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Are You Spending Too Much Time Watching Your Charts?

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In this video:
00:24   Talking about trying to get you to trade less
01:29   You can trade 2 or 3 time per day www.TheForexTradingCoach.com 
03:01   Trading needs to be fun
04:19   10.4% net gain over the last two weeks
05:23   Partnership with AxiTrader

Are You Spending Too Much Time at Your Computer and Watching Your Charts?

Do you find that you’re spending too much time at your computer and at your charts watching for setups and not spending enough quality time enjoying your life?  If that’s you, I’ve got the perfect solution for you.  Let me tell you more right now.

Hi this is Andrew Mitchem here, the Forex Trading Coach, today is Friday the 6th of September.

And that’s right I want to talk about trying to get you to trade less.  You see, I get emails all the time people telling me that they’re scalping on short time frame charts, and saying, “Look Andrew how can I have more clarity in my trading, how do I know when to enter, when to exit, what levels to trade, what pairs, what time frames, etc.”, and it all comes down to the same solution:  trade less; trade higher time frames.  You see for me, apart from the daily charts, my next favourite time frames are the four hourly charts.  And I want to spend some time now talking about four hourly charts and why I like them.

You see, the great thing is with them, is that you can plan your day around it.  I know that I don’t need to be back at my screen here until probably into the European session, for me, until the next four hours has passed.  And the great thing is, I look at my charts, when the four hour charts change over, every four hours, and if there are no good setups there then I simply don’t take any trades and I go and do whatever it is I want to do for the next four hours before I need to come back again.  

Look at trading 2 or 3 times per day – when it suits you

Now, of course you can’t take trades every four hours or else you’d never get any decent sleep, but it allows me for my time to trade at 9 o’clock, 1 o’clock, 5 o’clock and 9 o’clock.  So that’s 9 o’clock in the morning until 9 o’clock at night, looking just four times within the day, and for me here in New Zealand that covers the Asian session and the early part of the European session.

If you’re elsewhere throughout Asia or into Europe or into America, you’ll have different times of the day when you can and cannot trade, depending on your work, your family, your life etc.  But there’s probably two, if not three, times in the day when you’d be able to get near a computer and take four hour chart trades – if and when they show good setups.  The great thing is you know when there’s a setup coming in terms of you can’t take a trade when a candle hasn’t closed so on every four hours there’s a potential trade there.  In between there’s nothing, so go away, leave the computer alone, and get away from those real short time-frame trades.

Trading Should be Fun

A lot of people, again, they find that indecision of not knowing when to trade because they’re looking for indicator A across indicator B and it could happen at any time.  Or they have to trade at certain times of the day on real short time-frame charts.  Stick to the four-hourlies, stick to the dailies.  If you want to go anything shorter, I’d personally trade the one-hourly charts, but for me it’s generally only in the European session when there’s more activity, for looking maybe three or four candles in the evening my time, early European session.  And that’s it, it just means you can go and enjoy your life.  Trading needs to be fun.  Trading needs to be enjoyable.  And it doesn’t need to be a chore, you don’t need to be tied to your charts all day and night to be able to do well from your trading.

A 10.4% gain from 4 Hour Charts over the last 2 Weeks

I just want to recap, I was talking to my clients last night.  We had a live two-hour trading room webinar and I spent a lot of time reviewing the trades I’d taken personally on a live account over the past two weeks on four hour charts.  And I had taken 32 trades, and most of those were split into two, so around 16, between 16 and 20 individual trades over the last two weeks on the four hour charts.  Out of those 32 trades, 22 of them have been profitable trades, so that’s around a 70% success rate.  The average overall of those trades was a 1.4% risk to reward.  So that means I’m making 1.4 times my risk on every one of those trades that I took.  Put that into some numbers and if I’m trading half of one percent, so 0.5% risk on each one of those 32 trades that means I had 15.4% in gains, 5% losses, the ten trades that lost averaged 0.5, which has given me a net of 10.4% gain over the last two weeks just from taking those four-hour trades.  So it’s very low-risk; only a half of one percent risk to make 10.4% gain over the last couple of weeks since I was last talking to my clients live.  And it just shows what can be achieved there, trading with the trends, with the daily opinion in terms of where the strengths and weaknesses are, looking for pull-backs, etc. using round numbers, everything that I discuss in my course and I’ve discussed here in these free videos and podcasts.  So I hope that helps there.

Last thing, a couple more things actually, feedback from last week’s video and podcast, very positive.  I upset a couple of people because I was quite blunt and honest that trading is not for everybody.  But a lot of people said, “Look Andrew I just love your honesty.  I love your sort of down to earth approach of trading.”  Look if trading is not for you, if you don’t have the right mindset, don’t trade.  If you do, it’s the best thing that you can do.  

Partnership with AxiTrader

And lastly, I’ve created a partnership with AxiTrader, the Australian MT4 broker.  If you use the link on my home page to AxiTrader, and mention my name Andrew Mitchem and The Forex Trading Coach when opening a live account of over $3,000, they will give you a $200 credit on to your account.  More importantly than that Axitrader or your account is segregated, it’s held with a highly regulated ASIC broker with a very good reputation and extremely tight spreads throughout the entire trading day.  So if you’d like to know more about AxiTrader, have a look at the banner on my homepage of my website, TheForexTradingCoach.com.
So that’s it for now, I’m off outside to enjoy the glorious sunshine.  And it’s Non-Farm Payroll today so I’m not looking for a huge amount to happen on the charts behind me here for today.  That’s it for now, have a great weekend, this is Andrew Mitchem from the Forex Trading Coach.
I’ll talk to you this time next week.  Bye for now.