Can You Trade Non-Forex Markets?
#436: Can You Trade Non-Forex Markets?
In this video:
00:28 – Trading Non-FX pairs
01:02 – Getting into exotics, cryptos, commodities and indices
01:45 – Clients enjoy trading the same strategy but on new markets
02:15 – Trades taken and posted on our sites recently
03:11 – Lots of new opportunities now available
03:38 – The same money management principles still apply
Let’s talk about non-Forex markets. Can you trade them? How do they work? And can you use the same strategy? Let’s talk about that and more right now.
Hey, Forex traders, Andrew Mitchem here at The Forex Trading Coach with video and podcast number 436.
Trading Non-FX pairs
Now I want to talk about trading non-Forex pairs, because it’s something that we’ve been getting into a lot here at The Forex Trading Coach. And I’m talking about things like indices, commodities, and cryptos. But go back to the beginning: do we trade them? Yes, we do now. But we’ve not done that for a very long time, and the reason is we are The Forex Trading Coach. So therefore naturally we’ve been focusing on Forex pairs because the Forex markets offers us so many great opportunities. We’ve got different currency pairs, different timeframe charts, and it’s worked absolutely fantastically.
Getting into exotics, cryptos, commodities and indices
Now a little while ago we’ve gone into a few more of what we call the exotic pairs, things like the Swedish Krona, South African Rand, Singapore Dollar. Some of those more sort of minor exotic pairs. And they still do work, there’s great opportunities on them. The downside is though that some of those exotic pairs tend to have quite wild and wide spreads at times over the day when the market’s not that active. And that can become sort of negative for trading some of those more exotic pairs.
So what we’ve done is as more and more of the MT4 and MT5 brokers around the world have offered a larger variety of markets, we’ve got into those as well.
Clients enjoy trading the same strategy but on new markets
And a lot of our clients are loving trading these different markets, because the thing is the strategy that we trade and teach works across them as well. And why does it work? Well, because it’s based on sound principles and price action and candle patterns and all the other things that we put together, support resistance. And the beauty is it doesn’t really matter what Forex pair you trade or what market you trade, the strategy works. Because the pattern is the pattern is the pattern. And you know, give you some examples.
Trades taken and posted on our sites recently
This week I’ve taken a trade, and we put all of these trades I’m about to mention have been on our membership site and forum site, I’ve got a trade on the US 200 on the index there as a buy trade on a daily chart. And that’s worked absolutely beautiful. We had last week trades on the ASX 200, the JP 225 that was this Monday. Last week HK Hong Kong 50. We’ve had trades posted just yesterday on six hour charts on our forum site on UK and US oil. Today, I’ve taken a trade on gold, and last week we had trades on copper, Bitcoin, and Ethereum. So it’s just in the last two weeks.
So it just shows the opportunities out there. And that is because the strategy works because it’s good, sound principles of how to trade, how to read charts.
Lots of new opportunities now available
And the beauty that I’m finding from my point of view is it’s suddenly opened up all these extra markets. And if we’re trading just once, twice a day, it doesn’t really take an extra couple of minutes to scan through gold and silver, a few commodities, a few indices, and a few cryptos. You can do it all in maybe two or three minutes extra, once maybe twice a day and that’s it. That’s the beauty of it.
The same money management principles still apply
Now, it still comes back to the same principle. All of our trades are low controlled risk and known risk, and again I go back to what I say all the time, for me personally I never trade more than half of 1% of my account on a trade. When I split my positions like I do most of the time with a limited order and a market order, I’m trading a quarter of 1% at market, quarter of 1% at a retracement order. But a total of both trades get filled and both trades get stopped out half of 1% loss. So on a $10,000.00 account, the most I’m losing is only $50.00. However, because of the way that we trade and the way that we use our stops and our profit targets, including on the cryptos, the indices, and the commodities, our reward to risk is still extremely high. So we’re making between a two and a five, sometimes up to a 5-1 reward to risk. So low controlled risk, high gains per profitable trade, but you can trade any market that suits you.
So I hope that helps. Something a little bit different, but we’re getting more and more into these markets. We’re really excited by it as well, by the way, because we’re seeing great trading opportunities on them as well. So if the Forex markets are just a little bit slow maybe sometimes, and that happens with all markets, we now have the option at looking at some slightly newer markets as well. Still trading well, still making great money. If you’d like to know more, send me an email [email protected], and you can find us on our website, www.theforextradingcoach.com. I’ll see you there. Bye.
Episode Title: #436: Can You Trade Non-Forex Markets?