Weekly Video News & Podcast

#331: Why Trading doesn’t need to be difficult

Aug 19, 2019

Podcast:

Podcast: Play in new window | Download

Why Trading doesn’t need to be difficult

In this video:
00:26 – The cycle of a new trader
02:20 – Live trading webinar
02:50 – A +19.5% gain in 5 weeks of trading
03:10 – Finally understanding the charts
04:51 – Knowing how and where to enter a trade
05:28 – The KISS approach works
06:29 – Keep to the basics

You don’t need to make your trading difficult. It doesn’t need to be. Let me give you some great tips and information right now that will really help you. Let’s get into it.

Hi, Forex traders, Andrew Mitchem here from the Forex Trading Coach with video and podcast number 331.

The cycle of a new trader

Now, I want to talk about the cycle that most people go through when they start trading and then how that changes and evolves. Now, most people start off by seeing trading as something quite simple. You’ve probably seen it online. You’ve seen some flashy ads, some way. You think, “This is great. This is something I can do. Piece of cake. Love it”. You get into it, you open a demo, you don’t really know what you’re doing. You’re putting some huge, ridiculous lot sizes on there. You’ve got no idea about risk. You might add a couple of indicators because they look pretty cool and you have a few lucky trades and it’s all magic. That’s what I did.

The problem is when you go live, it’s a completely different story, isn’t it? It’s real money. It’s real emotions. You then start doubting the system that you don’t really notice the system because you just kind of guessed a few things. You then look at some other systems. You look at adding some more indicators because they look really cool. They’re on all the charts. They must need them because someone’s created them. So, let’s add some different combinations of indicators. Let’s change the parameters of those indicators to something that no one else has ever done. And you try creating all these really cool strategies. That doesn’t work. So, you then go onto a forum, you get completely confused and bullied by other people on forums who think they know everything about trading. So, you realise that that’s not going to help you either. What else can do you do?

Well, you probably get spammed with some emails about some, you know, some indicator or something like that that’s gonna make all your problems go away. You try that, you realise that doesn’t work either. “Ah, not I tried news trading before. Let’s give that a go because everybody says that’s the way to trade fundamental. So let’s go and do that”. And you have TV programmes going with CNBC, you’re waiting for these news events, and realise that doesn’t work either. So, you go into this big vicious cycle and realise that, “Actually, this trading’s pretty difficult after all”.

Live trading webinar

Now, the reason I’m bringing up this subject is that last night I held a live two hour webinar with a lot of my clients on that. A lot of people on that webinar were new to the course and the strategy. They’ve been with me two or three weeks. The reason there’s a lot of new people on there because a lot of people joined as a result of the 30 minute forex trader sale that I held in the beginning of August.

A +19.5% gain in 5 weeks of trading

That was as a result of me travelling through the UK and Europe during July and the three weeks I was away there and the two weeks- the week I was back in the week, we held the sell.

We made 19 and a half percent gain by risking just a quarter of 1% risk per trade, all published on the membership site. And I’ve shown you if you’ve seen my videos, all those actual trades. So, a lot of people jump on board and go, “this looks really good”.

Finally understanding the charts

But the comments that I had on the webinar last night were amazing and I’ve received a number of this morning also, and they are largely around the subject of, “Actually, not so much this is easy, but you’ve opened my eyes to something I didn’t realise about trading. I now understand what I’m looking for. I now understand what the market’s saying when I’m seeing candle shapes and patterns and the price move up and down. I’m understanding that and I understand what’s happening behind the scenes. I’m understanding when to look for trade. Really important. I’m not sitting at the computer all day, I know with confidence now and we’re probability on my side that this trade is likely to work”.

Not always gonna work. Of course it’s not, but that’s the comments that were coming through in only a few weeks of people joining. And of course you’ve got to have the strategy, you’ve got to have something that works, you’ve got to have the backup support that we offer, and the help and the mentorship, et cetera, like that, but the comments were absolutely amazing and it’s just all around people actually realising that, look, trading’s not simple, absolutely not simple, not easy. However, once you understand what you’re looking for, it suddenly becomes a lot, lot easier and it’s a lot less stressful. You don’t feel the need to jump and change systems. You know what you’re looking for in a chart. You can easily identify a setup. Is there a set up there? Yes or no? If it’s yes, fantastic. You know exactly where to enter the trade, where you’re going to exit the trade. You know those levels. You know exactly that and you know it’s correlated to the volatility or lack of in the market at that particular time.

Knowing how and where to enter a trade

So, you also know your exact position size. You know your controlled risk. You know your reward to risk from the trade if it gets out- or as the trade at a for profit target. You know if the trade gets stopped at exactly what you’re going to lose. All very, very controlled. You put the trade on and that’s it. Walk away. If there’s no trade, do the same thing. Walk away and you’d know when to come back and have a look again. You might be trading just once a day off daily charts. You might be looking at say 12 and six hour charts or four hour charts and you know exactly when to come and look at your charts and easily identify if there’s a set up there.

The KISS approach works

So, as with most things in life, the KISS approach, the keep it simple, stupid approach, you know, it does work in trading as well.

You do not need to over complicate trading. Trading actually when you bring it back to basics is actually relatively simple. The price is gonna move up, down or sideways. It really can’t do much else. And so having that understanding of why it’s moving, where it’s moving, why’d it bounce there, what level it probably will stop at, strength and weakness, all those types of things in conjunction with the things that we talk about all the time, the controlled risks, the high reward to risk trades, et cetera like that. Put that together. You have an easy picture to understand what’s happening in the market. That was the overwhelming feedback that I received last night and this morning from so many new clients is absolutely thrilled that they’re on board, really excited by it. They’re understanding they’re trading. They’re, they’re getting support. They’ve got software. They’ve got trades to follow. They’ve got webinars to follow.

All these things are suddenly changing their trading around really, really quickly.

Keep to the basics

So, I hope that helps. It just shows that coming back to basics really does matter. Don’t over complicate things. Don’t wait for the line A to across over line B and look at one minute charts and all those type of silly things, you know, because trading ultimately, can be simplified and can be very, very enjoyable and something that you can do with longevity as well. Very important there. So, I hope that helps.

This is Andrew Mitchem from the Forex Trading Coach. I’ll see this time next week we’re more trading tips and information and as always, if you have any subjects you’d like me to cover for you personally on any of these future videos and podcasts, send me an email. My contact details are on the website. See you next time.

