Divergence Trading in the Forex Market
#519: Divergence Trading in the Forex Market
In this video:
00:29 – Divergence. What is it and how do we use it?
00:55 – Continuations and Reversals
02:02 – Trading with both patterns
02:33 – New trades or Early exits
03:39 – Book a call with myself and my team
03:53 – Blueberry Markets
I’m going to talk today about trading divergence in the Forex market. It’s a very powerful tool that can help you to identify continuation patterns and reversal patterns. So let’s get into that and more. Right now.
Hey there, Forex Traders! This is Andrew Mitchem here at the Forex Trading Coach, For a video and podcast number 519.
Divergence. What is it and how do we use it?
So today I want to talk about divergence is a very powerful tool that can help you to identify both reversal patterns and continuation patterns.
And divergence occurs when you use an indicator such as like the RSI or my case, the stochastic indicator, and it occurs when the price moves away from the direction that the indicators suggest the price should be moving in.
Continuations and Reversals
And there’s two ways that we use divergence and we use it for a continuation pattern, which is what they call hidden divergence, and that is when the price is moved up, it then pulls back and we get a hidden divergence looking for the price to continue again.
So what you get there is in an uptrend, the price makes higher lows and the indicator makes lower lows. And when you see that occur, that gives you the best indication that the price is likely to continue upwards.
And we see regular divergence occur when we’re looking for a trend reversal. Now, this is certainly a higher risk type of trade because you’re looking at taking a sell trade at the top of an uptrend or buy trade at the bottom of a downtrend.
So with regular divergence in an uptrend, what we’re looking for there is the price making higher highs, but the indicator fails to do so. In fact, the indicator makes lower highs, so you get the price doing one thing and the indicator doing the other. This suggests a reversal pattern or regular divergence.
Trading with both patterns
So with both of these two patterns, both regular divergence and hidden divergence, you certainly need everything else that you’re looking for to occur first.
In my case, we’re looking for the candle pattern to be in the right part of the chart. We’re looking for round number, strength and weakness, etc. And for me, divergence is just like the cherry on top. It’s the thing that makes a trade go from a pretty good trade to a really good trade because there’s one extra layer of confirmation there.
New trades or Early exits
So two things you can do here. If you’re not currently in a trade and you see a trade set up and you get either reversal patterns or continuation patterns occur, then what you can do is it gives you a high probability entry position.
If you are already in a trade and let’s say you’re in a buy trade and you’re not quite at your profit target and you see a negative or hidden negative divergence occur, in other words, the price looks like it’s going to fall and you’re still in a buy trade.
It can give you an early warning system to get out of the trade early. So two ways of using divergence there. One, if you are looking to get into trade, number two, if you are already in trade and potentially might need to get at early and two different types of divergence, regular divergence for reversals, hidden divergence for continuation patterns, my personal favorite is always hidden divergence because it gives me the opportunity to ride the trend after a slight retracement or pullback.
Book a call with myself and my team
If you’d like to book a call with one of us to find out more about how we can help you with divergence and to understand the whole trading strategy as a whole, I’m going to put a link here where you can book a call to have a chat with either myself or one my team.
And if you’re out there looking for a really good forex broker, I can highly recommend Blueberry Markets.
They offer the MT4 and the MT5 trading platform. I’ll put a link to them here as well. So I hope that help is. I hope that you use this very powerful tool called Divergence and use it the right way with your trading strategy. Or if you don’t have one, please come and ask us how we can help you to create a trading strategy or to trade the way that we do and put it together with a good strategy. Divergence will massively help you.
This is Andrew Mitchem at the Forex Trading Coach. I see this time next week. Bye for now.
Episode Title: #519: Divergence Trading in the Forex Market
Find out more about my Online Video Forex Course
Are You Emotional or Erratic?
#518: Are You Emotional or Erratic?
In this video:
00:27– What type of person makes a good trader?
00:50 – Having a strategy and controlling your emotions
01:26 – We all see and know reactive people
02:37 – Have a plan and stick to it
03:21 – Daily trades and Weekly Webinars
04:05 – Consistency is key
04:37 – Book a call to chat with us
04:51 – Blueberry Markets
Emotional and erratic. People will never make good traders. To trade properly, you’ve got to get your emotions under control because it’s all about the head. Let’s get into that a more right now.
Hey there. Traders! This is Andrew Mitchem here, the owner of the Forex Trading Coach with video and podcast number 518.
What type of person makes a good trader?
And quite a blunt lesson today in some ways. And it may upset a few people, but, you know, possibly that’s the point. And if you want to give yourself a good chance of being a good trader, you have to control your emotions. You cannot be one of these erratic, emotional, responsive type of people because the chances are you’re not going to do very well at trading.
Having a strategy and controlling your emotions
You see, trading, we know, is all about having a strategy and understanding what you’re doing, but it’s all about understanding. It’s also about understanding your mind, your heart, your emotions, because the reality is that we’re trading with real money and emotions come into play. You cannot hide that. You know, you can get away from the fact that. If you’re on demo, you may not quite understand this yet, but if you’re live trading, you will know that emotions come into trading and become a big part.
So you need to understand the emotional, psychological side of things, plus your strategy and how the market works and put that together.
We all see and know reactive people
Now, look, we’ve all seen, you know, emotional, reactive, erratic people. You know, you see them if you’re driving, you see them on the road and they had blowing a horn for something stupid. You see people at airports, you know, when emotions start getting a little bit much and people get a bit stressed and they go to do dumb things.
You see that around like, you know, you seen it in the last few years with all the stuff that’s going on in the world. And if you’ve got any slight opinion or different to the, you know, the government or mainstream people have been smashed for it, well, they’re just having their opinion. And much of the time they’ve probably done more research than everybody else anyway.
So but people find it very easy to be emotionally reactive rather than actually stopping thinking and in doing things properly or just letting someone house have a different opinion, it’s perfectly fine. It’s nothing wrong with that at all. So what makes the world go round? It’s what makes trading go. You know, why is why do some people see the market moving up and all those people said moving down? So you’ve got to get that under control.
Have a plan and stick to it
Really important because when it comes to emotions in trading, you need to also have some form of plan and stick to it as well. You know, people that just suddenly go. The six hour charts are rubbish or last week they failed so and I lost money on them. So I’m never going to look at them again.
