FKLI/FCPO 3009

GBP/USD 3009

FKLI / FCPO 2909

GBP/USD 2909

FCPO & FKLI 2809

GBP/USD 2809 1.47pm

FKLI / FCPO 2509

DOW JONES 2409

CRUDE OIL 2409

DOW JONES 2309

CRUDE OIL 2309

GBP / USD 2409

Currency Pairs, What Forex Traders Should Know

It is impossible to explain forex trading without mentioning currency pairs. Term “Currency pair” refers to two currencies which is traded one against another. It is written in a mixed codes represent both traded currencies codes.
For example, to represent currency trading of British Pound Sterling against US Dollar, we write and or call it GBP/USD or GBP-USD. Below are several basic things related to currency and currency pairs that every trader should knows.
Currency CodesThe common currency codes used recently are based on ISO 4217. It is a list of standard currency names and code elements established by the International Organization for Standardization.
The first two letters of the code are the two letters of ISO 3166-1 alpha-2 country codes and the third is usually the initial of the currency itself. This coding model has been widely used in many financial companies and activities. We can see that at least it helps eliminating the problem caused by the names dollar, franc and pound being used in many different countries.
Major Currencies“Major Currencies” usually refer to seven most liquid or most traded currencies in the market. Those seven are US Dollar (USD), British Pound (GBP), Eurozone Euro (EU), Japanese Yen (JPY), Swish Franc (CHF), Canadian Dollar (CAD) and Australian Dollar (AUD).
Minor CurrenciesSimply, “Minor Currencies” refer to all currencies other than those major currencies. Following table shows currency distribution of reported market turnover (in %). I captured this from the pdf document of Triennial Central Bank Survey released on December 2007.
Commodity CurrenciesIn general financial topic “commodity currencies” points to currencies of countries which rely heavily on commodity exports for a major share of their export income. According to IMF studies there are 58 countries which could be included here. In forex trading discussion “commodity currencies” usually refer to the Australian Dollar, Canadian Dollar and New Zealand Dollar
Major Currency Pairs or Major PairsHistorically, forex is “USD-Centered” by mean that in any currency exchange process the first step had to be a convertion into USD. I’m not sure what the real reason was, it could be related to the world’s economics-reordering after the 2nd World War (which we know has become US-Centered) or probably just for somekind of standardization purpose.
It is probably why in forex trading discussion “currency pairs” often spesifically refers to any pairs which includes the USD. In the opposite, “cross currency” refers to any pairs which doesn’t include the USD.
Then, what is Major Pairs? Some trader use it to refer the seven most liquid pairs: EUR/USD, USD/JPY, USD/CHF,GBP/USD, AUD/USD, NZD/USD and USD/CAD. Some others say that major pairs are only EUR/USD, USD/JPY, USD/CHF and GBP/USD and the other three (AUD/USD, NZD/USD and USD/CAD) are commodity pairs. I think both opinions are acceptable.
Commodity PairsAs I write above, this term refer to three of the seven most liquid currency pairs:AUD/USD, NZD/USD and USD/CAD. Obviously this classification relate to above definition of “commodity currencies”.
Cross CurrencyAlso has been noted above, this refer to any pairs which doesn’t include the USD. Cross currencies simplify the process of exchanging currency without any need to firslty convert it into USD.
Currency Pairs NicknameThis is the funny part, some currency pairs have their own nickname. Some are as follow:
Cable for GBP/USD
Euro for EUR/USD
Geppy for GBP/JPY
Loonie for USD/CAD
Kiwi for NZD/USD
Swissy for USD/CHF
Gopher for USD/JPY
Beaver for USD/CAD
“Cable” was given to GBP/USD for a reason that in the old time the synchronization of GBP/USD rate between the London and New York markets were transmitted through a cable running beneath Atlantic sea.

GOLD 2309

GOLD 2109

DOW JONES 2109

CRUDE OIL 2109

DOW JONES 1809

DOW JONES 06032009

AUD / JPY 1809

CHF/ JPY 1809

CRUDE OIL 1809

GBP USD 1809

Are You A Great Forex Trader?

Great Forex Trader were humble, and understood that they were not smarter, stronger, nor wiser than others. They just knew that there were few others that had more faith in their own ability to follow something through and to achieve their goals.



