Weekly Video News & Podcast

#311: Trade what you see and not what you think might happen

Mar 4, 2019

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Trade what you see and not what you think might happen

In this weekly video:
00:28 – Read the charts
00:45 – The Brexit example
01:50 – The Pound should be falling, or not?
02:42 – The importance of trading what the charts show you
03:48 – Trading with the KISS approach

I want to talk about why you as a trader should trade what you see on your charts and not what you think might happen. There’s a big difference between the two, so let’s get into it.

Hey traders, Andrew Mitchem here from The Forex Trading Coach with video on podcast number 311.

Read the charts

And I want to talk about something that’s very topical right now, especially when you think about the British pound. And I want to talk about the importance of why, to be a good trader and a successful trader, you should really trade what you see on your charts and not what you think should or might happen to a currency path.

The Brexit example

I’ll give you a great example. So here we are today, 1st of March, 2019. Now I live in New Zealand, but on the other side of the world far away from me we’re having that Brexit issue still dragging on. It just seems like it’s been going on for months and months and months. And all I read on the news is Theresa May might be doing this, Corbyn might be doing that. Are they going to leave? Yes or no? Brexit, is it going to carry on with the vote that everybody wanted to leave, or the majority wanted to leave? Are they going to change things? What’s happening with Ireland? Europe’s getting involved. And to me, as an observer, it just seems like a complete and utter mess, and nobody seems to know what’s happening. You kind of get that with I suppose a lot of politics around the world. But it seems a particularly big mess, and dragging on and on and on.

So you think about that logically. What could or should that be doing to the British pound? Well, to me I’m thinking, well uncertainty. Nobody knows what’s happening. Are they going to leave? Are they going to make big exit fees to leave Europe?

The Pound should be falling, or not?

The pound should be absolutely crashing. All these big businesses, and industries, and banks, they’re all saying, “We’re going to leave Britain if they leave Europe,” or the Eurozone. And everybody should really be thinking the pound has to fall. It has to fall. It has to crash. Yet you go and look at your charts for this year, for the first two completed months of this year, and all we’ve seen is the pound against the US dollar has rise about 950 pips. Against the Australian dollar it’s risen about 1100 pips. Against the Yen, it’s risen about 1500 pips. And it’s almost a straight line. It’s just gone straight up when everything that you think should say it should be going straight down. It should be doing the opposite.

The importance of trading what the charts show you

So we talked about this on my webinar last night with my class. And it’s all about the importance of trading what you see on the charts, because if you think about this fundamentally or almost logically, you’d be just taking sell positions, or thinking you should be looking for sell positions all the time on the pound. Yet this year, so many weeks of this year so far, I’ve said to my class, “On a weekly bars, I’m looking for buy/trades on the pound/US, or pound/Yen, pound/Aussie, pound/Kiwi,” because that’s what we’re seeing. And then you take that down to a slightly smaller timeframe and you look at each day, and many, many times we’ve been saying buy/trades on the British pound pairs because that’s what we’re seeing.

And that’s the important thing here. Look at what the charts are doing. It doesn’t matter what you think, or what someone else thinks, or what CNN thinks, or what some fundamental trader thinks. It does not matter. The only thing that matters is what’s happening on the charts right now, and making sure that you’re on the right side of that. That’s the real important thing. I think a lot of people miss that point.

Trading with the KISS approach

You know, trading comes back to the KISS approach, the Keep It Simple, Stupid. You know? It’s looking at what’s happening on the charts, having a good strategy, and trading what you see, not what you think.

So I hope that helps. This Andrew Mitchem at The Forex Trading Coach. I’ll see you this time next week. Bye for now.

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#310: The Best Way to Become a Successful Forex Trader

Feb 25, 2019

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The Best Way to Become a Successful Forex Trader

In this weekly video:
00:22 – How you can become a successful Forex trader
01:10 – We teach how to trade in real time
02:17 – We show you how to trade from the right hand side of the chart
02:27 – #1 – Daily Chart Trades
03:26 – #2 – Live Weekly 2 hour long webinars
04:07 – #3 – Client’s Forum Site
05:17 – If you’d like our help with any trading issues

What’s the best way for you to learn how to become a successful forex trader? Let’s talk about that and more right now.

Hi, forex traders, Andrew Mitchem here from The Forex Trading Coach with video and podcast number 310.

