• flag+612 8091 5708
  • flag+1 646 583 2752
  • flag+44 20 3289 1849

#261: Knowing when NOT to take a new trade

Podcast:
Play

Knowing when NOT to take a new trade

In this weekly video:
00:25 – Learning to reject a trade
00:53 – Less is more
01:14 – Live 2 hour webinar and examples shown in real time
01:50 – I took 1 trade and rejected others
02:51 – The AUD/NZD H6 trade
04:32 – The trade hit the full profit for a 2:1 reward:risk ratio, or a 1% account gain

As part of being a good Forex trader, it's important to understand when not to take a new trade. Let's talk about that and more right now.

Hi, Forex traders. It's Andrew Mitchem here, The Forex Trading Coach with video and podcast number 261.

Learning to reject a trade

An important part of being a very good Forex trader is having the ability to reject trades, to see good, technical setups, but you may also see a reason why not to take that trade. You see, as a Forex trader, I'm sure that you want to take new trades. It's the excitement, it's the buzz of identifying new setups of taking new trades because that's what we do. We're looking for trade set ups all of the time.

Less is more

Part of being a good Forex trader is also using the less is more philosophy. You don't need to keep taking trades in order to do well. You need to have the higher quality trades in order to do well, not the volume of trades. It is important to understand what to look for when not to take a new trade.

Live 2 hour webinar and examples shown in real time

As an example, just last night I held a live two hour session with my clients, so traders from all over the world on this session for two hours in the European session, and we were looking at trade setups that I'd taken over the previous week, looking at some really good technical setups. Most those trades worked. A few didn't. That's just part of trading, but in real time, I was finding that yesterday, which was Thursday, the 15th of February, the market in the European session was just a little bit quiet and there wasn't a lot there. Then towards the end of the session, there was some very nice technical setups showing.

I took 1 trade and rejected others

But I only took one trade. What I was finding was there were good technical setups, but I was also finding a reason not to take the trade, and it could be, as an example, as a buy trade, it means that we're buying into a round number. We may be just a few pips below a round number, like a 00 or a 50 level. We don't want to be doing that. You don't want to be buying directly into a middle Bollinger band or a pivot point or as a buy trade, you don't want to be buying and knowing that you need to get your profit target through a previous resistance level or previous high. Those type of things. That's what you want to avoid doing.

I was looking at a number of good technical setups, and I was saying to clients, “Look, I really like this. It's got a great candle pattern. It's in the right part of the chart. It's got a trend line break, all the things we're looking for. Oh, but this trade's against today's ideal strength or weakness, or this trade's buying directly into a round number of 00. There's reasons why not to take those trades.”

The AUD/NZD H6 trade

Then towards the end of the session, I found a great technical trade on the Australian dollar, New Zealand dollar on the six hour chart, and I took the trade. Had everything I was looking for. It had the great candle pattern, it was in the right part of the chart. Yesterday, you can go and look on my free analysis for Thursday, the 15th of February. I was suggesting looking for sell trades on the Aussie Kiwi Cross, and that's exactly what I was doing on the six hour charts. I had a round number in the pivot point to protect my trade, as in protecting the stop loss. We'd just broken through some recent lows, and my profit target was before the last major swing low, so it had everything in its favour, so I took that one trade.

Although I identified during that session probably about five trade in total, I only took the one because those other four I could see reasons why, yes, they're okay, but there are also good reasons why not to take the trade. One of them actually had a very low reward to risk, so I said, “Look, I love this trade setup.” It was the New Zealand Yen buy trade, so it's looking really, really good, but the reward to risk was not there because I couldn't justify putting my profit target above a round number, and there was some previous highs. All reason like that, we talk about in real time as the market's happening, and that is why live trading with a mentor in real time every week is so good for you. That's why my clients do so well because they attend live sessions like this. They're listening to me talking about why, yes, I like this trade, but there's a reason why I'm not taking this trade. That's really, really important.

The trade hit the full profit for a 2:1 reward:risk ratio, or a 1% account gain

So, going back to the Aussie Kiwi sell trade six hour chart trade, absolutely beautiful trade. It retraced up to my entry level absolutely perfectly. It went about two pips over, but it didn't matter because I wasn't there at the time. I place the order, I finished the webinar. I woke up this morning. The trade retrace got me filled on the sell trade, and in one candle, within one bar of six hours, it had hit my profit target, and it made me a two to one reward to risk trade. It wasn't two to one just because I picked two to one, it's where the profit target and stop losses needed to be just happened to work out at exactly a two to one reward to risk. I risked half a percent of my account on that one trade, I wake up in the morning and I've made a 1% gain in my account for that one trade, just by being patient, just by rejecting some of those other trades for reasons. It's just a few dents there, even though technically they looked okay. So less is more, take the higher quality trades, high reward to risk. You'll do really well from that.

