The Top 5 Forex Questions That I Get Asked
In this video:
00:27 The most regular question I get asked
03:20 The possibilities to make money from Forex trading
05:40 The logic and common sense behind my trading strategy
I’m going to give you the answers to probably the top 5 questions that I get asked on a regular basis. So let’s get into that right now.
Hi Forex traders, it’s Andrew Mitchem here and welcome along to my latest weekly video and podcast. I want to explain or give you the answers to the top 5 questions that I get asked very regularly.
Let’s start with the probably the most regular question which is:
What is the best indicator to use?
I get that on a regular basis. People say, “Hey Andrew you know I’ve been trading for a while or I’m brand new to trading, I’ve been searching this forum and what is the best indicator or the one indicator for me to use in order to become a profitable Forex trader?”
And quite simply, if you’re looking at the standard indicators as a technical trader, there is no one indicator can solve all your Forex money making problems and you know that’s just the truth of it. Most indicators, in fact almost all indicators (the standard indicators) lack time really badly so all they really do is form some combination or average of what’s already happened in the past and they’re very sort of ordinary and not great at telling you what’s likely to happen in the future.
So traditional indicators, I would stay clear of almost all of them. The important thing in my opinion to read is candle patterns and price action because that’s what happening in the market right now and that gives you an idea of the sentiment.
Are there more buyers? Are there more sellers in the market right now?
So regardless of the time frame chart you’re looking at, in my opinion, candle patterns give you the best information possible out there in the market. But most lagging indicators don’t put them on your charts.
How many pips do I make personally?
And again, a lot of people asked me that question. I honestly have no idea. I don’t measure pips. To me they don’t matter. I can’t go down the shop and buy something with pips. It’s not relevant at all. The most important part of understanding money management is, understanding how much you risk on a trade as suppose how much you make on a trade.
When you take the mindset away from making pips, it allows you to trade multiple time frame charts. It also helps you with the emotions involved in trading especially when you start trading on real accounts because whether I have a, let’s say as an example a daily chart trade with a 70 pips stop loss and 200 pip profit target or I may have a 5-minute chart trade with the 7 pip stop loss and 20 pip profit. Both of them make equal amounts of money or they lose equal amounts of money. So the actual amount of pips that you make really has little importance in your overall trading. But unfortunately, most get cord up into the hype of the internet of having to judge their trading performance on how many pips they make. Honestly it really does not matter.
Can you make money from trading Forex?
You know, I suppose the common thought is out there that 90 or 95% of Forex traders do not make money and that is probably true. But I’m here to tell you, yes, you can make money. You know, I’ve got so many clients all around the world that make really good money from Forex trading. It’s not easy, it’s like anything is good. If it was that easy, everybody will be doing it. But it does take time and dedication and understanding and perseverance and hard work and everything like that does go into it. But yes, it’s definitely possible to make money from Forex trading.
Kind of it relates to the last one in some ways but people say to me, “Hey Andrew, how long do I have to give it? Can I become a full time Forex trader? You know give up my job, throw it all away and make my full time career out of Forex trading.
And again the answer is a bit like the last one. Yes it’s possible. I’ve had clients who have taken my course and after a couple of years they then not in their employment any longer and they’re full time trading. Again, it’s possible. Not everybody wants to do that, not everybody can achieve that but yes it’s definitely possible. It comes down to treating your trading as a business. Don’t go gambling with it. Treat as any other investment. It’s a business. It’s there to be treated seriously but there’s absolutely no doubt at all if you have the correct mindset and you have the strategy and ability to carry out a strategy on a regular basis. You’ve got the ability to take draw downs and losing trades which we all get. You have the ability to control your emotions. Put all that together, absolutely you can become a full time Forex trader if you wish to.
A lot of people say to me, “Hey Andrew, what makes your strategy different to any others? Why do you think that your strategy is so successful?
I suppose really, I’ve taken that strategy and built it up from the ground upwards. I’ve started with just buying charts with nothing on it whatsoever just candle patterns only and I built up a strategy that suits me and is now proven to suit so many other people.
Why it works? I suppose well it has a lot of logic and a lot of common sense behind it.
It’s not difficult
It’s not overly complicated
It works across multiple time frame charts
It works across all currency pairs and that I suppose is one of the important issues of it
It is highly based on price action and it’s also based around horizontal levels