About ZenFXTrader

I am a self-taught independent trader based in Australia/Hong Kong.  I trade mainly in Forex and and occasionally in precious metals, stock market index futures. I have been in the Financial markets since 1993 and have accumulated extensive trading skills, experience and market insight.

Trading Philosophy

Over the years I have studied and tried all known approaches to trading – fundamental, simple & complex indicators, software automated trading systems, etc. After all this study I have come to the conclusion that classical technical analysis works best. As we know from engineering, the more complex a system, the more fragile it is, more likely to blow up. On the other hand, simple systems are robust. Classical technical analysis and chart patterns are robust and work more often than not, even in modern markets. I have personally done research verifying TA for major forex pairs from 2001 – 2012. Admittedly, chart patterns involve some degree of interpretation, leading different people to different conclusions and making them hard to program into automated systems. However, on balance, I find classical technical analysis the most useful approach for trading.

Patience and discipline, essential for succeeding as a trader, are even more important when using classical technical analysis. This is one area where I am constantly learning and striving to improve.

Comments and constructive discussion are welcome. You may leave comments here or contact me at zenfxt at Gmail dot com.

25 thoughts on “About ZenFXTrader

  1. Joshua Aluko

    Hi, i have been following you on forexlive that was what brought me to your site. all i have left is 3000$ after blowing up several thousands, i need help and will appreciate if you can help. Joshua from Nigeria

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    1. ZenFXTrader

      Hi Joshua, Sorry to hear about your loss. At the moment I’m not sure how I can help other than a few helpful comments. You need training, mentoring. As a first step I’d say stop trading, review all your past trades, see if you can identify the mistakes and don’t re-start trading until you feel calm and confident again. You need to study technical analysis, read up on trading psychology, analyse your own psychology and see your mistakes in the context of your knowledge and psychology. When you re-start trading start very small.

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  2. ForexNoob

    Do you have a twitter or facebook where you can post when you get into a currency so I can follow you? I want to make money like you! =)

    Please email me!

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    1. ZenFXTrader

      Whenever I make a new post, it is supposed to automatically broadcast on twitter. account name @zenFXTrades. However I don’t think it goes on twitter when I just modify a post, which is what I do when I change my stops or close a trade. For that reason I usually also send a separate tweet when I change my stops or exit. But sometimes I don’t get the chance to tweet until later.

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  3. Raka Brahmanda

    Dear Zen…i am interesting for your idea n i has been tweet you….i hope you submit your idea and modify a post (change) ..i am beginner trading forex and a self-taught Thanks

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  4. rhonao

    Hi Zen, Just “discovered” u last night at fxllve… Great site I follow too…
    Love fx and trading and u too. You sound confident… Will start reading and following u!
    Best regards and trading,
    Rhona

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  5. Monika

    Hi Zen i’m in Australia too. Can i ask what Broker you use i use Pepperstone and found them to be ok trading enviroment. They do have great customer service but are just a white label of AxiTrader so basicaly i run the risk of being B booked, traded against. I have recently spent several months organising my own white label brokerage firm ,which has been offered to me by 3 major MT4 brokers in Australia so when i say they trade against you slow the data feeds down b book put you on demo mode when your actually live trust me they do i have seen it in action. They even offer you a profit share of clients losses. Sad but true. Anyway back to my question do you intend on offering your trades up as a signal service down the track.

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  6. dancab

    Hi Zen
    Must say wery impresive work, I have been following you last 3 month. As I am quite new to the forex 1 year only, my comments will maybe sound strange to you, if so please ignore it.
    I have a feeling that you (your system) dont have anny correction or that you dont take into the account when market is rangeing like know in euro/usd. You have mentioned that some where that your system does not performe well in those conditions. Why not simply just await an exit of the range and then continue.
    When i look att your entries, it those seem that follow my simple sistem that i am useing lwma 60 over 120 as entry. Would like to know more about your sistem if possible. My problem is exit from the market.

