Choo Koon Lip

I was emailing with my graduates on how to handle loss in trading and just decided to post it here too.

Here are 7 steps you can take to survive and even thrive when suffering a loss:

1. Write down the trade as it occurred: Don’t sweep the loss under the rug! You need to learn from the loss (that is its value), so write it down on your trading diary. Include how you percieved the market at the time and how the market action and your indicators appeared to meet the criteria for a trade entry confirmation.

2. Evaluate the trade: Once the trade is over, go back to what you wrote and see what can be learnt. Did you misinterpret the market? Was there something you failed to check? Did you undertake the trade even though it didn’t meet your trade criteria? Or, was the trade setup valid; it just didn’t work out?

3. Use the loss as a learning opportunity: Ask yourself, “What can I learn from this trade?” Is there an insight about market action that can be gained? Is there something about your trading behavior that needs to be addressed? Whatever it is, you have an occasion to grasp something new, and that is valuable!

4. Take immediate corrective action: Do you need to modify your trade setup? Is there a rule for personal discipline needed? Whatever you have learnt, take immediate action.

5. Keep your head and attitude right: You always have a choice about attitude. You can accept the loss as an inevitable part of trading and be grateful that you can learn from it, or you can enter a negative, downward spiral of feeling bad, getting down on yourself, and making yourself feel even more miserable. Follow the constructive steps outlined here and stay above all of this.

6. Remember, trading is ALWAYS based on probabilities: Every trade setup has a probability of winning and a probability for loss. Over a large number of trades, a setup with an edge will be profitable. Any given trade is always uncertain (and here we define our risk). This is the law of trading probability.

7. Turn to others: We all need support. Talk to your trading buddy, mentor, partner or spouse. It helps to unload a bit and you may gain a different perspective.

Put these 7 steps into place and you will easily be on the road to surviving and even thriving from losses.

Finance ministers in the euro zone, unexpectedly delayed their determination to help you debt-laden Greece yesterday as an alternative to providing approval and so they demanded which the Greek federal government will want to initial approve to cut spendings and reforms, which features a large-scale privatisation programme.

Ministers introduced to hold their steps when virtually seven hrs of get in Luxembourg, which reflected their struggle around find out how to protect against Greece defaulting their debts, which can bring about a most likely disastrous result during the financial state.

Greece will require the following payout of EUR twelve billion, from its active bailout offer of EUR 110 billion, by the center of July as a way to continue being solvent.

EUR/USD: Held its ground while in Asian and early European session

The delay within the decision to assist Greece, increase strain on Prime Minister George Papandreou, who started urging the Parliament to help his reform programs considering Sunday. The vital self confidence vote will undoubtedly be because of on 21 June 2011, GMT 2100hrs. EUR/USD held its floor for many of Asian and early European trade. But nevertheless, EUR/USD was on marketing stress soon after weaker than predicted ZEW information was released, which increased fears about German’s progress. The ZEW information launch sent EUR/USD to one.4320, that’s the fresh new low on the European session at the moment.

European ministers did agree that for Greece to possess a 2nd bailout, it will be involving the personal sector “in the sort of informal and voluntary rollovers of active Greek debt”, which can be an appropriate treatment which was deemed from the European Central Financial institution. Prime Minister George Papandreou, confirmed that there have been talks progressing somewhere between Greece and its foreign collectors to get a 2nd bailout package, that will be “approximately equal” as compared to Yr 2010′s emergency mortgage deal of EUR 110 billion.

EUR/USD: Could market off

With uncertainty and confusion continuing to reign from the currency trading market place, forex trading could possibly grown to be volatile throughout the later on portion of US session. Even if Greek govt can survive it is vote, the EUR/USD might probably sell off on the traditional provide the news dynamic!

I’m doing my thorough research on the financial crash in anticipation of the upcoming one. Went through a couple of papers and videos and wanted to share the best part (and often omited, in my opinion) of the documentary “What caused the financial crash”…

Interesting video on how some of the best traders and academics joined forces…and got it wrong…

Dear everyone who know Forex Asia Academy,

Celebrating our 3rd Anniversary and entering into the 4th year gives me great pleasure to share with you the excitement of leaving the old year behind and entering the new.

For Forex Asia Academy (FAA), 2010 was really tough year in which the growth of the Academy has been building on harsh market conditions and tough decision-makings. Through the feedbacks we have received, we have consolidated our position in the field of forex education and continued to lay a strong foundation for the future.

We kickstarted 2010 with an innovative auto-trading platform called ‘Performance Selector / Mirror Trader‘ which has been extremely well-received by the graduates base of FAA. The year 2010 will be a memorable one, albeit a challenging one.

Despite of stringent compliance and guidelines, our education programme was hand-picked by Phillip Capital CyberQuote to educate newbies and experienced traders on trading forex the right way. And despite of the tightening measure by Bank Negara Malaysia (January 2010), we were invited to speak at Securities Commission Kuala Lumpur in March 2010. Various major medias had featured me and FAA, like Straits Times (Singapore), New Straits Times (Malaysia), just to name a few.

At the end of 2010, we leapt forward and expand our offering to Brokerage Consultancy. Now providing consultancy to 4 brokers (in London, Dubai, Istanbul and Wellington), we are able to share more in-depth trading experiences and behind-the-scene insights no other educational provider can offer.