Hey says mate, why would you do that? You know, if your strategy is to look like mine, let’s say twice a day, and I always look at the daily charts and at the same time I look at the 12/8/6 and then that’s at 5 p.m. New York time, 5 a.m.. I’m always there, you know, always on the forum site.
I always there looking through the shorter time frame. So the two, four, six, eight and 12 at that 5 a.m. changeover. And we’re doing that without fail.
Daily trades and Weekly Webinars
You know, every day since 2009 we publish our daily traits we’ve never missed one day. Every week we’ve held our live webinars. We never miss them. We don’t go all. Last week it was a terrible webinar, so I’m not going to do another one.
Last week the daily trades had a losing week, so we’re not going to bother looking this week. You know, that’s a crazy thing to do. And likewise, people get very caught in the emotions when it comes to risk management as well, and they’ll go, Oh, I had a losing week. So this week I’m going to double up on my risk of something like that.
I’m not about a stop loss in or I can’t be bothered looking at the, you know, the daily charts this week. Real dumb things like that that really do not aid you to be consistent.
Consistency is key
Because consistency relies on strategy, it relies on common sense, it relies on turning up, it relies on your plan, it relies on sticking to it.
And all of that really comes back to you and your mind, your mind, your emotions, your heart. And because if you can’t get that bit right, then forget the rest of it. Really, if you can and you are willing to work on that and willing to, you know, work on a plan and stick to it through the good times and the not so good times, then you need to be in touch with us. Give us a send us an email.
Book a call to chat with us
You can also book a call to have us chat to either myself or one of my team. I’ll put a link here on this video on podcast, the where you can go and do that. It’s TheForexTradingCoach.com/Call
And also if you’re out there looking for a really good broker, I can highly recommend Blueberry Markets over in Australia. They offer the Metatrader 4/Metatrader 5 platform. They have lots of different markets available on MT5 of course, different timeframe. Charts are really good people, really, really good people. And again, when it comes to response and helping their clients, they’re absolutely unbeatable.
So I hope that helps get your emotions under control, Relax, enjoy your trading, look at what you’re doing, stick to it, turn up, be consistent.
It will massively help you. I see This time next week. This is Andrew Mitchem at the Forex Trading Coach. Bye for now
Episode Title: #518: Are You Emotional or Erratic?
Find out more about my Online Video Forex Course
Big Benefits to Trading the Longer Timeframe Charts
#517: Big Benefits to Trading the Longer Timeframe Charts
In this video:
00:27– Coming to you from my favourite beach Awaroa
00:53 – Daily trades taken, then off to enjoy life
01:23 – Too many traders get glued to the charts
02:18 – The benefits of trading the longer timeframe charts
03:38 – Everyone can trade the longer time frame charts
03:50 – Book a call with me and my team – https://theforextradingcoach.as.me/schedule.php
04:56 – Blueberry Markets
In today’s video podcast, I’m going to talk about why I love trading the longer time frame charts or the benefits that it gives you and the results that it give you, too. Let’s go into that and more right now.
Hey there, traders! It’s Andrew Mitchem here, the Forex Trading Coach with video on podcast number 517.
Coming to you from my favourite beach Awaroa
And today I’m going to explain why I like those longer timeframe charts. I’m at Awaroa one of my favorite places. It’s coming up to the end of winter here in New Zealand. And just flown here today with my wife in the helicopter and just been to see some friends and now we’re about to go and have a bite to eat for lunch on the beach. And as you can see, there’s as two people here on the beach. That’s it. And us. And why am I telling you this?
Daily trades taken, then off to enjoy life
Well, earlier this morning, I took my time. I took my daily traits for the day three trades day off the daily charts. Yesterday, I took a trade as well. And also one on the eighth hour charts yesterday. And then last night my time I took three trades on the 6 hours and that was it for my trading yesterday.
Reasons for trading. Those longer timeframe charts means you only need to look like once or possibly twice within a day.
Too many traders get glued to the charts
Unfortunately, far too many people get caught up into the problem of feeling like they need to sit there watching one minute charts and 5 minutes. Yeah, so 15 minute charts because they feel they should do they load their charts up with all these pretty patterns and it’s just this complete utter information overload and clutter of dots and lines and arrows and different things on that chart because the brokers inundate you with all this technical analysis and you’re convinced that that’s what you have to use.
Real traders pretty much ignored us to that. And that’s the difference, I suppose, between people who go into it and think they’re going to find some magic formula with hundreds of patterns all over their charts and dots and lines and crosses and things, and people will actually look at candle patterns and and price action and use bigger picture analysis.
So, and strength and weakness, etc.. And that’s there so many benefits of trading those longer timeframe charts. You know, people with families, with careers, with other things to do, travel, whatever it is, You can go and do that and trade full time and do really, really well from those longer timeframe charts. So I look at the charts always at 5 p.m. New York time and make my analysis they are based off the daily charts and beginning of each week of the weekly charts, beginning of each month of the monthly charts and every single day, daily charts.
And then I also look through 12, eight and six at the same time. And you can do that all in 15-20 minutes a day done. And then personally, for me, I look at the close of the sort of four, six and 12 hour charts which is at 5 a.m. New York time. You don’t have to be at your chance at that time.
That’s just what suits me that other that second time, because you’re getting like two or three other time frame charts change over then. Longer timeframes, more time to figure out what’s actually happening. You’re not using emotions. You’re not rushing in to try and stupidly you’re looking at what’s really happening in the market and making your analysis. Plus, it allows you to go and do stuff like this.
I mean, look at this behind me. Absolutely stunning. Tide’s out quite a way right now, but it’s just I’m going for a swim, actually. Yeah. When I finish this. And it just shows what can be done.
Everyone can trade the longer time frame charts
You know, the other thing also is just to let you know is that so many people think that just because you’re on a longer timeframe charts, they cannot trade those trades, those timeframe charts with smaller accounts. And again, that’s not true also.
Book a call with me and my team – https://theforextradingcoach.as.me/schedule.php
So if you want to find out more what I really suggest you have a look at doing, If you’ve not already jumped on to one of our call sessions with us, go and book a call to speak to myself or Paul, Mikalai or one of our team, and I’ll put a link so you can do that about a sort of 30-40 minute conversation we’re happy to have for people who are serious about looking at getting into trading.