Click Here to Learn How we can help you

Podcast: Play in new window | Download

#330: Another +6.55% this week – Get the Basics Right & Trade Well

Aug 12, 2019

Podcast:

Podcast: Play in new window | Download

Another +6.55% this week – Get the Basics Right & Trade Well

In this video:
00:36 – Travelling and Trading – Focusing on the Basics
01:18 – Another +6.55% gain this week
01:45 – Trading the Basics well leads to good trades
03:04 – Trading from the right hand side of the chart
04:05 – Control your risk
04:53 – Don’t count Pips
05:25 – Reward:Risk is important
06:01 – The importance of getting the foundations right

I’m going to explain why I believe it is so important that you need to get the fundamental basics correct in order to be a good trader. Let’s talk about that and more right now.

Hey, forex traders, Andrew Mitchem here, The Forex Trading Coach video and podcast number 330.

You’ll notice I’m wearing a jumper, a sweater back here in New Zealand in the middle of winter after three weeks over in Europe.

Travelling and Trading – Focusing on the Basics

If you’ve been following me over the last three or four weeks, you’d have been noticing that I’ve been overseas travelling around, and I’ve been really focusing on the basics.

In that time, I’ve been trading just the monthly, weekly and daily charts and nothing else. You would have seen that we’ve made some exceptional gains, including last week, which was my first week back at home. We had made with only a quarter percent risk per trade, 12.79%. That’s all trades that were posted on our membership site. Realistically, although I called it a 30-minute-a-day trip, most of the time, it was 10 minutes a day.

Another +6.55% gain this week

Just this week, it’s now Friday, I still have some open trades open that are at 0.9% so almost a 1% gain on open trades that are open just today, but this week already, we’ve had closed trades of another 6.55%, again, just using monthly, weekly, daily charts and a breakout strategy that we use once a week. Again, 10, 20 minutes once a day and that’s it.

Trading the Basics well leads to good trades

Not only did I want to share with you those results, which I believe are very outstanding and excellent results. Also, to let you know of course, they were on their membership site, but the thing is, the important thing is, yes, the results are wonderful, but it’s more important to understand that we do this by trading the basics, the fundamental basics. I don’t mean fundamental as in news announcements and worrying about what’s happening politically around the world. I don’t mean that fundamental. I mean fundamental basics as in getting everything correct, the basics, the building blocks, the foundations of trading.

You must remember that we’ve been doing this for a long, long time, and so it’s a bit like riding a bicycle. After a while, it becomes almost like second nature. However, we don’t deviate from the basics with our trading and that we have a strategy that we know and we understand and that’s very low time consuming for us to trade. It’s very easy to identify a trade and go, yes, it’s a trade or no, it’s not. That’s what I mean by the basics. You’ve got to have an understanding of price action if you want to become a technical trader. We use candle shapes, candle patterns, and it’s very easy to look at your charts but in real time.

Trading from the right hand side of the chart

It’s no good having a strategy or a system that you can make a fortune for or from it, but with hindsight, after you see what’s already happened. You’ve got to be able to do it from the right hand side of the chart. You’d hear me talking … You would have heard me talking about that many, many, many times about the profitable trader is the one that can trade from the right hand side of the chart and decide what’s happening. You don’t need to also sit there glued to your screens all day long watching line A cross over line B and all those things. That’s just not good trading in my opinion.

You need to be able to wait for the close of a candle, see a set up and, yes, it’s a trade or no, it’s not, but it still comes back to basics a little bit further. Once you’ve identified that, where is your stop loss going? Where is your profit target going? We have that as set levels that we use on our trades that is all in relation to the current movement and volatility of the market and the currency pair at that time.

Control your risk

It’s also important that you control your risk. Those trade results that I’ve mentioned have been taking place with only a quarter of 1% risk per trade so 0.25% of our account, very, very low risk. That means as an example, a $10,000 account, we’re risking only $25 on each individual trade. When we place our daily trades, we’re risking $50 but we split it into two positions, $25 each per $10,000, very, very, very low risk. You put those two together, I’ve got them in front of me here, it’s 12.79 and 6.55. That’s around 18, 19.5% or something like that in the last five weeks but with very low risk. That’s the important things there.

Don’t count Pips

It’s also important that we don’t worry about the number of pips we’ve made. I just never talk about how many pips were made because it’s irrelevant. It does not matter. I cannot go and buy something from the local shop with pips. If I’ve made 19% in the last five weeks on a $10,000 account, let’s say, I know that’s $1,900 and I can go and spend that. You see the difference there. Of course, that’s with that low risk, but you can of course risk high if you wanted to.

Reward:Risk is important

Leading on from that, reward to risk is another crucial part of trading. I’m just repeating what I’ve repeated for 10, 11 years on these videos and podcasts. It’s nothing new, but it’s important that you put all this together and consistently achieve this high reward to risk trades. It’s no good in having a 90% win rate if your one losing trade loses more than your previous nine winning trades. That’s pointless. You have to have high reward to risk, controlled low risk. Trade ends up being profitable. It’s a very highly profitable trade. All those things put together.

The importance of getting the foundations right

The reason I wanted to come back to that is because the last three weeks when I was in Europe and the last couple of weeks since I’ve home, it’s reiterated the importance of that, get back to basics philosophy because it also shows and the results are there to prove it that if you do have the basic foundations within your trading, the results are there. Don’t forget that July and August are traditionally very hard months to trade because of the northern hemisphere, some holiday season. We’ve done this in what traditionally has been quite a difficult time. Don’t forget, if you think about the world right now and politically and the events that are happening, a lot of turmoil going on, yet we still achieve these results with low risk.

That’s what I mean, come back to basics. Put all this together. Be consistent with your trading. Almost been boring with your trading. It doesn’t sound flashy. It doesn’t sound all razzmatazz and flash cars driving around and sitting on a beach like you see unfortunately 99% of all forex websites out there. The reality is that we are here at home doing the real trading, and for those weeks while I was away, you could see all those trades there.

I hope that helps. A little bit different this week, but very, very important nonetheless to get the basics right. Build those foundations up just like you would if you’re doing anything else. If you want to do anything else correctly, that is.

If you’d like our help, you know where to find us. We’re at the forextradingcoach.com, and I’ll see you this time next week. Bye for now.

Click Here to Learn How we can help you

Podcast: Play in new window | Download

#329: We’ve made +12.79% gain from the last 4 week’s trades posted on our membership site

Aug 5, 2019

Podcast:

Podcast: Play in new window | Download

We’ve made +12.79% gain from the last 4 week’s trades posted on our membership site

In this video:
00:15 – Update from this week’s trades
03:23 – Weekly chart trades
04:37 – Daily chart trades hit full profit target
06:03 – This week’s totals, +5.45% for the week
08:01 – A gain of +12.79% in the last 4 weeks
08:30 – 3 day sale starting on 5th August 2019

Hi traders Andrew Mitchem here from The Forex Trading Coach. It is Friday the second of August.

