be thrown out of the blue.

this past few days Asia session feels like its the new London session! Range continues to extend and rally in the same direction.

has anyone caught any pips tonight so far? anyone fishing right now?

I'll share then lol.. I'm fishing for another short on GBP/USD.. I closed the earlier short and then rode the Euro and now back on the pound again. It will probally be my last one for the night.

About to grab profit for the pound and then -- I'm done for the night.. 3 profitable trades is good not going to push it.

profit booked.. Done for right now. Good luck everyone tonight, be backs later.

Would be very interested to see your entries / logic for entering if you feel like posting up some charts. Thanks

I can do that.. Most of the time, I'm to lazy lol.. But ill start posting charts.

I use multiple systems, but most of the time.. I just eye a position myself and use my system to confirm them.. sometimes, I just pick the signals up from my systems.

Logic consists of simply.. how the currency moves.. time of day.. the range of the currency and the psychology of the other players.. hence unusual moves during asian session screws with me, because I don't like suprises! lol

I'll share this.. some people know this others don't.. every hour the last 15 mins and the first 15 mins look at how the currency reacts.. for a scalper! its opportunity every hour.. Personally.. I try to go for a minnimum of at least 10 pips on average..sometimes I take more not usually less.

When currency approachs S/R most of the time it never reachs.. I said that before because people take profits.. so it causes to lose momentum and then reverses and pulls back. Tricks of the trade.. you can catch this pull backs.

Lets say right now.. *live* Look at the USD/CHF.. Support lays at .9385 (its a small support) nothing to strong but it has been bouncing off it.. It has been trading in a tight range but on average it trades.. 60 pips..

Its about to be London.. and Sentiment and Trend are both up. So there is good opportunity, to catch a good position in it.

Just a note: when everyone reading it later.. the USD/CHF was @ .9397 at the time of writing this. (market movement prediciton of sorts).

Interesting. I can definitely see the strong upward trend with some consolidation at the moment, bouncing off support at .9385. Wondering about your statement on sentiment? Is your view based on market news? e.g. Forexlive's market commentary talking about the Spanish downgrade and thus pressure on the euro?

What entry did you take your entry on USDCHDF?

I was using that as an example.. News is important.. but out of the blue news can screw your game up. Like this downgrade caught me by surprise. When I say sentiment. I mean market sentiment. In a nutshell where is the pressure leaning towards if there is more buyers then sellers it will go up if there is more sellers then buyers it will go down.

When you see things like real money buying or selling that is a strong indication of direction. When you see talk such as barriers opposed to resistance support.. that's also strong indication for either a strong break or a bounce.

Try not to use lagging indicators as scalper. Focus on Price action, and market psychology, look for the pressure and where the market is leaning.

always be ready to grab profit and for a reversal. Don't sit and wait.. don't be afraid to execute. End of the hour can help or hurt you.

Nice stuff you're putting out here Palabara. Don't know if you have it but you can grab a program called Snag It for capturing snapshots of your trades.

Also I know you mentioned about your basic setup but I don't remember reading how you use MACD to determine momentum which may benefit others.

One of the things I look for when capturing a breakaway is how fast it runs. If I get a bar that pushes through suddenly and makes a bar that is twice as long as the avg size of the bars near it I look for an exit as that bar stalls. Many times it happens in the 1st 15 min of the new hr.

Here is a trade, I'm in right now.


So.. The RED Is resistance.. The Blue Is support.. Now.. so the trade.. went upto 1.2940! It wasn't able to break higher.. So it went down lower.. past 1.2930.. and down to 1.2921. Where it found the next support.

So it bounced from there.. the MACD Indicator bars are getting smaller.. So.. and about to cross the line and go down.. that means Upside momentum is dieing and down side momentum is building up.

Across past 1.2921.. will yield in the euro going lower.. BUT It depends on the momentum if there is not ENOUGH momentum.. it won't push it down to far past this BREAK!

If there was more momentum it would push it further down.. Momentum even in forex think of physics... When you having a moving motion in a singular direction.. it will accumulate speed as it moves.. if its moving into a direction with Implied force. AS a example.. if your driving a car.. and your going 50 miles per hour you accelerate to 55 miles per hour and then 60.. you try to break and HOLY Something.. your breaks are GONE so will you A) Lose Speed or B) Increase Speed as you are driving out of control to your death!

As the market moves in a direction it gains momentum, as the positions shift.. so for example.. lets say 10 bobs with small accounts "bought" euro at 1.3200 instead the euro went down but they said.. it will go back up and held to the positions.. now 1.2921 later.. they hit "margin" call and positions we're liquidated that causes a shift in "holding" it happens all the time.. NOW combine this with implied force of a singular direction that only ADDS to it.

Momentum is key.. Measurement of momentum can use several indicators. "volume", ADX (Average Direction Index), MACD the Momentum part it.. (bars) any other indicator, you wish to AVOID using.. lagging indicators because they will tell you something happens after it happened.. a lot of good that will do you.