Don’t do it if you’re just they’re wanting like some some free stuff and you got no no real interest in wanting to learn for yourself. If you if you’re that they’re looking at trading as a serious option and you like to have a conversation with us to see how we can help you, to see if we’re a good fit, good match, because we value all of our clients.
We do everything we can to have our clients on board and make it work for them. So we’re really proud of that community. So we want to keep it that way, really vital for us that we have an amazing community of like minded traders from all around the world. So have a look at the link up here. You can book, have a conversation with us with Paul in America and Mikalai in London and some of the other team all around the world.
You know, you can pretty much find a time that’s going to suit you to have a chat with us.
Lastly, if you’re out there looking for a broker, have a look at Blueberry Markets. They’re based over across that water right there 3 hours fly that way or plane flight anyway in Australia and they’re a good bunch of people and obviously we markets and I started really impressed with them and MT4/MT5 lots of lots of different markets on MT5 as well.
So that’s it for now. I’m off to have some lunch, go for a swim and then fly back home. So I see this time next week. Bye for now
Episode Title: #517: Big Benefits to Trading the Longer Timeframe Charts
Find out more about my Online Video Forex Course
How to Trade Crypto’s, Indices and the Commodity Markets
#516: How to Trade Crypto’s, Indices and the Commodity Markets
In this video:
00:28 – We don’t only trade the Forex market
00:50 – Bitcoin’s massive crash in price
02:03 – We trade Crypto’s in the same way as we trade the Forex market
03:07 – Trading the Patterns that work
03:27 – Indices taken just this week
03:58 – Book a call with me and my team
04:31 – Blueberry Markets
So you want to know a safe way in which you can trade cryptos, but also indices, commodities as well as the forex market. Let me explain how we do that. Right now.
Hey, the Forex Traders! This is Andrew Mitchem at the Forex Trading Coach with video and podcast number 516.
We don’t only trade the Forex market
So obviously at the Forex Trading Coach we trade the forex market, but there’s so many of you out there that want to look at other markets as well, and metals, indices, other commodities and of course cryptos.
Now crypto has been still the buzz word, although things have just quietened it off a little bit. But you know, the issue that I see with a lot of those markets.
Bitcoin’s massive crash in price
Especially if you look at Bitcoin, for example, you know, the most well known crypto is that if you go back, let’s say to the end of 2021, Bitcoin was up around $69,000 and everybody was predicting it was going to get to 100,000 and then just keep going.
And of course, what happened? Well, it did the complete opposite. It absolutely crashed and it fell away. And by the way, back then, I predicted that would happen. And I was looking at the charts and looking at the monthly or the weekly charts back then. And on one of my live webinars clients, I said, it’s going to really drop. And we have a price prediction level. And guess what? It did that and ended up going even further.
But here we are right now, August 2023, and right now the price of Bitcoin is around $26,000. And imagine being back then sort of 65, 68, 69, just about reached $69,000, but somewhere around about then and, you know, buying a whole lot of Bitcoin. First of all, you need a huge amount of money upfront and to invest. But also if you’ve bought a $65,000 and it sort of dropped to today, $26,000, that’s a massive loss. You’ve taken that huge hit.
We trade Crypto’s in the same way as we trade the Forex market
And so the way that we trade cryptos, just this week I’ve taken trades on Bitcoin itself and the Etherium and also Chainlink is exactly the same as looking at the forex market.
So we can buy, we can sell, you know, go long and short week and look at the same charts on our Metatrader 4, Metatrader 5 and we have the same patterns, the same candle patterns. We’re looking for continuations, we’re looking for reversals. We can use different time frame charts. We have the same risk of our trade goes against us.
We have the same reward to risk. We’re looking at the same time of day. So there’s nothing different to what we’re doing trading, say, like cryptos than if we were trading the EUR/USD for example. And that’s the beauty of it. It’s just opened up a massive bigger amount of markets. And therefore when we come to look at chart patterns, which is what we do, we’re looking for patterns and we know the patterns that we look at have high probability of a successful outcome based off history in all the years of doing what we’re doing.
Trading the Patterns that work
So when it comes to the pattern, I’m not really bothered if I’m taking a trade on Bitcoin or Chainlink or the EUR/USD. It does not matter to me. And so we’re taking the patterns based on what we know works for us. So that’s for me is the way that I can trade these other markets.
Indices taken just this week
And so I’ve also on the indices, I’ve taken trades on the Nasdaq, the Footsie, the China H the US500 and on the commodities.
I’ve taken trades on Wheat. Last week I took a trader on Zinc on the metals. So we are out there looking at those markets when they show good set up. So for me that’s how you should look at trading some of those non forex markets exactly the same way. The beauty is you don’t need to learn anything new, you just need to understand how we trade.
Book a call with me and my team
Now what I’d also like to offer you, if you’ve not taken advantage of this year, is to have a chat with us, either with myself or one of my team. You can book a call and talk to us about your trading, where you need help, how we can potentially help you and give you some helpful tips and information.
So if you’d like to have a chat with one of us, like a 30 or 40 minute conversation. Book in a time, there’s not a lot of times each week, but book in a time. I’ll put a link here on this video and podcast. So wherever you are watching or listening, you will find a link to our booking calendar.
And finally, if you’re looking for a good high quality broker here, you can trade metals, the indices, cryptos, commodities and of course the forex markets look no further than blueberry markets. A fantastic broker Metatrader 4, Metatrader 5. Huge amount of different charts available. Very good spreads, good people and I will also put a link to them here as well.
So that’s it for this week. As I mentioned, you have a look at a variety of different instruments. Don’t just stick to forex. If you’re out there looking at more, there are more available, but it doesn’t take you really any more time. You’re looking for the same pattern. It works. Get in touch with us. Take advantage of that call as well.
If you’d like to have a chat with us. Don’t forget to book your call up this week.
This is Andrew Mitchem here, the owner of the Forex Trading Coach. See, this time next week. Bye for now.
Episode Title: #516: How to Trade Crypto’s, Indices and the Commodity Markets
Find out more about my Online Video Forex Course
Prop Firms Have Been a Game Changer
#515: Prop Firms Have Been a Game Changer
In this video:
00:30 – Why Prop Firms?
