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#286: Why you need patience to trade well

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Why you need patience to trade well

In this weekly video:

00:25 – Good trading is boring
00:50 – Trading examples from this week
01:57 – How do we trade these market conditions?
02:29 – Trading different time frame charts
03:19 – Live trading room webinar and examples shown to clients
04:04 – Don’t just look at one time frame chart

Having patience, as a trader, is one of the keys to your success. Let's talk about that and more right now.

Hi Forex traders, it's Andrew Mitchem here, the owner of the Forex Trading Coach, with video and podcast number 286.

Good trading is boring

Now, a statement that I like to make quite often is that good trading is boring. Don't take that the wrong way. Trading is fantastic and it's fascinating. I love it; I've been doing it for years. But good trading is actually boring. You see, you have to have patience, and patience means that you have to be disciplined and wait for the good trade setups.

Now, it's quite hard to do in real time and that's where a lot of people struggle.

Trading examples from this week

But I'll give you an example. In the last six days, I have taken no trades on the daily charts. There were two today, being Friday, but previously to that, for the last six days, I have posted and taken no trades at all on the daily charts.

And that is one of the timeframes that I love trading. And so going forward day after day after day is … you think, “Well, I should be taking something.” And as a trader, we kind of feel that we should be taking trades because that's what we feel we're good at; that's what we feel we should do. We feel that we have to force trade sometimes, and it's a very big danger.

The catch is that a lot of traders … Go back and have a look at the daily charts over the last six days, and you'll see that almost all trades have been either big, strong movements down, such as like the euro and the pound, and the kiwi and the Aussie against the US, all been indecision bars … have been very little to take as a new trade for either a continuation trade after a pullback or a reversal.  Been a couple today that look okay, but previous to that, not a great deal has happened.

How do we trade these market conditions?

What do we do about that? Well, first of all, my real job as a Forex trader is to preserve my capital, and that's the important thing. There's no good just taking trades, just for the sake of taking some trades, because ultimately what you're going to do, is probably have more losing trades than winning trades that way. And guaranteed what you are going to do is please your broker because all you're going to be doing is feeding your broker's back pocket by taking the money out of your account unnecessarily, by taking trades that you shouldn't take.

Trading different time frame charts

When I was on my live webinar with my clients last night, we talked about this and thought, “Well, what else do we do? What else can we practically go and do out there?” Well, last week I suggested four trades to my clients based on the weekly charts. All four of them went and hit their profit target. This week, I've taken a buy trade on the US Canadian dollar based on the weekly charts, and again suggested to my clients on Monday. And that trade right now is up about 1.6 to one. So if you'd done nothing else than risked half of one percent on that one trade, and it re-traced beautifully, got in a buy trade, and now it's moved up very, very nicely, it would have made you, right now, as I'm recording this, over 0.8% account return just from that one trade. So there are always opportunities out there.

Live trading room webinar and examples shown to clients

Now on the webinar last night, I also shared with my clients a number of trades that I've taken and other clients have taken and posted on our forum site and emailed through to me, based on the eight- and 12-hour charts.  Now I've created software that works on the MT4 platform.  My clients have all the software. It allows us to trade the offline charts, the non-standard charts, such as six-hour charts, eight-hour charts, 12-hour chats on the MT4, MetaTrader 4 platform. Fantastic trade setups on those timeframes from time-to-time

This week, the eight-hour charts have been particularly good. A number of high probability, high reward-to-risk trades that we've taken, and we've made some great money from it. So think of it this way.

Don’t just look at one time frame chart

You know, don't just look at one timeframe chart. If all you want to do is say, look at the hour chart or four-hour chart, or only at the daily chart, and nothing happens, that's when the temptation or nothing shows. That's when the temptation is to start taking bad quality, low probability, trades. So my suggestion is that you have a look at a variety of different timeframes because, depending on the week and depending on the conditions, the quality of trades may or may not be there just on one timeframe.  So as I've mentioned this week, nothing at all really until today on the daily chats, yet the 12-hour charts and to a bigger extent, the eight-hour charts, just a tremendous amount of really high quality trades.