I hope this helps. This is Andrew Mitchem, the owner of The Forex Trading Coach. Look forward to catching up with some more training tips and information. This time next week.

Click here to know about today's Daily Trades Direction

Click here to Download Blueberry Market MT4 Broker

Check out my suggested Forex Brokers! Click here!

Get my #1 Forex Trading Strategy! Click here!

 

Play

#260: Trading with the Daily Direction

Podcast:
Play

Trading with the Daily Direction

In this weekly video:
00:27 – How to increase your win rate
00:53 – Trading is all about probabilities
01.25 – Looking to buy or sell trades
01:46 – Taking setups that are in the direction of the daily trend
03:15 – Don’t take trades that are against the bigger trend
03:38 – I post daily trend analysis to help you – link below

Trading with a daily direction can give you such a great advantage when trading for shorter time frame chance. Let's talk about that and more right now.

Hi, Forex traders. Andrew Mitchem here, The Forex Trading Coach video and podcast number 260.

How to increase your win rate

I want to give you a really useful piece of advice that will substantially increase your win rate. It's all about trading with the likely overall daily direction, trading with the bigger picture. You see, if you can trade where the bigger trends are likely to be going, then it stands to reason you're giving yourself a higher chance of having a profitable trade, providing, of course, your technical setup is correct in the first place.

Trading is all about probabilities

Trading is all about probabilities. That's really all it is. It's about seeing technical setups and knowing that if a certain setup, a certain candle pattern, a certain price has been hit, a certain support and resistance level, whatever it might be that you're looking for, you know that, given history, when that setup shows, you know that the probability is that the trend or the pair will move in this direction. You know that because you've analysed that. That's how you have your strategy in the first place.

Looking to buy or sell trades

Of course, when we're looking for trades in the Forex market, we can look for buy trades or sell trades, to go long or short, to go up or down, and that's the beauty with the Forex market, and that's one of the reasons, one of the many reasons why we love trading the Forex market, the ability to buy and sell and make money on both directions. It's a fantastic benefit of trading Forex.

Taking setups that are in the direction of the daily trend

However, when you think about it, if you see within the course of a day … Let's say you're trading one hour charts. You see five trade setups and you see sell trade setups. Which ones are likely to work for that day? No one really knows, of course, until after the facts happen, but when you think about it, if you see on the daily chart, let's say a big up trend and you see strong, bullish candles on the daily chart, but it stands to reason that if, within that day on a one hour chart, you see strong buy setups, good, strong, technical, buy, trade setups, it means that you're trading with the bigger picture.

They could be continuations on the one hour chart or they could be right after a pull back, which, by the way, you've probably seen the sell trade and you've ignored it because, for today, you're looking for buy trades. You've ignored that little pull back and now you're seeing a good, strong, bullish candle pattern, ready to ride the bigger picture of the daily chart, and now it looks like the one hour chart's ready to resume. It's up trend after a pull back.

Again, it's probability, stacking as many favourable items in your favour as possible. This could be, sort of, the candle pattern. It could be the trend line breaks. It could be bounced at round numbers. All these type of things that we're looking for, and now on top of that it means that if we're trading in the likely daily direction, that has to have more weight to our trade, and that's to give you a higher overall win rate.

Don’t take trades that are against the bigger trend

You just think about it. Why would you take sell trades on that day if the likely bigger picture is for the market to move up? Yes, you might catch some little retracements and some small pull backs, yes you might, and yes, you might miss some good reversal trades, but wait for them to be over, then look to ride the trend up again if the bigger picture is up. That has to add probability.

I post daily trend analysis to help you – link below

To aid you with this, for my clients I post specific trading daily information on our membership site, but if you're not a client, what you can do is log in and see a free, basic version of what I post for my clients every single day on my membership site, sorry, on my website.

What I'll do is I'll put a link below this video and podcast so you can go and have a look. It's called daily trades on my website, daily trades and analyses. You can go and have a look at that every day. It's to say that over the course of the next 24 hours from the start of the 5:00 PM eastern standard time New York close and open of a new day, these are the likely directions we're looking for, bigger picture. When you're trading the shorter time frame charts, that then means that if you see trades in the same direction, that has to add weight to your overall probability, and therefore increase your chance of a successful trade.

Hope that helps. It's a really useful tip. This is Andrew Mitchem, The Forex Trading Coach, have a great weekend. I'll see you this time next week.