01:10 – Most people lack the funds to trade full time
02:02 – FX2Funding as a Prop firm
02:27 – Traders making excellent gains trading on Prop firms
03:48 – My risk per trade is 0.25%
04:38 – No time limit
05:21 – Blueberry Markets
05:41 – Comments and Suggestions for future videos and podcasts
Prop firms have been an absolute game changer for us as Forex Traders over the last few years. Let me explain how you can use prop firms to your advantage and make some substantial returns. Let’s get into that more. Right now.
Hey there, traders! It’s Andrew Mitchem here at the Forex Trading Coach with video and podcast number 515.
Why Prop Firms?
Today I wanted to explain all about prop firms, what they are good ones, maybe not so good ones, and how you can take advantage of them to substantially increase your returns that you make from the Forex market. So the good things with prop firms is you’re able to go to them and prove to them that you can try.
Now, of course, you’ve got to be able to trade properly first within their criteria. So you have to have a strategy and be a good trader before you do that. So don’t just watch this and go and jump into a prop firm because more than likely going to lose money. But what you should do is learn how to trade properly first. And of course, we can help you with that.
Most people lack the funds to trade full time
But the traditional issue that so many people have is even if they can trade properly, they’ve not had substantial capital or funds available to them themselves to be able to make good enough returns from the forex market in order to maybe use the forex market as a full time income.
Now, let’s say you know how to trade and you’re making I’m going to pick some figures, let’s say 50% return per year, but with very low drawdown. That’s absolutely incredible. And does almost any other investment out there, let’s say you only had $10,000 in your own personal account. Well, fantastically, you made $5,000. But of course, in most places around the world, that $5,000 is not gonna get you very far in terms of being able to live and survive. So that has always become the issue.
FX2Funding as a Prop firm
Now with prop firms, of course, there are good and there are not so good prop firms. And I’m going to put a link here to FX2Funding who I think are very good prop firm and other prop firms are starting to catch up with some of the rules and criteria that FX2Funding have brought in which I think again, is a bit of a game changer.
So I’m not suggesting you should only go to them. Have a look around, do your own due diligence.
Traders making excellent gains trading on Prop firms
But we have a lot of our clients here at the Forex Trading Coach doing incredibly well through prop firms. And just last week we had a client who’s up passed the challenge stage with a new prop firm and now is on $100,000 live and has passed the 10% profit on that on an 80/20 profit share.
He’s just picked up $8,000 not even his money. It may have cost him $500 to start a challenge and now he’s moving on to the next level. We also have a number of clients who have been through prop firms and with prop firms for quite some time, and a number of them are opening up new prop firms account every week or every few weeks and have multiple prop firm accounts, all running all at different stages of length of time that they’ve been with them.
And I can tell you they are making some crazy, crazy personal returns. Now, does every single prop firm challenge that you take pass? No, of course not. That’s not always going to happen. So having multiple prop firms open, all opening at the same time is a really good way to maybe limit the effects of maybe having a bad week in your trading.
But when you think about it, most good prop firms out there have a drawdown limit of, let’s say, between 5% and 6%. I know FX2Funding have now gone through a 6% maximum drawdown.
My risk per trade is 0.25%
Now, personally, I only risk quarter of 1% per trade on my prop firm accounts. Now, if you think about that 6% maximum drawdown and only quarter a percent risk per trade, that means I need 24 trades all in a row without any profitable trades, 24 trades to get stopped out all in a row and to go wrong against me, which has never, ever happened in 20 years trading, by the way.
But let’s say, you know, it did then I lose my prop firm challenge, but it’s not going to happen. It’s almost impossible to have 24 trades all go wrong without any profitable trades at all. So by having that very strict, low risk criteria that I have myself, that’s what personally suits me. I can ensure that, yes, it may take me a little bit longer to get to that 10% gain, but it’s going to happen now.
No time limit
The other thing you should look out for in a prop firm is don’t have a prop firm has a limit on getting to a 10% profit because otherwise you can do silly things and risk too much and gamble, which is what most people do in their own trading anyway. But unfortunately that means you’re probably going to get stopped out and lose your prop firm account.
So low risk, take your time, get it right if you get your 10% gain in a week because the market showing those, great setups, fantastic. If it takes you two or three months, it does not matter. The aim is to preserve your capital, get to that 10%. So have a look at FX2Funding I put linked to them here. Like I said, we’ve got a lot of clients using multiple different prop firms, but just doing incredibly well.
If you’re looking for a good forex broker, I can highly recommend blueberry markets. The base over in Australia, pretty much anybody from anywhere in the world can open an account with a few exceptions, of course, but go and have a look at them. I’ll put a link to them as well. And they have the Metatrader 4 and Metatrader 5 platform.
Comments and Suggestions for future videos and podcasts
If you have any questions about prop firms, just leave a comment below or email me Andrew@theforextradingcoach.com If you have any topics or discussions conversations you’d like me to talk about on future videos and podcasts, just like this same thing, leave a comment if you’re watching this.
If you’re listening, just drop me an email Andrew@theforextradingcoach.com and I’ll be pleased to answer that for you. Go out there, have a look at prop firms, but only do it once. You know how to trade first and you’re successful in your own live account first.
Have a great week. See you this time next week. Bye for now
Episode Title: #515: Prop Firms Have Been a Game Changer
Find out more about my Online Video Forex Course
How To Successfully Trade the 5 Minute Charts
#514: How To Successfully Trade the 5 Minute Charts
In this video:
00:33 – Should I look to scalp the market?
01:20 – Any Pair and any Market and any Time frame chart
01:53 – Most people don’t know when to look or what to look for
02:33 – Only take Continuation patterns
03:07 – Examples of Continuation patterns
04:11 – It’s all about the strategy
04:22 – Blueberry Markets
05:02 – Masterclass and book a call to chat with us
Should you consider trading the five minute charts? It’s a question I get asked very often. And just this week, one of our clients has posted some amazing five minute chart trades on our forum site, and I like to share details about that right now to help you. Let’s get into it.
Hey there, traders. Andrew Mitchem here at the Forex Trading Coach with video on podcast number 514.
Should I look to scalp the market?
