Forex Trading Psychology

People can always relate FEAR to forex trading.

The fear of losing money.

The fear of losing that trade which is too much for you to handle.

However what most people do not realise is that there are different levels of fear.

Eg.
When you can afford to lose that trade, (which you still do feel fear)
you are still able to think rationally and life goes on.
(ALTHOUGH YOU STILL DO NOT WANT TO LOSE THAT TRADE)

In the example above, fear is definitely in our emotions.
But because the level of fear is low, we are able to handle the fear and still think rationally.

HOWEVER,

Eg. your forex trading capital is $10k.
Your current open trade is now losing -$5000.
And that’s half of your capital.
Or worst to say, that’s half of your life asset. (Money you can’t afford to lose)

Forex Trading Psychology – Fear kicks in. (This time in higher dosage)

Then you start seeing your open trade grows to negative -$6000.
Your Fear level increases, you can feel your heart beat racing.

And sure enough, your worst fear arrived,
The trade increases to negative -$7000.

Forex Trading Psychology: Levels of FEAR

Your level of fear had reached its final peak level.
(you know it when you feel):

- Desperation
- Your face turn black
- You isolate yourself
- You start blaming people, things, events
- You pray

When you feel this level of highest fear.

You can’t think rationally any more.

You know that you can’t think rationally any more when:

- You have decided to increase lot size on your next trade
- OR You decided to go ALL IN on the next trade

You want to get revenge on the market.

You now feel HATE and ANGER.

Forex Trading Psychology: Levels of FEAR

And sure enough, when you start to do things irrationally.
That is the downfall of your trading career.

So you see, there are different levels of fear.

And the highest fear can lead to other emotions like ANGER & HATE.

When you start to do all the above.

You know you have reached your highest level of fear.

It is time to stop trading for a while.

Go get a rest, a shower, a walk.

When you feel that you have calm down and begin to accept things.

I want you to think of what went wrong. (not to blame others)
but what mistake did you made in the trade.

Good chance is that you are risking too much.

And i want you to WAIT and NOT trade until your feeling of hatred, anger and revenge is gone.

That is when you are able to think rationally and go back to fix the problem.

Remember, forex is a journey and not a one time success.

Most traders want to make big bucks in a few trade. But eventually lose it all.

Professional full time traders are ones who trade consistently and happy with reasonable profits.

Let me know if you had experience the above before and what you did, or what happen?

Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Trading Strategies | system that i personally use to be consistently profitable.

See you on the other side my friend,

Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.asiaforexmentor.com

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Forex Trading System

It was just yesterday when i was watching this trade and intended to enter it long.

I was just waiting for the bar to close in around 5 mins time.

However, nature calls! Damn i had this terrible tummyache that needed immediate release. lol.

so off i went. (you do not want to hear the story in the toilet)

When i was back around 10 mins later.

Bang! The trade i wanted to enter shot right up.

It would have been a great profit.

Forex Trading System – Damn i just missed this trade!

Have you had similar experience happen to you before?

Where you wanted to enter a trade and for certain reasons you didn’t. And then it shot right to your direction you wanted.

Yes?

Yes! This happens and will still continue to happen.

However, it is really such a normal thing that comes once in a while that you should not take this “Missed Profits” to heart.

I know some traders really take this badly and they will like “ooohh. it ruin my day, that would have been this much profit” And they will start swearing..

Please don’t do that.

Forex Trading System – Damn i just missed this trade!

This is part and parcel of forex trading.

You win some, you lose some and you miss some.

Take it with a pinch of salt.

Because you know that if you can spot that trade, you will spot others too.

This stuffs still happens to me and i’m immune to it.

You should never take any wins too happily, any losses too seriously and any misses too hardly.

When you are trading forex.

You are like someone who have put on a bulletproof vest.

Impenetrable! (in terms of emotions)

Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Trading Strategies | system that i personally use to be consistently profitable.