Now before we get into next week’s sale, the three day sale that I’m giving, which starts next Monday.

Update from this week’s trades

I wanted to give you a live update here of the trade results of this week. So I’ll run through those trades very shortly, but just to let you know that with the trades that we’ve taken this week and posted on the membership site. Now this has got nothing to do with trades that we post on the forum site, trades that we take on the live webinar, which I did a two hour live webinar with my clients last week. This is purely trades posted on our membership site.

This week we have closed trades of plus five point four five percent on closed trades. And that’s by taking a quarter of one percent per trade. So really, really low risk high returns five point four five percent on closed trades. Adding to the open trades again I’ll share those with you shortly, which are one point four percent. We’re up six point eight five percent if we closed out all the trades right now. Add that to the five point nine four percent I made on three weeks while I was over in England and France, that’s twelve point seven nine percent in the last four weeks. Trading ten to thirty minutes a day. Pretty amazing.

So let’s have a look at the trades, some of these you would have seen from the previous videos. But just to quickly summarise that we had an Aussie yen trade here, this was back from before I went away back on the third of July. And that was taken on the weekly chart trade bait, take back here, and you can see for a few weeks it didn’t go anywhere. I left the trade in and then it completely changed around reversed on us got to stop that. That’s the first one. And then you can see while we’re on the Aussie yen there’s an Aussie yen here which we suggested last week or this current week. Again you can see that on our membership site here the Aussie yen trade is, if I can go to the right one, at the top of the page. Here we go. So this week we had five trades suggested on the weekly charts. The profit target’s been hit on four out of the five market orders. The New Zealand, U. S. I’ll share it with you shortly. But we hit profit on those at one point six to one reward risk on the Aussie yen, the trade that I got on screen and seventy-three pips there. So you can see all those trades there.

As mentioned earlier, we had our full profit target on the breakout strategy that we used that was a trade on monthly so we stopped that yesterday. Another one still open on the monthly is up two point two to one. We got no trades today, non-fund payrolls on Friday. Yesterday we mentioned a trade on the euro franc, you can see the trade written down here. The exact entry and exit levels on the daily that made forty pips out of two point one to one and then the previous day. And that was a great trade on the U.S.-Canadian dollar and that ended up making here full profit two point five to one. So lots of trades there that we’ve taken.

Weekly chart trades

Let’s cover some of these weekly chart trades. The Aussie yen is this one here. We have a profit tigered of seventy-four thirty-five and it’s clearly gone way through that. We had the Aussie-Franc weekly, the Aussie-U.S. weekly, you can see down here Aussie-U.S. weekly there we call it sixty-eight zero seven and you can see it’s just got to that level it’s gone a tiny bit further. But there’s our profit tiger been hit already on that. We’ve got the Aussie-Franc that I mentioned there, which is here, profit tiger sixty-eight eleven and it’s well and truly, you got that one. Euro-Aussie in here profit tiger at one sixty-two forty-four and one sixty-two forty-four’s in here since well and truly got that one as well. The monthly chart trades that I mentioned on the previous video plus the one that I just shown just now this was a trade that was mentioned on the forum site that Paul took but was not on the membership site. So they have been closed out this week.

Daily chart trades hit full profit target

Let’s go and find the daily charts and I’ll share those with you on the screen as well.

So here’s the Euro-Franc that I mentioned from yesterday. So I’m just on a new screen here for recording. Let me just bring that one up for you, there we go. This was an excellent trade, really was a great trade. You can see that our profit tiger on the Euro-Franc was one zero nine sixty-nine. And the price got to one zero nine, lower that sixty nine. Got to exactly that level slight gap down here now today but we are exactly at that level. Great trade there. And the U.S.-Canadian dollar trade, which is also was shown on the membership site, this was another nice trade in here, just expand that slightly in here. That was a sale trade based on this candle here, with a profit tiger to one thirty-one sixteen. And that was down here so we took the sale trade we had our profit tiger hit and then what happened afterwards is quite amazing that the price went down a little bit further to the one thirty one. And then we had the U.S. interest rate in announcement which then pushed the U.S. dollar and Canadian dollar way back up. It didn’t matter because we were out of the trade for full profit.

This week’s totals, +5.45% for the week

So all up this week daily chart trades have made us one point seven five percent, our breakout strategy made one point five percent and our weekly trades have made one point six percent, our monthly chart trades that have closed have made a zero point six percent. And our open trades they are here so we’ve got a U.S.-Yen trade there both positions and you’ve seen these on previous videos. From June we’ve got the Aussie-New Zealand going real nicely there as a sale trade. That’s based on the monthly chart trades, so just bring that one up for you on here. So that was taken up here to around the one zero four ninety-six level. That’s carrying up here around hundred and eighteen pips profit target you can see on the charts there. And we also have that weekly chart trade on the Franc-Yen going very, very nicely as well which is here. It was taken on the weekly charts. That’s from back in mid July. And you can see that trade got filled up one zero nine seventy-three. And it’s been up around a hundred and forty-five pips, it’s currently around a hundred and nineteen. Stock loss is up here at about forty-four pips so you can see a great looking trade. From where it’s low has been is only fifteen, sixteen pips away from full profit.

So as I mentioned, put all that together and we’ve closed a plus five point four five percent for the week. We’ve got open trades here, these here still opened around one point four percent. The five point nine four percent that I took on the previous three weeks, which you can see all those videos on the site that I’ve given you. If you don’t have that site let me know and I can send you that link to the previous eight videos.

A gain of +12.79% in the last 4 weeks

Put all that together four weeks of work there, twelve point seven nine percent with very, very low risk, very low draw down. If you’d like to trade like daddy, if you’d like to have a help, if you’d like to view these trades that we’re doing and why we’re doing it and where the entry success story are. Twelve point seven nine percent in a month, that’s quite amazing for ten to twenty minutes work once a day. If you’d like to join us you know where to find us.

3 day sale starting on 5th August 2019

You know also that Monday of next week, starting on the fifth, Monday for three days five ninety seven gets you fully on the course plus seventy-nine dollars a month ongoing if you’d like to continue with the daily trades, the live webinars, which we tweet, and the forum site. Normally two and a half thousand dollars so this is gonna be exceptionally amazing entry price. If you’ve thought about wanting to trade for us properly this is your absolute top opportunity to jump on board with our help and to gain results like we are getting. So look forward to sharing more results with you soon and look forward to seeing you on the course next week and that means you can then get onto our next live webinar. So hopefully you’ve enjoyed what you’ve seen over the last four weeks. It’s all been shown with you, to you up front. You can see all the trades on our membership site, you can see the trades on there can’t here. Great results, twelve point seven nine percent four weeks. Would you like to be part of it? The question is yes or no? And if you would you know where to find us, if not then happy trading. But if you’d like to be part of a huge community that’s been running for nearly eleven years and thousands and thousands of traders worldwide, then we’re here to help.