How you can become a successful Forex trader

Now we’re gonna talk about how you can become a successful forex trader and what is the best way for you to learn how to do that. They say everybody’s different, everybody learns in different ways. Of course, some people are visual, some like to do things themselves, some like to read. Many, many different ways. But I firmly believe that what sets us apart as a forex education company is that first of all, we’re real traders. I’m making this video and podcast. I’m not home in my office with my screens behind me here. I’m a real trader doing this day in, day out. And have done so for 15 years. So that’s a really important point. We’re not set in some office in London, or New York, or Sydney, or somewhere with call centres. We’re not that at all. That’s far from what we are. We’re real traders. So that’s the first thing.

We teach how to trade in real time

The second thing is is that because we’re real traders, we teach people how to trade the way that we trade in real time. And I think that for you as someone who’s learning how to trade a strategy is absolutely critical. And that’s what sets us apart. You see, we’ve got three different ways of teaching our clients how to trade our strategy in real time. You can go online, and you can see videos, and you can see screenshots of the perfect trade, and someone’s highlighted this trade, and it’s working just beautifully. You notice how it does that. It always works beautifully. But the problem is that you as a trader, you get to understand the strategy, and you get to learn it, et cetera. You pay for it. And you cannot make it work in real time. That becomes the problem. And the issue there is that hindsight, everybody’s multi, multi millionaires. Simple. And the problem is that you have to learn to trade in real time from the right hand side of the charts without any of that hindsight. Without any of those losing trades. You’ve gotta trade the perfect trade every time. But how do you find it?

We show you how to trade from the right hand side of the chart

And so that’s what makes us different because we teach that trading from the right hand side of the chart because that’s what we do ourselves. Three different ways that we help our clients with this.

#1 – Daily Chart Trades

The first one is that we place data chart trades on our membership site for clients to follow along. We analyse the data charts each day. And between 5:15 and 5:30 PM Eastern Standard Time, so that’s about 15 to 30 minutes after the day the candle opens the new day, we place specific trades based on the daily charts for our clients to follow. So it’s all in real time. The market hasn’t even started to move yet at that time of the day. We’re saying these are the trades that we’re looking at, giving all the reasons for the trade set up, plus we are giving the exact entry and exit levels for people to follow along, learn from, and also to earn from. But the most important part of that is the learning because it’s learning to train your eye in real time from that right hand side of the chart without any of the benefit of what might happen next or hindsight. So really important. That’s a daily occurrence. You get that five days a week.

#2 – Live Weekly 2 hour long webinars

So second thing is we hold a live weekly webinars. Two hour long webinars. One in the European session. The next one in the US session. Myself and Paul Tillman, who works for me over in America, we trade live accounts in front of our clients, in real time. Again, all from the right hand side of the market. We’re placing trades. We’re giving reasons why we’re saying, “Yes, this is a good trade,” or, “No, I’m not quite so sure about this trade because of reasons A, B, C.” Again, it’s all in real time. It’s all live. It’s happening in front of you. And again, that helps you to train your eye to see the pattern. To see the set up. So again, all live. Most important thing there.

#3 – Client’s Forum Site

The third way that we have is that we have our forum site. And on that we have a chat area. And we have ourselves and clients posting trades that they’re taking in real time. So you can see there’s three different ways that we can help you in real time. Now if these trades go wrong, that’s fine. We’re human. We’re real. We’re doing this as real full-time traders. We understand that’s part of trading. We understand that not every trade will go perfect. But we trade the set up. We don’t get too stressed or carried away with good or bad trades, individual trades . We’re seeing the setup. We’re trading the set up. Because that know that with probability and over time, our successful strategy, if we trade the set up, then over time, probability and history suggests that we will be very, very profitable. So it’s all well and good to do that. It’s all well and good to see a strategy, and read books, and see screenshots, and watch YouTube videos, et cetera with someone showing you hand-picked, cherry-picked perfect trade set ups. Being able to do it and see it in real time by yourself is what will make you a good trader.

If you’d like our help with any trading issues

So I hope that helps. If you like our help with anything at all, just drop me an email, Andrew@theforextradingcoach.com. And I’ll see you this time next week. Bye for now.

