In this video:
00:31 Chapter 14 of my new eBook – The Top 10 Forex Trading Mistakes
02:44 Tips on trading a demo account
05:39 The four big movers for the week
In my new eBook, I talk about the Top Ten Trading Mistakes and I want to talk about some of those same mistakes in this podcast and video right now. Let me share more details with you.
The Top Forex Trading Mistakes
Hi it’s Andrew Mitchem here, the Forex Trading Coach. Today is Friday the 11th of April and my latest chapter, Chapter 14 from my new eBook “From Dairy Farmer to Forex Trader” has been an enormous hit . I’ve had some just amazing feedback from people. So people have really enjoyed the story but Chapter 14 is all about what I believe that the Top 10 Trading Mistakes and I’ve put those in the book because there are mistakes that I’ve made and I’ve learned from and throughout the last five years of being a Forex Coach as well. There are mistakes that I see people constantly making and so the aim as a Forex coach also is to help people overcome those mistakes. Not only of course to trade profitably but if you eliminate a lot of those mistakes and put a good strategy together with it then of course naturally you’re going to iron out those flaws from people’s trading. And so, I’ve mentioned quite a number of those things that you can change and mistakes that you can eliminate already in these videos and podcasts in the past. But I’ve got three more I’d like to talk about right now in this one.
The first one is to always treat your demo account as though it were a live account. That’s a really important point because you see brokers that give you the option to open up a $50,000, or a $100,000 or half a million dollar account. Whereas really how many people go and open up a $100,000 account for your very first live trading account and it doesn’t matter whether you’re a multi-millionaire, the likelihood is you’re not going to open your first live account with $100,000. And so, it’s a quite a deceptive way on behalf of the brokers really to get people lured into a full sense of security and see people not only treat a demo as a bit of a game, a bit of a gambling monopoly money but they also when they do strike it lucky they do tend to make a lot of money on demo and I did exactly the same myself. I was making thousands of dollars per day or tens of thousands of dollars per day at one stage on a demo but when I came to reality you know I was on a ten thousand dollar live account and I was making a few dollars or maybe sort of hundred dollars at the very most per trade. So it’s a bit of a knock as I suppose you could call it when you go live and you’re not going to be making that vast amount of money that you’ve been expecting to.
How To Trade A Demo Account
So the point is, if you think that you’re going to be opening your first live account whether ten thousand dollar account make sure that you open your demo account with $10,000 and trade it exactly the same way. Now of course, emotions aren’t there but you really need to do your best to make sure that your demo account is traded and you treat it the same way as if you were a live account and it just makes transition far easier.
Don’t Expect To Make A Fortune on Day 1
The second point that I want to talk about is don’t expect your trading to be outstanding from day one, it’s not going to happen. It doesn’t matter how many courses you’ve taken even if it’s my course. You’re not going to make a lot of money from day one and I’m sorry that’s a bit blunt but it’s the reality because trading takes time and you can have the best system and the best strategy and the best coach but you still need time to develop that for yourself and to learn that for yourself. And I rather and I say it to clients quite honestly and quiet openly. I rather you take a few months to get to understand the strategy and to get a feel of things and to develop your own take on things than to rush in like a bull in a china shop head first and trying make a fortune in the first week or the first month and then lose your confidence. I’d much rather that people take several months and come back to me and let’s say six months or years time and say “Look Andrew it took me a little while to get going but now I’m just loving my trading and I’m making some really good money from my trading.” You know just allowing yourself a bit of time, it’s a really important point that most people can’t grasp when they start.
Don’t Chop & Change Your Strategy
The last point I wanted to mention today is about don’t jump and chop and change strategies. Again, people I find if all of a sudden they have a week that doesn’t make them money or even a day that doesn’t make the money they suddenly want to go out then research in the Internet for the next latest greatest holy grail “save the world” type of indicator and of course it doesn’t exist does it? If you have a strategy, you’re not going to have a perfect line doing that in your equity curve. You’re going to have times you have draw downs and really good weeks and little draw downs. This week for instance I’m only +1.5% all up, yet the last couple of weeks I was reporting here in this video and podcast at over 6% per week. Next week might be negative you know, you just don’t know but you’ve got to take the rough with the smooth and you can’t expect every week to be the perfect week. Again, it just won’t happen.
The Big Movers This Week
So on to the charts themselves. This week we’ve seen a huge amount of weakness in the USD and that’s followed on from the non-farm payrolls. They weren’t quite good as I expected that was slightly negative but regardless of the news, the USD has weakened quite considerably against most other currencies this week and we’ve seen strength in the EUR, the CHF, the JPY and the AUD. They’ve been the main four big gainers for the week, the US has been the main loser for the week in terms of been the weakest currency.
So that’s it for this podcast and video. Hope you’ve really enjoyed it. Don’t forget that my eBook is almost complete, just got one more chapter to be released and then the book will be available as a hard or as a physical book, a hard copy, a paperback copy on Amazon within a few weeks from now and also available as a download on Kindle. So if that interests you just drop me a line and I’ll let you more about that. Don’t forget also next week is Easter so expect the end of next week to be a little bit quiet. But also don’t forget to jump on to my free webinars that I hold. There are two different types of webinars held twice each per week. I’m holding those again next week, so if you have not attended one of those yet and you have a new to trading or you’ve been trading for a while and you’re bit frustrated depending on which side of the fence you’re on there, there’s a webinar there for you .
The other thing I wanted to mention just quickly is the lot size calculator. It’s a brilliant tool, great feedback from it. If you haven’t got it yet, make sure you download a copy from my website.
So that’s all for now, have a fantastic weekend. This is Andrew Mitchem from the Forex Trading Coach.