Tuesday, December 30, 2008

Holidays - The Crazy Markets they Create

So because of the holiday week and the many bank holidays we have had a big spread on E/U. This however creates big moves as well. Here are a few trades for the day, most went for 12 pips...overall it was a good day just I do not like having such a big spread to beat (it was 2.7-3.2, normally it is 1.5-2.5). Here are 3 screenshots of 7, uploading so many of the same types of trades gets boring. Enjoy!

Monday, December 29, 2008

Monday Monday, So Good to Me

I missed alot of great trades today...mainly due to going out to lunch with some people but oh well relationships are always more important than money. I grabbed two trades sofar today, the first trade went for 27pips and the second trade went for 12pips.

Sunday, December 28, 2008

Why Scalp ForEx?

To explain why I scalp the Foreign Exchange market instead of swing trading or position trading I'll list off its advantages. In scalping we...
  1. Limit our exposure to adverse market events, we are in a trade anywhere from 5 to 60 seconds.
  2. Can use leverage to our advantage, the more leverage we have the more capital we can make and the quicker we can make it.
  3. By trading on the second time frame we can almost see what the big banks and traders are doing to the market before other higher time frame traders see it
  4. When mentally managed we can make atleast 1% ROI a day, some days will allow a 100%+ ROI
  5. We don't have to stare at a screen all day, 6 minutes pass and we make our 6% ROI then go relax, workout, or have fun with friends and family!

Wednesday, December 24, 2008

A Slow Market - 12/24/08

No money was made today due to slow market and a choppy one at that. E/U was stuck in a tight range and I wasn't about to sit around waiting for it to break for some low probability trade to develop. To show you what I was working with here I have provided a picture of the rainbow in the tight range/chop that provided a very uneventful day. No clear buy/sell signals in this market so we will preserve our capital and live to trade another day.

Tuesday, December 23, 2008

Tuesday - 12/23/08

The market has been slow this week because of the holiday week/season. Still I managed to grab 1 trade before I had to go run errands and meet up with some people. This trade with perfect entry/exit granted me 11 pips (8.3 after spread) enough to either go buy more Christmas presents or recoupe the money spent on them.


Welcome to KISS Forex Scalping. For those of you who don't know KISS stands for Keep It Simple Stupid. Here I keep trading simple by just watching price action rather than having a set of indicators, trendlines, channels, and fib levels to guide my trading. I only use a collection of weighted moving averages and pattern recognition to tell me the current direction of price.
Here are some details on my setup.

Timeframe: 1 second
Pair: Eur/Usd
Plot: WMA's 6-156 in increments of 6

Screenshot of Setup