Tag Archives: forex

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

Foex , Professional Forex trading strategies

In this Foex pair: Usd Jpy
There is a price action foex price action pin bar + bullish outside bar on the 4hr time frame (right chart in the picture).
Indicating an upwards movement.
Most new foex traders would have entered on it right away – placing a buy order.
But there’s a problem that these new traders do not realise and because of this. They would have gotten losses most of the time.

Foex , Professional Forex trading strategies

If you look at the 1hr time frame (left chart in the picture)
You would have seen a orange line right above the current price movement.
That’s the 150 moving average.
Meaning, the 150 moving average is possibly blocking its upwards movement.
Well, of course it may actually protrude right up to go pass the moving average.
But we do NOT want to take the chance. Right?
What if it hits the 150 moving average and gets rejected to go back right down?
Then we would have made a loss.

Foex , Professional Forex trading strategies

You see.. This is the exact reason why most foex traders lose in their trades.
They FAIL TO LOOK AT MULTIPLE TIMEFRAMES!
That is a deadly error.
What i am showing you here is only the 1hr and 4hr time frames. I have not shown you the other bigger time frames which would have support/resistance as well.
Most traders enter on a trade which looks good at 1 timeframe.
But they fail to realise that there are blockages (support or resistance) at the other timeframes – opposing the move.
Which would be the reason why the trade did not work out.
And after a series of such trades. They decided that foex is a scam and no matter how they trade, they still lose.
BECAUSE THEY FAIL TO LOOK AT THE BIG PICTURE!

Foex , Professional Forex trading strategies

By Correcting this foex mistake ALONE, you will see an increase in profits and winning trades.
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!

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 Blog: Important Forex Tip – What’s the currency held in your broker?

This is one very important thing that every forex trader should know.What’s the currency that you hold in your forex broker account?Regardless of which country are you living in.Your currency denominator in your forex account should NOT be in USD.This may come as a BIG Shocker to you.And if your denominator is in USD. Change It Now!

Forex Blog: Important Forex Tip – What’s the currency held in your broker?

Here’s why:
My Example: I’m based in Singapore. Around 2-3 years back, the USD to SGD (singapore dollar) is at the rate of 1 : 1.4 (est)
Forex Blog: Therefore $1 USD is equals to $1.4 SGD.
Forex Blog: But today $1 USD is equal to $1.1~ SGD.
So had my forex account denominator be held in USD. I will be making a huge loss!Just for example. If your capital is $100,000 USD 3 years back, if i convert it back to SGD. It will be $140,000 SGD.And supposedly, if i never traded the account. Today my capital left will be $110,000 SGD.Meaning i made a loss on my account even though i did not even took a single trade!
Do you see what i’m driving here.Even though if i had traded the account, my profits would have been wiped off or massively reduced due to the currency difference.Which also means that you are practically wasting your time trading forex as none of your profits could be seen.

Forex Blog: Important Forex Tip – What’s the currency held in your broker?

So what now?
Forex Blog: Here’s the fact.
The USD will continue its way down, unless there is a chance of them clearing the trillion of dollars in debt. (chances are really slim)Til then, the USD will at least not grow back to what it once was.So if you are living outside of the United States.You should either put your currency in your own country’s denominator or place it in a country which has a stable economy (eg. Singapore is one of them) And if you are living in the United States.You should change your denominator to another country which has a stable economy. (Not EUR – due to its mounting debt)
Some brokers will not allow the change if you are living in the United States but some will.So if those brokers doesn’t allow you to change your denominator to other currency.
CHANGE THEM!

Forex Blog: Important Forex Tip – What’s the currency held in your broker?

Forex Blog: By changing your denominator to other currency, and if the usd continues falling against the currency you put in.You will see a growth in your capital without even trading!So that’s Extra Profits! (or even to cover your losses you made through silly mistakes)Let me know if this post has helped you.Do share it and like it! Cheers!
Check out our online forex trading AFM forex blog winning Price ActionForex 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: Basic Forex Trading Psychology

Online Forex Trading: Are You A Lion or a Cub?

Online Forex Trading
This is something very crucial in real life and in forex trading.Before we start: Characteristics of a Lion (King of the Jungle)
– Calm
– Powerful
– Confident
– Killing Instinct
Have you watch documentaries before on how do lions hunt?
Although lions themselves are a powerful predator, they still do not go out right up front to the prey and start chasing them from afar.
What they do is that they will fix their target on the weakest prey and move slowly and calmly towards the prey without gaining any attention.
Only when they are close enough and confident of getting their prey, will they Strike.

Online Forex Trading: Are You A Lion or a Cub?

The nature of a lion and how he hunts his prey largely applies to forex trading.
Are you the type of trader who calmly wait for a setup (prey) to occur.
And if there is no setup (prey), they will retire back to rest and come back to hunt the next day.
OR – are you the trader who strikes everytime you see food. But to get themselves a back lash most of the time?
If you are the 2nd trader, you are like a baby cub.
When the cubs are young, their parents will teach them how to hunt.
And not to go out striking blindly.

Online Forex Trading: Are You A Lion or a Cub?