See you on the other side my friend,

Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.asiaforexmentor.com

Do “like”, “comment” and “share” this if you find this forex article helpful. =)

Currency exchange

U.S. Manufacturing Data & FOMC news Support The Outlook for Economic Growth

EUR/USD has been consolidating between 1.3385 and 1.3275 for the last 6 days. Investors were too optimistic after the eurozone’s firewall was boosted to €800 billion but better than forecasted U.S. manufacturing data limited the euro’s gains. While the EUR/USD is still contained within its weekly range, Japanese yen is getting stronger against both the euro and the greenback. Things does not look so bright for the eurozone. The latest report from the Europe showed that the region’s manufacturing sector shrank for an eighth straight month in March, highlighting the difficulties in getting the euro zone’s economy on track. Currency exchange analysts say the problems in the Europe can be solved only by tackling the causes. Fundamental issues have to be resolved. Firewalls can’t solve the crisis.

The latest Commitments of Traders (CoT) report released by the Commodity Futures Trading Commission (CTFC) showed that the total number of contracts outstanding for major currencies shrank by 11% as investors pulled back from speculative bets. Speculative investors held a net $10.2 billion in bets against the yen, or 67,622 contracts, marking the largest short position in the yen since July 2007. For the euro, investors held a net $14.8 billion in bets that the common currency will decline in value against other currencies. The market held a net $1.1 billion wager against the British pound, down 30% from the week before. Some currency exchange traders think that the Europe’s common currency still remains vulnerable to concerns of contagion spreading to the euro zone’s larger economies.

The coming week sees a number of important events: both the latest ECB and Bank of England policy decisions, FOMC minutes, global PMIs, and the U.S. employment report. The European Central Bank meeting this week is unlikely to deliver any major surprises. Policy is expected to remain unchanged, and it is only a month after the bank’s quarterly update of its medium term forecasts. ECB President Draghi’s press conference will provide the focus. President Draghi is likely to maintain that it is too early to see a discernible effect, but the tone of his comments may give some hint of where the balance of risks to further policy stimulus now lie. Finally, the currency exchange market focus will fall on Friday’s payrolls release (after the ADP on Wednesday).

Today’s FOMC meeting news will most likely determine the trend of the USD this week. Therefore any USD related pairs should see a spike in prices later today.

Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Trading Strategies | system that i personally use to be consistently profitable.

See you on the other side my friend,

Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.asiaforexmentor.com

Do “like”, “comment” and “share” this if you find this forex article helpful. =)

Forex Trading Strategies

I always get the same questions from forex traders around the world:

“Ezekiel, I can’t seem to be consistently profitable in forex trading”

then they may follow on by “I know my forex trading strategy works.. but i just can’t get profits month after month..”

These are the questions that i get frequently. And this is my general answer to them.

I will usually ask them back:

“So, are you keeping track of your trades?”

You see, to be consistently profitable. You cannot forgo this important step.

That is TRACKING.

All successful businessman tracks their own and their company’s performance.

This also applies to successful forex traders.

You must have a proper and systematic way to track your trades and your success.

So that you can see if you are on the right track to success or if you are not even on the track..

Forex Trading Strategies – How to be consistently profitable in forex trading

Here are some simple ways to track your forex trades:

Firstly, you have to just focus on just 1 forex trading strategy at 1 time.

You cannot trade different forex trading strategies together at 1 time, at 1 account.

If you do that -
My question to you is:

How do you know which forex trading strategy is working for you? And which is not working?

Therefore, start trading 1 strategy at 1 time.

Be specific on the strategy and do not deviate or change random stuffs.

Eg. changing the way you enter, exit trades etc.

It has to be consistent all the way.

So run this strategy trades for 20 trades.

At the end of the test, what is your account status?

Are you profitable, breakeven or negative?

Then ask yourself, did you change anything along the way, among the different trades?

eg. the lot size is different, or you should not have entered a certain trade, but you entered anyway.

If there is a deviation – a change,

then you have to restart the entire test.

By using this method of tracking, you will be able to clearly see whether the forex trading strategy you are using is working for you.

Forex Trading Strategies – How to be consistently profitable in forex trading

Besides, i will recommend you to take screen shots of the trades you entered.

This way, you can review all the 20 trades you have entered once the test is completed.

And you can clearly see what are the mistakes you have made on some trades and what are the things you did right on certain forex trades.

This method will prevent you from repeating the same mistakes again.

Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Trading Strategies | system that i personally use to be consistently profitable.

