Do You Enjoy Sitting at Your Computer All Day?
In this video:
00:30 – A traders’ journey and why so many give up
01:19 – Sitting for hours watching charts
01:47 – When I started trading
02:30 – You find it doesn’t work out
03:12 – Our approach to trading: Less is More
03:34 – I’ve traded just the daily and weekly charts this week
04:00 – A lack of knowledge
05:02 – Trading a variety of charts
05:44 – Have a life and trade well
As a Forex trader, do you really enjoy sitting at your computer all day waiting for trading set ups? If you do that's fine. But if you don't and you'd like to know how to change your trading so it's more enjoyable, I have exactly what you need. Listen up, let's get into it.
Hey traders, it's Andrew Mitchem here, the Forex Trading Coach with video and podcast number 325.
A traders’ journey and why so many give up
Now this video is all about how people progress from absolute beginners through to good traders and the reason why so many people tend to give up trading too early, probably. So natural progression is this; you probably have heard about trading, you might have been and done a course maybe it's online, maybe it's in person somewhere, big group of people. You may have known someone that's traded, you've looked on forums. All those type of things, you see an ad online somewhere. Whatever is you get into trading with this huge hype and expectation of it's going to be fun, it's going to be easy and you're going to set out your charts and you're going to see some trades and make some money. That's how it's all going to plan out.
Of course the reality is that doesn't happen, pretty much in all cases actually.
Sitting for hours watching charts
Most people when they start because they have the buzz and the excitement of trading is that they think they're going to have to sit there and they do sit there and make yourself have time to sit there watching charts. The problem is is that when you're sat at your computer that's when you're making a trade happen, like you're almost forcing a trade to happen, you're wanting it to happen, you're waiting for it to happen. So people tend to take trade set ups that are not really that good a quality.
When I started trading
Now back when I started trading, 15 plus years ago, we only had dial up internet. Of course if you were lucky enough to get dial up to actually have a stable connection, and you only had a very small data plan like a gigabyte a month let's say. Which back then was actually really quite good. I did the same. I was looking for trades and kids were in bed, I'm ready, computer's working, internet's working, let's take a trade. What are we going to do? Of course the danger is that the market wasn't ready or there were no set ups. That's what people still do today. But you have the ease of high-speed internet and fibre, and cheap data plans and mobile phones et cetera. So you're wanting to take more and more trades.
You find it doesn’t work out
What actually you find out is that over time that doesn't work. Unfortunately before you find that out, most people actually give up because they're losing too much money, they're blowing their accounts. Or they are just spending so much time that it's not sustainable. Either you get that or they start absolute hiss and roar, go really crazy, and then find that real life continues and jobs and family and whatever it might be and I cannot commit that amount of time to sitting at my charts or I get home from work and the last thing I want to do is then sit down in front of a computer looking at charts. All of that is very understandable. That's why so many people give up.
Our approach to trading: Less is More
Our approach is the complete opposite to that. You'll find that most full time traders and most good traders, whether they be small time retail traders but they've been doing this successfully for a while, the approach is less is more. Longer time frame charts, trading less, enjoying life, making it sustainable and enjoyable and practical. All the important things. So I'm here in Nelson, top of the South Island.
I’ve traded just the daily and weekly charts this week
Been here for this week. I've traded just the daily and the weekly charts and that's it. People would then go, “Hey Andrew, it's okay for you, you've probably got a bigger account. I can't trade daily time frames or especially weekly time frames because the stop loss needs to be too big, and I can't afford that. My account size is not big enough,” or, “I can't take a 70 pip stop loss or 120 pip stop loss or whatever it needs to be.”
A lack of knowledge
The reality is if you think like that then your knowledge is not quite as good as you think and so it's a lack of understanding, a lack of knowledge of how to do that that's holding you back. That's why most people tend to go to short time frame charts because they think they're in and out of the market, they don't have to worry about swaps, they don't have to worry about news announcements or they think that they can only trade with like a 20 pip stop loss, let's say, because they've got a smaller account size. The reality is that everybody can trade with a bigger time frame chart because you understand position sizing correctly and you forget about number of pips that you're risking or making and you'll then figure out that you can trade longer time frame charts, they'll be more enjoyable, they'll take less time, there will be more reliable information and you absorb news announcements, the spread of the currency pair doesn't matter so much, and life's so much better.
So you just need to get to that stage to figure that out.
Trading a variety of charts
We're doing this all the time. We've got many, many hundreds and hundreds of traders around the world, probably thousands of traders around the world, who trade our way and hardly anything less than daily charts. We've got a whole number of hundreds and then maybe thousands of other traders who will then go down to maybe say like four hour charts or sometimes even one hour charts. You can trade our strategy on any time frame chart you like or any pair, it's really up to you. But we really do try and promote that more enjoyable lifestyle, enjoyable way of trading because that's what's real and that's how you probably will end up trading if you trade for any length of time.
Have a life and trade well
So if you'd like to know more about how you can have a life and trade well and make money, you need to be in contact with us. So get hold of us at theforextradingcoach.com and once again this in Andrew Mitchem enjoying Nelson here. Believe it or not, this is actually the middle of winter. We're only a week away from the very shortest day of the year. We're already 5:00 PM and it's warm out here and it's beautiful. Great place to be. So have an enjoyable, practical trading experience, get onto the longer time frame charts. If you need our help you know where to find us. See you next week, bye for now.