So patience is the key; being disciplined is the key; preserving your capital is the key. Taking high quality, high reward-to-risk, high probability trades is the key. Don't just go out there forcing trades, feeling that, just because you're set at your charts, you have to take a trade. That is not the way that you're gonna become longterm profitable. So think about that, and remember, good trading is actually boring because you're doing the same thing methodically, looking for those high quality trade setups.

So once again, this is Andrew Mitchem, the Forex Trading Coach. Have a great weekend. I'll see you back here this time next week for more trading tips and information. Bye for now.

Click here to know more about my Forex Coaching Course

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#285: Trading by yourself can be dangerous

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Trading by yourself can be dangerous

In this weekly video:
00:39 – The downside of trading by yourself
01:55 –  What can you do to help with this problem?
02:47 – Local trading groups – should you join them?
03:58 – Consistent feedback about our trading community and support
05:08 – Our clients forum site and its value
05:56 – Great technical support and help
06:16 – Weekly live webinars to attend
07:11 – You don’t need to trade alone

I'm going to talk about why trading by yourself can be quite detrimental to your own trading success. Let's get into that and more right now.

Hi Forex Traders, Andrew Mitchem here, the Forex Trading Coach video and podcast number 285.

And I brought the video outside. Nice spring day here. A blossom behind as you can see. A nice feeling, now we're into August in the southern hemisphere, that spring's just around the corner and looking forward to a great spring and summer time.

The downside of trading by yourself

But back to the trading video. Trading by yourself can be quite dangerous, and really the effects of training by yourself can really turn a lot of people off trading. And a number of reasons why. How many people do you know who actively trade? How many people do you know who actually know what it is that you do when you're talking about trading? How many of you have got a partner or a spouse who really doesn't like you trading?

I had a guy just yesterday emailed me and said, Andrew, can I pay by anything else but credit card? And I said yes, but why? And he said, look, I just don't want my wife to find out that I'm getting into trading. And I've thought about that. I thought that's actually really quite dangerous, because if you don't have the support of people around you, then it can be, not very positive, because you're doing this thing that people think is gambling or you don't know what you're doing or you're being stupid with your money, risking too much, whatever it might be. But that's the perception that people who don't have that knowledge and education about trading get into, and it's not good. And it has a massive, negative effect on your own probability of being successful yourself.

What can you do to help with this problem?

Look, what can you do about this? Well, the obvious one is the online thing, but forums as you know, most forums are pretty much dominated by people who don't know what they're doing. And that's the danger that I've always found with forums myself. They get dominated by those people who think that they want to write a thousand posts in a weekend, look really, really cool, but realistically they're not trading, and they don't understand trading, but they're real quick to put down other people. Generally not a good way of succeeding for you or for learning or having that positive impact on your trading.

And the other thing is also found with forums is that it's so easy for people to, someone types in a new strategy and everybody jumps on that bandwagon and wants to get into that and talk about that new latest thing. And of course, that's not a great way either of trading.

Local trading groups – should you join them?

So the other thing you could do is look for local trading groups near where you live. I tried that years ago, probably 10 plus years ago, and it was a disaster. Nice people, but there was people who, couple who traded Forex and trading all sorts of other things. But there was just basically a group of old men together, who sat in a room and talked technical analysis about what's already happened. I found that I got no benefit from that at all. Because no one really was prepared to give away their real strategy. They all gave me little bits of it and most of it for me wasn't about the Forex market anyway.

The other problem I found, which was quite funny when you think about it, which these meetings that I went to, and I only went to a few, were held in my evening time, which is in the European session. Well, if these guys were real traders, wouldn't they be trading in the European session? Not just all sitting around in a hall having a chat about their amazing strategy. So I found personally no benefit in that at all. And you may or may not find that with any groups that you go to that are physical groups.

Consistent feedback about our trading community and support

So what can I help you with that? Well with my course, the amazing feedback that we get consistently is how good the support is, how good the community is. And you can have a look on, say, Forex Peace Army, there's over nine years of reviews on Forex Peace Army. We're still averaging a five star review and that's as high as you can get. And we're really proud of that because we put so much effort into making this work for people. The support, like on top of the actual strategy itself, which of course is the number one most important thing. On top of the strategy and the software that we help overlay on your mp4 platform is the support and the help that we give. And it comes in a few formats.