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#309: What Makes an A+ Quality Trade Setup

Feb 18, 2019

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What Makes an A+ Quality Trade Setup

In this weekly video:
00:24 – This is so important to your trading success
00:49 – Live trading webinar
01:25 – Trading is not just about the next one trade
02:16 – Training your eye to see that good quality setup
03:03 – A good strategy will win through over time
04:00 – Client makes +3% on the live webinar

What makes an A+ quality trade set up on your charts? It’s really important. Let’s discuss this and more right now.

Hey traders, Andrew Mitchem here, the owner of the Forex Trading Coach with the video and podcast number 309.

This is so important to your trading success

Now I wanted to talk about something that’s really, really important to your trading success. It will help you in so many ways. And it’s all about identifying what we call an A+ quality trade set up on your charts. Why is that important? Well it will help you become more successful. It would almost guarantee your success if you stick to these rules.

Live trading webinar

So last night with my clients, we held our live weekly two hour trading room webinar. And we talked about the importance of this, about looking for A+ trade setups. But what is an A+ trade set up? So each person, depending on your strategy, it will be different. But at the Forex Trading Coach, we have a defined, clear set of rules that we’re looking for to enter a trade. Now it’s really important to understand, to help you with your emotions and help with psychology that you go through this process and you stick to it.

Trading is not just about the next one trade

Because a lot of people will take one profitable trade and all of a sudden they’re over the moon and trading is fantastic and then they do something stupid next time.

Or they’ll have a loss or two or three losses in a row and all of a sudden trading’s terrible, I hate it, I’m losing money. It’s my broker’s fault, and whatever it is. You get the picture.

So what I suggest to clients do is I’m suggesting that they have the set of rules that we look for and every time they take a trade, does this individual trade set up meet this set of rules that we’re looking for? Yes or no. And not all the time is every single one of those going to be perfect, but do the vast majority of these setups or this setup, does it have the vast majority of these technical trade set up things that we’re looking for? And if it does, fantastic, take the trade.

Training your eye to see that good quality setup

Because what it means is you get to train your eye to look for that setup. It doesn’t matter what the timeframe chart is, what the currency pair is, whether it’s the New Zealand dollar because I live here, or whether it’s the US dollar because you live in America. It does not matter. Trade the set up because what that will give you is the ability to train your eye to see the setup no matter what the pair, no matter what the timeframe.

What it also does is it takes away those highs and lows of that emotion, because if the trade matches your criteria that you’re looking for and you take the trade and it gets to your profit target, fantastic. If it doesn’t, if it gets stopped, that is something changes, it doesn’t matter because you traded the trade setup itself.

A good strategy will win through over time

And you know if you have a good system, a good strategy like we do that has a high reward for risk, but we know without doubt that if you traded 100 setups of what we call A+ quality setups, over those hundred trades, you will without a doubt be profitable. So that’s why it’s really important to do that.

Now a client of mine created a journal and every trade he takes he analyses, is it good enough to meet our criteria? Yes or no, if it does he takes the trade, takes a screenshot. And that he said itself is massively helping him. So that is one thing I really want to stress there about making sure you journal your trades and your entry rates. It’s take a screenshot and it will help you build that library, that portfolio trades that in your strategy will help you.

Client makes +3% on the live webinar

Now on that same webinar last night had an amazing comment midway through the webinar from a guy called Scott. And Scott said to me, do you know Andrew, I made 3% just from copying your trades on the webinar so far.

Now at that time we’d taken three trades and all three had hit their profit. Now in total on that two hour webinar last night, I actually took seven trades in total, and so far four them have hit their profit target. One got stopped out and two are still open right now as I’m recording this, that are still in profit. Seven trade setups taken live. You can see me analysing the chance, see me taking the trades while I’m taking the trades and actually see it happen in real time. There’s no fiddling anything, there’s no just cherry picking the best trades and just kind of quietly hush hush, ignore the ones that don’t work. There’s none of that, it’s just this two hour live webinars, seven trades taken in front of everybody. And that’s the importance of coming on board with us and just getting that experience of training your eye. You get that everyday with our daily trading suggestions as well.

But on those webinars that we hold, I hold a European session webinar yesterday. Next week, Paul who works with me over in America holds a US session. The week after back to my European session, etc. So it doesn’t matter where you live in the world, you can jump on one of those live webinars every single week and watch us trading live. And there is nothing better than that.

So I hope that helps. Look forward to catching up with you this time next week. Don’t forget that trading journal to get what you classify as an A+ trade set up. It will almost guaranteed improve your trading.