Click here to know about today's Daily Trades Direction

Click here to Download Blueberry Market MT4 Broker

Check out my suggested Forex Brokers! Click here!

Get my #1 Forex Trading Strategy! Click here!

 

Play

#259: Do you lack the time to trade?

Podcast:
Play

Do you lack the time to trade?

In this weekly video:
00:26 – Most people don’t think they have sufficient time to trade
01:07 – New traders want to watch the charts all day
01:45 – Are you ready to trade or is the market ready?
02:09 – Scared to leave the charts?
02:39 – Less is More
02:58 – Trading examples from Monthly charts and Daily charts
04:00 – You don’t need to be on your computer all day long
04:30 – Look at a new trade only on the completion of a candle
05:05 – Trading must be realistic and enjoyable

Do you find you don't have enough spare time in the day in order to trade the Forex market properly? If that's you, listen up, I've got some really good news.

Hi Forex traders, Andrew Mitchem here, The Forex Trading Coach with video and podcast number 259.

Most people don’t think they have sufficient time to trade

Today's video and podcast is all about having available time in order to trade. You see, most people will find that they don't have sufficient time in the day. I had an email just this morning from a guy called Brian. Brian said to me, “Andrew look, I don't think I'm gonna do your course because I don't have enough time to dedicate to trading. Time I go to work, come home, help the wife, help with the kids, try and do something for me, some sports, leisure, music, there's just not enough hours in the day to then go and sit and watch charts all day.”

It's a common problem that so many people have, and you see the problem is that so many people think that they need to be staring at the charts all day. In reality you don't.

New traders want to watch the charts all day

You see, the problem is this, when most people start trading, they want to be looking at the charts all day long. They're looking at every pip of movement, they're looking at every news release, they're adding indicators, they're trying to make this special combination, this nice concoction of magical indicators that's suddenly gonna tell them all these perfect trading signals, to buy here and sell here.

Unfortunately it just does not work like that. Most people then start to go down to shorter timeframe charts because they want to look at five minute charts or 15 minute charts, and they're trying to pick every single movement, every swing, every upward movement, every downward movement.

Are you ready to trade or is the market ready?

When they place trades, they're placing them because they are ready, not the market is ready. It's like, “Well, my clock says I've got an hour to trade, I'm gonna find a trade and I'm gonna find something suitable to trade.” So they're forcing themselves to go shorter and shorter timeframes, and just placing a trade for almost like the need to want to place a trade, not because it's the right thing to do at that time.

Scared to leave the charts?

Then, when they place a trade, they're scared to leave the charts because they might miss out on a one or two extra pips on that trade, or it might pull back against them and, “Oh my goodness, what am I gonna do now?” You'd understand what I'm saying because we've all been there, and I've been there myself so I know exactly that's the reality for most new traders.

I can tell you that after 15 years as a full-time Forex trader and a coach, I've kind of seen it all by now, I've been through it all, and I've seen it all, and I've heard it all. I can honestly tell you this.

Less is More

The phrase ‘less is more' is absolutely, perfectly suited to becoming a good Forex trader. What I mean by that is this, the less you trade, the less time you spend looking at your charts, the less you're fiddling with trades, the more you'll make, the better you'll be.

Trading examples from Monthly charts and Daily charts

I'll give you example, today is the 1st of February, and so I'm making this video and podcast a day earlier, I usually make it on a Friday, but I'm away tomorrow so I'm making it on Thursday the 1st of February. Now I've just taken two trades on the monthly charts because we've just turned over from January into February's monthly charts, and I've taken two trades. Now that's taken me probably five to ten minutes to look through the monthly chart trades, just once a month, that's all you've got to do. I've seen two trades there, I've placed the trades. Within ten minutes, I've seen the trades and I've placed the trades, and that's it, I've got my position size, my entry, my exits, my profit target, my stop loss all in place, leave the trade alone.

At the same time today, I've taken one trade on the daily charts. Yesterday I took four trades on the daily charts. It took ten minutes, absolute max per day to look through the daily charts. Today was less, there was hardly anything there apart from one trade.

You don’t need to be on your computer all day long

So, you do not need to be staring at your charts all day long. Now I also try to look at twelve-hour charts and six-hour charts. I'm holding a webinar tonight in the European session my time, my evening time, European morning, for my clients. On that, I will look at some shorter timeframe charts as well, but I don't normally do that, I only do that when I'm on the live webinars because we're looking for trades on a shorter timeframe. But even then, we generally don't go much shorter than a one-hour chart.

