Tag Archives: forex coach

Forex Market: Mass Ratings Downgrades Fuel Debt Crisis Concern

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

Euro Crisis – Updates

Euro Crisis
From our last post on the euro crisishttp://www.asiaforexmentor.com/euro-crisis-what-can-we-expect-for-the-eur-and-the-usd/
It is going with our expectations.
Recent news from the Europe side does not in anyway aid the current situation.
It’s like a business partnership involving several friends.
And as you already know, MOST business partnerships eventually fail in the business world.
The EURO involves 23 countries. So we have 23 business partners in this partnership.
And with such big partnership, there is bound to have internal conflicts.

Euro Crisis – Updates

Euro Crisis
Which we are already seeing between France, Germany, Netherlands, Greece, Finland etc.
When partners do not see eye to eye in a business, it would most likely eventually close down.
Which for the Euro Crisis case = Disband.
The recent plummet of the Euro comes as no surprise.
The one who is benefiting is the USD.
All of the sudden, the USD looks very favourable and safe.
WHICH IS ABSOLUTELY UNTRUE just based on the mounting debts in the US, high unemployment rate, near zero interest rate, etc.
Which ever the case, the fact is both the Euro and the USD cannot go down together at the same time.
One has to go first, and in this era. The Euro goes first.
Therefore with the bearish fundamental in the Euro crisis zone.
We will still continue to short the Euro with our technical setups.
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

Forex Risk Management – Whats your Risk % per trade?

Forex Risk Management
Whats your risk % per trade?
Or should i say, what’s your risk appetite?
To be a successful forex trader. You will need to have a proper money management system.
It starts with identifying what level of risk % per trade will you risk.
As a guide, a safe and good risk percentage will be from 1% – 3%.
Anything higher than 3% will be relatively risky.
Why is this so.
If you understand, the forex market can do anything.
Even if you are sure this is the MOST perfect setup.
It MAY NOT end up the way you expected it to be.
Why?

Forex Risk Management – Whats your Risk % per trade?

Forex Risk Management
First, you must understand that anything can happen in the forex market.
Just for example, even if it is the most perfect setup. If a major institution pumps in a large sum of money at that period of time. It can change the direction of the market for a short time frame.
And when the retail investors see the market moving in the direction stipulated by the major institution, they will then follow suit and enter the same way.
WHICH causes the movements in the market.
But of course, this doesn’t happen always.
What i’m saying is, anything can happen in the forex market.
So even if you are the best forex trader in the world. You will not have a 100% winning rate as well.
You will still lose as the market can do anything.
Which is why, it is not wise to have a high risk per trade.
Forex Risk Management – For example, if a trader risk 10% per trade.
And a series of unfortunate events happen to him, (maybe it’s a distraction, maybe there’s an earthquake etc)
As a result, he made a series of 5 losing trades.
He would have wipe of 50% +- of his trading capital because he risked 10% per trade.
And with just 50% left, it will be hard for him to make back his loss.
So if you see what i meant.
Forex Risk Management – For example, if you risk 2% per trade.
With a series of 5 losing trades. You would only lose 10%+- of your capital.
Which is not to bad.
With a good trading system, we can easily make back the money loss.

Forex Risk Management – Whats your Risk % per trade?

Forex Risk Management
But here comes the big question.
What is your risk appetite?
You see, there is absolutely no point into asking you to risk 1% per trade.
Forex Risk Management – Eg. Capital $5000
Risk of 1% = $50 per trade.
If at the back of your mind, you do feel that $50 per trade is too little.
Then you will most likely find and trade even more trades that you usually should – in order to make more money. Right?
Therefore, the correct way to set your risk % per trade varies with different individuals.
You must ask yourself.
Forex Risk Management – Eg. Will you be satisfied with
$50 per trade or
$100 per trade or
$150 per trade
based on the capital of $5000
Once you got an answer, you got your risk percentage.

Forex Risk Management – Whats your Risk % per trade?

Forex Risk Management
Remember,
1) Your risk percentage cannot be too high. As mention a good gauge is 1% – 3%.
2) Your risk percentage must meet your risk appetite. There is no point in risking 1% if you find the amount too little and does not satisfy your hunger.
So there you go.
Once you have set and decided on your risk % per trade.
STICK FIRMLY TO IT!
For example, in a series of trades. You cannot have eg. 1% on 5 trades, then 3% on 5 trades etc.
Because if you play it this way, and what if you make money on the 5 trades with 1% risked, and lose money on the 5 trades with 3% risked. (which usually happens!)
YOU WILL LOSE MONEY!
Therefore, stick firmly to the risk percentage per trade which you have set.
Eg. If you set 2% risk per trade.
From now on, every trade you take – You will risk 2% per trade.
NOTHING MORE, NOTHING LESS.
This way, you will be consistent and you are on the right track to success.
This is part 1 of the 2 series of Forex Risk Management.
Stay tuned for the 2nd part.
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
Next Expert Article: Risk management part 2 (how to calculate lot size)

Euro Crisis: What can we expect for the Eur and the Usd?