    Best regards and meny more pips Dancab

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    1. ZenFXTrader

      Dancab, thanks for the comment. As you will know from my posts, I have studied and tried many different forms of ‘systems’, indicators, etc. Actually it is not hard to get a decent performing system – even a simple daily MA crossover system earns 10-15% p.a. My aim is higher earning, and my system is a bit more refined. However, there is always some compromise in designing a system. Mine is designed to catch the trends on s-t swings, eg swings lasting 1-4 days typically. The trouble with ranges is we realise it is a range only after a few days have passed. When a swing starts, there is no way to know whether the next move will trend for a few days and 100s of pips or are we entering a range trading period (actually, there are some clues, but not of high probability). Similarly, there is no high-probability way of knowing when a range will end and break out into a trend. If I want to catch all the trends, I have to treat each signal as a potential trend. In terms of overall performance this works better than trying to catch trends and avoid ranges.
      As I said in my earlier comment, learning to ride the winners is the most difficult but essential skill to be successful as a trader.

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  7. David L.

    Hi there!

    Thanks for your blog. It’s been very helpful to set up my trading strategy.

    “Patience and discipline” really are the key.

    Keep it up!

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  8. Rick

    @zenFXtrades apologies on behalf of my two year daughter’s first tweet to you the other day, I am still having difficulty interpreting the meaning.

    I have truly appreciated your view on the market, your insight and shared wisdom. Being green to the realm of currency trading, It is such a relief to find someone who is earning a living from their skills and knowledge of the market that does not need anything in return and is not a salesman

    Thank you for your transparency and generosity in freely sharing your skill and wisdom.

    After watching you for some months now. I would love to learn how to create similar signals in similar time frames.

    I would appreciate if you could advise me on the right place to start regarding starting a demo account?

    Is there a way of setting an alert to a mobile perhaps from a trading platform informing you of when signal could be valid?

    And of course, what is a way to determine what signals, price chart patterns and indicators could be used to appropriately generate favourable signals.

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    1. ZenFXTrader

      Rick, thanks for the comments. A lot of questions; I’m afraid I will not be able to answer in much detail here. I’ll give you short answers here that might point you in the right direction. Re demo account: any broker will do, but keep in mind that demo results and real results seldom match. I believe in learning by immersion, ie jump in the water and learn to swim, not just the theory of swimming. Instead of a demo account, open a real money account and trade with the smallest unit available – micro or mini accounts. That way, you’ll get a better feel for trading. Trading is about money, discipline, emotions and psychology. Re signals: First study technical analysis and start applying it to your money account trading. Many technical patterns work – you’ve got to choose what works for you. You’ll learn fast when you lose money, even if it is small money. Check out some of the books I recommend on my blog here. Some of the good CFD brokers / platforms out there are IG, CMC, Oanda, Saxo, Citi, etc. Avoid anything that is based in Cyprus, Russia, Mauritius, Dubai, etc. Re signals / alerts, there are many platforms that provide alerts on various events, and many of these events can be programmed by the user. You’ll have to study the platform that you decide to go with. Only advice I’ll give you is that try to keep it simple – algos and programming are for machines, not us small guys. Metatrader is a highly programmable software platform that is offered by many brokers, but I find it has a very clumsy interface (stuck in Windows NT era) and that all that programming bells and whistles interferes with clear thinking and decision making. Hope this helps. There is no substitute for hard work and real commitment.

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  9. FungCL

    Hi zen, it’s interesting that you somehow blended in zen concept into trading. May I know the core principles you follow in zen that is applicable to trading?

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    1. ZenFXTrader

      Wow, that’s a deep question Fung 🙂
      I called myself zenfxtrader because I’ve always been deeply interested in philosophy, have read widely and studied it. Of all the strands of philosophy, I feel most attracted to zen/buddhist philosophy. Trading, as any serious trader soon finds out, is primarily a mental/emotional challenge. Changing the habits of the mind is the hardest thing we can attempt and success is rare. It’s probably easier to train yourself to run a marathon than to overcome the effects of fear and greed. The aspects of zen that applies to trading are: i) the aim of remaining calm even in a turbulent environment; ii) Seek answers within oneself; iii) discipline the mind. A zen monk’s training would be perfect for successful trading! Ironic isn’t it, since to become a zen monk one must give up material attachments in the first place!

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      1. FungCL

        I do see zen practitioners become successful both materially and spiritually. I guess zen encompasses entirety of life. Btw I’ll be following your trades starting next week and I’ll try to raise constructive questions whenever I can. Thanks for sharing your hardwork with us.

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  10. Anonymous

    Hi mate,

    I found your blog last week and I was following your trades since the past few days as it was interesting to see a retail trader’s methodology compared to a professional like myself. I see that you have initiated a short gbpusd as follow:

    #Closed GBPUSD long at 1.5460, -23 pips. Now short at $4/pip at 1.5460, SL 1.5505.

