Level up to trade forex successfully

Forex Mind Games

Private, 1st Class
Hi traders,

Trading is like a video game. In some video games, you can level up your character from level 0 to level 99. Final Fantasy anyone? :tu As you level up, your attributes increase. Strength up, agility up, defense up and etc. At higher and higher levels, you can equip better weapons, heavier armor, faster boots. And defeat stage bosses.


So it is similar to trading. As you level up in your trading skills, your ability to attack and defend against the market increases. You get better at knowing when to enter the market (attacking skills :fight), when to cut loss (agility skills :gu), when to stay out of the market (defensive skills :dunsee). Also, you are able to manage your position size, when to up or down your position size according to your experience (constitution and wisdom skills). Last of all, with each trade, you are aware of your own psychology (mind skills).

In this thread, i wish to share my mind games of trading. Remember, trading is a mind game. As i share, hopefully all of us can level up from our current level to level 99. At a high enough level (level 70-80??), we should be able to extract profits from the markets consistently. Do note that i am mainly a forex trader. So my charts are forex-based charts.

I will post my thoughts frequently and will help us level up from level 01 to level 99. Alright, i will be posting on level 01 soon. Bookmark this thread.:cool:



Private, 1st Class
level up?
It seems that its just to advertise the website. he could easily pace the info in the treads at FPA.


If he doesn't post something here soon, I recommend dumping this into the Spammers Hall of Shame.

Forex Mind Games

Private, 1st Class
Hi everyone,

Level 01-10 will cover the most basic stuffs of trading. Yet these foundations are the most important to trading success. Remember the story of the 3 pigs and the big bad wolf? "I will huff and puff till i blow your house down!!!" growled the wolf.

Strong foundation = strong house to withstand earthquakes and hurricanes.
Weak foundation = straw house ready to crumble anytime.



Understand this and internalise into your soul. There are only 6 possible outcomes to any trade.

1) Large win
2) Small win
3) Breakeven

4) Small loss
5) Large loss
6) Account blown to zero

My trading system has a winning edge. I know this. Because my trading account is getting bigger when i trade my edge over the past few years. I just need to stay away from #5 & #6. And my account will grow over time. Here is my ultimate losing trade. Every trader have one or two. Be honest about it, learn from it and NEVER repeat it again. That is the mind game of trading.


Forex Mind Games

Private, 1st Class
The largest ab=cd you will probably ever see

I am learning to trade harmonic patterns. The harmonic patterns come with colorful names, such as butterfly, crab and bat patterns.

I like the simplest one of all, which goes by a simple name, the AB=CD pattern. In order to train my mind to see and recognize AB=CD patterns, i went searching for AB=CD patterns,. I looked for it everywhere. 10mins charts, 1hr charts, 4hr charts and
daily charts. And i think i found the largest AB=CD you will probably ever see.

Here it is. The humongous 3000pips AB=CD pattern from AUDUSD daily chart!!


Forex Mind Games

Private, 1st Class
Market sentiment analysis


Some interesting news. ECB president Mario Draghi decided not to attend the annual Jackson Hole event. This is a premiere event for the central bankers. It is the who's who list of the monetary policy makers around the globe. Draghi cites "heavy workload" for not going. What work is he working on? What is so important he had to skip this event? Especially when he is originally scheduled for a speech this Saturday.
I think the answer is coming next week on 6th Sept Thursday. Every month ECB will have a press conference. It is broadcast live if you are interested to know. The ECB press conference for September is on the 6th. Most of the time when he speaks, there is usually high volatility on the EURUSD. I think we may see some ultra high volatility for 6th Sept thursday 830pm. Draghi's track record during the press conference for the past 2 months has been awful for EURUSD. In July, it tanked 170pips!! In August, it cratered 250pips!!

I believe he will finally share more details on ECB’s bond buying program. Which he had subtly alluded to for the past few months. Whether the market accepts and believes in the validity of the bond buying program to solve the Euro Crisis, i am not sure.
Here is my market sentiment analysis. If market is caught by surprise, expect a bullish upmove. However, market may had already anticipated this news and is buying ahead of time. In this case, we may see the classic “buy the rumor and sell the facts” move. This should result in an initial false bullish breakout followed by a sharp downward move.
I have not decided on my game plan for 6th Sept. I shall see the price action for this week and next week to determine my course of action.

Forex Mind Games

Private, 1st Class
order flow analysis

Guys, what do you think of my latest discovery? Pretty powerful order flow analysis for the AUDUSD, i believe. It may help us to fine-tune our entries to buy & sell aussie.


Forex Mind Games

Private, 1st Class
Week 36 EURUSD preview

What a week we had last friday with Bernanke's speech at Jackson hole eh? The volatility was extreme, up and down 60pips within minutes.
For this coming week, it is a tough call. I do not know whether to be a bull or bear. The price action is calling for both directions!! Why? Lets begin with the daily chart. The daily charts shows a bearish price action.
On the daily chart, we see:
1. Price action is bearish with a clearly defined falling channel with 3 confirmed points
2. Price is touching potential point 4 for this week
3. Pivot zone resistance from 15th Jan 2012 at 1.2650


On the 4hr chart, we see:

1. Price action is bullish with a rising channel with also 3 confirmed points
2. 1.2420-40 could be a new support zone


So what is the key to this dilemma? I think the key battle may be 1.2650.
Bull traders:
1. Price must break above and stay above 1.2650
2. Price to stay within 4hr rising channel
3. Price to touch rising channel to form point 4 to create a 4th higher low in order to break above 1.2650
Bear traders:
1. Price fails to break above 1.2650
2. Reversal patterns such as double top or head and shoulders to form on 1hr or 4hr chart
3. Price must not form a point 4 on 4hr rising channel
4. Price must break out from the 4hr rising channel