Archive for the ‘Mind Matters’ Category

Asian Session Scalp

Tuesday, March 31st, 2009

I rarely trade the Asian Session. It’s usually too slow, and often too erratic for my tastes. But, for many people, it’s their only time they can consistently find to trade and scalp forex…and that’s just fine! You just have to be a bit more patient trading during the Asian Session than you do during London or New York trading times.

So, I went out to dinner. When I walked in the door, I saw this setup forming. There was in interesting pattern that had formed about an hour earlier, and this setup was confirming it. Along with what I saw with the price action, and the Logical Forex Indicators, it looked like a semi-decent probablity trade.

Uh oh. Maybe too risky? It wasn’t high probability…and it was during a “slow trading time”…but…but…my addiction was calling once again. (I have to do something about that!)…and…and…I’m not going to be able to trade for a few days…

Goodness. These are great examples of when NOT to trade.

But, stubborn me…I did it anyway.

Maybe I was lucky?

Naaa…I’m just trading probabilities…I’m NOT predicting…and either way, I can live with the outcome…

Here’s the trade…the setup and entry…

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And the exit…

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Ya see why I exited?

I’ll take it. Hey…it paid for dinner. And then some. :-)

Old habits MUST die

Thursday, March 26th, 2009

I’ve spent  nearly 30 years in many different consulting and mentoring roles. Many times, I’ve had to be a combination of a savvy business expert and a power-techncial-do-it-myself-engineer.

What this means is…I see everything, and I mean EVERYTHING…in a logical, process-oriented, 1+1 always equals 2 perspective.

But, as you know, the “real world” doesn’t always work that way.

It seems like just about every time I think I have something “figured out”, the rules change somehow.

Of course, I’m not talking about math things, or machine things, or engineering knowledge in general. What seems to be the most unpredictable is PEOPLE…and how they interact with everything.

And, it’s those interactions that so often break what has been so elegantly designed by us “logical folks”.

Drives ya nuts, doesn’t it?

Me too.

But, in forex trading…it’s even MORE frustating.

When I see bunches of numbers…my brain automatically, baesd on many years of “old habits”…sees a “math problem” or a “sequence/pattern to be figured out”.

Uh oh.

Forex doesn’t work that way. Even though it’s “a bunch of continuously changing numbers…that APPEAR to be so ripe for statistical and process analysis…it just doesn’t always work that way.

But, my oh my, does my brain tell me it should.

And, every time I get into that mode…I lose trades.

Has that happened to you? Your “math brain” and all of the little indicators and fib lines and statistical analysis you have performed TELL you what the market is about to do, right?

But, how frequently has that NOT worked for you?

Me to. Old habits MUST die.

Once I learned that forex trading is much more related to quantum physics (you can know when OR where but rarely both in one “measurement”) than to “math”. In fact, forex isnt’ even all that related to gambling, although it looks like it should be…it’s not.

I get into this in much more detail in my 1-on-1 Forex Workshops, but here’s The Trick to becoming profitable quickly in forex trading…

EVERY TRADE…EVERY TRADE…ANYTHING CAN HAPPEN. ANYTHING!

It doesn’t matter what you THINK should happen or might happen. It doesn’t matter what your brain or even your indicators tell you. What matters is…you must without hesitation identify and enter the most high probablity trade setups…exit them properly (even if at a small loss)…and then MOVE ON to the next trade, with little to no emotion, and very low stress.

Now, c’mon! Yo’u're a logical person, Mr. Spok. You don’t have emotions do you. :)

To overcome my “old haibts’, I simply had to stop PREDICTING…and only trading what I see…and then ony trading the most high probability trade setups. Nothing else.

And, just like in real life, even when “I’m right”, but the other person (or the forex market) goes a little crazy for a time, I can deal with it. I know they’ll “get back on track” soon, and I can resume later.

You do that now, don’t you? When youve noticed that a normally somewhat logical person “crazy-fies”…you “go away” and leave them alone and “let them recover”, right? And, if you got burned somehow by their momentary insanity, you “took a break from them for a while”, didn’t you?

And, when you came back, you didn’t immediately just “hit them with the same thing that made them go crazy” last time, I hope.

Ponder on these things a bit. Do you see how similar this is — the way normally logical people behave — and the way the forex market behaves? Do you see why that may be happening? Do you know how to operate in this environment?

If you do, you’ll be a very successful forex trader…and likely will have a much more enjoyable life than you may have ever dreamed possible.

When your brain shifts from PREDICTING to PROBABLITIES, you’re entire perspective of live changes…for the better…in SO many ways.


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