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.