See you on the other side my friend,

Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.asiaforexmentor.com

Do “like”, “comment” and “share” this if you find this forex article helpful. =)

Learn Fx Trading

Many fx traders are always busy finding the holy grail. Largely because they are still not making money in forex trading.

Or to put it blatantly, they are losing money!

So they push it all to failing to find the right forex trading strategy / forex trading system.

It may be true.

But they probably also missed out a seemingly unimportant factor.

Their work station.

When i first started trading, of course i didn’t had my own study/work room.

I had my television, computer, bed, snacks .. everything in the same room.

So as you can see.

The ENVIRONMENT is already not right for trading/ working / studying..

Learn FX Trading -> Your Forex Work Station

Learn Fx Trading

I used to always had my television on at the same time whilst my trading.

There were so many distractions in place.

I could not really focus on trading nor being able to detect what went wrong in my trading.

Is it because of my emotions?

Is it because i neglected a certain point in my forex trading strategy?

How can i tweak my trading to better?

All i did was to trade and trade and trade.

And i did not had the time, nor the energy to focus on what was going wrong.

So this seemingly small issue: My work station

Is actually an important issue that one needs to address.

We need to have a CLEAR, UNCLUTTERED WORK STATION.

With Little Distractions.

Learn FX Trading -> Your Forex Work Station

Learn Fx Trading

Preferably – You have a room solely for working / trading.

You then will need to have a good solid working chair. (arm chair) – Well, you are going to sit on that chair all day long, shouldn’t you have a proper chair so that your posture & comfort is not an issue in the long run?

You need not have tons of multiple monitors. Depending on your forex trading strategy. Usually 2 – 3 monitors is more than enough.

You make it clear to yourself that when you are in the working room, you work, you trade, and you do not do other crappy useless stuffs that will practically waste your time away. eg. surfing through facebook

You are ALWAYS THINKING! ( I can’t stress how important this is, probably i will write an article on this topic alone)

One of the major factor that attribute to my success is that i am ALWAYS THINKING.

I am always thinking how to make things right, make things better.

I am always thinking of new ideas, rationalizing them.

And eventually putting them into action.

So guys, if you take my word for it.

Starting revamping your workstation now!

You will see the difference!

Learn Fx Trading
Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Trading Strategies | system that i personally use to be consistently profitable.

See you on the other side my friend,

Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.asiaforexmentor.com

The Forex

In the forex market, American dollar gained again the euro after mixed economic data. According to Commerce Department data, bookings for long-lasting goods advanced 3% after rising 4.3% the prior month, this is the biggest back-to-back gains in almost a year. Figures from the Commerce Department showed Purchases of single-family properties decreased 2.2% from the prior month to a 307,000 annual pace. Latest report released by Conference Board indicates that the U.S. economy will keep growing, the index of leading indicators rose 0.4%. Data from the Labor Department showed jobless claims rose by 21,000 to 377,000. Even though there are some improvements, the Federal Reserve is still cautious. In its latest statement the Fed said “Strains in global financial markets continue to pose significant downside risks to the economic outlook”.

The Forex: Gold Rises As Fed Extends Its Plan To Keep Interest Rates Low

The forex market investors shifted their interest to safer assets. Uncertainties in the global economy have been increasing the demand for gold. The commodity currencies have been getting stronger as well. The day after the Federal Reserve’s announcement, gold jumped to its biggest one-day rise in three months. Gold prices are also getting support from options traders. Meanwhile, A poll carried out by Reuters showed most of the economists expect gold to continue its bull run in 2012. Commerzbank analyst Daniel Briesemann said “At the moment everything points to even higher prices, given the strong risk appetite, the better mood among market players, the strong equity markets and the weak dollar”. Analyst at Barclays Capital, Suki Cooper said “Coupled with continued central bank appetite for gold, the broader macro backdrop remains conducive for gold price gains, given negative real interest rates, concerns over longer-term inflationary pressures and uncertainty surrounding the financial markets and economic outlook”.