It is only a matter of time for Greece to be declared bankrupt. And Greece is not the only country in Europe that has problems.
Europe will then most likely dip into a recession.
When that happens, the Euro as a combined currency cannot last much longer.
It will be a fact and a sad fact.
And the break of the Euro will eventually come.
So what can we expect from this Euro Crisis?
When Europe dips into recession. Their Euro currency will falter.
And then, the US dollar will become the last big currency standing.
Which means, people will start seeing the USD as a “safe haven” when the euro falters.
So it’s pretty clear on what will happen on this Euro Crisis:
The Euro will DIP (til it breaks/disband)
The US Dollar will go UP.

Euro Crisis: What can we expect for the Eur and the Usd?

Euro Crisis
But hold the horses.
That will probably be just the begining.
After the Euro era is kinda done with.
All eyes will go back to the US economy which is really in a bad shape.
So when that happens.
There’s only one way for the US Dollar.
Down…
So when can we expect all these to happen?
Answer:
It is already happening now.
And we should see the major effect within a few short years.
Now that we have the idea of what’s going on.
Your future investment should take into account of the above from now on.

Euro Crisis: What can we expect for the Eur and the Usd?

Euro Crisis
As Forex Traders:
We know the Euro will go down for the big picture. So we will be looking to short it with price action when we have retracements back up.
Of course there may be spikes up along the way for the Euro. eg. short term “good” news.
As long as we know the big picture is down. We will trade according to the big picture.
So from what you can see from here is that.
We as forex traders combine fundamental analysis and understanding with combination of technical analysis.
This is how we are able to trade and profit consistently with the market and especially in this Euro Crisis.
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

Forex Market Hours: How many times do you trade a week?

Forex Market Hours: How many times do you trade a week?
This is a question that is largely asked.
Ezekiel. How many times do you trade a week? or How many times should i trade a week?
Whats your answer?
(Forex Market Hours)
My answer to them is pretty much the same –
0 to 10 times a week.
There is no definite figure and there never will be.
As mentioned before, we enter trades when a setup occur with price action confirmation.
Therefore, if there is NO setups = There is NO entry.
It can absolutely happen when there is NO setup for the entire week.
Which accounts for the 0 times a week. (But it rarely happens)
And there may be weeks when there are alot of setups (may be even more than 10)
But on average. Its between 0 to 10 times a week.

Forex Market Hours: How many times do you trade a week?

Forex Market Hours
Some of you guys may think.
That’s very little.
Yes its very little.
Would you rather have more trades with more losses OR
Would you rather have less trades with more wins?
Think about it.
The reason why we take so little trades is because we filter away alot of the low probability winning trades.
‘Most traders find reasons to enter, professional traders find reasons NOT to enter’ – Ezekiel Chew
Therefore, every trade we take. Must have a high probability of winning.
Which will eventually lead to a good growth in your account.

Forex Market Hours: How many times do you trade a week?

Forex Market Hours
Therefore, if you are trading way over than 10 trades a week.
Look at the success rates you are getting.
If you are getting a high success rate on all the trades. That’s good.
But if you are not getting a high success rate. You need to think twice about your forex trading strategy.
Are you trading the right way?
Will your trading style lead you to a consistent growth at the end of the day?
Remember – Forex trading is NOT all about taking trades.
It requires you to think about and to have a proper forex trading system, a plan.
This is a business. This is not gambling.
If you are taking trades based on gut feel. – You are a gambler.
I would recommend you to stop trading altogether. Either stop forex trading, or spend some time to learn how to trade forex the right way.
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. (Forex Market Hours)
See you on the other side my friend,
Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.asiaforexmentor.com
Next Intermediate Article: Aggressive Trading Psychology

Forex Breakout System – Follow up on last post – Live Eur Chf Trade

Please read the last post first if you have not already done so.
Here’s the link: Forex Breakout System http://www.asiaforexmentor.com/forex-breakout-system-live-eur-chf-trade/
On the last trade, we placed a breakout trade on both side.
A pending buy order and a pending sell order.
As we can see from the chart above. Price broke up triggering our buy order.
Our take profit 1 target was just hit in the latest bar (marked by the yellow dotted line TP1)
Therefore, we have now move our stoploss to breakeven for our second position.
Meaning, we are now in a free trade to trail it up if it goes further upwards.