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#308: The Importance of Good Quality Education

Feb 11, 2019

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The Importance of Good Quality Education

In this weekly video:
00:25 – The internet is full of Forex education
01:03 – Not just education but you need “Good Education”
01:55 – A call from a trader in Texas
02:50 – We are real traders not a call centre
04:04 – A trading example from the CAD/JPY D1 chart
05:55 – Learnt more in a 15 minute call than from a paid course
06:30 – We’ve been helping traders for almost 10 years – that’s real proof

Let’s explain the importance of getting educated, not only that, well-educated with something that works. Let’s talk about that and more right now.

Hey, traders, Andrew Mitchem here from the Forex Trading Coach, with video and podcast number 308.

The internet is full of Forex education

I’ve got a story to share with you regarding a phone call that I had this morning from a guy in Texas over in America, but more about that shortly. The point that I want to make here is online, you will find forex education everywhere. You’ll even find it physically in your own local town or city as well, but like with most things online, there are a few good things, and quite a lot of average, and an enormous amount of rubbish, trash, whichever word you want to use, and that’s what the online world is like, and forex education is exactly the same.

Not just education but you need “Good Education”

You see, getting yourself educated is good, but getting good education is what makes the difference. Not just getting a course, and assuming that’s going to fix all your forex problems. It’s finding the right course, something that suits you. It’s finding a group of traders who trade profitably successfully, enjoy what they’re doing, happy to share the knowledge, all those kinds of things, and something that works for you, in terms of your available time, all those kinds of things. Really important that you seek good education, something that’s proven, so … That applies to anything in life. You could be learning a sport, you could be learning a musical instrument, you could be learning anything. You’ve got to get yourself not just educated, but good, correct education. This is exactly the same in the Forex market.

A call from a trader in Texas

So back to the phone call that I received from the guy in Texas this morning. He phoned me up and said, “Hey, Andrew, look, I’ve been with this course over in America. I’m finding I’m not winning, I’m losing money. My risk is really high. They’re suggesting I trade 3% risk per trade. I’m trading 15 minute timeframe charts. I can’t get hold of anybody, and when I do, they reply by email a week later, different person all the time.” It just sounded like this guy has really fed up. He’d invested considerable amount of money and time into this company, and it just wasn’t working for him, but it was more the actual, the whole process, the whole strategy, the followup process, the lack of support. All that was frustrating him, so he searched online, he found me at the top of Google, gave me a call and we had a really good chat about how I trade, and how I can help him progress further with his trading.

We are real traders not a call centre

During that conversation I said, “Well, first of all, you know, we’re real traders. We’re trading. Here’s the chart behind me here. We’re trading in real time.” On our webinars, we trade live in real time. On our daily trade suggestions we put out there for clients to copy, and follow, and learn from. I said, “By the way, this week we’ve suggested five trades, all five have hit their profit targets so far.” We’re taking half percent risk, total portrayed with a quarter percent risk at the market order, quarter percent at a retracement order, and again, all these levels are explained and in the course until you get to know how and why to take those trades. We’re taking very, very low risk per trade, but we’re up 3% just by sort of following the daily trading suggestions just this week. Real simple to do, low stress. For this guy, you know, the course that he was on, they were saying trade 15 minute time frames, and he was sitting there all the time, scared to leave his charts and I said, “Look, you know, you can do something very, very different, low risk, enjoyable, trading just for a few minutes a day.” Of course you can take that information and trade it onto other timeframe charts as well.

A trading example from the CAD/JPY D1 chart

He was really interested, so he said to me, “Hey, Andrew, can you give an example of one of those trades?” I said, “Okay, go and have a look at your charts for yesterday,” which was Thursday the 7th of February, have a look at the Canadian dollar, Japanese yen. We took a sell trade based on Thursday’s, sorry, based on Wednesday’s candle, and we hit full profit on Thursday. If you look at the daily charts from the 6th of February, at that time when the seventh candle open, we said take a sell trade. Here are the entry and exit levels, and why. He said to me, “Problem here, Andrew. Just got to stop you there.”