Well, each day you can log in to view the daily trades that I'm placing on the daily charts themselves with the exact entry and exit levels. So you can learn as you go. So that's the kind of support that because it's a realistic, see the chart, I can see the chart, you can see the chart, you can get to see what I'm seeing and why we're placing the trades. We also place trades on weekly charts and monthly charts at the beginning of each week and each month, so that helps you to gain that ongoing real time learning of the actual trading.

Our clients forum site and its value

But on top of that, we've got much more. We've got an amazing forum site. Now I know of just rubbish forum sites. But our forum site is unbelievable. There's thousands of people on that forum site. All there plotting different charts, setups, different trade setups in real time. There's a chat area that people can help each other out with. We contribute to that myself and Paul. I want to contribute to that so everybody gets their questions answered. We're taking trades. I put two trades on it just yesterday on the 12 hour charts to sell trade on the euro franc, a sell trade on the euro yen. Paul placed an eight hour chart trade there just yesterday. All three of them have made money. All you had to do is go there and go, yeah, these look good setups. I liked that what these boys are saying, and take the trades and learn from that. And not only learn but profit. So there's that as well.

Great technical support and help

I've got a great technical support. We've got Mhel who lives over in the Philippines. Absolute tech wizard, can help jump onto a screen share webinar with you if you're having issues with mp4 or can't get the software to work or anything like that. So there's that kind of support.

Weekly live webinars to attend

Plus of course we have weekly live two hour webinars. Now, Paul over in America holds a webinar every second week in the US time zone. I hold a webinar in the European time zone, which is my evening here in New Zealand, every two weeks. You've got recordings going back to 2010, massive, massive library of valuable information, all recorded live. And of course ongoing, you can attend all of these live. We're placing trades, we're talking about trading, we're answering  questions, all these things in real time. It's really interactive. You can jump on board and in typing questions and say, Hey, Andrew, look, I took this trade. It didn't work. Why? What was the issue? What should I had seen? Or Andrew, look, I'm taking this trade right now and what do you think of it? All those kinds of things?

So the support of course, on top of that we have a support site and we have email support.

You don’t need to trade alone

So the point of this is you don't need to be trading just by yourself. Sit there at home, tucked away in a room somewhere in your house or on your laptop or feeling like you shouldn't be trading because you don't have support or you're kind of jumping and chopping and changing systems. That's not a good way to your longterm success. Joining in with a bunch of fantastic people all around the world, different time zones, all who are focusing on the same strategy. And why? Well, because it works.

If you'd like to join us, you're more than welcome. Great to have you on board. I'm going to put a link below this video and podcast and it'd be great to have you join us and add to the success from the thousands of thousands of traders worldwide.

So once again, this is Andrew Mitchem, the Forex Trading Coach. I see you this time next week.

Click here to know more about my Forex Coaching Course

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#284: Should you back test your strategy?

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Should you back test your strategy?

In this weekly video:
00:22 – Should I and how do I back test?
01:00 –  Why back testing is beneficial
02:02 – Live testing can be very slow
03:08 – How do you back test a strategy?
04:02 – Other benefits of back testing
04:40 – Good back testing is very beneficial

Is it beneficial to back test your forex strategy? Let's talk about that and more right now.

Hi traders. Andrew Mitchem here, the Forex Trading Coach of video and podcast number 284.

Should I and how do I back test?

Now I get a lot of questions about back testing and people will say, “Hey Andrew, should I back test? How do I do it? What's the best way of doing it? Is it a waste of time?” All those kind of things. And I suppose it depends on who you talk to, depending on what answer you get. But my opinion is that back testing is very, very important and I strongly encourage clients to do that.

A number of reasons why. But it's also important to understand that you have to do good, thorough back testing. You know, not just be a bit blasé about it. It had to be very thorough in order to get the best amount of information from that.

Why back testing is beneficial

And what I love about it, as someone who does a lot of manual trading, is that it encourages you to look for patterns, and it also trains your eye for looking for patterns, without that real life pressure of trading right now.

The downside with forward testing as in like learning something, whether it even be on a demo, but learning it live is, it's very emotional, very psychological, sort of, not so much damaging, but you know, it can affect your trade decision by having something happening right now live in the market, but also it's very, very slow. And it's also highly dependent on what the conditions are right now.