Being calm is the characteristic of a lion.
But when he strikes, he is confident of a Kill.
That’s what a trader should do as well.
We will lie in wait for a setup occurance, and when it occurs.
We will strike it without hesitation.
But if there is no setup, we will retire to rest and do our things.
I hope you find the above analogy interesting, and it’s time to ask yourself.
Are you a Lion or a Cub in forex trading?
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
Next Beginner Article: Picking the Right Entry

Forex Trading Psychology: Your Gun To Wealth or To Death

Forex trading is like a weapon – a gun.
Anyone can hold this gun. But like all weapons, you need to be trained first before using it to fire.If you are well trained, this gun can take you to Greater Wealth.But if an untrained personnel starts firing the gun, it would lead to his death ( Financial Death )
Do you see what i’m driving here?The fact is that everyone can open an account with a broker and starts trading at any point in time. But that does not mean that they are able to use this weapon right?
Like all military personnel, they must undergo lots of weapon training first before giving them live ammunition to fire.The same goes in forex trading.We must undergo forex training first before inputting real money into our live account.

Forex Trading Psychology: Your Gun To Wealth or To Death

The next question comes:When do we pull the trigger of the gun to fire a shot?And before pulling the trigger, are we sure it’s the enemy we are shooting and not our fellow people?
The same applies in forex trading:
Before we pull the trigger, we have to make sure that it is the Right ENEMY. Shooting the wrong enemy will cause us a loss in that trade.
Random shooting will also cause us a loss = Entering trades on impulse.We will only open fire when we have confirmed it is the right enemy and the chances of losing to that enemy is low.That is done through proper training by entering with price action confirmation with confluence in place and a proper money management + risk management system.

Forex Trading Psychology: Your Gun To Wealth or To Death

So the next time before you fire a shot, make sure that you have confirmed it is the RIGHT ENEMY.
Check out our 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
Next Beginner Article: Are we just plain scared to trade the lower time frames

Forex Trading Strategies: Which trend should I look? The long term or short term?

Forex Trading Strategies
I believe that this is one of the most important and mind buggling question that most traders face.
Forex trading strategies Example: Forex Pair Eur Chf

In the forex pair above, the overall trend is in a downtrend (marked by the red line)But in the current movement it is in a short term uptrend (marked by the yellow circle)So to say if you are in the current situation – which happens all the time.
Forex Trading Strategies -> How would you trade?
Forex Trading Strategies -> Would you trade up or down?
Forex Trading Strategies -> Would you trade with the main down trend or the short term up trend?

Forex Trading Strategies: Which trend should I look? The long term or short term?

Generally speaking, of course the bigger trend holds more weight right?So should you still trade down?.. Not really..Although it is the bigger trend that holds more weight, it is the short term current trend that depicts it’s movement.The main question lies in what kind of trader are you.
– If you are the type who wants to trail for the long run. Then you should wait for the trend to turn back down and then trade down.
– If you are like me, who takes profits off the table with a reasonable risk reward ratio. Then we will trade the current short term trend.

Forex Trading Strategies: Which trend should I look? The long term or short term?

You see, although the long term is down. But you should NEVER trade against the current short term trend.
Because this short term may turn to a bigger trend. And this short term trend may be the indication of a trend reversal.So, if you have a good profit taking strategy. The answer will be to trade the short term trend and not the long term trend.But of course, the best scenario is that we have the long term and the short term trend in the same direction.It happens, but it does not happen all the time. So in scenarios like the above chart example. I hope you have gotten your answer!
I hope you have gain something from this quick forex trading strategies trade example, Check out our 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
Next Intermediate Article: Why you need to look at the big picture

Forex Strategies: Picking the Right Entry

In the chart above – Forex trading pair: Gbp UsdWe can see that on the left hand side of the chart, the pair is making a down trend.However when it hit the bottom and started making “Higher Highs and Higher Lows” (marked by the pink circles).It is an indication that the trend has possibly changed into a uptrend.And you can see that price is making a channel upwards (marked by the red lines)
Therefore in this scenario. Most newbies will still presume that the trend is down, but however with our knowledge gathered above.We know that the trend is changing and is possibly making it’s way up.Therefore we will now take trades that are going UP and not trades that are going DOWN.As taking trades that are going down would mean that we are trading against the trend.

Forex Strategies: Picking the Right Entry

So at the final circle that i marked on the right hand side.It indicates a possibly good entry for us to enter long.
Forex Strategies Reason 1 – It is in an uptrend
Forex Strategies Reason 2 – It is at the bottom of the channel
Forex Strategies Reason 3 – There is a price action – bullish outside bar which indicates a bullish movement up.
Therefore, it will make sense to us to take this trade and it has a winning probability of higher than 50% with the reasons backing the trade.
Lets look at what happened next.

Forex Strategies: Picking the Right Entry

gbpusdup2
Price indeed made its way up to the top of the channel and beyond.In fact it went all the way up to the 150 moving average.So what you can learn from this simple trade example is:
– How to determine a trend change
– Drawing channels
– Entering at the low of the channel with price action entry
– Taking your final profits at the top of the channel.
So in this scenario even though that it went beyond the top of the channel and to the 150 moving.We will still only take profits at the top of the channel as we do not know that if once price eventually hit the top of the channel – Will it turn back down? or head further up?So that is a question mark and when we trade we do not want to take the risk of earning more profits BUT to eventually lose it all.
I hope you have gain something from this quick forex strategies trade example, Check out our AFM winning Price ActionForex Course where i teach you the exact FULL 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
Next Beginner Article: What is Price Action?