Forex Breakout System – Follow up on last post – Live Eur Chf Trade

And since our buy order is triggered, we have also removed away our pending sell order.
I hope you have gain some tips here as per how do we play a forex breakout system | trade using this live scenario as an example.
I will be continuing to post some live forex trading strategies every now and then.
Therefore do sign up for our free newsletter if you have not already done so, whereby i will inform you first hand when a new forex trading strategy is released.
Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Trading Strategies | system (Forex Breakout 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
Next Advanced Article: Forex breakout live trade example (part 1)

Forex Breakout System – Live Eur Chf Trade

What we are looking at now is a Live Forex breakout system trade.
Forex Pair: Eur Chf
Time Frame: 1hr
If you look at the chart above.
The pair has a nice history of consolidating bars and then to eventually breakout. (look at the 3 circles drawn on the chart)
Each time it broke, it went to a new level to consolidate again.
So what we have at the current forex market is a probable repeat of its history.
But the question for this trade would be:
Which side will it break to? Up or Down?
The answer: It doesn’t matter!

Forex Breakout System – Live Eur Chf Trade

We will place a pending buy order and sell order as seen in the chart above.
So whichever side it goes to, we are in the trade.
The two red lines in between the buy and sell orders are the stop loss for each trade.
And the 2 red lines away from the buy and sell orders are the 1st take profit target.
We will then set the 2nd take profit target using a trailing stop (to catch a bigger move if there is one)

Forex Breakout System – Live Eur Chf Trade

With this forex breakout system / strategy – we will be able to capture the move once it eventually breakout.
The possible loss we could make for this trade is that, it may spike up/down – triggering our pending order and then to go back into its consolidation (possibly triggering our stoploss)
To reduce the chances of it happening, we have placed our pending orders above/below the highs/lows of the consolidation.
We will see how this goes and keep you updated.
Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Trading Strategies | system (Forex Breakout 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
Next Advanced Article: forex breakout system (part 2)

Forex Hours – What are the Best Forex Trading Hours?

This is one critical question that bugs most new traders.Forex Hours: What are the Best Forex Trading Hours?
When you read several other sites, they speak of trading when the market is open etc.So when the new york market is open, the usd pairs are more volatile.This is not wrong. And it is indeed the fact that when a market is open, that certain pair will be more volatile.

Forex Hours – What are the Best Forex Trading Hours?

BUT!Here’s the thing.
You do NOT need to wait for the market to open to trade that pair.If you ask me, i do not even care to know what time the market opens or closes.As mentioned, we as professional forex traders are like lions. Waiting patiently for a setup to occur before we pounce on it and kill it.So if you have a day job. You probably can’t be staring at the screen for long hours.
WHICH IS GOOD!
Staring at the screen for long forex hours, WILL NOT help you enhance your forex trading or grow your account.Instead, you will fall into the SEA OF EMOTION and find yourself struggling to stay alive.

Forex Hours – What are the Best Forex Trading Hours?

If you have a day job, just trade the daily time frame.
So check your broker’s time that the daily time frame bar closes every day.And just spend that 10 mins of time analyzing the daily time frame.Forex hours: SO JUST 10 mins a day is good enough.If there is a price action trade setup, enter it. If there isn’t. Close the screen and go forth your daily job. Come back again the next day and repeat the steps.By just implementing this method, you will find yourself emotionally unattached and you have plenty of time to do your other stuffs.But that does not mean you are not making good money.
There are FULL TIME PROFESSIONAL FOREX Traders who trade the daily time frame alone. (read this again)
Yea.

Forex Hours – What are the Best Forex Trading Hours?

Forex Hours
And if you are like me, who has a little more time to trade.
You can look at the 1hr time frame and the 4hr time frame.Practically meaning, i only look at the charts every 1hr or 4hr, depending on my schedule.So if there is a setup on the 1hr time frame, i enter on it.But if there is no setup, i will go ahead with my other stuffs.And then repeat the steps again.So back to the question on Forex Hours: What are the Best Forex Trading Hours?
I hope you got an answer.
Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Day Trading Systems & Strategies 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
Next Beginner Article: Currency in your Broker

Forex Price Action Pin Bar

Forex Pair: Aud Usd
This is a nice scenario when all the timeframes has a forex price action pin bar.I will make this post simple.As we all know we enter with the trend and not against the trend. – As we all know the trend is our friend.Therefore, in all 4 timeframes above. 1hr, 4hr, Daily, WeeklyAll are pointing in the same upwards trend direction.Therefore to trade this pair.The 1st criteria is fulfilled. As they are all in the same upwards trend direction.