Thanks again, this is Andrew Mitchem from The Forex Trading Coach. Bye for now.

Click Here to Register for an Interest

Podcast: Play in new window | Download

#328: How to be one of the few profitable traders?

Jul 7, 2019

Podcast:

Podcast: Play in new window | Download

How to be one of the few profitable traders?

In this video:
00:29 – Why so many traders lose money
01:30 – Massive losses from traders
01:45 – You need to be realistic
02:35 – Seek education
03:35 – Trading while on holiday
04:45 – Would you like to follow my trading?
05:45 – Anything could happen

Why is it that so many traders lose so much money? And more importantly, what can you do to ensure you’re not one of those people? This is a very, very important subject. So let’s get into this and more right now.

Hey, Forex Traders, Andrew Mitchem, here, from the Forrest Trading Coach with video and podcast number 328.

Why so many traders lose money

And I want to talk about why is it so many people lose money? And that, that has been as a result of an e-mail that I received earlier in the week from a company called Darwinex. I don’t belong to them, but I’m on their mailing list, and they sent me this. And back in 2015, the accounts that they had with them lost 78% of their value. 2016, almost 51%, 2017, 47%, and last year, 2018, 38%. And so far this year, almost 10%.

So, a massive loss in the cumulative accounts of their clients. Now, as they said, the results are getting better, which is good, and are still huge losses, by the way. But like they also said on here is they encourage, or want to encourage other brokers to publish their account losses. Because like they said, the other brokers, or a lot of the other brokers probably had far worse losses than Darwinex themselves do.

Massive losses from traders

But think of that, that first year, 78% loss on accounts cumulative. And even today, still massive losses. So, that’s not good.

You need to be realistic

But you need to be realistic, and I’m here as a real trader to tell you that you need to be realistic. Most people will show you flashy cars and Porsches, and all that type of thing. I don’t do that. I’m here trading from home, telling you as it is. And you need to figure out that if you are serious about wanting to become a Forex Trader, as a full-time trader, or just someone that’s doing it for enjoyment or a passive income, what is it that you can do differently so that all these other people that can basically put you on the other side to make sure you’re one of those few people who are making, not even just breakeven or a little bit of money, but some good, consistent gains? Because ultimately that’s why we all do this, isn’t it? We’re here to become good Forex traders and to make income from it.

So, what can you do about it? Well, there’s lots of reasons why those people are losing.

Seek education

But what you can do, is you can seek yourself some education. And I strongly believe that that is a very, very good option. But the problem, then, becomes, is when I look around at other courses that I see online, is that while they’re systems or they’re strategies, that most of them are not very realistic in terms of being able to trade them all the time.

I’ve been doing this for over 15 years. And teaching for over 10. And I’m still doing it, and I still love it, and I still get a passion and a buzz out of it, because it’s enjoyable and it’s something that I can work in with other things that I do. If I would have sat here, looking at these screens, all day, every day, it would drive me mad. And I would have given up years ago, regardless of making money out of it. But, because of the way I trade, and it’s longer time frames, it’s less chart time, it’s more enjoyable, more reliable, I believe that’s one of the reasons why it’s realistic.

Now, you may have heard, and if you haven’t, then I’m going to tell you, and if you have, sorry that I’m going to repeat myself.

Trading while on holiday

But on Monday, probably the day you get this video, Monday the 8th of July, I’m heading overseas for just over three weeks with myself and my family. And we’re heading over to the UK and Europe. I’m really looking forward to at 27 hour flight from Auckland via Dubai to London. No. But, anyway, part of living in New Zealand, you have big flights and big travels. But, we’re heading over there, and I’m going to be showing you how I’m trading while I’m away on holiday. I’m going to be sharing with you the trades that I’m taking, I’m only going to be looking at the longer timeframe charts, like weekly charts, daily charts. Maybe 12 hour charts, depending on basically time that I have.

But I’m going to be trading and sharing with you how you can trade, too, as a full-time Forex Trader, but it’s only going to take you somewhere between 10 and 30 minutes once a day, and that’s it. And that’s what I’ll be doing. When I place my daily trades here, in New Zealand, it’s my morning time. So when I’m in Europe, it’s going to be in their evening time. All based on the close of the 5:00 P.M. New York start and close of day chart.

Would you like to follow my trading?

So, if you’d like to follow along, I’m going to be sharing with you some of my trades that I’m taking, the results that I’m taking, and I’m going to make some video while I’m over there, and just showing you how it can be done. And, look, it’s going to be, there’s not going to be some big edits on the videos, it’s just going to be me on my screen, or me on my cell phone. I’m not going to be there, spending my time on holiday, making massive, professional productions. It’s going to be me, phone, screen, send to you. And basically that’s what it’s going to be.

If you’d like to follow along for three weeks and find out the trades that I’m taking, and the results that we’re getting, and just sharing a little bit more about how I’m taking these trades, and what I’m doing, if you’d like to follow along, I’m going to put a link below this video or on this page somewhere that you can sign up, and register your interest, and every time that I make a new post or a new video, I’ll make sure that you get e-mailed a copy.

It’s going to be fun, it’s going to be …

Anything could happen

No one knows in advance what’s going to happen. I could have three weeks, and trades may make some great gains, or might make some losses. It’s July, and the market’s generally a bit harder in July, as well.

So if you’d like to follow along a real trader doing real trading in real-time, without the benefit of any hindsight, I’d encourage you to sign up, register your interest. So once again, this is Andrew Mitchem from The Forex Trading Coach. I will be making a video on Monday while I’m still here, at home, sharing with you my daily and weekly chart setups, and then, from then on, it’s going to be through the UK, and then into France, maybe having a wine and some cheese alongside the video at the same time, enjoying a bit of sun over there.

So, look, you have a great weekend, I’ll see you this time next week. And don’t forget to register, probably below this video, or somewhere on this page. Thanks again, and I look forward to sharing with you my journey to Europe.

Podcast: Play in new window | Download

#327: Should you use Trailing Stops or Fixed Stops?

Jul 1, 2019

Podcast:

Podcast: Play in new window | Download

Should you use Trailing Stops or Fixed Stops?

In this video:
00:22 – Two parts to this week’s podcast
00:41 – Trailing stops and should you use them?
01:13 – How should you use a trailing stop?
02:35 – I don’t use trailing stops
03:45 – Look to move your stop loss or take partial profit
05:46 – Trading for 10-30 minutes a day while on holiday – follow me

Should you use trailing stops as a forex trader? Let’s talk about that and more right now.

