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Are you limited on available time to trade?

In this video:
00:29 – I don’t have enough time to trade
00:55 – The solution is to trade the longer time frame charts
01:20 – The stop loss size does not matter
01:39 – How to trade a Monthly chart
02:05 – Don’t worry about the number of pips you need as a stop loss
02:30 – Trades hit profit with a 12.2% account gain with just a 1% account risk per trade
04:08 – The 3 trades took just a few minutes to place
05:14 – Huge benefits to trading the longer time frame charts
05:40 – More reliability in the longer time frame charts

I have got a great way for you to be able to trade Forex, if you are really short on time. That sounds like you, listen up. I’ve got some great tips for you.

Hi Forex Traders! Andrew Mitchem here and today is the Friday, the 17th of June. I want to talk about an issue that so many people have.

I don’t have enough time to trade

People come to me all the time and they say, “Hey Andrew, look. I really want to get into trading, but I’m just too busy. I’m just short on time. I don’t have time to commit to trading. I don’t have time to watch the charts all day, to read and understand the news. It’s just too much going on in my life. I’d like to trade, but I’m just to busy, whether it’s a work or family commitment. Whatever it might be. Just don’t have the time.”

The solution is to trade the longer time frame charts

There’s a really really simple solution. It’s just that most people don’t know that that solution is there. The solution is this: the best way for you to trade with Forex market if you’re short on time, is to trade the longer time frame charts. It’s quite a simple solution, but most people just don’t understand or think they can do that. The problem is that most people see the longer time frame charts as something they cannot trade because the stop-loss needs to be too big.

The stop loss size does not matter

That’s completely incorrect. It’s actually irrelevant how big the stop-loss is, because it’s all relative to the size of the profit target, and the size of the chart that you’re trading.

How to trade a Monthly chart

I’ll give you some examples. People have said to me, “I can’t trade out a monthly chart trade because the stop-loss needs to be 200 pips, or 300 pips. Wherever it needs to be.” What you need to do, is you need to treat that monthly chart trade, exactly the same as you would if you were trading a daily chart or a 4 hours chart. It’s just that it has bigger stop-losses and bigger profit targets, but your risk on that trade, if that trade were to get stopped out, is still the same.

Don’t worry about the number of pips you need as a stop loss

Rather than worrying about how many pips the stop-loss is, what you need to do is calculate your position size, your lot size that you take on that trade. Then if that trade were to hit the stop-loss, then you’d lose ‘x’ percent of your account. Whether it’s half a percent, or 1%, whatever it is that you risk on a trade.

I’ll give you some examples. Just this morning, I’ve woken up and I’ve had 3 trades.

Trades hit profit with a 12.2% account gain with just a 1% account risk per trade

2 on monthly charts, and 1 on a weekly chart that have all hit the proper target this morning, and made a tremendous amount of money and profit for myself, my account, and also for my clients. Those trades were … 1 was taken in March, and we’re now June. Was taken on March on the monthly chart. It’s just that the full-profit target this morning for 943 pips, and a 3.8:1 reward to risk. The second trade was taken in May, and again on the monthly chart it’s only a month ago. That’s made 650 pips, and a 4.2 reward to risk. The third trade that’s closed today is on the weekly charts, taken 4 weeks ago, that’s made 425 pips and also a 4.2:1 reward to risk.

I add all that up and just quickly here, I don’t even know how many pips that is, but that’s roughly 50, it’s probably about 2200 pips, just as a guess. It’s completely irrelevant. What I look at is the reward to risk of those trades. Let’s say I risk 1% of my account on all of those 3 trades. If all 3 went wrong, I lost 3% of my account. That’s the maximum I can lose out of all of those 3 trades. Yet, all 3 were profitable, and in that same scenario with the 1% risk per trade, I just made 12.2% on my account. Now that’s an enormous account gain.

The 3 trades took just a few minutes to place

Sure you can do that with intraday charts and taking multiple positions all day and night on 4 hour charts, and 1 hour charts and you can get to that kind of figure, but there’s a lot more work involved.

Don’t forget the whole subject about this video podcast, is about how to trade Forex if you’re really short on time. Let’s look at that again. That’s a 12.2% account gain. I took those trades 4 weeks ago, 1 month ago on the monthly chart, and 3 months ago, but I placed the trades … I saw the trade setup, I placed the trades, I had my risk controlled, I had my stop-loss in, I had my profit target in place, and I’ve done nothing with those trades since. Absolutely nothing. No more work has been involved.

On a weekly chart, it means you just need to look at the weekly chart just once per week. On a monthly chart, you just look once per month. It really is very very simple. It requires so little time. Those 3 trades would have taken me less than say, 5 minutes to see and place. Yet, I’ve just made, if I was risking 1% on each of those 3 trades, I’ve just made an incredible 12.2% on my account and I’ve done nothing since.

Huge benefits to trading the longer time frame charts

You can see the benefit of trading those longer time frame charts. Now, sure, myself and a lot of my clients, we trade those longer time frame charts and other time frame charts, such as dailies and four hourlies, and one hourlies, etc, but you don’t have to, and that’s the point. If you are very short on time, look at longer time frame charts. They offer tremendous reward to risk ratios.

More reliability in the longer time frame charts

The longer the time frame chart, the higher probability, the technical setup because there’s more information contained within that chart.

As an example on monthly chart, you’ve obviously got a whole month worth of information of price action contained within that chart. Yes it does, and it can take longer to get to your profit target, but you just have to accept that if you’re going to be placing trades on those longer time frames. Also don’t forget that once you place the trade, there’s no more work to do. It’s not like you have to do work every single day while that trade is open for a number of week. You have to do nothing. 12.2% gain, 3 trades, 5 minutes work.

It adds up, doesn’t it. I hope that helps. I look forward to bringing you more trading news, tips and information this time next week.

This is Andrew Mitchem from the Forex Trading Coach.

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