Education is an endless journey, and this is especially so for forex trading. In awareness of this, we took major steps to increase the quality of industry understanding. Knowing this, I personally visited major financial centres around the world – New York, Boston, Hong Kong, Tel Aviv and Dubai to further nourish my financial knowledge.

Time flies…

and it’s been over three years now since the establishment of my Forex Asia Academy. We press on and I’m glad to announce my Forex Asia Academy celebrated the 3rd Anniversary on 4th June 2011. FAA continues to move on to the 4th year of Inspiring, Informing and Improving and the Forex Education in Asia.

For those who believe in me, thank you so much. I will continue to bring values to people around me.

A heartfelt big thank you. Like what I always said to my graduates, Today is still the beginning.

Choo Koon Lip
Director, Forex Asia Academy

Nonfarm payrolls is among the most industry transferring news releases for your Currency trading industry and primarily for this current month of June, nonfarm payrolls will possible be considered a shock to numerous traders due to the extensive divergence around what economists anticipate and what the Automatic Information Processing (ADP) report advised several days in the past. Regardless of the weaker U.S. economic reviews which created most traders to have offered USD aggressively through the past week, this isn’t a significant aspect to permit the Federal Reserve believe twice about their monetary policy ideas. But nevertheless nonfarm payrolls has become the couple financial news releases that may be important and vital enough to make the central bank reconsider the plans. Work progress is paramount for financial development and with work opportunities, people can devote and for that reason able to increase and recover the ecomony. To allow the Federal Reserve switch its mind about expanding stimulus or ending investing in of assets, nonfarm payrolls has to be beneath 50k. For your Federal Reserve to become a good deal more optimistic and to unwind emergency stimulus before than planned, nonfarm payrolls has to surpass 300k, which can be available but quite unlikely, determined by another weak U.S. info which was reported before throughout the week.

Nonfarm payrolls: Weak ADP numbers.

Since the ADP multitude is weak, it has prompted weak revisions to nonfarm payrolls forecasts and as these, traders and traders have adjusted their trade positions. For this nonfarm payrolls, expect the currency trading industry for being incredibly unstable. President Obama’s possibilities for re-election and therefore the conceivable alter in U.S. monetary policy will rely on the approaching nonfarm payrolls. If one can find below 50k to 75k jobs developed very last month, we may see USD/CHF dipping to new lows and USD/JPY break through beneath 80.00. Then again, if 180k or higher work opportunities were makes, it would possibly imply a rally in USD. One particular fundamental purpose why economists believe that nonfarm payrolls would be weak is caused by the sharp drop in ADP numbers plus the moderating recovery inside U.S. economy. Then again, there was a major advancement from the selection noted by University of Michigan Survey.

Nonfarm payrolls: Considerably better nonfarm payrolls arguments.

For the nonfarm payrolls to get greater, to begin with we will need to see a sharp rebound with the University of Michigan Buyer Self-belief Report as well as, there should really be lesser continuing statements in Could very well when compared with April.

Nonfarm payrolls: Worse nonfarm payrolls arguments.

The adhering to pointers advised the nonfarm payrolls to get worse, this kind of as ADP documented that there’s only a rise of 38k of careers, sharp decline in the Customer Assurance as per Conference Board, a drop in production ISM employment index, and so on.

Nonfarm payrolls: Find out how to Trade?

Nonfarm payrolls report is definitely an tremendously volatile piece of information to trade. It ought to be noted that the fx market’s first response for the non-farm payrolls report is frequently not the one particular that will maintain for your rest within the buying and selling day. Despite the fact that the course involved with each and every month’s transfer will not be normally identical, normally the instant response is usually not sustained, and generally reverses into a way more considerable transfer that lasts for your remaining day. The subsequent thirty moment chart, shows how the EUR/USD responded just after nonfarm payrolls report on 6 May possibly 2011. In the 1st several minutes on the news release, EUR/USD was at 1.4513 and then the price dipped, then rallied earlier than dropping once more, forming two hammers as revealed. The V shaped total price action is fairly standard for your currency pair right after nonfarm payrolls. But nevertheless, just after the 1st hour, EUR/USD commenced to drop a bit more routinely and number of hrs later, EUR/USD accelerated right into a trend that lasted for that very last relaxation on the day and EUR/USD truly went down the many way till 1.4308, before closing with the conclude of the investing day at one.4315, which is a 198 pips drop. For that reason it pays to watch for the volatility to settle and watch for the brand new trend concerning investing non-farm payrolls.

The Lost Bladesman – 1 May, 12.00am @ GSC Ipoh

Rio – 2 May, 8.40pm @ GV Yishun

Fast 5 – 5 May, 9.30pm @ Shaw Lido

Fast 5 – 9 May, 9.00pm @ GV Vivocity

Punished – 12 May, 11.15pm @ GSC Tropicana

Pirates Of The Caribbean: On Stranger Tides – 19 May, 9.50pm @ GV Max

Kung Fu Panda 2: The Kaboom Of Doom (Cantonese) – 28 May, 3.30pm @ GSC Midvalley

Something Borrowed – 29 May, 12.20pm @ GSC Signature (KL)