Now quite often I get asked the question, Andrew, should I look at scalping? And scalping is trading shorter timeframe charts when you’re generally in and out of the market relatively quickly and most of the time I say the people don’t do it.
Stay away from anything from one hour charts and below because most of the time it consumes you. It’s lots of noise, lots of whipsawing around and the price action. And unless you know what you’re doing, it’s probably going to eat you alive. It’s probably not a great idea. And really it comes down to each to their own. You know, I much prefer personally the longer timeframe charts with the higher rewards risk looking less often. But we also have to acknowledge that not everybody wants to do that.
Any Pair and any Market and any Time frame chart
And the fantastic thing about my trading strategy is it can be applied to any currency pair, any market and any timeframe chart. Now, just this week, one of our clients, David, has posted for amazing five minute chart trades on our forum site. So David is only looking at his charts just three days a week and only for about an hour or so per day.
So it’s really important that if you are to look at short a timeframe chart such as the five minute charts, you do not make this like all time consuming.
Most people don’t know when to look or what to look for
The issue that a lot of people have is they don’t know when to look, they don’t know what to look for. And then because they’re sat there looking, they kind of bring emotions in trades and they feel like, Oh, I’m here right now.
I have to find a trade. And that becomes quite a dangerous thing. It’s like years and years ago when I started trading on dial up Internet and same thing. You finally got the Internet to work. And I thought, Right, I’m on ready to go now. Where’s a trade? Let’s make it happen. And of course, that’s not the way to trade.
So you know, fast forward and luckily we don’t have dial up any longer, but there’s still the same kind of issues that you must get away from. The fact that just because you’re there don’t force a trade to happen.
Only take Continuation patterns
So let’s get back to David. What David has done very sensibly is he has chosen to only take continuation trade patterns.
So here at the Forex Trading Coach, we take reverse patterns and continuation patterns. Reversals are pretty cool. They look really good on the charts as being a big uptrend and then the we looking to sell or there’s been a big downtrend. You’re looking to buy. That’s fine on the longer timeframe charts, but on the shorter time frame charts, a continuation pattern is a far safer, higher probability way of trading, and that’s what David has chosen to do on the four trades that he’s taken this week.
Examples of Continuation patterns
So as an example, there’s been an uptrend, a pullback, and then he’s looking to ride that up again or there’s been a set downtrend, a pullback, and he’s looking to ride that back down again once he sees the patterns that we teach and everything else that we talk about as part of the Forex trading Coach Course. So awesome to see.
David. The other thing is he’s on the allocating an hour per day to look through the charts and that’s really important as well. Just select the time that works for you. Go and have a look at the charts. If there’s a trade there, fantastic target trade. It is not. Don’t take one. He’s also looking for a variety different time for and chances.
Trading with the main trend as mentioned with a continuation patterns is also trading with the bigger picture because we talk about daily strength and weaknesses as well. He’s using the round numbers and everything else that we talk about. So he’s using the strategy perfectly just on a very short timeframe chart and he’s in and out of trades within three or four candles.
So, you know, sort of 15, 20 minutes in the trade, out of the trade done. And he’s had four from four profitable trades this week.
It’s all about the strategy
So it just proves that if you have the knowledge and the information and most importantly, the quality of the strategy, then five minute charts are absolutely fine, if that’s what you want to do.
If you’re either looking for a good broker, I can highly recommend Blueberry Markets, their based over in Australia, and I’ve been with them for a number of years and hundreds, if not thousands of clients and people watching videos and podcasts that have gone through them and through listening to me talking about them. There are great bunch of people, awesome platform, the MT4 and MT5 platform.
The MT5 platform has so many instruments in different markets. It’s not funny and have a look at them. If you are out there considering looking for a good broker to put your funds with and to trade through, I’ll put link to blueberry markets here.
Masterclass and book a call to chat with us
I’ll also put a link to our masterclass and if you’d like to have a chat with either myself or one of my team, I’ll put a link here that you can book up a 30 minute call and discuss your trading and how we can help you make sure you take advantage of that.
And we’re now offering that seven days a week. So book a time that suits you with one of us and we can help you to progress through trading.
This is Andrew Mitchem here, the Forex Trading Coach, and see this time next week. Bye for now.
Episode Title: #514: How To Successfully Trade the 5 Minute Charts
Find out more about my Online Video Forex Course
Social Media Cannot Teach You to Trade
#513: Social Media Cannot Teach You to Trade
In this video:
00:30 – Can you learn to trade from Social Media sites?
00:56 – Why am I at the hangar today?
01:35 – I’ve been flying for 9+ years and still need training
03:05 – Trader wastes GBP15,000 thanks to Social Media “Experts”
04:02 – What does Trading Success mean to you?
04:56 – Blueberry Markets
Can you learn to trade properly and profitably and know what you’re doing by following forums, social media sites, YouTube, Facebook, all those type of places? I’m going to share with you a really interesting story. Let’s get into it right now.
Hey there. Traders! Andrew Mitchem here, the Forex Trading Coach for video and podcast number 513.
Can you learn to trade from Social Media sites?
So can you learn the trade off social media sites, YouTube videos, all those type of places? Well, I’ve received an email from someone over in the UK just yesterday and he said to me that he has lost £15,000 trading live trying to learn how to trade by following people on YouTube. So I’m going to cover that one shortly.
Why am I at the hangar today?
Now, you might maybe wondering, why am I talking about this at the hanger here? So if you’re watching this, you’ll see I’ve got my helicopter behind me. The reason I want to talk about this and the helicopter is I’ve just come out of the hangar here. Let me just show you.
I fly from the other side over there and the helicopter you fly from the right hand side. You know, I’ve just come here and I’ve just put the dual controls in here on the left hand side. That’s because I’m heading up to the snow right now. My instructors give me a call “So look the conditions up. They’re really good”
I’ve never landed myself in snow. I’ve landed in a little bit, but I’m talking like proper snow.
I’ve been flying for 9+ years and still need training
And I’ve been flying this whopping fly helicopters for nine years, this helicopter for over five. It’s a great machine. Very, very powerful helicopter. It’s even got snow paws on down there so you can land in snow properly. However, I’ve not done it.