I said, “Okay, tell me what the problem is,” and he said, “I can’t trade the Canadian dollar and I can’t trade the yen.” I said, “Well, why not? You’re using the MT4 platform. They have the Canadian yen, why can you not tried it?” He said to me, “Well, I’m not up at the time of day that the Japanese market opens.” He got me really confused there, and I thought, well, that’s … That seems really, really odd that here’s someone … I’m not knocking the guy himself. I’m knocking the education that he’s got. Here’s someone who’s paid a lot of money and thinks he cannot trade a pair like the Canadian dollar, Japanese yen, because he lives in America, and he’s not at his computer when the Japanese market opens. That goes to show you that they might be selling him this system, with doing all these, looking for A to crossover B, and the Mac D to do this, and, first of all, it’s not working for him.

But secondly, the lack of just what I would consider a normal forex, common sense, basic background information was just lacking there. Again, not through this guy’s fault, really. More to do with his course, and they hadn’t even taught him the basics like that. He thinks he just needs to trade the US payers, because he lives in America, and he’s awake when it’s the US timeframe, the time zone and session. Really bizarre!

Learnt more in a 15 minute call than from a paid course

But he actually, when we finished the conversation, I said, “Look, I can help you. Here’s how I can help you. If you want to go further your call, no pressure, you know, up to you.” But he said to me, “Look, Andrew, I’ve learnt more in 15 minutes on the phone with you for free than I’ve learned over the last,” however many months he’d been doing this course, paying a lot of money, month after month. It just goes to show you again, come back to that same title of this webinar podcast and video.

We’ve been helping traders for almost 10 years – that’s real proof

Getting education and paying for something, or whether it’s free, how do you find it? It’s okay, but make sure it’s good education, and that’s the key. You know, I really honestly believe that. It makes a big, big difference, so if you’d like our help, we’re almost up to 10 years of helping people track the forex world. May of this year, May of 2019, we celebrate our 10th birthday since my very first coaching client. We’ve helped thousands and thousands of clients who have come on board with us in that time, and we’ve helped literally hundreds of thousands of traders who have just got free information from us, watched videos and podcasts, downloaded software for free. Whichever you want, we’re here to help, but if you would like to jump on board with that course, it’s almost 10 years old.

You can’t get more proof than that of helping people from all backgrounds, all different countries, all time zones, all around the world, different experiences, different levels of computer knowledge, definitely levels of forex knowledge, and 10 years later we’re really proud that we’re still going strong. We’ve got the same strategy. That’s never changed. How important is that? Just think about that. In 10 years, we’ve never changed the strategy. Why? Because we don’t need to, because it works. I’ll leave that with you.

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

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#307: What proportion of your money should you trade?

Feb 4, 2019

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What proportion of your money should you trade?

In this weekly video:
00:29 – How much of your savings should you trade?
01:02 – The 2 different options for you
01:45 – Trading example
02:02 – This is a discussion – NOT financial advice
03:00 – Which is the best choice for you?
04:14 – Don’t keep all of your funds with one broker
05:18 – Email me with any questions

Should you put all of your money and your savings into your Forex account trade that, yes or no? Let’s talk about that and more right now.

Hey, traders, Andrew Mitchem here, the Forex trading coach with video and podcast number 307.

Now I’ve got a really interesting topic to discuss today.

How much of your savings should you trade?

Now it came back from an email here from a client of mine and we talked about this in quite some depth on my latest live Webinar with my clients that I hold each week and it was all about what should we do with our funds. And basically this guy said, “Should I put my savings and take money out of my bank account and put it into my trading account based on the fact that, we trade a strategy that works and based on the fact that we trade low risk per trade?” What should I do? And he said, “Well, basically, really is there any advantage one way or the other what I do?”

The 2 different options for you

So the two scenarios would be one, I take out a funds and additional savings, put it into my Forex account, trade it really low risk. And probably make way more than the bank are ever going to pay me in a year, I’m probably going to make that in a month and that would be very fair pull. The other thing we discussed was, why don’t you maybe look at putting half of that money that you would allocate to your Forex account into your account and half leave with the bank where sure, short may be earning very, very low interest rate but also, I suppose you could say it’s secure or secure as you can get. So there’s two different options. And if you took that second option, of course you could say, let’s pick some numbers.

Trading example

Let’s say I had $100,000 to try up at $50,000 and with my broker, 50,000 in the bank. And I’m assuming when I trade, I’m trading a 100,000, so I’m doubling up on my normal risk. So you’ve got a couple of options there and you can play around with the numbers as it suits you.

