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Forex Mind Games

Private, 1st Class
Messages
49
BOJ intervention??

In my previous preview on USDJPY, i mention of the possibility of Bank of Japan (BOJ) intervening the Yen FX markets. See link below.
http://www.forexmindgames.com/2012/08/week-33-13-17-aug-trade-previews-part-1.html
Thus far, nothing has happened yet. However, i believe the intervention is near. Remember that Central Bankers has political pressure to maintain the stability of their country's currency. Japan is a mainly export country. Think Sony, Toyota, Toshiba and Honda. Japan is a country which relies strongly on their exports, they would prefer to keep their currency weak. When the Yen strengthen too much, high-ranking government officials will voice their displeasures through the media. It is them telling the currency speculators to get out of my turf.

When the same rhetoric such as:
"Watch out and get out of the way!! I am going to do something soon!!"
is repeated multiple times by the Japanese officials, the market is fore-warned. We are the retail traders. We do not have the financial muscles to go against the markets. In the forex ocean, we are the shrimps, and we follow the whales. If BOJ does intervene, watch for a 200-300pips USDJPY bullish spike in a single day.

Potential intervention zone around 75.50-77.00. How to trade this intervention? Open a sub-account. Transfer a small amount of money to this sub-account. Highly important: you may need to hold this trade for weeks. So do ensure you have enough money in the sub-account to meet the weekend margin requirements.
Place a limit buy order anywhere from 75.50-77.00
Stop loss below 75.00
Target profit 80.00
 

Forex Mind Games

Private, 1st Class
Messages
49
Level 18 - trading is a mind game part 3

Mindset between a losing trader and a winning trader

Mindset of a losing trader
When i win:
•[self praise] Wow! I am good.
•[over confidence] Look at me. Trading is easy.
•[ego and boastful] I am going to tell my friends, my family, my dog and pet hamster how much $$$ i made yesterday.
When i lose:
•[blames the market] &%#^$* What is wrong with them markets?!?! You are going in the wrong direction!!
•[blames the tipster] Why did i listen to that lousy guy? He made me lose money.
•[pride] I am never ever going to cut my losses. It may turn around. I am buying more since it is cheaper now.

_________________________________________________________________

Mindset of a winning trader
When i win:
•[appreciative] Thank you Mr Market for the profits. You made my day!
•[My analysis was correct] I plan my trade and trade my plan. And it turn out be a winner!
•[Let my profits run] Hopefully it turn out be a great trending trade.

When i lose:
•[self evaluation] Hmmm. My analysis is wrong. Let me find out why.
•[humble and willing to learn] Ok, here is the reason. Try not to repeat the same mistake again.
•[What's next?] Lets move on. Lets find the next great trade.
 

manish88

Recruit
Messages
5
The greatest mistake that any starter currency investor can make is to be far too nervous about the overall performance of their automated currency dealing plan. They be concerned after one or two failures, and start thinking that the program may have eliminate. As a result, they give up on a successful Currency dealing plan too soon, and skip out on the earnings that they could have made if they were more individual with it.
 

perryfx

Private, 1st Class
Messages
103
Mindset between a losing trader and a winning trader

Mindset of a losing trader
When i win:
•[self praise] Wow! I am good.
•[over confidence] Look at me. Trading is easy.
•[ego and boastful] I am going to tell my friends, my family, my dog and pet hamster how much $$$ i made yesterday.
When i lose:
•[blames the market] &%#^$* What is wrong with them markets?!?! You are going in the wrong direction!!
•[blames the tipster] Why did i listen to that lousy guy? He made me lose money.
•[pride] I am never ever going to cut my losses. It may turn around. I am buying more since it is cheaper now.

_________________________________________________________________

Mindset of a winning trader
When i win:
•[appreciative] Thank you Mr Market for the profits. You made my day!
•[My analysis was correct] I plan my trade and trade my plan. And it turn out be a winner!
•[Let my profits run] Hopefully it turn out be a great trending trade.