So I'm filming this. We are August, traditionally a very, very slow month. July was typically slow, like July is most years. Northern hemisphere, summer holidays, vacations, etc. And probably expecting much the same to happen in August.

Live testing can be very slow

So live testing now for the next month may not give me that full appreciation and that full understanding of what my strategy, if I'm learning a new strategy, could be like.

However, back testing can give you some really good information. But like a lot of things, practice is okay, but bad practice is not good. Good practice is good, if you get what I mean there. Because you know you can just keep doing the same old thing, same old thing, but if you're making mistakes with that, that's not great. But really good thorough practice I believe is very, very good.

Because it helps you to gain confidence within your strategy. And if you can see a strategy or a pattern, whatever it is that you're looking for, work historically well throughout month by month, year by year. That has to give you that confidence that you need to trade that strategy live in real time, when it's very, very slow. Because you know, you're going to wait day after day.

How do you back test a strategy?

So how do you go about doing this and what can you get from it? Well, there's a number of ways you can go about doing it. But the best thing is to either buy some back testing software, or download good historical data from your broker and go through it very thoroughly looking for the patterns that you're looking for, looking at the price levels.

But be careful if your strategy uses too many indicators because a lot of indicators look different when you're looking at them in hindsight in historical information than they do live, because most indicators are moving throughout the formation of a candle. However, that doesn't affect me and my strategy because I only ever look for a trade setup upon the completion of a candle. So you need to just be aware that if you're using indicators and taking trades that are not candle based related. So that's one thing there.

Other benefits of back testing

But what it can also do is have enormous benefit when you're looking at back testing. Because you might find that your strategy may not work very well on a Monday or a Friday, or it may not work very well for the first five hours of the day and as soon as the European session starts to kick in, then it works tremendously well. So it's different things like that that you can make from your analysis when you use back testing data correctly.

And as I mentioned, trading, when you go live, not only is it slow, it is psychologically, you know, different than simply looking through historical data.

Good back testing is very beneficial

So I believe yes, the answer is yes. Good back testing is very, very good because it helps you gain confidence in your strategy. It helps train your eye of what you're looking for, if you are looking for patterns and it will tremendously help give you confidence when you are through quieter times like we've just seen in July and likely to see into August. It helps give you confidence because you can do a number of things.

You can either say, well, I'm not trading in August, well let's say. Or you can say that traditionally August has always been a little bit slow on the daily charts. Therefore I'm taking my strategy down to four hour charts, one hour charts, until the market conditions improve and increase in volume. So various things like that you can do.

So if you do it right, it's say a massive advantage to you. So I hope that helps. This is Andrew Mitchem, the Forex Trading Coach. I'll see you this time next week with more trading tips and information.

Click here to know more about my Forex Coaching Course

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#283: What are your plans to Forex success?

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What are your plans to Forex success

In this weekly video:
00:25 – Assessing your trading year so far
01:08 – Most traders don’t really know what they are doing
02:13 – Be careful relying on social media
02:40 – Seeking specialist education and coaching
03:35 – Getting the hours of practical experience under your belt
04:25 – A real strategy that works well
05:27 – What are you going to change?

What are your plans for your Forex trading success? Do you have any? So let's talk about that and more right now.

Hey, traders, Andrew Mitchem here, the owner of The Forex Trading Coach Video and Podcast Number 283.

Assessing your trading year so far

Now, last week I talked about assessing your midyear point, where we're into July. We've gone way past halfway through the year of 2018, and how are your trades going? What is your performance? Are you doing well or not well? The feedback was quite amazing. The overwhelming majority of people wrote to me and said, “Look, I'm just not making anything. It's not working. I'm struggling. How can you help?”

So it got me thinking. And it's like if you're in that situation, what are you doing about that to try and change things? Because obviously, like the phrase goes, kind of, if you don't change things, the results will stay the same. It's really about what are you doing.

Most traders don’t really know what they are doing

The feeling that I had from a lot of the emails that came through were that people, mostly they don't know what they're doing. That seems to be the biggest common mistake. People think they want to get into trading. They suddenly want to become a full-time trader. They don't really have a proven strategy, and so they're trying to sort of make up something, conjure up something from a combination of forums and YouTube videos and all those type of things.