Great Forex Trader listened more than they spoke. They had two ears and one mouth and had learned to use them in the right proportion. The ability to listen, either to a mentor, to the inner self, or to the market, is critical for success.



Great Forex Trader always belief in their own ability, and accepted that most things that went wrong were probably outside of their control, because they planned their work. Their brutal honesty with themselves and with others allowed them to develop a faith in their own ability that was beyond the norm.



Great Forex Trader had faith that they could get it done, and humility to accept defeat that is what defined them, and usually defines any great trader. The great ones in life, and on the floors, are the ones who are not susceptible to the negative influence of others, they have a goal, they have a plan, and they will get there.

AVOID THE SNOWBALL EFFECT

If we are too emotional with the trading, a losing trade can often have a snowball effect, with the loss triggering a destructive impulsive mechanism that compels us to need to make the loss back right away. This will undoubtedly create the illusion of many set-ups that aren’t really there at all. Inevitably, a trader may force bad trade after bad trade until his/her account is entirely liquidated. This is why it is very important that a trader pause for a breath after a losing position and maybe even step aside until the clarity that had once inspired productive and profitable trading returns. Avoid the momentum building snowball of insurmountable losses and be sure to continue to trade with control.

CRUDE OIL 1409

Failure To Do What Must Be Done

Well, the Final Trading Trap has arrived. Time has really flown by, and now it's a period for reflection and sharing. Please
indulge me, because I am going to lay some pretty heavy stuff on you here.
Are there more than Ten Trading Traps? Of course, and I could go on and on about them. However, I have attempted to
capture the essence of the greatest errors traders and investors have made from the dawn of trading and that they
continue to do day after day. Seasons come and go, markets change and evolve, but human behavior that is hardwired
into the brain has not really changed much over many generations. Each of us looks and acts differently, but these are
outward manifestations which are subject to societal pressures, changing cycles of fashion and trends. Inwardly, we are
all classic, fragile and captivating human beings. We have wants, needs, hopes, dreams, fears, joys and tears. Even now,
when we have come so far in time and space of evolution, we are still enchantingly and ever-fascinatingly human.
This fabulosity of being human is a two-edged sword. On the one hand, it underlies the richness of the experience that
comes with societal interactions. On the other hand, it can lead to trading insanity—trading on emotions and doing the
same thing over and over again while expecting different results.

