Do You Need To Be Good At Maths To Be a Good Trader?
In This Video:
00:39 First Question of the Week – Math Problem!
01:44 Second Question of the Week – Strategy Reveals
03:13 Client Side Success
Do you need to be good at maths in order to be a good Forex trader?
I want to share that and a client’s fantastic results where he made nine and a half percent (9.5%) for the week and more details with you, right now!
Hi Forex traders, it’s Andrew Mitchem here, the Forex Trading Coach and in today’s video and podcast, I’d like to share with you a couple of questions that I’ve had sent through to me from a viewer and, also, as I mentioned, I’ve got a fantastic account increase of nine and a half percent from one of my clients who made that last week – I’d like to share that with you as well.
First Question of the Week – Math Problem!
So the first question here is: “Hi Andrew, do you need to be good at maths in order to be successful a Forex trader?”
And I suppose when you think about it, we’re dealing with numbers, we’re dealing with patterns quite a lot and so, yes it does help. You know if you’re talking of a price action, price levels; if you’re looking at calculations in terms of working out your risk or your reward, then yes, numerical skills obviously would be an advantage but the benefit and beauty we all have in Forex trading today is that there are so many tools out there – and I’ve got lot-size calculators and I’ve got scripts that my clients have that can work out the risk for you and place the trade for you even – based on a set risk!
So, having some skill-set in maths is important, yes, but it is not an absolute critical factor in determining whether you’re going to be a good trader or not. Probably more important is having a sound strategy, being able to implement it and be able to see it in real time and being consistent with that strategy is probably just as important!
Second Question of the Week – Strategy Reveals
The second question is, “Why are you sharing your strategy as a lot of traders believe if you disclose your strategy, it will stop working?”
And you know, I suppose I get asked that question quite a lot and it’s a very good logical question. Well, the Forex market is enormous, you know – I can’t really see how one strategy even if you share it with thousands and thousands of traders is really going to influence the market that much.
You see, I base my trading on price-action and candlestick patterns and it works across all currency pairs, across all time-frame charts. I’ve been trading that exact way for over 8-years now. The beauty is it works across all market conditions because if you think about it, if there’s nice trends going on then there’s lots of good price-action pattern showing.
If the market’s a little bit flat or subdued on one particular time-frame then you just don’t take any trades on that time-frame – Very little is setting up!
But more than often, if you go down to a different time frame, generally the shorter time-frames, you’ll always see a suitable trade somewhere if you really want to go hunting for it. The discipline of the trader though is to have the time-frames and the time of the day that suits you to trade and sticking to that – don’t go searching and hunting for trades – it’s just not worth it!
But, yeah, to answer the question – the market, the Forex market, is enormous! I can’t really ever see, you know, one person’s strategy is going to be that powerful that it influences the entire market – I can’t see it!
Client Side Success
And lastly, the third thing, and this is a great email that I received at the weekend from a client:”Andrew, just to let you know, I had another great trading week” – and notice it’s “another”. It’s not a one-off, it’s ‘another’ great trading week. 43-trades, 26, wins; 17-losses; 61% win-rate; my account increased by 9.5% for the week with a half of 1% risk per trade.
So notice how this client’s using the risk management that I always implement – of half of 1% or 0.5% risk – so very low risk per trade!
He did take a lot of trades, mostly on 6-hours, 12-hours and daily charts but a nine and a half percent gain on his live-account just for the week. So, just goes to show what can be achieved if you have that sound strategy, low risk, high returns per trade and just keep doing it!
See the setups, take the setups, profit of +9.5% in the week – you cannot argue with that!
So, thanks everybody for sending through questions and trading results. If you have any questions you like, that you’d like me to talk about and answer in podcasts and videos like this, just drop me an email: [email protected] and I look forward to bringing you more information and Forex Trading tips this time, next week!