You see, the reality is that trading by yourself, if you don't know what you're doing, can be a real lonely business. You'll sit there sort of reading these latest posts, adding this indicator, chopping and changing things, and it really does become a bit of a mess, to be honest. Most people don't understand money management properly. They don't understand reward-to-risk properly. They don't really know what timeframe or what kind of strategy they want to trade. Who do they go and seek for help and advice? So you can see it's just a big mess there, and I get the feeling that the vast majority of retail Forex traders are in that position.

Be careful relying on social media

Look, I put videos on YouTube, and I make them helpful videos, but unfortunately, with forums and YouTube and other social media, is that the vast majority is full of rubbish really. Think about it this way. If you wanted to become a doctor or a builder or a sports professional, are you really going to learn how to do that by watching some free videos on YouTube?

Seeking specialist education and coaching

It's not likely to happen, is it? So, what do those people do? Well, they seek education. They seek advice and specialist coaching and help to make themselves better.

I'm learning to play squash, and I've mentioned it a few times, I fly a helicopter. When I learned the helicopter flying and now when I'm learning to play squash, yes, there's some useful information online, absolutely there is. I'm not knocking it. There is some very, very useful information, but the reality is you need to get out there and do it practically. I can't learn to become an A-grade squash player by watching it on my computer behind me. I have to be on the court learning how to do things, learning how to hold the racket, address the racket, address the ball, foot placement, all those type of things.

It's the same if you want to be a doctor, builder, whatever it might be. You have to get those practical hours and experience under your belt.

Getting the hours of practical experience under your belt

To be absolutely honest, Forex trading is no different. You have to get those hours under your belt to understand the practical side of things as well, and that is really, really important, and that's where we help people because we are practical people. We take trades daily for people to follow. We have forum sites that are all about the strategy. They're not sort of random, waffle-about things that most forum sites are like there. All of my clients participate on the forum site with positive information about trades, et cetera, about the one strategy that we teach. That's really important. It doesn't get your mindset going off into tangents about oh, what happens if I do this? Or what happens if I take on this new strategy? It's not good to do that. It plays with your brain.

A real strategy that works well

You have to get a proven strategy that you have full confidence in that you can see works, that you've seen has worked in the past, different market conditions, and will continue to work. That's where your confidence comes from, and it's like watching live webinars. I hold a European trading session webinar. Paul, who works with me over in America, held a US session. He held one just last night. It's really, really important to have that practical, ongoing help and tuition, and that's what makes this work.

So if you'd like to know more, just drop me an email, [email protected] or leave a reply under this video if you're watching the video on my site or any other sites or YouTube, et cetera. Like I said, I'm not knocking YouTube. I'm not knocking free information. There are some good videos and information out there, without a doubt. But you've got to be quite selective, and then you need to get some proper help to take your trading to that next level.

What are you going to change?

So, just remember that. The vast majority of feedback last week was from people not doing well. So what is it that you are going to do to change that situation, if that's you right now? Carrying on doing the same old thing is likely to lead to the same old result.  I don't want people at the end of this year to be saying, “Oh, look, things are still not going well.” It's time to do something about it. If you want our help, we're here to help. We're not pushy about it. We're perfectly fine making money by ourselves, thank you. But if you want to join us, then it'd be great to have you onboard.

So once again, this is Andrew Mitchem, The Forex Trading Coach. I'll see you this time next week.

Click here to know more about my Forex Coaching Course

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#282: How’s your trading going so far this year?

Podcast:
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How’s your trading going so far this year?

In this weekly video:
00:25 – Mid way through July – how are your results?
01:09 –  Tough trading year in 2018
01:34 – Trades from my live webinars – success on the H8 charts
03:15 – Trading the same way for 12+ years so it’s well proven
04:39 – Automated trade copier service producing amazing results
05:50 – Assess your trading results – Summary

How's your trading going this year? Have you assessed it yet overall? Is it going good? Is it going not so good? Let's talk about that and more right now.

Hey Forex traders, Andrew Mitchem here, the Forex Trading Coach with video and podcast number 282.

Mid way through July – how are your results?