Look at a new trade only on the completion of a candle

The key is this, look at taking a trade only on the completion of a candle, so I know if I'm trading let's say a four-hour chart trade, I only need to look at the completion of a candle. If I can't look because I'm doing something else, I'm at work I'm doing things with the family, whatever it might be, doesn't matter, I accept that I miss out on looking for trades and I'll look four hours after that if I can. If I'm asleep, it doesn't matter, there's always another trade somewhere. So don't force yourself into looking at short timeframes, don't force yourself into having to be at your computer at a certain time.

Trading must be realistic and enjoyable

You've got to remember that if you're gonna become a good trader, it has to be something you can do realistically, so it needs to be something you can do that suits you and it needs to be something that is enjoyable, because when you get those right, then it becomes profitable. You start scratching around on five-minute charts, getting scared to leave the charts, scared to leave the computer, you're gonna burn out and you're family's gonna not like you because you're spending all day looking at this thing, looking at charts.

So go to the longer timeframe charts, look at the close of each candle, at whatever timeframe that you want to look at, take the longer timeframe chart approach, less is more, you'll do far better.

Hope that helps, I'll see you this time next week.

So, once again, this is Andrew Mitchem, owner of The Forex Trading Coach. Have a great weekend. I'll see you this time next week. Bye for now.

Click here to Download Blueberry Market MT4 Broker

Check out my suggested Forex Brokers! Click here!

Get my #1 Forex Trading Strategy! Click here!

 

Play

#258: Controlling Your Risk

Podcast:
Play

Controlling Your Risk

In this weekly video:
00:23 – A common problem that can help turn your trading around
01:03 – Different pairs pay a different amount per pip
01:23 – The best way to control risk – Use my Lot Size Calculator (download link below for you)
02:10 – Placing your Stop Loss at a safe level
03:25 – Your trading will improve by using the calculator

I’m gonna explain how you can control your risk by adjusting your position size so let's talk about that and more right now.

Hi traders. It's Andrew Mitchem here, The Forex Trading Coach, video and podcast member 258 and in today's video and podcast.

A common problem that can help turn your trading around

I'm going to address a very, very common problem that can really help you to turn your trading around. It's very simple but unfortunately, most people do this the wrong way round. Now, I'm guessing that if you're like the majority of retail traders out there, if you place a trade, you put the same position size on every single trade. I expect you do. Why? Well, because it's easy and most people don't have any other understanding or knowledge about what else to do and so most people you'd see put one standard lot on every trade or put 0.1 or 0.01 lots, just because it's easy. Now, that is quite clearly not a good way of trading but unfortunately, most people do that.

Different pairs pay a different amount per pip

You see different currency pairs pay out different amounts per pip and by putting a 0.1 lot on every single trade, as an example, what it's doing is it means that you're putting that same position size on regardless of the currency pair, regardless of the time frame of a chart or regardless of the stop loss that you're taking.

The best way to control risk – Use my Lot Size Calculator (download link below for you)

Now, there's a far better way of doing it and I used my lot size calculator and it's freely available on my website and I'll put a link below this video for you to download it if you haven't already got it. It's been downloaded over 20,000 times. It's an amazingly simple and fantastic trading script that works on the MT4, Meta Trader 4, platform. But more about that later.

So, what I like to do is because I use that script all the time, but what it does is it tells me the exact position size that I need to use on a trade, regardless of my account size, my account denomination, the timeframe of the chart, the type of trade I'm taking, the currency pair. It works it all out for you with simple drag onto the chart into your stop loss and it tells you everything you need to know.

Placing your Stop Loss at a safe level

What you're then doing is putting your stop loss at a level that technically is giving you a high probability chance of staying in the trade and you then need to work out your position size needed for that particular trade from there. It then means that if the trade goes wrong, you know, as in my example, I love half of one percent of my account.

And I get a lot of people coming to me. They say, “Hey Andrew, but you keep talking about ideally you should be looking at trading the longer timeframe charts but how can you trade the longer timeframe charts because I need to put a small stop loss in and that means I'm getting stopped out all the time.” Now, that's clearly a lack of understanding of the market and what you need to be doing because you can't just place a 0.1 position size, let's say, on a daily trade if that's the same position size that you place on a five minute chart trade, as an example. So, therefore, you're position size on a daily chart trade might be, let's say, 0.02 lots or whatever it needs to be according to your account size and the trade that you're taking. So, I hope that helps. It really will make a massive difference to your overall trading success.

As I mentioned, that calculator's been downloaded 20,000 plus times. It's an amazingly simple and easy to use script. There's a free link down below this video.

Your trading will improve by using the calculator

Do download it, have a look at it, use it, and you'll find that your trading will improve just absolutely immensely.