The reason is it’s clearly very, very dangerous. You have to know what to do. Like when you land on that snow. Are you going to sink? Are you on rocks? Am I going to get the skids here? Cool on rocks. Am I over a lake? I don’t know. So there’s a lot of skill. Is it icy? How have fresh the snow has off to the actual approach.
Getting the blades up here, you know, whipping up the snow, creating really bad visibility, white outs, all those type of things. And obviously on mountains anyway, it’s a lot more dangerous, you know, windy conditions. So I put duals in here and the two of us are off for a flight. So after nine years, I’m still seeking expert help because I want to go and do something quite, you know, a higher level, more dangerous, more risky.
If I try it myself and look, legally, I can go and do that myself. I have a full license. I own the machine, it’s fully insured. Everything else, I can go and do this, but I’m seeking professional help to show me from someone who knows what they’re doing, who’s done this countless thousands and thousands of times, what to do to do it properly.
Trader wastes GBP15,000 thanks to Social Media “Experts”
Now, you bring this back to the guy who wrote to me yesterday. Not only is he wasted an enormous amount of time and probably lost huge confidence in the market. And clearly, confidence in someone who can teach him because he’s tried so many free places on YouTube, he’s lost £15,000. That’s a huge amount of money.
Now, if I get this wrong, I can assure you I’m going to lose a lot more than £15,000. I could be losing hundreds of thousands of dollars and getting it wrong. I could be injuring myself, could even kill myself if I get it completely wrong. So what is it worth to you, whether it’s doing something like this or whatever skill it is you are doing?
And if trading is your skill of choice that you want to learn to do, what’s it worth to you to do it properly, safely, correctly? Seek help from someone who knows what they’re doing with low risk, high probability chance of getting it right finally and having a massive amount of support at that.
What does Trading Success mean to you?
So have a think about that. What is that worth to you? And that’s where it comes back to our Forex Coaching Course that’s rated. It’s about a 4.8 out of five star rating on Forex Peace Army since 2009. Go and have a look on Forex Peace Army and find out how many other education companies that started back in 2009 are still there today. I don’t think you’ll find any.
And so that shows longevity, proof, reliability, trust, everything that we do. In fact, the most recent review that just got posted this week on Forex Peace Army, a guy over in the UK said he’d learned more in two months being with us than he had in the previous eight years. So that just goes to show why investing in yourself and quality education will help you no end.
No different than we’re just about to go flying right now with an instructor to show me what to do properly.
Finally, if you’re out there looking for a good broker to put your funds with again, good people, professional company, have a look at Blueberry Markets. I’ll put a link to them below this video and podcast here. And we’re off flying right now.
Catch you later. Bye for now!
Episode Title: #513: Social Media Cannot Teach You to Trade
Find out more about my Online Video Forex Course
When All You Want is Results
#512: When All You Want is Results
In this video:
00:31 – Another great trading week
01:06 – Trading on a prop firm
01:31 – Here’s how we can help you gain consistency and results
03:04 – It’s a no-brainer
04:14 – Do other things than trade
04:54 – Blueberry Markets
05:14 – On demand Masterclass
As a trader. At the end of the day, all you really want is good results, consistent results, low drawdowns, and we can provide that for you. Let me share with you how we’ve done that for our clients this week. Let’s get into it right now.
Hey, traders. Andrew Mitchem here at the Forex Trading Coach. With video and podcast, number 512.
Another great trading week
We’ve had a yet another fantastic trading week. And as I mentioned at the beginning, as a trader, ultimately the thing that you want more than anything is results. You want consistent results. You want to know how to trade properly. You don’t want to be spending lots and lots of time your charts and you want low drawdown.
You see, that’s absolute key. All in good. Someone saying, I’ve made 50% in a six months, but if they risk, you know, crazy amounts in their drawdown, it’s been 50% then not particularly great. What you want to have is low drawdown with high reward to risk trades.
Trading on a prop firm
If you’ve got any interest at all in prop firms, that’s exactly what they want. And you will see that if you’ve tried on a prop firm and failed is probably because your drawdown has been too excessive and you’ve they’ve stopped their contact because of your over trading or too big a risk which has led to, you know, you breaching the five or 6% threshold that most of them have.
Here’s how we can help you gain consistency and results
So what can we help you with? Well, we can help you gain that consistency and those results. And and we know we can do that because we’re doing that for ourselves when we’re doing that for our clients. And we’ve been doing that for over 14 years here at the Forex Trading Coach. And we’ve got clients in 103 countries. And look, this just works out this week.
It’s been a classic example. We have taken 16 daily chart trades this week, been posted on a membership site with exact currency pairs, the directions, the reasons for the trade, plus the exact entry and exit levels, all of which are taught in the course anyway. But just on the daily chart trades alone 16 trades five Weekly chart trades.
This week. So all of that combined would literally take you less than one hour to place out breakout strategy that we look at once a week, which again literally takes 2 minutes once a week. That’s made another one and a half percent this week. It made one and a half percent last week as well. On top of that, we’ve taken quite a number of trades on our forums site this week that either ourselves and clients are posted predominantly the longer time frames this week, just the nature of the market and we’ve had a few charts posted on 30 minutes and 1 hours, but most of the trades have been posted on 12 hours and 6 hour charts.
This week has some an amazing results on the 12 hour charts in particular. And again, that requires you to look at your computer once, maybe twice, or at your charts once or twice a day. And one of those times is actually the exact same time that the daily charts are posted. So, you know, it’s just an absolute no brainer, really.
It’s a no-brainer
If you want to be able to trade consistently with low drawdowns that know what you’re doing, to know when to look at the charts, to know what timeframes to look at, to know what patterns to trade and when with the exact entry and exit levels to not worry about PIPS, because every trade that we take has low and equal risk.
It doesn’t matter what the pair, the direction, the size of the stop loss, the time frame chart and other that matters. Every trade has equal low risk, but they have high reward to risk outcomes. So if you get a trade making, let’s say a 3 to 1 reward the risk and you make, let’s say a 1% per trade, that’s too much.
But let’s say for for mathematic sake, you make 3% on one trade and you lose on another one, you lose 1%, you still net 2% up, yet you’ve lost 50% of the time. So knowing exactly what to do, when to do it had to end to how to exit, whether you should exit early or not. All those sort of things we can help you with and again, we do that every single week.