Hi, traders. Andrew Mitchem here from The Forex Trading Coach with video and podcast number 327.

Two parts to this week’s podcast

Two parts to the video and podcast today. The first is a question about trailing stops. The second is about a great opportunity I’m going to give you to follow me while I’m away overseas on holiday for three weeks, trading in under 30 minutes a day. More about that shortly. Let’s get back to part one about trailing stops.

Trailing stops and should you use them?

So, the question’s just been received today from a trader. He’s not a client, but he’s a guy that follows me on podcasts called Trevor from the UK, and Trevor asked the question … He said, “Andrew, trailing stops attempting to use as a protective factor to lock in profit in case of reversals; however, they can be taken out in strong retracements. Do you use them?” So that’s a good question. The short answer is, “No, I do not use trailing stops,” but let’s discuss them and their merits or otherwise.

How should you use a trailing stop?

So, a lot of people like the thought of a trailing stop because you think that it’s going to keep following your trade as you keep making profit and locking in more and more of the trade and, in theory, giving you a better return. That’s the theory. There’s a couple of practical issues that you need to be aware of. I’m not sure about other trading platforms, but certainly if you use the MT4, MetaTrader 4 platform, if you use a trailing stop, you actually have to have your computer on. Now, if you have your platform open on a virtual server, that’s fine, but most people probably would just have it on their desktop or their laptop.

If you use a trailing stop and close your chance down, then the trailing stop will not be honoured because it sits on your computer. A normal hard stop or a profit target sits with your broker, but a trailing stock does not. So, there’s a factor that you need to be aware of and probably a lot of people don’t know that. The other thing is, from a trading point of view, is how big a trailing stop to use and when do you start to use it? Where do you put it? When do you introduce it? Does it depend on the currency pair or the timeframe chart or the volatility in the market or flatness in the market right now? If you put a 20 pip trailing stock, is that the same on the euro pound as it would be on the pound New Zealand? One very slow, one very fast.

I don’t use trailing stops

All these type of things you need to consider. So, I don’t use trailing stops for those reasons. It’s too much of a guess. I like to have a little bit more certainty in my trading, and so, to me, the initial stop loss needs to be placed at a protected level for a reason. Don’t just pick 30 pips because someone said so. Pick the level that the trade needs to be … the stop loss needs to be at to protect the individual trade.

One of the reasons why I love trading on individual candle shapes and patterns is because if that is a relatively large candle, I can then afford to have a slightly bigger stop loss, and therefore, my profit targets bigger and the reward to risk becomes good as well. If it’s a smaller candle, then generally, I’ve got a tighter stop loss and the smaller profit target because it’s reflecting the current market conditions, and reward to risk is so important. So, you can’t have a stop loss that’s so massive that your profit target needs to be ridiculously big and unlikely to be hit. Likewise, you can’t have a massive stop loss and a tiny profit because your reward the risk is all out of sync. So, that’s, again, comes back to another subject, which is why I trade candles.

Look to move your stop loss or take partial profit

But going back to the stop loss issue, once your trade starts moving into profit, you’ve got a number of things you can do. If you wanted to move your stop loss, I prefer to move it … Let’s say you’re taking a sell trade. I prefer to move the stop loss down as the trade gets into some profit, but I’m moving it to fixed levels, like I’m using support and resistance levels or ran numbers, previous highs, those types of things to protect that stop as I keep moving it down on my sell trade, assuming that the price keeps falling down.

The other thing you could do is if you see on your sell trade a potential reversal and looks like the pair’s moving back up, that could be the opportunity to say, “I’m going to close part of my trade,” or even all of it depending on what you have as your trading plan, but don’t forget that partial closing of a trade is just as effective as moving a stop loss in many ways because you’re locking in some profit and you have a smaller amount exposed only if you see, potentially, the trade might pull back against you. So, there’s a number of ways of doing it. So, you can either move your stop loss to a set level and keep moving it, all of it, as the trade keeps going in your favour or you could partially close parts of the trade for profit. Either way … It depends on what you prefer as a trader.

But going back to trailing stops, I don’t like them personally. I find them very difficult to use and it becomes too emotional and you’re taking a stop loss and for a reason is where it should be. But when you start trailing it, it’s more of a guess, more of a gamble. You could get a price spike or a news announcement accounts back and stops you out, whereas in reality, your normal fixed stop would not have been stopped at.

So, Trevor, the answer is I don’t use them, but there’s certainly other ways that you can lock in some profit and protect your trade in more of a technical trading sense than just a random number that’s trailing your profit. So, that’s the trailing stock.

Trading for 10-30 minutes a day while on holiday – follow me

The second part that I want to mention is a on Monday the 8th of July, myself and my family were heading overseas to Europe, over to England and also to France for three weeks. Now, during that time, I’m going to be trading just the daily and the weekly charts and I’m going to be making some videos recording what I’m doing and showing you how you can trade and travel. So, I’ll be trading in under 30 minutes each day. Generally, it was going to be 10 minutes per day, but I’m saying under 30 minutes per day and that’s it.

If you’d like to follow me, and I’m going to be sharing with you the trades that I’m taking and the results of those trades, whether they be good or bad, I’m taking those trades. I’ll be sharing those trades with you and just sharing with you parts of the trip and how you can trade in under 30 minutes a day. If that’s something you’d like to follow me on the journey over the next few weeks, then I’m going to put a link below this video for you to sign up and show your interest in being updated on that journey.

So, whether you’re just wanting to know how to trade in under 30 minutes a day so you can continue your normal life and work and family, et cetera, then definitely sign up. If you’re interested in trading and travelling and spending less than 30 minutes per day and trading full-time at the same time, then this is definitely something you need to register. So, find the link somewhere on this page and I’ll update you next week and when we start our family holiday.

So, once again, this is Andrew Mitchem from The Forex Trading Coach. I’ll see you this time next week. Bye for now.

Podcast: Play in new window | Download

#326: Lining up your ducks in a row

Jun 24, 2019

Podcast:

Podcast: Play in new window | Download

Lining up your ducks in a row

In this video:
00:24 – Becoming a better and more consistent trader
01:02 – Tips to help you create a trading plan
01:46 – Lining up everything in your favour
02:25 – Get the bigger picture from the Monthly charts
03:12 – You’ll still need a good strategy and identify a good trade
03:54 – Take a look at the USD/CHF price level
05:33 – Line the ducks in a row to help your trading results

Lining up all the ducks in a row to make you a more profitable trader. How does that work? Let’s talk about that and more right now.