The Forex: Gold Rises As Fed Extends Its Plan To Keep Interest Rates Low

As fears mount that the eurozone debt crisis could trigger a global recession, all eyes are on Germany to take an even stronger lead in the rescue efforts. European leaders and the International Monetary Fund want Germany to increase its contribution to the European Stability Mechanism. But lately German Chancellor Angela Merkel disappointed these expectations. Neither eurobonds nor more stimuli that would see the ECB print more money are acceptable options for Germany. The forex market investors think the problem is that the austerity that Germany wants will push Europe into a deflationary death spiral, then the EU economy will contract and tax revenues will fall.

The Forex: Gold Rises As Fed Extends Its Plan To Keep Interest Rates Low

By gaining direction from the fundamentals in the economy allows us to enter trades with a solid understanding.

Gold in the forex market is known as XAUUSD.

It is paired with the USD. Therefore when the US release such news in regards to it’s interest rates. We can expect pairs that is paired with the USD to rise. Especially GOLD.

Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Trading Strategies and forex trading system that i personally use to be consistently profitable.

See you on the other side my friend,

Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.asiaforexmentor.com

Forex Market

Markets are going to remain nervous for some more time as S&P ratings agency punished nine eurozone countries with downgrades and to striped France and Austria of their triple-A ratings. Even though S&P said that Germany’s rating is in excellent condition, the downgrading is likely to have direct consequences for country. EUR/USD had fallen sharply after the statement. Forex market investors should be cautious as the bad news will have more impact on the financial markets.

S&P said “We have lowered the long-term ratings on Cyprus, Italy, Portugal, and Spain by two notches; lowered the long-term ratings on Austria, France, Malta, Slovakia, and Slovenia, by one notch; and affirmed the long-term ratings on Belgium, Estonia, Finland, Germany, Ireland, Luxembourg, and the Netherlands. All ratings have been removed from CreditWatch, where they were placed with negative implications on Dec. 5, 2011 (except for Cyprus, which was first placed on CreditWatch on Aug. 12, 2011)” in its statement. We believe that the negative outlooks for virtually every eurozone country suggest that the debt crisis will remain an issue for the forex market throughout this year.

Forex Market: Mass Ratings Downgrades Fuel Debt Crisis Concern

EU leaders have to act faster and regain investors’ confidence in order to control the ongoing crisis. However, it seems that eurozone chiefs will continue to rely on state level solutions like fiscal union and debt brake. In addition, the downgrade of the nine countries will increase pressure for all of the eurozone countries to solve their budget and debt problems. Some forex market investors think that relations among the eurozone members are likely to become more difficult after this point.

Forex market has been expecting downgrades of France and other European countries, but it is hard to tell how much the downgrades have already been priced in. director of the European Centre for International Political Economy, Fredrik Erixon said “The U.S. is still rightly seen as a safe haven. The U.S. is a big liquid economy with a strong tradition of honoring its debts in modern times and a central bank pledged to take action if needed. It’s different with France in the sense that they cannot rely on strong central bank policies”.

Forex Market: Mass Ratings Downgrades Fuel Debt Crisis Concern

Forex Market

What we can take away from the above analysis is that. With more possible downgrading to come on other European Countries. We will remain bearish when trading the Eur. And to look for opportunities to enter on rebound of the Eur/Usd.

Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Trading Strategies and forex trading system that i personally use to be consistently profitable.

See you on the other side my friend,

Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.asiaforexmentor.com

Eur Usd

Forex market continues to be stable during the Asian session today despite the mixed news that has emerged over the past 24 hours. Even though the latest report showed that eurozone industrial output fell in November on weakening consumer spending capability, lower Italian and Spanish borrowing costs boosted forex investors’ optimism. Investors expect to see a similarly positive result when Italy sells up to €4.75 billion of longer dated bonds today. EUR/USD is trading at 1.2819 by the time of writing.

The successful debt auctions, moderating inflation in China and positive news from the ECB eased fears of an impending meltdown in the financial system. The European Central Bank kept interest rates unchanged at 1% as widely expected. European Central Bank President Mario Draghi said “Uncertainty is very high. The monetary stance is and will remain accommodative. We will monitor all developments and stand ready to act. There are tentative signs of stabilization of economic activity at low levels. It was rather comforting to see that some opening of the unsecured bond market is actually taking place, but we really are at the beginning of this process. Let’s hope it will continue”. EUR/USD rose after Draghi’s comments.

