closed as too broad by Marcus Müller, Voltage Spike, R Drast, Lior Bilia, winny Nov 14 '17 at 13:12
Please edit the question to limit it to a specific problem with enough detail to identify an adequate answer. Avoid asking multiple distinct questions at once. See the How to Ask page for help clarifying this question. If this question can be reworded to fit the rules in the help center, please edit the question.
You really should use component designators in your schematics. Lack of them makes it more difficult to talk about the circuit, so I'll be more brief.
Consider what happens when the reed switch is open. The first transistor is on, lighting the first LED. The collector being low also turns off the second transistor, which keeps the second LED off.
When the reed switch is closed, the first transistor is forced off, so the first LED will be off too. The second transistor is then turned on, which lights the second LED.
In summary, one LED is always lit. The reed switch state governs which one.