Hi, Forex Traders. It’s Andrew Mitchem here from the Forex Trading Coach with video and podcast number 326.

Becoming a better and more consistent trader

I want to talk about how you can become a better and more profitable trader with consistent trades by lining up all the ducks in a row.

Let me explain more about that. You see, trading is all about probabilities. There are no certainties in trading, and the other thing that you have to work out when you are wanting to become a trader, is you need to have a plan and you need to stick to it. But, how do you create that plan? What do you do in order to create a plan? Because, everybody says, “Hey, you need a plan to become a good trader.” Well, where do you start? What do you do?

Tips to help you create a trading plan

I’ve got some really beneficial and realistic practical tips to help you with this because, like I said, trading is about probabilities. Nothing is certain. You can have the best looking set up and it won’t work. It’s not absolute guaranteed to work. Nothing’s really guaranteed in life, is it? You probably have to go to school when you’re a child. You probably and should be paying taxes when you’re an adult, and you are going to die. So, really, the last one’s the only certainty, but in trading there are no certainties. You can have absolute everything looking really good. Doesn’t mean to say it’s going to work. But, if you do that often enough with the high probability behind you, then chances are you’re going to do really well as a trader.

Lining up everything in your favour

Getting all that lined up, everything lined up, is really, really important. I was on a webinar last night with my clients and I was discussing with some of my more experienced and more successful clients, about what they do to line up all the ducks on a row. It was really interesting about the philosophy that they have, and what we are looking at here is getting all different timeframes lining up.

Now, I’m not saying go through your MT4 charts and get every single one lining up absolutely perfectly because that’s not going to happen.

Get the bigger picture from the Monthly charts

What we’re saying is, at the beginning of the month look at your monthly charts and write down a list of likely directions of where you see strength or weakness, your bias for the bigger picture of the monthly directions. It’s a real simple exercise. You just need to do it once a month. It might take you 10, 15 minutes once a month. And then, at the beginning of the week, do the same on the weekly charts. Try and line up pairs that have the same direction or potential same direction as the monthly charts. And then, on a daily basis, we then scale down and write on the membership site. We also put the weekly charts, but also the daily charts with specific trades. But, if you have the daily charts lining up with the weekly charts, and that lines up with the monthly charts, then surely that has to start to line up a few ducks in a row there for you.

You’ll still need a good strategy and identify a good trade

Now, of course, you don’t just randomly go and say, “Oh, the monthly’s looking like it’s heading down. So is the daily and … So is the weekly and now the daily. Just take a sale trade.” That’s not what you need to do. If the, say, likelihood is everything climbing up to say, “This currency pair is heading down.” You still need to see a technical chance set up based on all the other factors that we use for our strategy. But, it’s giving you that bigger picture bias. There’s nothing better to add to that than having something like a round number. Now, I call round numbers any trading price that ends in zero zero or 50. I don’t look at any of the others. It’s 50 or zero zero. Zero zero’s been the exceptionally strong level.

Take a look at the USD/CHF price level

Now, you take the US Franc, for an example. So, here we are in June 2019. Go and have a look at the US Swiss Franc. It’s just crossed below one. So, 1.0000, a massively strong level. So, on my webinar, I suggested a sale trade based on the 12 hour chart. We have the ability to trade off line charts, such as 12 hour charts. A sale trade on the US Franc, because it had come up to the one level, gone just above it, closed back below it, had that level to protect the traders a stop-loss. All of a sudden, after we took the trade, we had a small retracement and then the currency pair of the Swiss Franc dropped away really well.

You’ve got to look at your monthly charts, the US Swiss Franc, based on the close of May, was heavily bearish. The weekly chart of last week, although last week’s did pull back a bit, overall we’re still looking at bearish patterns based on where the weekly chart is in relationship to other things. We’ll look at Bollinger Bands, et cetera. This week in particular, we are starting to see the weekly chart go bearish again. The daily chart’s bearish. Everything’s suggesting bearish, plus we have a chart set up. We have a pull back. We have exhaustion. We have a huge round number. You cannot get bigger than one. It’s a massive round number on the US Swiss Franc, and the candle pattern was there. There was everything we are looking for, plus we’d lined our ducks up in a nice row with our weakness in the US Swiss Franc. And guess what? We had a highly profitable, very low risk, high reward to risk trade.

Line the ducks in a row to help your trading results

So, I hope that helps. Lining those ducks up in a row will help you with probability, and the likely outcome is very, very good. If you’d like help with finding out more about trading and how we can help you, hey, you can join our five star Forex Trading Coach Course.

Just drop me an email. Andrew@theforextradingcoach.com or have a look on my website Theforextradingcoach.com and we’d be more than happy to help you.

So, once again, this is Andrew Mitchem at the Forex Trading Coach. I’ll see you this time next week. Bye for now.

Podcast: Play in new window | Download

#325: Do You Enjoy Sitting at Your Computer All Day?

Jun 16, 2019

Podcast:

Podcast: Play in new window | Download

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.

Click Here To Know More About The Course

Podcast: Play in new window | Download

#324: +9.5% monthly gain in May, here’s how

Jun 10, 2019

Podcast:

Podcast: Play in new window | Download

+9.5% monthly gain in May, here’s how

In this video:
00:26 – Details about a client who made +9.5% in May
00:51 – Live webinar discussing Scott’s trades
01:22 – Check out the Testimonials page https://theforextradingcoach.com/testimonials.html
01:59 – Scott’s comments and trading week routine
04:05 – How we can help you achieve similar results yourself
04:46 – Reduce your risk on a Monday

A client of mine has just made 9.5% during May. I’m going to share with you details of how he’s done that. Let’s get into it right now.

Hey, traders, Andrew Mitchem here, the owner of the Forex Training Coach with video and podcast number 324.

Details about a client who made +9.5% in May

Now, I want to share with you an email that I received from a client called Scott, and Scott’s been with me for just over 18 months, and he has a full-time job, and in May he made just over 9.5% trading very little, but trading very well. And I’d like to share with you some of the information that he’s sent me here.

Live webinar discussing Scott’s trades

Now, tonight I’m holding a live webinar with my clients and I’m going to be going through all of the trades that Scott has taken, the good trades and the losing trades, and we’re going to be discussing those trades. But it’s really important that you take from this that this is with low risk trading. So, Scott’s risking no more than half of one percent of his account per trade. Very, very low risk to make a very nice, almost 10% gain in the month of May.

