In this video:
00:28 Had an amazing trade on the EUR/JPY
01:11 The beauty of looking for the good risk to reward trades
02:55 The superannuation scheme with 3 or 4% annual return
04:03 Close all Trades before Easter
04:23 No Trades until Wednesday
Hi it’s Andrew Mitchem here the Forex Trading Coach.
Today is Thursday, the 28th of March.
It’s been another really good week on the trades. Had a lot better week than we had last week.
Remember last week I was saying that things were just very choppy and it was really hard to take good trades. Whereas this week we’ve seen some really good clear price action. And that’s certainly helped with some picking the strengths and weaknesses and also the trades that are take on the daily and the four hourly and the one hourly charts.
8:1 Reward:Risk Trade on the EUR/JPY
In fact this time yesterday I had an amazing trade on the EUR/JPY. I was taking a short position based on the four hourly charts. I had an incredible eight to one risk to reward out of that trade.
So that means that my reward, my profit is eight times the size of my risk on the trade.
So for example if I was risking let’s say $100 on that trade – I made an $800 profit.
The Beauty of Looking for the Good Risk to Reward Trades
So you can see when you start having risk to rewards like that and bear in mind that they don’t happen like that all the time but when you get really high risk to reward like that, it means that if you have a couple losing trades prior, you know that this gets completely wipe up by the benefits of having these hugely successful trades.
And that’s the beauty of looking for the good risk to reward trades. So that was the EUR/JPY of four hourly chart.
Also had a USD/CAD trade at the same time and a few hours prior, I had a short position on the EUR/CHF also on the four hourly charts – and all three of them made really good money.
So that’s a really successful time and also means that by trading the four hourly charts you don’t need to be watching the charts all day long and it means you can plan around your trading and have a life outside of trading.
That leads me on to something else I want to talk about.
The Superannuation Scheme with a 3 or 4% Return
Here in New Zealand the one of the local banks – they’re running an Ad and it’s quiet a funny Ad actually – it’s called the song in the background saying, “I want to work to to I die.” And it keeps going on about how people you know working longer and longer. It’s basically saying that if you want to keep a reasonable lifestyle paying your mortgage you’ve just got to keep to working and working ‘till the day you dropped dead.
And there’s a funny line within the song of this person who’s singing – he’s eighty three years old and they’re getting instructions from a twenty year old at work and saying, “ Well we’ve got to keep working to I die because I have no other source of income”.
And there’s a quiet an important message there because what the Ads actually advertising is a superannuation or like a pension type of funds saying, “Well hope you’ve got your pension sorted because if you haven’t, you’re going to be working to your eighties and die.
Now that’s a good thing to be advertising because it makes people of course aware of.
“I don’t want to be working ‘till I’m eighty and I die.”
“I want to you know have a good lifestyle when I’m young and fit and active as well as when I’m older and retired.”
But the interesting thing is that the Ad is actually advertising the superannuation scheme which has around about a sort of 3 or 4% annual return.
And I’m thinking well, yeah the motto and the theme is excellent but really I want to be making that like in a month, 4% per month sometimes in a week.
You know yesterday I could it make that in one trade and so what I’d like to really follow on is that say well a successful forex trading. It can set you up to enjoy you know the better things in life. It means that you can leave your job once you’re successful over a period of time and trade independently – work from home or work from wherever you want and still make excellent returns and also not only live well today but also plan for your retirement.
So it’s just there.
I just wanted to share that with you how an Ad that I’ve heard which kind a made me laugh with the whole motto is really relevant to Forex Trading and the incredible benefits that Forex Trading offers.
And so that’s sort of jumping away from the charts slightly.
Close all Trades before Easter
It’s Thursday here in New Zealand so what I suggest you do is that by the end of Thursday, you close all your trades down for the weekend with the Easter break coming up.
I’m personally not even looking at charts until Wednesday my time because I want to see a whole full days price action on Tuesday because Monday of course the markets will be shut or very quiet.
No Trades until Wednesday
So I’m looking for Tuesday’s price action to get back into gear again before looking at Wednesday, Thursday, Friday of next week for any trading opportunities.
So just take this time to maybe go back through your trades. Look through your trade history where you’ve gone wrong, where you’ve had good trades and just sort to fine tune your strategy, your risk to reward, your whole money management.
And take the time over the next few days to do that and also have a great relaxing time of Easter.
And look forward to talking to you this time next week.
The Forex Trading Coach