On my live webinar yesterday, I took trades live on the three hour, the four hour and the 12 hour charts. So lots and lots of trading opportunities this way. It’s been absolutely fantastic. Just like this weather behind.
Do other things than trade
And that’s what we’re about. We’re about doing other things. If you like getting outside of whatever it is you like to do sport, family, music, enjoy the outside, whatever it is you want to do, make trading part of your life, not the other way round.
And that’s what the results and the small amount of time that we actually sit looking at charts allows us to go and do those other things. So if you’re out there looking for a system, a strategy is well proven, has low risk, high reward to risk trade outcomes. An amazing community of traders as well, by the way, that’s also not to be underestimated and vitally important to your trading journey as well, just to be surrounded by other people or trading the same thing at the same time, all the helping each other, right?
So if you’re out there looking for a broker, have a look at blueberry market. So I can highly recommend them. They’re a great bunch of people. They have the MT4/MT5 platform. Lots of different options on the MT5 lots of more minor and exotic forex pairs as well as indices, metals, commodities, cryptos as well. I’ll put a link to them here.
On demand Masterclass
I’ll also put a link to our one hour masterclass. It’s an on demand masterclass. You can jump on there any time you like to find out more about how we trade and how we can help you. This is Andrew Mitchem at the Forex Trading Coach. Don’t forget to like and subscribe if you’re watching YouTube and have a great week and I’ll talk to you this time next week.
Bye for now.
Episode Title: #512: When All You Want is Results
Find out more about my Online Video Forex Course
Has Your Income Exceeded the Rise in the Cost of Living?
#511: Has Your Income Exceeded the Rise in the Cost of Living?
In this video:
00:28 – Inflation is out of control
01:19 – What has happened to your income in the last 12 months?
01:55 – What are you doing to help yourself?
02:52 – Nothing beats trading the Forex market
04:50 – A link to FX2Funding
05:30 – Client makes +26.33% in 1 month
06:23 – Blueberry Markets
06:50 – Consider trading now
Has your increase in your income in the last 12 months kept up with or exceeded the rate of inflation where you live? Let’s talk about that and more. Right now.
Hey there, traders. Is Andrew Mitchem here, the owner of the Forex Trading Coach with video and podcast number 511.
Inflation is out of control
So today I want to talk about inflation. I’ve talked about it in the past and here we are now, many months later, with inflation still continuing to spiral right around the world. All around the world, it doesn’t matter what country you live in.
Inflation is getting higher and higher. The cost of living is going up and up. The cost of your food, the cost of travel, the cost of everything is getting out of control. And it doesn’t look like it’s going to stop any time soon. Add on to that the increase in interest rates, which we’ll continue to see right around the world, despite many months ago, a lot of the experts saying they were going to stop and peak and then potentially fall.
That’s not happened. Interest rates continue to go up. So anybody with any form of loan, mortgage debt, it’s just getting harder and harder and harder to pay that.
What has happened to your income in the last 12 months?
So my question to you today is this. “What has happened to your income in the last 12 months?” “Has it gone up by the rate of inflation?” or “Has it gone up more?” because it should have at least gone up by that rate.
Ideally, more than that rate for your country, because if it hasn’t, you’ve gone backwards in the last 12 months of working hard. And that’s quite a scary thought for people. So how do you think about that and answer that for you and your situation.
What are you doing to help yourself?
Also, what are you doing about that? If your income has not exceeded inflation and interest rate and your general cost of living increase in the last 12 months?
What are you doing about that? Because unfortunately, so many people procrastinate. They look around, they think they’re going to do something. They have all these wonderful ideas. They hear something like this and they go, Yeah, I’m going to do something. Six months later. Guess what? They’ve done absolutely nothing. Why? Because it’s a little bit harder to go and make a decision, a little bit harder to go and do something.
It’s easier to sit on the couch and watch rubbish on Netflix or something like that. And so that becomes the issue. People need to actually get a kick up the bum and be motivated in inflation and interest rates continuing to climb. And probably incomes not really ought to give you that kick that you need. So what are you going to do about that today, right now?
Nothing beats trading the Forex market
Now, from my point of view, I know of nothing better than the forex market and trading to actually help to overcome this situation and to improve things for you because it has very low risk, it has very low cost of entry. You think about, let’s say, going off to university and getting yourself a degree in three, four, five, six, seven, eight years, depending on what you’re doing and, you know, and coming out with massive debt.
And then you still need to go and get yourself a job and claw your way and debt and then still be an almost slave to the system because you still have a job. Now, it potentially could be a higher earning job than many others. Yes, granted. But you still come out of that. Lots of time down, lots of debts, most likely.
Forex allows you to get into the market with a very small entry fee, very small short window of time as well. But you need to get into it when your number one objective is not to make money or have to make money from day one. That is not the way to succeed in trading. You have to give yourself time to learn, to experiment, to have gained some fails and to go through the natural system.
Now we can certainly help shortcut that at the Forex Trading Coach with our proven method of teaching and our proven strategy. But even so, when people come on board and they go, Andrew, I want to be a prop firm trader. Wow, fantastic but stop. Doesn’t matter how much trading experience you have, even if you come on board with us, I suggest that you have at least six months before you even consider prop firms. Now prop firms are fantastic.
They really are. They’re a game changer. But give yourselves a few months to learn a new system and a strategy on demo to be profitable on that demo. Then start with a small personal live account and have a couple of months at least to be profitable on that. And then consider prop firms.
A link to FX2Funding
When you consider prop firms, I’m going to put a link here to FX2Funding who I’ve had something to do with over the last year.
I think they’re really good option for us in prop firm tradings companies because they have listened to what I’ve asked them. They have said there’s no limit on the minimum and certainly no limit on the maximum number of days it’s going to take you to pass each challenge. And that’s massively important. And so have a look at them again.
I’ll put a link to them here, but do not consider wasting your money on a prop firm unless you are first profitable and completely comfortable with your trading strategy. Now, I’ve received an email here from a client of ours who joined back in May we’re now mid-July. This lady who’s based in Auckland here in New Zealand, said I started trading on the 16th of June.
I went through and learned for a month as of today. So this was sent to me on the 17th of July.