Check out the Testimonials page https://theforextradingcoach.com/testimonials.html

You can also have a look on the testimonials page on my website and you will find a video of Scott there. So, have a look, and you’ll see who that is that’s made the money and done very well for himself for that month. Also important to note that Scott is always on my live webinars. He contributes well to our forums site, and 18 months after joining, these are the type of results that he’s getting, and the consistency is what matters. You know, it’s really important that you put that time in upfront in order to then reap the rewards later on down the track, and that’s exactly what Scott has done.

So, let me share with you some of the information that he’s said on here, and he fully admits, he said, “Look, I had plenty of down side trades in a month, but I led to”… He actually says, “Leading to only a 9.5% account gain for the month.” So, that tells you that he’s pretty consistently doing that and more. So, his summary is like this. On a Monday, the beginning of the week, he trades only the monthly charts and the weekly charts, and the daily charts if they’re really strong. And the reason for that is because at the beginning of the week, he can take the weekly charts. So, if it’s the beginning of the week and the month, then he can take the monthly chart trade as well. But he’s very selective on the daily chart trades that he takes on a Monday because when you think about it, you’re looking at a Friday’s candle. And so, because of course Monday is only just starting, and so really important that you’re very selective on a Monday.

What I also suggest people do on a Monday is reduce the risk that they take per trade because you’re at the start of the new week and things could be a little bit more unpredictable. Scott said then on Tuesday, he takes the daily charts if there are any. He also looks at the 12 and 8 hour charts, but only if they’re in the direction of the weekly and monthly, so if the monthly charts and the daily chart… Sorry, monthly charts and the weekly charts all line up to say, let’s say, short positions on the pound U.S dollar, and he sees a 12 or an 8 hour chart on that panel in the same direction, that’s the trade he’s after.

On a Wednesday, he looks at the dailies, the 12, the eight, six, and four, and again, those shorter time frame charts only if they are in the same direction as the monthly and the weekly. On a Thursday, daily, 12, eight, six, four, and then sometimes after 10:00 broker time sets into the European session, he’ll look between the one hour charts, even down to the five minute charts, but again, they have to have the direction of the monthly and the weekly. And on a Friday, he says, “All I do is close out trades or manage any open trades that are still there.” So, he doesn’t do any actual looking for new trades on a Friday. So, really simple to do, but just shows what can be done.

How we can help you achieve similar results yourself

So, look, if you would like to know more about how you can achieve similar results, and you’d like to know how you can join us, you can get to trade our way but maybe with your own twist on it exactly like Scott’s done. What we do is not set in concrete. It’s to give people that sort of foundations and the basics and the support and the ongoing real time support. But ultimately, the people who do the best are the ones that just have their own little tweak, like Scott. He’s saying, “This is when I’m trading. Not going to trade on Friday. I don’t want to trade Fridays,” says Scott. You know, I do, but Scott’s saying, “I don’t want to trade Fridays. I just want to manage trades.” And that’s what he found has worked best.

Reduce your risk on a Monday

Similarly with the Monday, beginning of the week. Look at either something really, really selective or reducing the risk that you take. So, it shows what can be achieved. 9.5% in May, but with very, very low risk and very low drawdown.

So, like I said, go and have a look at Scott’s video, plus all other videos that I’ve got on my website on the testimonials page. I’ll put a link to that testimonials page below this video so you can go and have a look through them yourself. So, hope that helps, and once again, this is Andrew Mitchem from the Forex Trading Coach. I’ll see you this time next week. Bye for now.

Click Here To Know More About The Course

Podcast: Play in new window | Download

#323: How do you react when you lose a series of trades?

Jun 3, 2019

Podcast:

Podcast: Play in new window | Download

How do you react when you lose a series of trades?

In this video:
00:26 – The downside to trading and how do you react?
00:50 – The good and the bad
01:44 – Are you your own biggest problem?
03:31 – The market is unpredictable
04:15 – Back to basics
05:04 – Benefit from our 10+ years of helping traders like you

How do you react when you have a series of losing trades? It’s critical you get this right to your trading success. So, let’s get into it right now.

Hey, traders, Andrew Mitchem here, the owner of the Forex Trading Coach, with video and podcast number 323.

The downside to trading and how do you react?

Now, everybody tells you the good side of trading. I want to tell you about the bad side of trading, and more importantly, how do you react when that happens? Now it’s all about losing trades. Now, we will have winning trades and losing trades as part of trading. But, what happens when you have a series of losing trades, maybe losing days, losing weeks, even losing months. What happens?

The good and the bad

Let’s bring that back to a story that everybody can relate to. It’s called life. In life, we have good times and we have bad times, and everybody goes through the same thing. And what often defines you as a person, as a parent, as a boss, as an employee, as a sportsperson, whatever it might be, what defines you quite often is how you react to those bad times. How do you get through it? What do you do to ensure that those become less and less?

You see, the problem is today that with everything being we want the quick fix all the time, a lot of people struggle when things don’t go right. And you know, they blame someone else, they get depressed, they sulk, they give up, you know, everybody else’s fault. It’s the same in trading.

Are you your own biggest problem?

You see, people blame the market, they blame the broker, they blame everything. But very often, it’s the person themselves that is the biggest problem. And it’s how you react to that. So, you have a system, a strategy in place, and if you weren’t happy with it, you wouldn’t be trading it.

So, you’re trading it, and you have a series of losing trades. What happens? Do you go back and analyse those trades? And in reality, you should be analysing all of your trades. But, do you go back and analyse those trades and go, “Do these losing trades fit my criteria? Do they fit my rules, my trading strategy? Yes or no?”

If they do, then great. That’s part of trading, and you may be just going through a tough patch right now, because if they do meet your criteria, and yes, this is what I’m looking for as part of my trading plan, and unfortunately, it didn’t work out, at least you stuck to your horse. You can still find things in there that you might learn further from those losing trades. But, if you stuck to your rules, then, well done. You’ve done what you should do as a trader.

If you didn’t stick to your rules, that’s where the problems start. So, rather than blaming everybody else or your broker or the market, how about, let’s fix the problem, which is you, and go and analyse those trades and go, “Well, actually, do you know what? That trade there didn’t meet my criteria, because of reasons one, two and three. Therefore, I’m learning that when I see that again in the future, I will not take trades that look like this and I’ll only take trades that look like that.” So, that’s how you can develop and how you can learn and how you can improve yourself.

The market is unpredictable

Now, don’t forget we’re trading in a market that’s unpredictable. You never know what’s going to happen. You know, even with the best laid-out plans and best laid-out strategies, no one can be certain of what’s going to happen. You don’t know whether it’s a trending market, a range-bound market. Different currency pairs react at different times of the day or different months of the year, even. And then, you get political events and other things that completely disturb that pattern as well.

So, you have to trade what you see in front of you at the time, and you have to have a strategy that’s robust enough to get through those times when your strategy may not be going so well. But you have to have a plan in place to deal with that.

