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In this video:
00:47     Knowing the three trades
01:03     Learning how trading happens
01:19     Accepting trade loses
01:31     The importance of high risk reward trading
01:38     The importance of low risk reward
03:06     An interesting trade with gold
03:56     Anticipating some more price action

Hi everybody, Andrew Mitchem here, the Forex Trading Coach.

Today is Friday, the 31st of August and welcome along.

It’s been an interesting week and its actually been quite a mixed week – not a particularly easy week for trading.

Not been too many news events, but at the end of the week, it’s been the Jackson Hole meeting in the States, and that’s going on right now as I speak, and thats thrown me personally out of a couple of trades that I was in.

The three trades that looks good

This time yesterday I was long on the Euro US Dollar, the Pound US dollar, and the Pound Yen. All three were looking really good heading into the European session and then as the US session kicked in, the three trades were stopped out all of a sudden as the strength can back into the US dollar.

And like I mentioned last week, you know, that’s the way that trading happens.

You’ve got to take those losses. At the time they look really good trades – So I took them. I saw no reason not to take them and saw no reason to close them early or anything like that.

So really that is part of trading and it’s something that as traders we need to accept those loses. The set ups up at the time I took them looked good in my opinion.

The importance of high risk reward trading and low risk per trade

It also stresses an important point that a high risk to reward trading is really, really important.

So I’m talking about trying to get a two or three to one risk to reward.