Something to watch out for.. a "fade" a fade means when the price broke through the S/R and then fades back above it.. usually happens because of A) Profit/loss taken B) Stop hunters C) Dealers pushing the market. Fading happens usually in Illiquid markets.. such as Asian Market.. During Holidays, when there is no "events, news, catastrophes going on"

Knowing when to get in and when to get out is key.. biggest problem traders have 99.99% of the time.. "DRAWDOWNS"! because they feel that the market is going to come back because it has before and that ONE time that it don't come back your SOL.

Cutting a position early on is the best thing you can do.. because it will take you 20 small loses to get wiped opposed to 1 big one.. NOW lets compare..

lets say you exit at 10 pip loss.. 20 times.. that equals to 200 pips.. now if you consecutively lose 20 times! That means you need to re-look at your strategy!

Now if you lose 3 times at 75 pips because of high draw downs.. that's 225 pips in 3 losses then that can easily happen.

if you try and keep it tight you will learn to become more accurate.. because you will have more chances, you won't be holding positions for long times and you'll catch more opportunities.

Any market can make money! I just showed 20 pip move between 4 Pm and 6:40 PM est! From 1.2940 - 1.2921 that's 20 pip move in Asian Market!

The biggest mistake other people make is.. look for tops and bottoms.. you look for a reversal "BEFORE" it happens!

best strategy is go with the flow not try to U turn against the flow.

and most important! HOPE IS NOT A STRATEGY!

Simplicity is key! there is philosophy "KISS" ("Keep it simple stupid") I see people draw 100 million different trends and s/r and just make so many lines and then come up with this scientific explanation, about the star and the moons and earths gravity pull will yank on the currency, simplicity is key.. its basic fundamental of supply and demand.. If you don't knw the basic fundamental of supply and demand Google.. Law of demand and Law of supply.

so with all that said.. People.. Forex is not complicated.. I know it seems complicated! I've been there.. I know every single thing everyone of you faces, undergoes, feels, etc.... but, if you look down at the nitty gritty.. its very very simple stuff.. the biggest problem is discipline, don't allow yourself to have big Draw-downs.. become self aware.. of your trading, your implied trading, work on your problems.. draw rules up for yourself.. I've done that for myself..

Rules of the trade..

I wrote this for myself.

1. DISCPLINE!! Remain focused – don’t what if. Don’t play on hope.

2. DON’T CHASE THE STRENGTH!

3. Always be ready to execute. Don’t hesitate, don’t dwindle, and don’t wait.

4. Don’t be afraid to cut for neither sides, profit nor loss.

5. Always do the proper due diligence.

6. Be patient, and wait for the right entrance, don’t be in it just to be in it.

7. Take profit, when you see the need to take profit; don’t wait for the “extra” don’t lose $100 to pick up a dollar.

8. All profit adds up!

9. STAY FOCUSED! STAY COMMITED! BE READY TO TAKE ACTION!

10. Do the right things, analyze your actions, and fix mistakes, and most importantly remain consistent.


I wrote this rules for myself.. to keep myself focused, to have rules to follow by.

OK, so the big question now everyone has is: *drum roll* I'm making money so everyone wants to know what -- I'm doing.. and replicate it.

THE HONEST TRUTH!

You can't replicate what, I do.. and How I do it.. because we all think different. in order for you guys to replicate what I do. you have the think Like I do..

With that said DON'T think your screwed!

When you come here and learn from others. the KEY is you LEARN!

You come up with ideas and understandings of how other people do it so you can apply it with your stuff.. When I was learning to trade and trying to become profitable and all I did was lose money and more money and more money that kept sending you to depression, one time.. I've had anxiety attack after I blew an account with 3 weeks worth of successful trades when I was starting out.

I had a panic attack that after so much hard work.. I blew it all on one trade. 20 trades profitable we're all lost one trade.

but, this experiences make us or break us. Need to learn here apply it.. like biggest thing I can teach you is not when to get in or get out.. thats not as important as.. trying to tell people to NOT holding and hope.. NOT marry the positions NOT chase the strength.. not when to do things but what NOT to do!

Because as soon as you stop doing the things that make you lose money! you'll earn money! Its not when do I enter.. its more like when do I cut my loss.. When do Implie patients.. When do I trade with logic and not emotion!

People you are your own worst enemy! I know.. I've been there.

The biggest thing if you'd like to learn the market is the most simplest thing you can do.. "WATCH IT" Just watch the euro/usd every day for a month! make mental notes.. or even not mental write them down.. The euro did this today and this happend.. it went this far..this range. this S/R write it all down.. at the end of the week ANALYZE it. do it for 4 weeks and you'll be AMAZED with the results and knowledge you have accumulated.

Everything lays in you.. not the chart.. not the system.. not the indicators. The name of the game is psychology. It will either make you into a scholar or break you into a psychopath. Those who listen and realize and.. actually do this.. will learn!

That is a very valid strategy V.

It works pretty good,, but suggestion when it does that try to draw a line as to make it as support or resistance.. it will make it easier to track and trace for later especially if its making a comeback. So you know to either play the break or sell/buy the bounce.

Question for you.. How much on average do you grab per position?