Do Not Let Your Mind Go Ahead of You and Forex Market

by Vahid | Forex Market Analysis and Signals | Wednesday, December 30th, 2009

You may have noticed that on my Forex market analysis, I say a lot of things based on what I guess. I try to predict the direction of the candle or market and you hear this a lot from me that “I think it will go up.” or “I think it will go down.” However, you have never seen that I report a position based on my thoughts and guess. Trade setup is trade setup. It has to form. We never take any position based on what we think and what we guess. Human’s mind is so complicated and is used to do many things automatically and without our supervision. One thing that our mind loves to do is predicting the next events using previous events and data. Our mind is used to do that. And when we start learning and trading forex, it will do it more because we “think” that prediction is an important part of forex trading.

We start trading Forex, while our mind is used to predict the future events and it is when the problem comes.

Novice traders can not differentiate between a technical prediction and a guess made by mind and sub-conscious. So many of the positions they take is based on what they guess, not what the technical analysis and their trading system shows on the charts. You should learn to ignore your mind predictions and see only something that is in front of your eyes. You see the chart. Plot your lines. Analyze the market movements and if there is a trade setup, you take the position. If there is no trade setup, you just shift to another chart or currency pair.

That is why I am against the word “prediction” in forex trading. Prediction is the fortune-tellers’ job. We are not fortune-tellers. We are market analysts and traders. When we see a trade setup, we take the position. This is not prediction. This is taking an action based on some rules and signals. Like when you drive. If you see a red light, you stop. If you see a green light, you move.

If you like to become a good trader, first you have to become the master of your mind. You should be able to distinguish the thoughts that form in your brain. You should be able to know which of them are just the mind and sub-conscious games, and which one is completely controlled and made by “You”.

Your sub-conscious is someone different who also decides and acts, but its decisions are mainly and mostly conditional, not logical and reasonable. While our sub-concious conditional decisions and actions can save our lives (for example when we are asleep, our subconscious is awake and wakes up when it smells some smoke or hears strange noises), they can cause us to lose money if we let them trade for us.

This was the tip of the day for today. Wednesday market analysis report will be publish on this page. So you should refresh this page from time to time to see the updates. I will add an audible alert to the market report pages and so you will know that something new is added to the page and you should refresh the page to see it.
a

  • USD:
    Chicago PMI ; 10:45am EST
  • AUD:
    Private Sector Credit m/m ; 08:30pm EST
  • CHF:
    KOF Economic Barometer ; 6:30am EST

a

EUR-USD: (30 December ; 01:50pm ; EST)

EUR-USD has formed a resistance breakout on one hour chart. At the same time, a MACD Convergence is also formed. This is a buy signal. The candlestick that has broken above the resistance line, is also closed above the Bollinger Middle Band. The current candle that will be closed in a bout 10 minutes, is retesting the broken Bollinger Middle Band.

This long position can be taken with two kinds of stop loss orders. You can take it with a tight stop loss. You will have smaller targets and so your positions may be closed sooner, but there is a risk that market hits your stop loss during the normal retesting of the broken resistance line or Bollinger Middle Band.

The wider stop loss is safer and will be triggered only when the position is wrong and you have to get out of the market.



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13 Comments:
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Comment by Kevin
2009-12-30 16:26:18

Hi Vahid, from your article: “You see the chart. Plot your lines. Analyze the market movements and if there is a trade setup, you take the position.”… What everything do you analyze? Do we analyze in there also other pair(s) … other than … the trade set up for the pair we are looking at? Would an analyzing of a movement in other pair(s) help to take a position in the pair which we look at a time? Thank you, I am joining your great service.

Reply to this comment
Comment by Vahid
2009-12-30 17:28:10

Hi Kevin,

On “Forexoma Live Market Analysis” we analyze 25 pairs and also Gold and Silver. Here, we try to have as many analysis as we can. We have just started and we try to expand it.

Reply to this comment
Comment by Kevin
2009-12-30 18:23:13

Thank you very much Vahid, sounds as the right things to do in the learning and for the future as well. Hopefully, trading Forex is also regarded as ethical work and investment as it’s what I care about a lot. Happy 2010 to you.

Reply to this comment
 
 
 
Comment by Ivan
2009-12-30 20:24:07

Well we are now at the very last day of the year, 2009.

Tomorrow 2010 begins.

How many of us have improved as traders?
And how many of us are still flitting from site-to-site looking for that one single method that will begin the process of dollars flowing towards us, instead of the dollars flowing away from us?

If you are reading this, you are “home” now. All you really need is here … just STOP jumping from Internet site to Internet site.

I believe there is enough information on THIS site already to bring every single reader to profitability, if only they are able to keep their trading simple, and follow the instructions already given.