EUR/USD Rallies After Smooth Spain and Italy Auctions

The European bond sales went smoothly but we believe that EUR/USD gains will be limited. There is still uncertainty ahead because of rating firms’ possible credit review actions and worries about the eurozone’s sovereign debt problems won’t fade away overnight. We see that the forex market participants will be keeping their focus on eurozone as the lack of agreement by European leaders on how to implement fiscal reforms to prevent contagion puts the region at risk. But for now the focus shifted to the other side of the Atlantic. The latest data showed that U.S. retail sales rose at the weakest pace in seven months. Weaker economic data that reminded investors of the fragility of the U.S. recovery even if the country is on the right track.

EUR/USD Rallies After Smooth Spain and Italy Auctions

Today forex market investors will be watching the news closely. U.S Trade balance and University of Michigan Consumer Sentiment reports will be released today and will affect the Eur Usd Pair.

Nevertheless, we do not trade the news. But it is always important to stay away 30min-2hrs before news as there will be tendency to see spikes in the market which may trigger your stoploss.

Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Trading Strategies and forex trading system that i personally use to be consistently profitable.

See you on the other side my friend,

Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.asiaforexmentor.com

Forex Trading

Wow! Can’t believe it but we are now in Year 2012!

How time flies, and it was only like a day ago =P(truth is a year ago) where i asked What’s your new year resolution?
Read this post: http://www.asiaforexmentor.com/whats-your-new-year-resolution/

SO!

Have you achieved your Goal last year?

Or did you NOT set any Goals last year?

Nevertheless, i will sincerely stand up and applaud you if you have achieved the goal you have set last year.

Because, you are an achiever. A DOER!

You make things happen. You are one who recognises that opportunities are created and goals are achieved all through sheer perseverance and discipline.

The very same applies in Forex trading.

Which is why forex trading is very VERY closely related to our daily lives.

The emotions we expose outside of the forex trading world, WILL be the same emotions we have in our forex trading.

So would you wish and strive to make yourself:

- CALMER and more compose
- Reduce your bad & hot temper
- Reduce your greed level & impulse level
- Increase your discipline
- Reduce your laziness and procrastination

If you can achieve the above in this year 2012!

It will not only aid in the real world you live in, it will also largely aid in your forex trading.

By achieving the above goals – You WILL be a better person.

And NOT only that.

You will be someone that achieves GREAT THINGS!

So come on,

Read the above GOALS again and make sure you will improve on all of the above this 2012.

This slight improvement will pave the road for greater things from now on!

DO IT!

Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Trading Strategies and forex trading system that i personally use to be consistently profitable.

See you on the other side my friend,

Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.asiaforexmentor.com

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Forex Tips

Forex Tips – Example: Eur Cad

I’m going to show you a forex good setup that you should keep in your records for your future forex trades.

In the Forex chart above. We have a highlighted blue box.

It compromises of a:
- long bearish red bar
- Some small bars after the red bar (not bigger than the red bar)
- Followed by a price pin bar (long green color)

This is fact is a very good forex setup alone.

What we have here is a good selling momentum as seen by the bearish red bar.

Then price consolidates for a little while, making small bars inside the previous red bar.

They are preparing for the big move.

And as you should already know if you have been reading my forex trading strategies.

For price to go further down or up, it needs to take a “breather” first.

Then after, we see a forex price action pin bar. This is our signal for an entry.

And we will take a sell position here.

Forex Tips – A Good Forex Setup

Forex Tips

To further affirm our entry, we want to find more confluence.

More factors to support our sell movement.

If you look at the chart, you will see that i drew a White line.

This white line is a previous strong support – supporting previous lows.

And now price has broken the support to make it a new resistance.

And so we have our forex setup at a strong resistance!

Which is a very good forex signal with confluence.

Forex Tips – A Good Forex Setup

As you can see, forex trading is not difficult once you understand price action in detail with combination of our forex trading strategies and system.

Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Trading Strategies and forex trading system that i personally use to be consistently profitable.

See you on the other side my friend,

Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.asiaforexmentor.com

P.S: Do “Like” the post and share it if you find it useful!