Tag Archives: price action

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

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 -> Your Forex Work Station

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

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: 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

Forex Tips – A Good Forex Setup

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!

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!

Forex Tips: Never catch a falling bus

Forex Tips
Forex Tips
If you look at the forex chart above. You may find the above scenario familiar.
Many a times, new traders always want to catch the bottom.
So that when it goes up, they will get plentiful of pips.
There’s nothing wrong with that idea. But the sad fact is, it is NEVER easy to catch a bottom / lowest point.
Forex Tips – In the chart, if you had tried catching the lowest point, you would have made several losses.
Eg. You enter on 1 point hoping that it is the rock bottom. But it wasn’t and went further down.
Now you had made a loss on that trade. And you want it back.
So subconsciously in your mind, you feel that it cannot go any further down anymore.
So you enter on the same pair again and this time at a lower point. (thinking that this MUST be the lowest point)
But it wasn’t and you made a loss again as it went down further.
Now you are REALLY PISSED OFF.

Forex Tips: Never catch a falling bus

Forex Tips
You will then have 2 choices:
1) You either totally quit trading that pair
2) You want to get back at that trade, so you continue choosing the “lowest point” thinking that you will surely get that right this time round and make back all the money you had loss.
Which ever choice you made, sorry but it’s wrong.
1) You shouldn’t quit trading that pair, instead you should relook the pair and to see If it is really going to get back up or is it going to continue down. So my advise is, if you feel that it is going down and the bearish trend and momentum is real strong. Then you should NO longer try to pick a bottom BUT to trade with the trend. The Down Trend.
2) You are now having a “Revenge” mentality. Which is very common with new traders. And you have to get rid of this habit of picking a bottom.

Forex Tips: Never catch a falling bus

Forex Tips
As mentioned, picking a bottom is never easy.
To pick a bottom,
1) You must have confluence supporting the move
2) You must have at least 2 profit taking point.
– The first profit taking point is only a short distance away. The reason behind it is that, in most cases, price will go up a little to hit your first profit taking target and then to head back further down.
Therefore, after your first profit taking target is hit. You should shift your stoploss to breakeven for your 2nd position (2nd profit taking target)
All and all. As mentioned repeatedly, try NOT to catch a falling bus. It is never easy.
Forex Tips
Why want to enter a trade that has the odds against you?
Why not enter a trade when the odds is WITH you? – Same trend.
This forex tips again may sound very basic. But it is also a core fundamental that you should take with for every trade.
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