In this article, Vahid has given you a calculator which clearly shows that a consistent winning method may bring you to financial independence within 2 years.
Is there something I have missed here? I do not think I have missed anything.

I am naturally sceptical of people who are still saying they are having problems getting started.

Look, Vahid has shown us that even a very small a/c of USD$1000 can achieve this goal for us. Yes, I am aware that in my part of the world, I am blessed to be able to find this money easily - but then that money represents 300 loaves of bread where I live. How much money do you need in your country to buy 300 loaves of bread - then that is an amount you might think of using to fund your account - it is the same relatively speaking.

Vahid, I just read the comment of John Burris again: 2009-02-26 07:11:28 …

http://www.forexoma.com/my-daily-buysell-signals-will-be-discontinued/#comment-26933

One thing I smile about is this statement from John:

“He got you all subscribers hook, line and sinker wondering about other websites advertising the fact that he is making a couple hundred pips a week. You then joined his website creating traffic which is one of his ultimate priorities, traffic = advertising revenue from vendors.”

I don’t see one single advertisement.
I don’t read one single recommendation to use a service or broker.
There are NO links taking the reader to other sites where Vahid will profit and prosper from third-party revenues.

If you are to make a difference to your own situation in this New Calendar year (although I believe we need to be making such a distinction EVERY day of our lives) there are a couple of things to do:

1) Get your priorities in order.
Clean up your computer.
Get the rubbish off there.
Remove the distractions
Settle on ONE thing/activity for the coming year that WILL potentially make you the money you desire
You can NOT chase 2 rabbits - both will escape.
Focus on ONE thing only.

2) Do something with your life and your profits, that will make a difference to others.
The wise Teacher once said: “The poor will always be with you …” but His life was an example of making things better for them
Even a small gift to the poor makes a very big difference in their lives.
Maybe you have considered giving, but you are unsure how to give most effectively?
Then maybe you could consider this site, and the principle of giving that it embraces:

http://www.forexoma.com/lets-make-a-difference/

All you do is become part of the team “Vahid Pips” by following some of the links on that page.
Then you can fund your account using PayPal, and begin making a difference in the lives of less fortunate people immediately.

If you follow both points 1 and 2 above, then 2010 will be a better year for you, and a better year for others.

WIN / WIN

May God richly bless every single one of you, particularly as you seek to bless others.

Vahid - thank you for your blog, and for allowing people to freely express their views and questions.
Sorry the post is so long - but I believe these things needed to be said.

Bless you man.

Ivan

Reply to this comment
Comment by Vahid
2009-12-30 20:33:27

Hi Ivan,

Thanks for your support and presence here. And thanks for trying to help the others and make them enlightened.

May 2010 be the year of big dreams that come true, as well as health, wealth and happiness for you and your family.

As you said, to have a better life next year, first we need to clean. We should clean everything, including our hearts and minds. Then we will have a better life.

Best regards,
Vahid

Reply to this comment
 
 
Comment by Tunde
2009-12-31 08:39:35

Hi VAHID,

Ivan is certainly right, i should stop focusing on too many things and set our priorities right. many people jump form site to site and mumble their head up with too much of junks, but anybody that has found this site, has certainly found a resting place.

Vahid has a generous heart and is willing to share with whoever is willing to learn. Keep on doing the good job you know how to do best, and God will continue to uphold you.

Have a wonderful 2010. it shall be a year of higher grounds.

Tunde

Reply to this comment
Comment by Vahid
2009-12-31 17:50:27

Thank you Tunde. Same wishes for you :)

Reply to this comment
 
 
Comment by theva
2010-01-06 12:27:36

Hi Vahid

I am new forex trader-2 months old,try to make some profts out of forex,basically I am a short term trader,if I join in your mebmbership does it suit for short term traders.

Reply to this comment
Comment by Vahid
2010-01-06 12:44:25

Hi Theva,

What do you mean by short term trader?

Reply to this comment
Comment by theva
2010-01-07 11:58:02

Hi Vahid

Not holding the position long-day or two.

Reply to this comment
Comment by theva
2010-01-14 12:24:41

Hi Vahid

I jsut signed up with your services,&log into my site-no detail avaiable except my personal detail.plesae advice where I can find the all the reports/singnal etc.

Reply to this comment
Comment by Vahid
2010-01-14 12:31:50

Hi Theva,

Thanks for joining us. After the sign up, we just check the accounts and transactions and then approve them manually. It may take a couple of hours sometimes.

Reply to this comment
Comment by theva
2010-01-14 12:59:36

Thanks for your promt reply.Really waiting to see your reports/singnals & my first trade with your signals.

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