When i lose:
•[self evaluation] Hmmm. My analysis is wrong. Let me find out why.
•[humble and willing to learn] Ok, here is the reason. Try not to repeat the same mistake again.
•[What's next?] Lets move on. Lets find the next great trade.

Totally agree with you. This thread is very informative. But very silent at the moment. Looking forward to see more posts from you.
 

khanderao

Private
Messages
10
Good. Without a doubt. We study someplace to deal with understanding Foreign exchange just like a online game, and do not consider it when it comes to revenue because you are starting.

There is no method you are going to observe your own earnings improve when you are starting away. specifically without having a lot beginning funds. Even though you do possess a lot of funds, the reason why danger this when you are nevertheless understanding the guidelines from the online game?
When i seek to place the trading in addition to review with regard to % in addition to visualize pips. At the moment the trading however include things like 0. 01 ton instructions, that's eventually got everyone to help target the experience instead of make it possible for avarice receive in the way of finding out the best way to deal.
 

AlanTeo

Recruit
Messages
1
Powerful order-flow discovery


I present to you my latest findings on the order flow of AUDUSD. Remember that currencies are the lifelines of the global economy. People buy and sell currencies all the time. If i wanted to travel to London to watch the 2012 Olympics, i would change my local currency into British pounds. Which means i would buy GBP and sell SGD. Basic supply and demand.
We individuals do not have the power to move the currencies by 1 pip. So who does? It is the multinational companies such as IBM, Apple, BMW, Samsung and others. Central banks can manipulate their countries' currencies. But they do it infrequently, although when they do it, it causes huge spikes. Witness BOJ intervening to weaken the YEN in 2011. Look up the daily chart of USDJPY and find the obvious one day spikes. It is the handicraft of Japan's central bank. Hedge funds can and also shift currencies to a certain extent. But their main aim is speculation and to make profits.
The main factor in currency movement is this. Watch the order flow by the multinational corporations. Every month, whether it is the beginning or the end of each month, they buy and sell currencies. Why? Because they need to settle their monthly accounts. They need to hedge their positions. They need to repatriate their profits. They need to pay their suppliers. They need to collect payment from their customers. Every month, every quarter, every year end, they have to tabulate their profits and losses into their balance sheets. And a host of other reasons.
To illustrate my findings, see the AUDUSD chart. Now locate the places where price makes a major turn. The tops and bottoms are located mostly on the month-end or month-start. It is not a coincidence. It is order-flow.

I hope you understand the importance of order-flow now. Many traders talk on fundamental analysis (FA) and technical analysis (TA) when looking at the markets. I present to you the third analysis, order-flow analysis (OFA). Learn it well and you will become a more successful trader. Trading is a mind game.

Hi my name is Alan from Singapore. I wish to learn more about Order Flow Trading. Anyone know where I can get more information. Are there any books written on this method of trading?
 
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EuroTrader

Sergeant Major
Messages
1,048
Hi my name is Alan from Singapore. I wish to learn more about Order Flow Trading. Anyone know where I can get more information. Are there any books written on this method of trading?

I have no Idea about Order Flow trading :(
 

kingsman

Corporal
Messages
195
First of all I would like to clear your mind that forex is not like a video game, it is business where you have to be careful all the time and you have to do work hard for earning, so it is not like a video game, be careful and do careful work for better results.
 

EuroTrader

Sergeant Major
Messages
1,048
First of all I would like to clear your mind that forex is not like a video game, it is business where you have to be careful all the time and you have to do work hard for earning, so it is not like a video game, be careful and do careful work for better results.

In the business of Forex trading we have to remain careful so that we are not doing the same kind of mistakes in our trades. If the losses are high then we have to think of some sort of control in our trades also :)
 

nahiyar

Private, 1st Class
Messages
826
As much we are trained in trading I think we are more careful because we know any ignorance can result in loss. We try to manage trading in a good manner to go to up level of success.
 
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