Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.
asiaforexmentor
-
Content Count
34 -
Joined
-
Last visited
Posts posted by asiaforexmentor
-
-
A lot of people have this question in mind, what exactly is PRICE ACTION.
And why is PRICE ACTION KING IN FOREX?
To answer the above question, i start off with talking about indicators.
There are tons of indicators out there, be it forex or others. They work mostly the same way.
And there are new indicators coming out every other day.
Alot of traders when they first started trading forex, they have tons on indicators on their charts. Trying different combination of which works best for them. And at the end of the day, they get confused all over as one indicator may be telling you to go long, but the other is telling you to go short.
Which will result in you making bad decisions and end up blowing your account with a frustrated mind.
Why does it happen this way? Indicators are derived from the chart movements. Some indicators react faster, some slower.
However, as they are derived from the chart movements. They are 1 step slower than the chart. Which is in fact Price Action!
Price Action leads the indicators, and when price reverses it movement from short to long (example). The indicator which you are watching is one step too late. And by the time the indicator confirms it is going short, Price Action has taken the market to go Long.
This happens most of time, if not all of the time.
Therefore = ALL INDICATORS ARE LAGGING INDICATORS!
PRICE ACTION IS WHAT LEADS THE INDICATORS, IT IS KING IN FOREX!
By understanding Price action in forex trading, we are able to understand the ENTIRE PICTURE of the market.
WHY is the market moving up,
WHAT causes it to stop moving,
WHY is the market reversing
WHY is the market in consolidation
IT is like reading a book once you have mastered price action in forex. And the best thing is, It is not difficult!
It is even easier than you reading an indicator.
And when you mastered price action, with combination of our system. You will almost be able to pick absolutely MARVELLOUS TRADES all the time. CONFLUENCE is the King of the game. This is what equates to our high probablity trades with a high winning ratio.
To an Awesome Trading as Always,
Ezekiel Chew
-
Forex Risk Management – Whats your Risk % per trade?
Forex Risk Management
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.
See you on the other side my friend,
Asia Forex Mentor
Ezekiel Chew
Moderated Message: link removed -
Forex Market Hours: How many times do you trade a week?
FOREX MARKET HOURS
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
:helloooo:
-
Forex Trading Psychology – Mastering your emotions for efficient Forex Trading
A lot of people lose money in Forex Trading because they fail to master their emotions. Many books have been written on tips for better trading, but even so, no two people using the same trading methods come up with the same results. How come? Yet every trader has at some point attended a workshop, courses and mentorship programs aimed at enabling traders make more money. But despite all these, very few people succeed. The question is, why?
Forex Trading Psychology
Simple as it sounds, Forex trading psychology is a crucial aspect of successful trading. Trading psychology has to do with the emotional state of mind when trading. Most times, people fail in Forex trading because of emotions and trading anxiety that can result in uncalculated trading. The consequence normally is poor returns! To trade efficiently, you have to take charge of your emotions, eliminate any trading anxiety, be confident and ensure you avoid silly trading mistakes that can cost you money.
The moment you cannot control your emotions, irrational decision making sets in, and even though you might be an experienced trader, you lose money in situations you would have fared better. Psychology can mean the difference between profits and losses. Your state of mind is crucial in Forex Trading, as you make decisions on a sixth sense and fast.
But how do you go about controlling your mind and taking charge of successful trading for maximum profits? Here are some tips to start you off:
• You can begin by making use of stop loss and taking profit prices to reign in your trade. What this does is give you the opportunity to place the trade and halt any deals with it. The overall effect is experience, for the more you deal with a trade, the more it becomes engrained in your mind.
• Once you have placed a stop loss, walk away. Do not wait to see how the trade turns out. Most traders place a stop loss and then wait around to see what happens. It beats the whole point of stop loss in the first place. Being there means you are planning to interfere with trading midway, and you don’t want to do that. So walk away!
• Another tactic is to employ low leverages. Super high leverages may seem attractive because of the higher profits, but be careful because they carry the potential for heavy losses as well. Plus if in such a situation, the uncertainty that comes with it can lead to trading anxiety, and subsequently poor trading decisions. So keep the leverages low until such a time when you are confident you have the psychological control necessary for high leverages.