This is a discussion – NOT financial advice

The important things are this, there’s two things really. Number one, I’ve got to say this is not financial advice. I’m not saying you should go and do this. This was purely a discussion that we had on the live Webinar and I just wanted to share it with you because I think it’s something that a lot of people don’t give you that normal everyday experience. And this is coming from experience. This is not a suggestions or advice, really important that point. The second point is that I’m assuming that if you’re thinking, “Hey Andrew, which way do I go?” That you can actually trade

And that’s another really important point. The guy that I was talking about, he can trade, he’s been in all my course for awhile. He’s doing really well, low risk, et cetera. He’s not gambling, he’s not doing silly things. So there’s a couple of assumptions there. I’m assuming that you can trade profitably, consistently and you’re taking low risk. So assuming that comes into play, and if you can’t do that, then you need to come and see me first of all. But assuming you can then, which way you go?

Which is the best choice for you?

Well the choice of course is really yours, but just a few things to be aware of, here in New Zealand as a company that I’ve been using over the last year or so. It’s called Halifax and Halifax in Australia had something happened back in around October, November, and as a result of Halifax Australia owning part of Halifax in New Zealand, which by the way, we’re a really good broker.

Our accounts have been frozen, so I’ve got a substantial amount of money personally, plus a lot of other people have. And our accounts are being frozen for the last three months. I can’t trade my Halifax account. I don’t know whether I’m going to get all my money back, some of it, when that’s gonna happen, I don’t know. So I’m in a bit of a predicament here with Halifax right now.

So the lesson from that is, I can’t do anything about that frozen account right now. Am I annoyed? Well, kind of, but I can’t do anything about it, so I can’t take my money out. And that could happen to another broker because don’t forget I chose Halifax because I felt they were really good broker and they were up until this happening. And it was actually outside of the, I suppose, the control or the people I had my money with.

Don’t keep all of your funds with one broker

So the point is this, if you load up and put all your money with one broker and that happens, either your account’s frozen or you might even have that money completely lost or partially lost, who knows. That’s a big risk and you can’t have that happen. I’m fortunate in that I have my fund spread amongst several brokers and I think that’s important also. If you are in that position that you are trading well, you have a reasonably large trading account or even if it’s a small account, don’t put everything … don’t put all your eggs in one basket in terms of the brokers. So that’s important also.

So really important that you split your funds up between brokers. I think that’s a really important point and potentially you might want to say, I’m going to put partial funds with the brokers and the other with the bank and double up on my risk or I’m going to put everything there because my bank’s paying me virtually nothing and I’m going to trade it because I know that I can trade well and with low risk.

The choice is yours. As I said, don’t take this as financial advice, it is not. It’s just suggestions based on my knowledge, my experience, so I hope that helps.

Email me with any questions

Any questions like that or anything else to do with trading, just send me an email, andrew@theforextradingcoach.com and I’ll gladly help you out on future video and podcasts. So bye for now. See you next week.

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#306: Should you follow Trader’s Sentiment?

Jan 28, 2019

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Should you follow Trader’s Sentiment?

In this weekly video:
00:24 – Trader’s question from Norway
00:41 – Sentiment is hard to measure in the FX market
01:42 – Do you follow other traders?
02:04 – Why I use price action
02:50 – Trading against the sentiment
03:50 – Continuation patterns
04:39 – Send me your trading questions

Should you follow sentiment from other traders when making your trading decisions? Let’s talk about that and more right now.

Hey, traders. It’s Andrew Mitchem here from the The Forex Trading Coach with video and podcast number 306.

Trader’s question from Norway

Now I’ve received an email just this morning from a trader called Simon over in Norway. Simon said, “Hey Andrew, love your podcast, but can you chat about sentiment on a future podcast? Should we be following traders or should we go against them?”

Sentiment is hard to measure in the FX market

Simon, it’s a really interesting question, because sentiment is quite difficult to measure in the Forex market. It depends where you get your information from. Are you looking at different websites? Are you looking at something like Reuters possibly? Are you looking at something like Forex Factory or FXStreet? They all show where traders are long or short on different currencies and where people are placing their positions right now. The problem is is they can only show the data that they can measure, so it’s not uniform. It’s not the same depending on where you get that data source from.

When you think about it, in the Forex market, it’s very difficult to measure, a little bit like volume. Go and have a look at the volume indicator on, say, your broker’s platform, and then open up a different broker. The volume levels that you see are vastly different, and I supposed it depends on where the broker gets their data from. Is it just from their traders? Is it from their entire price feed? Where does it come from? Sentiment, very, very similar, can be the same issue.

