Forex Tips by Stevenglobal
Don't Mess with Forex News
Forex News mostly give impact on those associate with USD currency pairs, such as GBP/USD, EUR/USD, AUD/USD and so on... I have come across with the internet resources, but I would like to group it into three (3) category.
Category A (Don't Ever Touch-skip that day), Category B (Close your open trade 2 hours before), Category C (Close your open trade 1 hour before the news).
Category A
Non-Farm Payroll report
Category B
Interest Rates (FOMC rate decisions)
Trade Balance
Category C
Current Account Balance
Treasury Inflow Capital (TIC) Data
GDP (Gross Domestic Product) report
FOMC Meeting Minutes
Retail Sales
Inflation CPI (Consumer Price Index)
Durable Goods Order
ISM (Institute for Supply Management)
Producer Price Index (PPI)
The question is, is it the forex news, only the time you could make more money?
Is it the More Risk = More Reward? or the More Experience = More Reward?
There is one fact that you could ignore Forex News if you are playing timeframe H4, D1, W1 which normally based on technical indicators.
Trading the News requires closing the trade within seconds, or else you are not trading news, but trading its activeness period should it be last for hours and testing yourself on how fast you would react. You are in the middle of the price war and you think it is easy to get the reward compares to the non news trading day?
Fear of Losing
I like Robert Kiyosaki quotes :
"Fear of "being" a loser affects what people "do" in strange ways. I have seen people who bought a stock at $20, sell their shares when they reached $30 because they're so afraid of losing what they've gained, only to have the stock go to $100, split and go up to $100 again. That same person, having bought a stock at $20, will watch it go down to, $3 and still hang on, hoping the price will come back up... and they may hang on to that $3 stock for 20 years. This is an example of a person "being" so afraid of losing, or admitting they lost, that they wind up losing.
Winners "do" things almost exactly the opposite. Often, the moment they know they took a losing position, i.e. their stock price starts to go down instead of up, they will sell immediately and take their losses. Most are not ashamed to sly they took a loss, for a winner knows that losing is part of the process of winning, When they find a winner, they will ride it up as far as it can go. The moment they know the free ride is over and the price has peaked, they cut and sell.
Being a great investor is to be neutral to winning and losing. Then, you don't have emotionally driven thoughts such as fear and greed doing your thinking for you."
Do you know where to spot the moment they know the free ride is over and the price has peaked, they cut and sell in Forex? Read again, you will know where to find it.
Focus one currency pair at one time while you are playing makes you become more efficient, which is "if you ever have one chance, what currency pair would you be playing, and how would you know is this the right position?".
In gambling, normally a person will focus on a particular table, if she/he decide whether today have the luck or not. Betting a limited money to ensure he/she stay in the game longer and a rule for himself/herself to feel whether today is enough is enough, meaning enough winning as well as enough of losing. In other words, the enemy (player) today might be stronger than you thought.
Diversify your money (resources) into more than 2 pairs makes you tired, and you would not able to place your 'more money' per pips if you diversify too much.
In addition to that, you would find yourself closing all the currency pairs at the same time when the market does not follow you, and you do not have a targeted stop loss for all the currency pairs.
Focus one currency pair at one time while you are playing makes you become more efficient, which is "if you ever have one chance, what currency pair would you be playing, and how would you know is this the right position?".
In gambling, normally a person will focus on a particular table, if she/he decide whether today have the luck or not. Betting a limited money to ensure he/she stay in the game longer and a rule for himself/herself to feel whether today is enough is enough, meaning enough winning as well as enough of losing. In other words, the enemy (player) today might be stronger than you thought.
Diversify your money (resources) into more than 2 pairs makes you tired, and you would not able to place your 'more money' per pips if you diversify too much.
In addition to that, you would find yourself closing all the currency pairs at the same time when the market does not follow you, and you do not have a targeted stop loss for all the currency pairs.Why are you comparing forex to gambling? They're unrelated.
Flash
Hi Steve.
Like the first bit of the forum, but the rest only apply to those who are using flashing indicators. News is what drives any financial markets and hence gives you most rewards, thats if you have the right set-up and mind set; and the right set-up does not involve flashing indicators below the chart. In my case all my indicators are on my chart and I do not trade outside the London open-close.
good luck
Why are you comparing forex to gambling? They're unrelated.
Gambling is just a general word. Some of the games inside the gambling do have a lot of calculation.
Why am I comparing? Because it is not a 100% win. It involves emotions, fear and greed. You may get angry as well during the process.
Hi Steve.
Like the first bit of the forum, but the rest only apply to those who are using flashing indicators. News is what drives any financial markets and hence gives you most rewards, thats if you have the right set-up and mind set; and the right set-up does not involve flashing indicators below the chart. In my case all my indicators are on my chart and I do not trade outside the London open-close.
good luckGood luck to you Mike. Thanks for response. I'm just conveying the message that news does give impact to the price and it's not safe for those swings, unless we all prepare for the losses with the right mind set, of course, if profit, we all happy with it.
Sorry guys, why do I compare gambling with forex?
Some of the games in gambling involves calculations and strategies. And of course they are similarity of the following
a) with greed
b) with fear of losing
c) with emotion breakdown
d) could not stop playing
e) 90% losses
Not forgetting there do have winners in the gambling as well. So how do they win? I don't believe they cheat but they do have skill on their own. But do they teach us? For those who are successful trader in forex, do you think they will teach us in the public then?
Doesn't it look similar?
Understand the TimeFrame
M30 time frame is the most appropriate to see what would happen for the news due to the mostly news is announced at the interval of 30 min.
The larger the timeframe, the more useful of the indicator.
No one will chose different timeframe if there are no indicators.
There is one weakness for the timeframe and indicators, which is if a currency pair of higher spread more than 20 pips such as GBP/CAD, GOLD, the smaller timeframe equipped with any indicator surely not suitable at all, because you have to project the next 40 pips in order to win risk (1:1) reward.
Playing H4, mostly you will close at a longer time, by choosing M30, so that your result will be shown within the same day.
The truth is if you play longer timeframe such as H4, news does not really impact on your trade. The longer the timeframe, the less pressure you have, and of course you close the trade longer, you have win or loss the pips larger, and the lower $ per pips you are playing.
Candlestick has its own powerful meaning. At least you would know where you are now. Here's a simple view of the candlestick that I'm consider to use it. For those playing smaller timeframe, candlestick doesn't use much, because you have to make your decision very fast.
The above chart is just for illustration purpose.
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I like this forum better than others. I've decided to write some tips for you guys out there who are trying hard enough to stay alive in the forex. I'm writing something that most people would not like to see and ignore.
First of all,
There are 8 patterns of playing to win and loss in the forex.
Which winning pattern are we choosing now?
Which winning pattern is the most difficult to achieve?
a) More pips, More Time, Less $ per pip
b) More pips, More Time, More $ per pip
c) More pips, Less Time, Less $ per pip
d) More pips, Less Time, More $ per pip
e) Less pips, More Time, Less $ per pip
f) Less pips, More Time, More $ per pip
g) Less pips, Less Time, Less $ per pip
h) Less pips, Less Time, More $ per pip
Arrange it in order based on the difficulties for these patterns. Then you would know which level are you now based on your opinion. I'm providing this tips as elsewhere do not have this information. I hope it helps you guys who like to have a financial freedom in future.
Summarize:
It does not necessarily using a lot of time to win in the forex.
It does not necessarily using a lot of money to win a lot in the forex.
and the list continues.....