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Why having a good trading plan is such an important part of becoming a successful Forex trader

BY , , , , , , , , , , , , ,



In this video:
00:29     Having some form of trading plan in place
02:30     Seeing fourteen currency pairs with definite strength and weakness
04:23     A sell trade made a full profit
06:15     My new website

Today I want to talk about why you need a trading plan to be a successful Forex Trader. Let’s talk about that right now.

Why you need a good trading plan to help you become a successful Forex trader

Hi it’s Andrew Mitchem here the Forex Trading Coach. Welcome along today is Friday the 20th of September. And I want to talk about having a trading plan because you see it’s something that so many people don’t have. Even if it’s a simple piece of paper pinned to your wall behind your screen you need to have some form of trading plan in place. For instance if you’re going to go by a business or a car or a house or go to school, university, you’d had a plan in place and trading is no different. You need to have a plan of how you’re going to trade, what times of the day you’re looking at trading, what time frames, any specifics in terms of the number of trades you might take, the total amount you might have exposed into the market at any one time. Whatever it is you need to have that written down  so that you can refer to that throughout the course of the day and you’ll be amazed if you do that and stick to your rules within your trading. What it will do is it will help eliminate a lot of those losing trades.

I’ll give you an example, I broke my rules once last week and I was talking about this on my webinar last night with my clients and I aimed for a slightly higher profit target than I should have using my rules and it bit me. Look, the trade would have got there and taken my standard profit target quite easily and made just over 2 to 1 risk to reward and I saw another level I broke my rules, the market came back stopped me out first and then went on to where my profit target was but if I hadn’t broken the rules I would have taken profit and been out of the trade. So just go to show everybody makes mistakes, yes, no one’s perfect but have a trading plan in place and stick to it as much as you can and it will really help you.

Looking for some better setups now we’ve had the Fed Announcement

On to the markets what have we seen? Well we’ve had the Fed Announcement this week and up until that the week before that, it’s just been pretty quite at that especially on the longer term charts. Not been a huge amount of clear direction or huge strength or the weakness in any particular currencies, it’s just been pretty bland out there but now we’ve had that announcement from the feds we’re seeing some clear direction. I’ll give you an example on Monday; I don’t think I took any trades on the daily charts, Monday. On Tuesday I think I took two.

Today I was seeing fourteen currency pairs that I’m looking at definite strength and weakness for today being Friday. So it means that when I’m trading four hourly charts or one hourly charts or anything else, I’ve got fourteen currency pairs that have got a really strong opinion on either looking for predominant buy trades or sell trades. And so it just shows that when the market shows those setups, take the trades, take the opportunities when they show but don’t overtrade and don’t trade just for the sake of trading. If the market’s quiet, if you don’t have a clear opinion and you don’t have any clear direction, don’t take the trade, it’s just simple as that. All you’re doing is losing money from your pocket and feeding your broker. Both of which you don’t really need to do. So that’s in terms of looking at the overall perspective of your trading.

Live trading room webinars – the best place to learn how to trade Forex

As I have just mentioned I held a live webinar for my clients last night, during the European session. We had a huge turnout on the session, people from all over the world. I took a few trades live but I take my trades on my live webinars, that’s taking our live account in front of everybody. You can see everything is all there to see, my accounts, the entries, the exits, the position size, the profits, the loses, the account history, everything. Nothing’s hidden. I’m not about hiding things. I don’t believe in hiding things. I’m quite open there at showing my accounts and people can see me taking trades in real time on a live account. And that’s one of the fantastic things about the live webinars. There’s no better place to learn to trade especially on the shorter timeframe charts than watching someone do it in front of you in real time explaining why they’re taking that trade and seeing them take the trades and also progressing that trade as the session goes through. I had a sell trade on the GBP/AUD and another on the GBP/CHF both of which made a full profit in the session and took full profit hit their profit targets.

Would you like to talk with an existing client to find out more?

We also had a really good session; we spent probably about 20 minutes or so talking with the clients of mine from Oregon on the West Coast of the States. He has adapted my system to suit his trading personality and he trades five minute charts. And I’ve mentioned him on these podcast and on these videos before and but he’s just having tremendous success and so he was on the live early hours in the morning over in the West Coast of the States and he showed me some of the trades that he’d taken just on that day using my strength and weakness analysis and only trading on those directions but on the five and fifteen minute time frames. Some of the trades he had, there were four to one risk to reward trades and they were in and out of the market for full profit within about 20 minutes so he looks to trade the first two to three hours of the European and the US sessions and it works for him. It’s just fantastic that people are adapting what I’m helping them with, what I’m teaching them to suit when they can trade, the time frames that they like to trade and that’s the whole idea of coaching. This is not rigid; it’s not say you have to do just this or this because I do so. It’s adapting to suit your trading and that’s where my more successful traders and clients come from. They take what I teach, they use my knowledge and my help and my on-going support, my strategy and they make it suit them and that’s where you find the most successful traders take that approach.

Lastly I want to mention about my new website. You may have seen my site has a new look. Hope you like that; had some really good comments from people so far about that. If there’s anything you like or don’t like, please drop me line at [email protected]

That’s it for now. Next week I want to talk about reversal candles, continuation patterns, trend line breaks and round numbers, four really important things to look at for in your trading.

So recapping, keep a trading plan and pin it on the wall behind your screen. Look at it all time before you take every trade. Make sure you do that, it’s going to really help you improve your trading performance.

This is Andrew Mitchem from the Forex Trading Coach. Hope you’ve enjoyed another video and podcast. I look forward to talking to you this time next week.

Bye for now.