    Then you closed it recently as follow:

    #Closed GBPUSD short at 1.5489, -29 pips.
    New long $4/pip GBPUSD at 1.5489, SL 1.5439.

    I was wondering and curious how come you have not been stopped out already at 1.5505 as the spot went through 2 times between this time frame?
    Please answer in the blog directly, I won’t provide my email.

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    1. ZenFXTrader

      Hi anon, I use mental stops as alert levels. When alerted I monitor the price action around that level, watch out for any unusual news / data and then make the decision whether to execute the stop or not. Not completely automatic. Years of watching the charts gives me some insight into market behaviour.

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  11. Brian

    Hi Zen,

    I have only recently found your blog, I must say that I like its simplicity and that your experience in Forex is substantial. I hope to come back here often for latest posts . To be honest I have yet to join the Forex community, Im hoping to do a bit more research and try to fully acquaint myself with both fundamental and technical analysis before taking the plunge with my disposable income. However my friend has been trading Forex for some while now using the social trading platform etoro and has refined his trading strategy to the point where he is consistently earning 25% a week.

    He recently decided to start a website designed for forex beginners and has asked me to help with its construction. So I have been helping him write the blog posts, editing and marketing. Because the site is so new I was wondering if you would perhaps take a look at it and provide us with some feedback? Your expert opinion would be greatly appreciated.

    If your too busy I completely understand.

    Great site again!

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    1. ZenFXTrader

      Brian, thanks for your comments. I must say if your friend is earning 25% / week on average he is doing EXCEPTIONALLY well, especially if he can do it for a few months! My blog is not aimed at a commercial audience, it is simply an honest real-time trading diary and if some like-minded, serious forex traders follow it, that’s welcome. I had a quick look at your friend’s site and it appears to be aimed at getting newbie forex traders to trade with etoro, so I assume you are affiliated with etoro. No harm in that if you’re upfront about it. Whether the site is good or not depends upon what is your objective for the site. At the moment its got everything – a little learning resources, some blog commentary, some forecasts. There are no details of the trades so I somehow doubt the 25%/week average your friend claims.

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      1. Brian

        Hi Zen,

        Thanks for your feedback!

        Yes the site is very much for beginners in Forex and those who have an interest in it but have been put off by the apparent complexity of it all. As for etoro, well my friend (Gianluca) has been using it for about a year now and is quite happy with social aspect of the platform and its functionality, so for this reason we have decided to affiliate with it.

        Our website has only been up and running for about 2 weeks. So we have a long way to go in terms of creating a truly useful website! Although Gianluca’s returns might seem too good to be true , the stats do speak for themselves. His trading details will be uploaded within a week (or if you are really curious or bored enough, feel free to check out our video on youtube in which runs through his account and trading history),

        Thanks once again Zen, I hope to develop my knowledge of Forex within the coming months so that I can have a meaningful discussion with you in the future.

        PS

        I would be happy to include your link on our ‘useful links’ section if you would like.

        All the best!

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  12. dancab

    Hi Zen

    If you can share your wiev on GBP/AUD I would apriciat that very much. Have been follow you for some time now and I think it is grat reading.

    Best regards
    Danko

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    1. ZenFXTrader

      Hi Danko,
      I’m sorry I never look at GBPAUD. One of my trading principles is to trade only major, highly liquid pairs. Even GBPJPY – this is the first time I am trading that pair. For you, I just opened up a chart of this pair for the first time. What you do, how you trade depends upon your preferred risk and time-frame. Here’s my reading:
      At the moment this pair is in a s-t sideways trading range with a slightly bearish bias. If it has an hourly close above 1.8110 today (end of NY trading) that is bullish, and if it has a 4hr close above that level I would go long. Tomorrow’s level for the upside breakout is 1.81. On the other hand, it is likely to test 1.7900/1.7880 first. Watch the price action there. If that test holds, and PA is constructive, it would be a great long entry. If 1.7880 breaks decisively, go short. We may see 1.76 next.
      Overall, though, I would be very bullish this pair. It looks like over the next few weeks it is aiming for 1.92 or even perhaps 2.068.
      Disclaimer: Your trade is your responsibility! I could be wrong, and I frequently am wrong. Or even if eventually right the pair could zig zag a lot before reaching its target. Good luck.

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      1. dancab

        Hi Zen

        Thank you very much for your time. It confirmed my picture. Your analyse is very much appreciated.

        Best regards
        Danko

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