FOREX TRADING: IMPORTANCE OF STOP LOSS PLACEMENT



A lot of traders do not believe in stop loss placement.
Some believe in mental stop loss placement. meaning that when they feel that a trade is not going their way, they will then cut it off.
That is so terribly wrong. Stop loss placement is one of the most crucial key if you want to make forex trading profitable.
Another mistake traders make is that they shift their stop loss. They shift it backwards, thinking that the trade will just go back a little more and will come back their way. And sure enough, most of the time, they took more losses than they would have if they stayed on their initial stop loss.
In the chart above, is an example of the importance of stop loss placement.
Usd chf h4
In the highlighted box, thats a pin bar. When some guys see this pin, they will naturally take it down and the ideal place for their stop loss is the horizontal line in orange that is drawn.
Scenario A) if the trader did not place a stop loss, or a mental stop loss – look at how high the usd chf pair went upwards. Their account will be blown or had a huge huge loss.
Scenario B) Trader shifted their stop loss backwards from the initial orange line thinking that the trade will go back down. They would have taken a huge loss as the move went up terribly fast and would have gotten a big blow to their account
Scenario C) Trader sticked to their initial stop loss, they would have just gotten a standard loss of the % risked in their account, based on their money management. And this is just one of the trades among the plenty, therefore this loss is not a big deal.
I hope you guys can see the importance of placing and sticking to your stop loss. Or else your account will be blown before you know it.
Ezekiel Chew
Asia #1 Forex Mentor from http://www.asiaforexmentor.com

Someone should be checking out the posts on a regular basis. We have quite a few with advertising links and now one with pure porn.
Come on, keep an eye on things here.

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.

Ezekiel Chew
Asia #1 Forex Mentor

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Let’s Make Year 2012 a Great Year

FOREX TRADING


Wow! Can’t believe it but we are now in Year 2012!
How time flies, and it was only like a day ago =P(truth is a year ago) where i asked What’s your new year resolution?
Read this post: http://www.asiaforexmentor.com/whats-you...esolution/
SO!
Have you achieved your Goal last year?
Or did you NOT set any Goals last year?
Nevertheless, i will sincerely stand up and applaud you if you have achieved the goal you have set last year.
Because, you are an achiever. A DOER!
You make things happen. You are one who recognises that opportunities are created and goals are achieved all through sheer perseverance and discipline.
The very same applies in Forex trading.
Which is why forex trading is very VERY closely related to our daily lives.
The emotions we expose outside of the forex trading world, WILL be the same emotions we have in our forex trading.
So would you wish and strive to make yourself:
- CALMER and more compose
- Reduce your bad & hot temper
- Reduce your greed level & impulse level
- Increase your discipline
- Reduce your laziness and procrastination
If you can achieve the above in this year 2012!
It will not only aid in the real world you live in, it will also largely aid in your forex trading.
By achieving the above goals – You WILL be a better person.
And NOT only that.
You will be someone that achieves GREAT THINGS!
So come on,
Read the above GOALS again and make sure you will improve on all of the above this 2012.
This slight improvement will pave the road for greater things from now on!
DO IT!
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
http://www.asiaforexmentor.com

Just downloaded the PDF file of the newsletter from mahendraprophecy. So i thought to share with you, The predictions for gold/silver from 16-20 January 2012 by Mahendra Sharma in his newsletter is directly quoted below:

Quote:On Monday and Tuesday metals will remain positive in the tight range however metals investors will experience huge volatility from Wednesday, but don’t short metals on Monday and Tuesday. The volatility will continue from Wednesday until the middle of Friday.

Our longer term outlook on metals looks very bullish but the shorter term for the next ten days metals may find the bottom.

Silver will outperform gold in the medium and longer term so yes, if gold moves up 50% from here, silver will move up 150% from here. If you give me 100 dollars to invest in metals then I will surely place huge bets on silver by buying December calls with strike price of $39 in three
stages from here (The first stage will be on this Friday, the next one on the 25th of January and the last one on the 16th of February)

What is CONFLUENCE in Forex Trading?

Alot of people have this question in mind on what is confluence in forex trading.
And why is it so important.
Lets start with the Forex Market.
It is made up of traders (Big or Small) to determine the flow of the market.
For example: if there are more people buying the Bulls than the bears at a period of time. The market will most likely go Bullish. And so forth if it goes bearish.
Therefore, forex trading is about understanding the market sentiments. “Where is the big guys with the big influx of money moving the currency market to?”
And this leads to CONFLUENCE.
For example.
Forex Trader A trades only on Fibonacci signals
Forex Trader B trades only on Moving Average signals
Forex Trader C trades only on Support & Resistance
Forex Trader D trades only on Price action
Forex Trader E trades only on News
Forex Trader F trades only on Divergence
Forex Trader G trades on other indicator signals
Example: Forex Trader A sees a fibonacci signal which is strong and he enters it long. But Forex trader B & C sees their signal and took it short. The market will most likely head short if there are more traders who took it short than long. The bears won the game.
From this example, you can see why Confluence is so important in forex trading and why professional forex traders enter only on confluence.
When we combine all the signals, and if they come together in the same direction. Then there is a very good chance that the market will move your way. Because all the forex traders sees their signal (eg. long) and entered it. Regardless of which signals you see, it shows short.
This shows that, the more trading signals you get on your side of the trade, the higher the chance of winning.
Of course we need not wait until all the above forex signals come together. So long as we have 3-5 signals that comes together. We have gotten ourself a good trade. And if you take these kind of trades continuously, your forex account size is sure to grow.
Remember you heard this First from Asia Forex Mentor, and at our Price Action Course – We teach the full forex trading system and strategies for you to apply in your live forex trading account.
It is Not only about Confluence but is also about how to be a CONSISTENTLY PROFITABLE forex trader.
To an awesome trading as always,
Ezekiel Chew from http://www.asiaforexmentor.com

What do you think? Quoted diredctly from the mahendra sharma newsletter the famous financial astrologer. (mahendraprophecy)

Quote:Last week most of the markets remained in the same directions as was mentioned in the letter. The old relationship of Dollar and the Sock Market is back as they started moving in same direction together. If I do detailed calculation then dollar is surely outperforming and S&P, oil, grains and metals are gaining against other currencies so it is clear that in terms of currency value all these above mentioned assets are gaining. If commodities and American stocks keep outperforming then there will surely be a rise in USA stocks as well as dollar. Also, other countries investors will start accumulating gold/silver to protect their currency risk in their portfolio.

Yes, we always feel good when one appreciates our efforts, I will feel complete if S&P reaches 3000 in the next three to four years, I feel this is one of the most important prediction that I making and many big names in Wall-Street have started watching this prediction very closely.We also said that oil might be moving towards a new high and may even cross $200. On the other hand, one more interesting prediction is that of silver reaching three digits which will surely excite many people. I am sure most of our members must have bought our book, but now time has come to do something small for me. Please put the word out in world about “2012 Financial Predictions”, let more and more people know about metals, oil and S&P prediction, let everyone make money.

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