PIGS

The famous 'PIGS' appear in the forex market since early of this year. It affected the Forex Market like storm, Big Boys who knew the problem sell the EURO since November 2009. Interestingly, they only come out the acronym 'PIGS' which catch the world attention late December 2009.
For those who new in Forex Market, 'PIGS'=Portugal, Ireland/Italy, Greece, Spain. Greece is the first target of the media because of the nation debt due soon. The amount of 2.6% of the total of Euro GDP isn't a great number but enough create a havoc and fear in the market. The EUR/USD dipped from 1.51 to current level at 1.35 clearly show that Big Boys are the one who can control the market direction. EU nation slammed the big boys/speculators for overblown the issues but cannot take any stern action. The self reinforce process keep the EURO sliding. It shows the power of the big boys.
Out of the 4 countries, Greece actually is not create a huge problem but Spain is more severe if the fiscal problem is not contended. Even overall sentiment for Euro is negative, please don't simply sell Euro if you don't know the games well. It may burn your fingers easily if you enter the wrong time.
I start to look into fundamental aspect and blend it with TA to enhance my trading skills, the results is even greater then purely depend on TA. Of course, psychology aspect still playing an important roles in my trading strategies.

The Ultimate Money Making Machine- Forex Market

I always refer Forex is an ATM or Money Making Machine. Why? It can generate at least 3-25% per month average return to me. To some of my prospects who have the mindset like 'Ah Long', they want 10% per week. I quietly told my business partner if they have this kind of return and can prove to us, we would very happy to park the money with them. Ironically, most of them still come back to us in the end of the day.
Please don't treat Forex market like casino, it can be a casino if you are using excessive leverage and simply trade. If you are lucky, you may strike few round with more then 100% return. But in long run, I can guarantee you will lose all your money. Greed and Fear kill all the novice traders!
When I place a single trade, I have my hypothesis and methodology to support it. Forex is a volatile market, it is like driving F1 on the circuit and you need to stay focus no matter how. Sometimes, I admit I make mistake and lose control and it will result a viral negative impact to my accounts. I cannot sleep well and thinking somethings are wrong, the rhythm of the market cannot syn with my brain and soul. I quickly find out what had happened. (Recently, when Euro under attacked, I was keep thinking the fundamental and technical pattern have ran away. Speculators wrecked the Euro by following the trend. Even I hedge my positions but the market make me feel very uneasy)
To turn Forex market into your money machine, you will experience all kind of market conditions. As long as you are in control, you will sense and feel the market is right or wrong. When you have proper risk management strategy in place, sometimes you can make 25-50% return in a month. When you lose control, you will occur loses. (In my cases, it is always a hedge loses and will turn into profit in long term.) I only need to stay patient and wait for the right moment to strike. The good news for me is my accounts are growing and I already set up more and more money machines. One day, the machines will generate money to me, my business partner and my clients in every second.

The Speed and Rules Of Forex Market

As far as I consider, Forex market is the fastest moving market around the world. I am saying this by assuming leverage is taken into your trade. Most speculators will use leverage to accelerate the speed of forex market. It will create tremendous fear for most of the traders when Big Boys make the move. The self-reinforce and self fulfilling process making it runs like roller coaster.

For most of the novice traders, the market will suck up their account fast. Ironically, most people play forex like high return and treat it like casino, it end up they lose all the money. For experience traders, calculation is very crucial in determining the survival in Forex market. We don't expect making 100% in a month, but instead look for opportunities to come. Once mistake is made, we will hedge or cut lose immediately. I personally don't like to cut losses but instead apply hedging methods. It is all depend on the trader psychology aspect. Patient is another element  for successful traders but sadly most of the people come in Forex market want fast results. The faster you think you can make money, the faster you will lose. Other side of experience players will easily knock you down when you lose control. 

No trader is perfect and win all the times, in fact I feel worry when I strike 9/10 of my trades which give me an awesome 40%  return in first 2 weeks of January 2010. I start worry when I will be making mistake and sometimes feel over confidence when placing the trade. When the ego comes and rules are broken, you are in trouble. (I write this based on my personal experience and dare to challenge those who want to see what I have explained) Do you know why Non Farm Payroll and Unemployment Rate of US is being released on Friday? Simple, it gives time to calm down the market and the participants. 

The Mindset Game : Forex Market.

Recently, I tend to write psychology aspect affect a Forex trader. If you had more then 3 years and did well in Forex trading, your would become less emotional. In the other word, you also have shape eyes and conscious mindset. In fact, experience winners like volatile and vicious market, (the highest beta & alpha) , the better.
Conscious mindset assert confidence to a Forex trader during any market environment. We have shape eyes like eagle flying high above the sky hunting for victims (novice traders) on the ground. Novice traders tend to cut losses and panic during the crisis, we tend to stay clam and cool. It is not easy when you see the trade fall into red, your mindset will change. Your brain will consistently tell you to do the wrong things. The more you think, the more mistakes you make. Noise from the media take away your consciousness. I always remind myself to stay clam and look for opportunities to strike when the market is in viscous form.
Do you know why casino is always the winner. Assume there are 6 players on the 'black jack' table,  2 are winner, 2 are average and 2 are loser. In the end of the games, the house will win, why??? Simple, the house have the highest probability to win! Luck will never count if your are the house! It only apply to players.
In Forex market, big boys who have the bigger capital and handful of resources act like the house. In casino, when the house lose, they may need to give payout to 5 playes. But if they have double aces or good cards in hand, you will see they sweep all the chips from the players side to theirs. The same concept apply to big boys in Forex Market.
To become the house in Forex market, you need big capital, resources, good friends and experience. For me, forex market is like the Super Mario games, you need to go from level to level. The highest the level, the toughest things you need to overcome before you can save the princess.