Client makes +26.33% in 1 month
It’s exactly one full month and now I’m up 26.33%. So a big thank you to TFTC, The Forex Trading Coach. That’s from a lady called Ming who lives in Auckland in one month, 26.33%. Now, I’m not out there saying everybody’s going to make 26.33% in a month.
Certainly not. I don’t do that. But it just shows what can be achieved now. I don’t know the risk that Ming’s is taken to get to those levels when it comes to prop firms really low risk is crucial, as is high reward to risk.
If you’re out there looking for a forex broker, I can highly recommend blueberry markets. I put a link to them as well.
Next, this video and podcast, Blueberry markets. You can trade them through them despite where you live anyway, that you live in the world. Apart from a few countries, including the US. But they offer the MT4/MT5 trading platform. Great bunch of people, awesome spreads, big range of markets available as well.
Consider trading now
So I have a think about your job, your career, your income. Right now. Consider trading. Consider trading now because you don’t want to be in that position where you get into trading with that terrible mindset of I have to make money right now. That is not how you going to succeed as a trader. Give yourself at least six months, do well, prove yourself. You understand the strategy and you’re confident in yourself.
You’ve made money on demo and small live. Then look at prop firms. Then you everything changes. Hope that helps. This is Andrew Mitchem here at the Forex Trading Coach. I see this time next week by for now.
Episode Title: #511: Has Your Income Exceeded the Rise in the Cost of Living?
Find out more about my Online Video Forex Course
Has the US Dollar Crashed?
#510: Has the US Dollar Crashed?
In this video:
00:24 – The recent US Dollar crash
01:08 – What’s caused the weakness in the USD?
02:11 – We analyse the Weekly and Daily Strength & Weakness
03:45 – What to do when a trade sets up against the trend?
04:24 – Did you profit from the recent USD move
04:54 – Trading with Blueberry Markets
Has the US dollar crashed? Did you take advantage of it? And will that trend continue? Let’s talk about that and more right now at.
Hey there, traders. It’s Andrew Mitchem here at the Forex Trading Coach video and podcast number 510 today.
The recent US Dollar crash
I want to talk all about the recent crash that we have seen in the US dollar. I hope you’ve taken advantage of it and you’ve seen plenty of good trading opportunities. You have a look at the US Dollar Swiss franc chart, for example.
Right now as I’m recording this on the 14th of July 2023, the US dollar right now is at a level we’ve not seen for eight years back in 2015. Go and have a look at the charts. It’s just crashed. The US Swiss franc has absolutely crashed against other currencies. The US is also looking weak. Some of them are rates, highs or lows depending on which currency for the year. Some are now at levels not seen for several years as well.
What’s caused the weakness in the USD?
So what’s caused that? Well, as traders, to be perfectly honest with you, we don’t really need to worry about what’s caused it because there’s probably a multiple number of factors there that have caused that US dollar weakness. However, the important thing, especially as technical traders, is that we see this happening all out charts and we take advantage of these moves and the big trends because that’s how you can trade with the main trend.
If you see this continued US dollar weakness and you see other currencies looking particularly strong, then you start to bring in and start to bring in the strength and weakness analysis that we look at to help us to trade on the right side of the market. Of course, we’re still looking for the right technical setups in candle patterns and what part of the chart the candle has closed in, etc. like that?
Do we have room to move to our profit target? Have we got some form of stop loss protection or round number for our stop loss to help ourselves out there and to increase our probability of a successful trade.
We analyse the Weekly and Daily Strength & Weakness
But also at the Forex Trading Coach on a weekly basis, we look at and analyze the weekly charts and we post for our clients each week.
Every Monday morning, the likely strength and weakness directions on the bigger picture weekly charts on a daily basis. Each day we do exactly the same based off the daily chart. We look through the daily charts and we look at which currencies are looking particularly strong or particularly weak. And then we also mention which currency pairs are likely to move in which direction for that particular day.
Does that mean that every time if we say the US Swiss francs looking for sell opportunities, is this going to fall? No, it doesn’t. But what it does do is it gives us the bigger picture. If we have, let’s say, weakness on the US Swiss franc on the weekly chart and in on a particular day you see US Swiss franc weakness.
You then look for particularly for sell trades. So if you see bearish candles in the right part of the chart on any time frame, what that means that you are trading with the more immediate candle direction looking like it’s heading down on a daily basis, it looks like it’s weak on a weekly basis. There’s weakness in that pair.
It stands to reason and adds to your probability that with the right pattern in the right part of the chart and with that more daily and longer term direction, you really are putting all these factors in your favor of a successful trade outcome.
What to do when a trade sets up against the trend?
Flipside of that, what it also does is if you were to see, let’s say, a bullish pattern on the US Swiss franc, it means that potentially you’re going to do one or two things.
You might say either one, I’m just not taking the trade altogether or two, I might take it, but at a reduced risk on that particular trade. And the choice is yours really when it comes to that, because it means you might be buying on a short term pullback, but knowing that the main direction is down. So by helping teach our clients how to look for that weekly and daily likely direction, it helps us to remain on the right side of the of the trends more often than not. And that’s a massive help for our trading.
What to do when a trade sets up against the trend?
So my question to you is, have you over the last week or two taken advantage of that US dollar weakness on your charts? If you haven’t you got to ask yourself why not? Because if you go and have a look at your charts, especially that US Swiss franc as a really good example, you really should have taken advantage of that massive weakness in the US dollar.
If you haven’t, you need our help and we can certainly help to to get you educated so you know what you’re looking for and you can take advantage of those movements.
Trading with Blueberry Markets
If you’re out there looking for a good forex broker can highly recommend blueberry markets. I’ve mentioned them on all my weekly videos and my podcast because they are so good.
We have thousands of clients who now use blueberry. They are wonderful broker, they base over in Australia. You can open an account with them in pretty much every country apart from a few. And if you’re in the US then unfortunately you cannot trade through them. But for everybody else, have a look at blueberry markets. They’re a fantastic broker.
They offer the MT4/MT5 platform, a massive range of markets to look at and really good people and very tight spreads. I’ll put a link to them here on this post and podcast.
If you have any questions about today’s topic, please send me an email. Andrew@theforextradingcoach.com or if you’re on YouTube like and subscribe or leave a comment below and I’ll see you this time next week. Bye for now