Forex Price Action Pin Bar

The next most important criteria is to have forex price action bars confirmation.And this pair happened to have forex price action pin bars in ALL 4 Timeframes!At the start of the week, it first formed a long pin bar on the weekly timeframe. (highlighted in the blue box at the bottom right hand corner chart)(That’s an indication that the pair may be heading up this week or so.)And then the daily formed a forex price action pin bar yesterday.(highlighted in the blue box at the top right hand corner chart)(So we will be watching this pair closely already)
And then the 4hr and the 1hr formed a forex price action pin bar right at the same time. (highlighted in the blue box of the first 2 charts)
How good a confirmation is that?!

Forex Price Action Pin Bar

So as we speak, we would have at least taken our first profit off the table already.As they say Price action is King in Forex.This is one great example of a trade to choose and to trade.Remember the more the confirmation, the higher the winning probability of the trade!Check out our online forex trading AFM winning Forex Price Action Forex Course where i teach you the exact FULL Forex Day Trading Systems & Strategies 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
Next Intermediate Article: How to take this price action pin bar (part 1)

Forex News Eur Usd – EUR Rises on U.S. Debt Woes

Forex News Eur Usd: Asian session started the day with the USD weakening generally against other major currencies. EUR/USD is trading at 1.4512, GBP/USD is trading at 1.6432, AUD/USD is trading at 1.1048 by the time of typing. Gold and JPY are still strong against USD. When we look at the Asian stock markets, we see slightly lower openings. Nikkei started the day at 10,048.34, previous close was 10,097.72. Hang Seng opened at 22,485.77, previous close was 22,572.08. An economist at JP Morgan Asset Management, Yoshito Sakakibara said “Expectations that Japanese corporate earnings will be strong are lending some support, but as long as there are concerns about the U.S. and European economies, investors do not want to invest in risk assets. Japan stocks may outperform other global markets, but volume may stay low”.

Investors have been selling USD as the concerns increase over a deadlock in debates to raise the country’s debt limit. It is certain that the U.S. headlines likely to dominate all markets the rest of the week. Of course we should remind that the ongoing debates have not been about the debt ceiling only but about reducing the budget deficit and funding of the U.S. government. Even if the debt ceiling is lifted before the deadline to avoid a default, rating agencies could still downgrade the U.S. credit rating without a solid deficit reduction plan. Director at Janney Capital Markets, Guy LeBas said “We believe that Congress will act with an 11th hour deal to raise the debt ceiling. However, the risk of that deal failing increases with each passing day. I would say that the chance of a U.S. ratings downgrade is now more likely than not”.

Forex News Eur Usd – EUR Rises on U.S. Debt Woes

Forex News Eur Usd: Even though the fears of contagion from Greece eased after the new aid package proposed by European Union leaders, economists prefer to cautious for the long term results. Standard & Poor’s global head of sovereign ratings, David Beers said “The rating has a negative outlook, so we’re pretty certain it’s going to go lower because, of course, an actual debt restructuring is now on the table. We’ve also expressed the opinion before that we think that any near-term restructuring is probably not the end of the story. There may be another bigger restructuring down the road. It wouldn’t surprise us if a second restructuring had to be looked at over the next couple of years”.

Forex News Eur Usd – EUR Rises on U.S. Debt Woes

Australian Bureau of Statistics released its latest Core Price Index report today. AUD rallied after June inflation data came in higher than expected. Report said “CPI rose 0.9% in the June quarter 2011, compared with a rise of 1.6% in the March quarter 2011. CPI rose 3.6% through the year to the June quarter 2011, compared with a rise of 3.3% through the year to the March quarter 2011”. Now the financial markets are speculating the Reserve Bank of Australia will have to raise interest rates sooner than expected.

Forex News Eur Usd – EUR Rises on U.S. Debt Woes

My view is that: Even though the Eur is now rising on US Debt woes.

The overall fundamentals for the Eur isn’t that good either. It is just that the US has more severe news in the current moment.
So as an overall, both the Eur and the Usd are pairs not worth going long. Unless they are paired together like in this case: Eur UsdOther than that, it will still be wise to short both the Eur and Usd with technical analysis + Price action confirmation.
At Asia Forex Mentor, we combine forex news trading eg. Forex News Eur Usd (fundamental) with price action setups (technical analysis). Check out our online forex trading AFM winning Price ActionForex Course where i teach you the exact FULL Forex Trading System & Strategies 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
HitLikeButton