• Make use of proven methods of trading, those you are sure about. There is nothing as dangerous in trading as using a method you are not sure of. Proper and efficient trading methods help you relax and stay a bit calmer, as the uncertainty is somehow eradicated.
Whatever you do, watch out for your psychology. It works to your advantage if you can work on your mental fitness and stay in control.
Forex Trading Psychology is one of the MOST IMPORTANT thing to master when it comes to forex trading. This is something which we teach in our AFM Winning Forex Course
See you on the other side my friend,
Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
-
Forex Trading Psychology – The Main reason Why Forex Traders Fail
Forex Trading Psychology
There are many answers in the market to this question: Why do most forex traders fail?
- Some blame it on over trading
- Some blame it on emotions
- Some blame it on revenge mentality
- Some blame it on impulse
- Some blame it on the market
- Some blame it on bad luck
- Some blame it on poor entry
- Some blame it on not taking profits
- etc etc etc
As you can see, there will be tons and tons of reasons that explains why forex traders fail.
This is all that relates to forex trading psychology.
But i strongly believe that it all leads to one answer.
MONEY
Forex Trading Psychology – The Main reason Why Forex Traders Fail
Yes, the answer is MONEY.
The main reason why most traders fail is because of money.
No doubt that we all trade forex for the money.
But it will be the money that kills us in forex.
Forex trading psychology – Let me explain.
To us our money that we put in our forex capital is our hard earn money. Who isn’t?
when we have that mentality that we CANNOT lose the money in our capital.
And as all man are greedy. We want to multiply our capital FAST.
That’s when we lose it all.
To succeed in forex trading, we have to FORGET that there’s money involved.
You have to learn to trade not because of the money. But because you like forex trading and you are passionate about it.
You have to learn to trade right and not trade for the money.
When you trade right and forget about the money, the money will come naturally.
But when you are too focused on the money, all your emotions will trigger.
You will get into impulse trades, probably because you made a lost on the last trade and you want your money back.
Or because you look at the trade and you are so confident about it, you GAMBLED your whole account size on that trade. and to lose it all.
Or because you want to feel good and look good, and you think that you are able to double your account in a week. So you take trades that are way beyond your money management risk %.
Or you made a series of losses, and you think that if you increase your risk percentage on this particular trade, you will make back your losses.
And the list goes on…
FOREX TRADING PSYCHOLOGY – The Main reason Why Forex Traders Fail
All the above reasons leads to the main answer. MONEY.
If we are not trading for the money, but if we just want to focus on mastering our trading and trading it right.
There will no longer be any emotions in place.
I highly recommend traders to forget about the money in forex.
Trade with your forex trading system and stick to it with discipline. Focus on trading right.
It is even better if you can cover up the money part on your forex broker screen. Ignore how much has your account size grown or how much have you lose.
When you are able to do that, you will then see the big picture and you will be more analytical on your forex trades.
So the next time someone ask you on – what is the main reason forex traders fail.
You know your answer: MONEY
This is Forex Trading Psychology at its fullest!
Asia Forex Mentor
Ezekiel Chew
-
Forex Hours – What are the Best Forex Trading Hours?
FOREX 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
-
Trading Psychology – Conquering Your Emotions
A lot of traders can actually feel their emotions in place when they place their trades. And seeing their trades taking place.
Emotions include:
- Heart Thumping (Beating faster)
- Sense of Anxiety
- Nervousness
- Excitement
- Irrational Behavior
- Frustration
- Desperation
- Hatred & Revenge mindset
- Devastated
- Always feel that the market is going against you
- Etc,
If you feel any of the above in trading, it is normal. The market is set for you to feel this way.
Which is why to be a successful trader, 80% is about conquering and mastering trading psychology.
And some of the reasons that you could be feeling any of the emotions above include:
- You are trading way beyond your risk level (Trading too high an amount of your capital)
- You have not calculated your proper risk size before entering
- You entered based on Gut feel
- You fully expect and anticipate that the market will go your way according to your previous experience or something which you had learnt – but it Didn’t..
- You are trading on a money that you desperately need. (Eg. borrowed money, food money, life saving money etc..)