Every one of you reading this wants to learn how to make money from the markets. The traps are your guidelines. The
principles, while simple, are not easy. Take personal responsibility for your trades, cut your losses quickly, stay healthy in
mind and body, always practice good risk management, plan your trade and trade your plan, master your emotions,
strengthen your neuropsychological capital, learn patience, stay with what is working, and take profits on a regular and
radical basis. That sounds well and good, but the majority struggle daily to figure out how to do it. Most continue to
search for this or that method or this or that indicator or newsletter which will give them the answer they seek.
A hero is an ordinary individual who finds the strength and courage to persevere and endure in spite of overwhelming
obstacles...Christopher Reeve
I cannot emphasize too strongly that there is one immutable fact which underlies all successful trading: The answer is
within you. It is not out there somewhere. It is about your brain (your true trading system) and HOW, not WHAT you
think. Traders, with few exceptions, are made not born. Anyone, given the passion, determination and willingness to work
hard, lose, fall down and keep getting up, can learn to trade successfully. I assure you, if I can do it, you can do it. Now I
will tell you secret that only a few know. I have two Ph.D. degrees: one in Brain Anatomy and one in Futures Market
Losses. I had to get the latter in order to get a true grip on who I was as a person, and turn myself around completely
onto a path of success and consistent profitability. Long story, but it took three years and was the most gut-wrenching
and painful period I can recall. WouId I change one single minute of the excruciating process? Absolutely not! Not one
second of it, because all of those seconds brought me to where I am today. The point is this...If I can do it, you can do it.
How? You must totally believe that you are called to trading, that it is the one thing about which you are completely
passionate and that you are willing to forego many things in order to succeed. If you can take these steps, you will make
it. Not easy. If it were, everyone would be doing it. But, it can be done and it is within the reach of every one of you who
is reading this. YOU CAN DO IT, but you must be willing to sacrifice everything you are for everything you can and will
become. You must be willing to change key elements about yourself, particularly the way you think and act in real time
when bombarded with conflicting information in an environment where you have total freedom of choice and where the
only thing you can control is yourself. Moreover, you must learn to make decisions involving varying degrees of risk in an
atmosphere of real time and total unpredictability. You must learn to change the way you think and what you have been
taught about right and wrong and good and bad. You must entrain the qualities of being counterintuitive and peripatetic.
You must become a chameleon, and a great actor and acrobat on the largest and most intimidating stage in the world.
Most of all, you must be absolutely determined and passionate about it.
Courage is more exhilarating than fear, and in the long run it is easier. We do not have to become heroes overnight...just
one step at a time, meeting each new thing that comes up, seeing it not as dreadful as it appeared and discovering we
have the strength to stare it down...Eleanor Roosevelt.
And then what? What do you have left in your life once you have made it? What happens when you finally do "get" it,
trading becomes relatively effortless and you are consistently making more than you are losing? What is up with the
trader who is wildly successful, has all the stuff he or she needs and yet keeps trading? Why is that? Is it greed, and the
need to keep making more and more money in the face of abundance? Yes, in part it is.
However, there is more, and that is the lesson of this final chapter in The Top Ten Trading Traps.
Why do we trade? Why do successful and wealthy traders keep trading, some of them into their 80's or until death?
Passion. Challenge. Continual striving to be better and better with each passing day. Mastery. Freedom. And what do
most of these great traders have in common besides the ability to amass (and keep) large amounts of money?
The answer may surprise you as much as it delights me. They have in common: an attitude of gratitude, humility,
manifestation of kindness to themselves and others and an intense understanding of their personal psychiatry and the
mass psychiatry of the markets. They have learned from the greatest and most brutally honest psychotherapist in the
world...the financial markets. They have suffered, been beaten down, brutally battered, lost money but kept the therapy
going because they knew that somewhere inside of them was the person they wanted to be. After intense personal pain
and internal searching, they found out who they really were-- and embraced it without fear. They went to the darkest
recesses of their soul and emerged as their own hero. Now, they bring flowers to themselves instead of waiting for
someone to send then flowers.

Their wants have been met, so they work on their needs. For them, trading becomes an activity that nourishes and uplifts
their spirit. They approach the markets with humility and passion yet can be total ambushing wolverines while in the
trading moment. They can be sharks, waiting to feed on the poor little fishes. Yet, they are chameleons. For the master,
trading is a game to be played to the ultimate scope of their ability. But they never forget the ones the got away, the
Ph.D. in losses, the missed opportunities, the times when they were the little fish. They remember these bitter, gutwrenching
times and have them etched in their hippocampal memories so as to never forget.
They have rich and full lives outside of trading, especially those who took the time to keep family and friends in some
degree of intactness. They cherish relationships and put people before money. People first, money second and "stuff"
third. They value and reward those who have supported and loved them. They cherish and love themselves. They are
kind to themselves and others and recognize that kindness the greatest gift we give to each other. Even the most
successful traders and investors with the highest degree of longevity approach the markets with humility. They are non
confrontational and go flexibly with the flow. They are in sheer joy with the moment. It is the perfect moment, and they
are always in it. They are in gratitude for the privilege to partake of the gifts which they receive from the market. For
them, trading is a spiritual activity!
My greatest hope for each of you is that you never forget this. In the end, it is always about gratitude, humility, kindness
and love. Love what you do and those who nurture and sustain you. Focus on yourself, who you are, and what you want
and need and then practice and keep practicing. Do what you truly love, and the money will always follow. In the
process, you will begin to see that you are evolving and growing your capital: financial capital, mental capital, emotional
capital and -- as the topic of this final Blunder -- spiritual capital.
Thank you for the opportunity to share with you my experience, strength and hope. I wish each of you everything and
more that you wish for yourself.
When you feel like all is gone, look inside you and be strong. And you'll finally see the truth--that the hero is within you…
modified from "Hero" by Mariah Carey
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Janice Dorn, MD, PhD - Financial Psychiatrist
www.thetradingdoctor.com

CRUDE OIL 1109

CRUDE OIL 1009

CRUDE OIL 0909

GOLD 0909

CRUDE OIL 0809

CHINA V USA