So we're now midway through July. I think it's quite a good time to assess how your year is going so far. Have you had a good year so far? Have you got to about a break even stage? Are you losing? How's it going? How are you finding the conditions? It's quite a nice time of year to be reflecting on what's happened; we're sort of … We've passed the six months, full six months through the year. If things aren't going quite so well, it's now time to do something about that before all of a sudden we find ourselves from July now through to suddenly it will be Christmas time again and another year's gone. So it's important that you do something about it right now if you're trading's not going so well.

Tough trading year in 2018

Now I read a report on Forex Factory just yesterday morning and it was talking about how the 2018 year has been quite a difficult trading year for a lot of the larger financial institutions. So it's really interesting to see that those guys with a lot of their traditional ways of trading are finding things quite difficult. That was an article on Forex Factory.

Trades from my live webinars – success on the H8 charts

It's also interesting that every time I hold a live webinar, I'm putting the webinar together and I'm looking at trades that I've taken myself over the last week or clients have posted either on our forum site or emailed through to me and it's really interesting that when we trade a variety of different timeframe charts we find that for whatever reason, and I don't know the answer I can't explain why, but different timeframes seem to be producing better trade setups depending on the market conditions at that time.

As an example: I use some software that I've had created that allows me to trade eight hour charts on the standard MT4 account, which is not a normal timeframe that you can trade on MT4. This week, we've had an enormous amount of very high quality trade setups on the eight hour charts. When I held my webinar previously, the six hour charts showed really good setups. But I went through the six hour charts before presenting the webinar with the benefit of hindsight and could only find about three really good trade setups for the week, not many. However, we did have one six hour chart trade that I took on the webinar, but there were only three previously to that. Whereas the eight hour charts I think I had around 15 trade setups. Not all of them I took myself because of the time of day and night et cetera when the eight hours change over, but I took a lot of them myself and the others other people had taken themselves and posted.

So there were an enormous amount of good trade setups on the eight hour charts this week. Why the eight hour charts work? Who knows? Can't explain it.

Trading the same way for 12+ years so it’s well proven

But what it does mean though is that when you trade the same strategy that we trade in, we teach … And bear in mind I've been trading this same strategy for 12 plus years, been teaching it for nine plus years now, the beauty is that it's a proven strategy across all market conditions. It just means that on certain times depending on the current conditions, different timeframes will show us higher quality and more quality setups than other timeframes. You don't know that in advance.

The point I'm trying to make is if you have a strategy that works and that's proven to work, like my strategy, the beauty is it can work on any timeframe and any currency pair. So the beauty of also trading the slightly longer timeframe charts, such as like the six and eight and 12 hour charts, is you know exactly when you need to look at your computer. So if you wanted to trade all three eight hour charts in a day, you just need to look three times a day. Now, for most people that's probably not something you're going to be able to do. I personally trade the eight hour charts twice a day. I don't look when it's my early hours of the morning, because I'd rather be sleeping. But it still allows me two out of three times per day I can look at the close of the eight hour charts. Real simple, takes just a few minutes twice a day to do that. It really does help.

Automated trade copier service producing amazing results

The other thing I shared with my clients last night and I've mentioned it on these webinars and videos and podcasts in the past is my amazing trade copier service. It will take you five minutes to set up. You need an MT4 account and you link it through to the trade copier software that I use by Forex Solutions. Within five minutes your account can be auto traded using my own trading algorithms. It's an amazingly beneficial way of adding to your account. Now, if you did nothing else than traded at the default risk, which is really low risk by the way, you'd be up over 23.5% today since this service started in November. Now, you could also choose to trade at twice the default risk, that means you would be up around 47% since November. Or you could trade at three times the risk. Whatever it is that suits you. It's an amazing way of adding to your account without doing anything apart from linking it which takes five minutes of work, and a monthly subscription fee.

So I'll put a link below this video and podcast to my trade copier service, if that's something you'd like to jump on board with.

Assess your trading results – Summary

But just remember to assess your trading right now as we're more than midway through the year. If you're going good, fantastic, great. Don't change anything. Stick being methodical and keep accumulating. If things are at break even or losing or you're tearing your hair out, it's about to go wrong and you're about to give up, then I strongly suggest you look at my help with my five star rated coaching course or have a look at the trade copier.

So this is Andrew Mitchem, the Forex Trading Coach. Go and assess your results and your performance right now and let me know if I can help.

Click here to know more about my Trade Copier Service

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