So, once again, this is Andrew Mitchem, owner of The Forex Trading Coach. Have a great weekend. I'll see you this time next week. Bye for now.

Click Here To Download my Lot Size Calculator

Click here to Download Blueberry Market MT4 Broker

Check out my suggested Forex Brokers! Click here!

Get my #1 Forex Trading Strategy! Click here!

 

Play

#257: How to trade Crypto Currencies Profitably

Podcast:
Play

How to trade Crypto Currencies Profitably

In this weekly video:
00:29 – The hot topic of conversation
00:49 – I took a Sell trade on Bitcoin on my live webinar
01:22 – Traded on Axi Trader FX account
01:54 – Technically the setup was the same as trading Forex charts
02:20 – Massive 37% loss since the high in December
02:50 – A client on mine has developed a robot which trades Bitcoin – Live Webinar on 25th January
04:03 – Click on the link below to attend the live webinar

Cryptocurrencies. Everybody's talking about them. If you want to know how to trade them profitably, listen up I've got some great news for you.

Hi, Forex Traders! Andrew Mitchem here, The Forex Trading Coach. Video and Podcast number 257.

The hot topic of conversation

Gonna talk about the hot topic of right now, which is cryptocurrencies, Bitcoin, et cetera. Wherever you go online, it's all over the internet; it's all over newspapers. Is it a good thing? Is it not a good thing? Is it a bubble? Are people gonna lose their homes over it? All these types of things are going on right now.

And up until recently, I haven't personally had a lot to do with cryptocurrencies.

I took a Sell trade on Bitcoin on my live webinar

But yesterday, I held a live two-hour live webinar for my clients. During that session, I saw a fantastic trade set-up on the Forex charts, but on Bitcoin. It was a sell-trade. If you've been following Bitcoin, for example, back in mid-December it was up at 19,000 U.S. dollars. Now it's just so dropped below $12,000. And so I saw a technical set-up on Bitcoin to sell it. It was on a four hour chart. It went really nicely.

Traded on Axi Trader FX account

The interesting thing was I took the trade on my AxiTrader account and the minimum lot size I was able to place was one standard lot. So with a volatile market like Bitcoin, that was quite a lot of movement and quite a big fluctuation in my profit and loss as the trade was progressing. So it is something that you'd need to have a relatively large account size in order to do because there is potentially a lot of money to be made and also potentially some to be lost if you don't know what you're doing.

Technically the setup was the same as trading Forex charts

But what I really did like about it is technically, it didn't matter whether I was trading the Euro U.S. dollar or Bitcoin against the U.S. dollar because technically, the set-up was there and my charts and my software picked the candle patent that I've always looked for regardless of what I'm trading or what time frame. And saw the trade, basically, took the trade. Now, as I mentioned volatility is there

Massive 37% loss since the high in December

The good thing is that with the way that I traded it through my broker, my Meta Trader 4 broker, is I didn't need $19,000 U.S. like you would have back in mid-December. Just imagine how those people are feeling today when the prices right now as I'm recording this is under $12,000. That's around a 37% loss on their money in one month. That's not good. You know? The great thing is that with leverage through your broker, you don't need that money upfront.

A client on mine has developed a robot which trades Bitcoin – Live Webinar on 25th January

So. Good things to tell you about. Ivo, who is a client of mine over in Ireland. He's been with me for about probably four or five years. He's developed a trading robot or an expert advisor that trades my strategy. He calls it Satoshi and he trades it very successfully across Forex pairs. Now he's developed that same robot to work across Bitcoin.

Now, next week on Thursday the 25th of January, we're gonna be holding a live webinar. It's gonna be in the European session and what I'm going to do is I'm gonna put a link below this video and podcast where you can register and attend for free the live webinar that I'm going to be holding with Ivo. There's no obligation at all to anything. It's just to share with you information about Bitcoin, how to trade it and also how to trade it automatically. Sounds really exciting. I'm really looking forward to it.

I don't promote people. But Ivo I have promoted because he is a client of mine and a very successful client who has developed the automated strategy around my strategy. So very rare that I do things like this, so I think this is going to be really important for you to attend.

Click on the link below to attend the live webinar

So if you're interested, all you need to do is click on the link below this video and I look forward to seeing you on that live webinar with myself and Ivo from over in Ireland on Thursday the 25th of January. See you then.

Click Here To Register for a Live Webinar with me and Ivo

Click here to Download Blueberry Market MT4 Broker

Check out my suggested Forex Brokers! Click here!

Get my #1 Forex Trading Strategy! Click here!

 

Play