Back to basics

So it comes back to a lot of the basics that I talk about all the time, and I’ve done so for 10 years now.

You have to have low risk in your trading. Low risk trading approach means you can be confident to more trades on without blowing your account, basically. It means also that if you trade with low risk, you forget about the number of pips that you make. They are irrelevant. That then allows you to trade multiple timeframe charts. And, if you have a good strategy that allows you to have high rewards risk trades, you can have a series of losing trades. But, every time you get a winning trade, it’s more than likely going to make up for most of that.

So, have a good think about that, and see if the problem is you yourself. And if it is, what can you do to fix that?

Benefit from our 10+ years of helping traders like you

So I hope that helps. This is Andrew Mitchem. I’m the owner of the Forex Trading Coach. We’ve been doing this for over 10 years now, and if you’d like to know more, all you need to do is have a look at my website, which is the TheForexTradingCoach.com.

Bye for now.

Click Here To Know More About The Course

Podcast: Play in new window | Download

#322: Why Candle Patterns Rule

May 27, 2019

Podcast:

Podcast: Play in new window | Download

Why Candle Patterns Rule

In this video:
00:33 – There are so many ways to trade
00:51 – The downside to Fundamental trading
01:22 – The flaws with Technical trading
01:52 – I trade Candlesticks
02:35 – Focus on the individual candle
03:29 – A candle paints a picture
04:05 – Helps with back testing
05:05 – 2 types of candles to trade

I’m going to talk about why candle patterns rule as a Forex trader. So let’s get into that and more, right now.

Hey Forex traders, Andrew Mitchem here from the Forex Trading Coach with video and podcast number 322.

And I thought I’d take this opportunity … It’s autumn here in New Zealand, beautiful day as you can see to get outside and make the video from out here, rather than standing in front of the charts.

There are so many ways to trade

So many different ways that you can trade Forex. Unfortunately, most of them are not good ways but the two traditional ways that people look at trading Forex are either to become a fundamental trader or a technical trader or sometimes a bit of both.

The downside to Fundamental trading

So the downside for being a fundamental trader, in my opinion, is that it becomes your opinion of what you see in the news, or what you hear in the news. Is that news better or worse than expected and there’s so many different variables and it changes all the time, it’s quite difficult to make an assessment, in my opinion. Now I know there’s people out there watching this who will say, “Look, I’m a fundamental trader and I trade really well.” That’s great. But for most people, I believe that fundamental trading’s not that easy.

The flaws with Technical trading

Technical trading. Well, as a technical trader, I also see the flaws of that. And with technical trading, the problem is is that so many people get caught up with indicators, just too many indicators, get their charts cluttered, they get information overload, confusion, all those type of things. You know, one timeframe’s telling you something, or buy, then another timeframe’s telling you you should be selling. And so you get complete confusion there.

I trade Candlesticks

But as a technical trader, I’m more based and focused on candlesticks and using candlesticks. Well they’ve been around for centuries so I figured when I started trading, “Look, if these candlesticks, Japanese candlesticks, have been around for centuries, I really should start looking at them and trying to understand why they are so successful.” And like all things, you know, there are flaws in every system, nothing is perfect. I’m not saying just go out there and understand candle patterns and all of a sudden your trading will be perfect, that’s not going to happen. But it’s understanding how to use candle patterns and candlesticks.

And I’ve developed, I suppose, my own take on them. I don’t use the traditional, you know, looking at multiple candlesticks and flags and triangles and those type of things.

Focus on the individual candle

I’m more focused on the individual candle that has just closed. Many benefits to that. Number one, you can trade different timeframe charts, but you only need to look at your charts at the close of a candle. So if you’re trading, say a four hour chart, I know that, now I’m recording this, I’ve got another three and a half hours before I need to look at my four hour charts. It makes life very, very easy to do. It also means I can make my analysis once the candle has closed. Of course when it’s closed it’s not going to be moving anymore, there’s no movement of indicators, horizontal levels are set, and it makes things very, very easy to do. And you can make your analysis without too much rush, you’re not stressed, forcing to either be at your computer or to take a trade like right now, like you would if you were say a news trader. So that’s another one of the benefits.

A candle paints a picture

And also, when you think about how a candle has been made, it’s basically telling you about momentum, it’s telling you where the big players are in the market, where the sentiment is, are there more buyers, are there more sellers. But it’s not just the candle shape itself, it’s where that occurs on the chart, what’s happened before it, has there been some indecision, has there been a previous bounce at that level. All those types of things that we build on as part of the way that I trade and the way that I teach to build on the candle pattern and the candle shape itself.

Helps with back testing

But really, another benefit when you think about it, is backtesting. See how can you backtest news, news trading, how can you backtest realistically with a lot of indicators because, you know, an indicator A might cross over B and when you see that completed, it looks like it’s closed in the right part of what you’re looking for. The reality is, that when the price is moving and the indicator’s moving, you may get multiple false signals. Whereas with candle shapes, you can go back through any currency pair, any timeframe chart, and you can analyse. Look if I’ve seen a pin bar followed by an engulfing bar and it’s happened at this time of the day, it’s happened at this part of the chart, it’s at this prior indecision, it’s bounced at this level, you can see that where it be last week or last year, doesn’t matter. And you can have high certainty and high probability that if you see that type of pattern again occurring on your charts, likelihood is you have high probability behind you to say the price is likely to do this. And that’s another great thing.

2 types of candles to trade

And of course, as you know from my trading, I like to keep things simple. I only really look at two different types of confirmation candle, I’m looking at engulfing candles and outside bars, they give me the confirmation and the reassurance to jump into a trade. And to get some form of indecision, I’m looking at either dojis or hanging man pattern or a pin bar. I don’t trade those as specific candles, I see them as indecision, as an early warning to see a possible trade set up. Sorry about that, if you can hear in the background a helicopter’s flying over and I’m wishing I should be really up there flying today, which I probably will be at the weekend. Going off subject there.

So, you know, it’s all about using the candle shapes and candle patterns to your advantage. If you’re already in on a trade and you see an indecision candle showing on your charts, it gives you a clue that maybe, that we’re not going to get to our profit target because the indecision candle is a bit of an early warning system. But in terms of entering a new trade, indecision followed by confirmation is a fantastic way of looking at your charts and gives you a high probability entries and also allows you to manage your trades, while you’re in the trade.

So I hope that helps, this is Andrew Mitchem from the Forex Trading Coach. You have a great weekend and I’ll see you this time next week. Bye for now.

Click Here To Know More About The Course

Podcast: Play in new window | Download

« Older Entries

Next Entries »