- Etc.
If you have experienced the above, stop trading for the moment.
Remedy:
- Go get a shower and analyze what had gone wrong
- Go for a stroll in the park, beach etc..
- Self Reflection
- Meditation, calming exercise
Ask yourself, are you trading the right way?
Are you actually trading or gambling?
Do you have a proper trading system?
Did you entered on proper setups (eg. price action) or you entered based on your gut feel?
Trading is about self analyzing, discipline, self control, and sticking to your trading system.
It may sound tough at first, but once you start practicing the stuffs here for 20 days. It will then become part of you and you are no longer putting any conscious effort in applying the above.
To an awesome trading as always,
Ezekiel Chew
-
How a simple price pivot work wonders in forex trading?!
In the pair above: Aud Jpy (Daily chart)
The white lines in the chart above are support and resistance levels which we call the price pivot.
On 1st Nov, price broke the 81.350 price pivot to move to new heights and stalling at the 82.800 level. Marked as (1).
When that happens, and with price entering a new high which it had not done so before.
We mark the 82.8 level as a new resistance zone. But not a price pivot yet.
When price tested the 82.8 level for the 2nd time and got rejected. This time we placed a price pivot at the level on seeing that the 82.800 level stood strong on both occasions.
On the (3rd) try, price got rejected initially as expected but we mentioned in our group that we will expect price to break the price pivot level which it did.
Now that price has broken through the price pivot level on the (3rd) try. We will expect price to come back again at the 82.8 level to back test it.
Price indeed came back to the 82.8 level on the (4th) try and got rejected by it to now turn the resistance area into a support area. This is what we call a price pivot.
And it comes down once again to the 82.8 level on the (5th) try to get itself rejected again.
Now you see the powers of a simple yet effective price pivot.
Forex trading need not be complicated, professional forex traders clear the clutter of indicators on their screen so as not to be confused by them.
Forex trading is to be Clean and Simple. Just like our chart template we use.
So if you ask how do we trade the price pivot like the above?
Its simple and there are a few ways to do it.
1) Enter right on the touch of the price pivot. You can place a pending order at the price pivot level and wait for it to trigger.
You would have gotten yourself right on 5 occasion in the example mentioned above.
2) If you wanted to play safe, we will wait for price action confirmation at the price pivot levels.
Be it on the daily, 4hr, or 1hr time frame. Price action entries are strong and reliable at the price pivot areas.
These are 2 ways to enter and we have more ways to enter on such scenario which we teach in our group.
If you have seen the powers of a simple price pivot, i will teach you how to place them properly and how to use it to great heights.
This is all taught in our price action online forex trading course.
See you on the other side,
Ezekiel
Forex News Trading – Why Should You NOT Trade This!
in Forex
Posted
Forex News Trading – Why should you NOT trade this!
Forex trading pair: GBP CAD
This is one of a good example which is worth mentioning.
Alot of people have asked me, Ezekiel – How do you trade the news?
My answer is simple: I rarely trade the news. and i go on by saying that i will usually avoid taking trades when the high / medium impact news is coming in 2 hrs time. And i would only enter the trade AFTER a minimum of 10 minutes when the news is announced.
Why people may say. Trading the news can make you fast money.
Yes it does. But trading the news will NOT make you consistent money. Nor will it make you a full time trader.
Besides its Risky and its like you are laying your stakes in the hand of god.
Forex News Trading – Why should you NOT trade this!
If you ask me, i prefer trading safe and trading with a plan. I do not like to leave my fate of the trade on luck by predicting the outcome of the news.
Which is why i do not trade 2hrs before hand for any affecting pair.
In the chart above, forex pair: GBP CAD
There is an upcoming news on the GBP in 48 mins time.
I spotted the pin bar before hand , but i didn’t take the trade.
Because Rule no. 1: Do not take trades that have news impact with a buffer of at least 2hrs advance.
So what we can see from the chart is that the market has gone wild, and people are expecting good news on the GBP which resulted in the spike of any GBP pairs.
Had we taken the trade, we would have gotten stop out and made a loss.
I hope you got something out of this forex news example.
Ezekiel Chew
Asia #1 Forex Mentor