Do you follow other traders?

If you are simply just following other people or you think, “I’m just going to do the opposite,” because 95% of traders all lose, then it becomes quite dangerous in some ways. Although I like the idea, Simon, and I like what you’re saying, I think there’s a better way to do a similar type of thing.

Why I use price action

That’s the way that I trade, which is why I use price action. You see, I’m looking at price action to give me an idea of where the big players in the market are moving the market, where they’re placing their orders. That’s why I also look at round numbers, like numbers, price levels ending in 00 or 50, because they’re strong psychological levels. The price is likely to move up close to a 00 and then it’s probably going to bounce back down again, or if it’s heading back down to that level, it’s going to bounce and then pull back again. A lot of orders are placed out, a lot of stop orders, a lot of stop losses, a lot of profit targets, et cetera, round numbers. So combining price action and candle formations with round numbers and support and resistance, et cetera, is the main part of how I trade.

But coming back to the sentiment question, if we were to say trade against the traders, the vast majority, that’s kind of like I’m use as a reversal pattern. Just last week, on last week’s video and podcast, I said, “Should you trade reversals or only continuations?” Reversals are going against the trend in some ways, but I only take a reversal signal once I have confirmation from the price action that the price is turning down. I’m not seeing the price going up and up and up and just simply taking sell crates just because I want to. I’m waiting for that price to go up and up and I’m looking for it to start to tip over, some indecision, some confirmation it’s about to go the other way.

So Simon, to answer your question with the sentiment and trading against traders, yes, you can do that. Reversal patterns are very, very nice. They look really good. A slightly high risk, but they are good.

Continuation patterns

But personally, I would still want some form of confirmation to say, “Hey, this up trend’s finished and now it’s heading back down again.” Similar with the continuations. I don’t just trade with the trend. So if a big uptrend going on, I’m not just taking buy trades, because at some stage, that’s going to start to pull back or reverse. Rather than just jumping in with the money and just going with the direction, which is kind of what you talk about with sentiment and following traders, what I prefer to do is go and say, “Hey, here’s a lovely up trend. Let’s just wait to see when that pulls back or reverses.” If it pulls back and then I’ll get the confirmation to go long again, that’s what I call a continuation trade, and that’s why I love continuations patterns, because as trading with that sentiment and with everybody else, but only after there’s been a pull back, a bit of a rest in the market, and then it goes again. That, to me, becomes a safer option.

Send me your trading questions

So Simon, I hope that helps. If you have any other questions, anybody else have any questions that you’d like me to talk about or discuss on future videos and podcasts, just send me an email andrew@theforextradingcoach.com. Have a wonderful week. I’ll see you this time next week. Bye for now.

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#305: Trading Reversal Patterns

Jan 21, 2019

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Trading Reversal Patterns

In this weekly video:
00:24 – Are reversal signals too risky?
00:58 – Reversal trades look really good on the charts
01:23 – An example from the GBP/JPY D1 chart
02:38 – Continuation patterns are a higher probability trade setup
03:18 – In Summary: Reversals and Continuation trades
03:38 – Look for “u” and “n” shapes on the charts
04:28 – New look website launched this week

Should you trade reversal patterns as a Forex trader or is it too risky? Let’s discuss that and more right now.

Hey, Forex traders. Andrew Mitchem here from the Forex Trading Coach with video and podcast number 305.

Are reversal signals too risky?

This video and podcast is all about reversal signals; should you trade them, yes or no? Are they too risky? Basically it’s all about helping you decide if they are correct for you or not. We were talking about this with my clients last night on a live two hour webinar. We were showing different reversal signals and continuation patterns. So I trade both of them myself, and they’re both very high quality, high probability trade setups that we trade as part of the strategy here at the Forex Trading Coach.

Reversal trades look really good on the charts

However, the reversal trades, although on the chart they look really dramatic because when you think about it, if you had a large uptrend, you are then taking a sell position based on what you’re seeing to ride the market right back the other way. Likewise, if you’ve had an uptrend you’re looking for the downtrend, if you had the downtrend you’re then looking for the reversal back up. So, on a chart they look fantastic.

An example from the GBP/JPY D1 chart

Right behind me here you might be able to see a daily chart of the Pound/Yen. Now, the Pound/Yen up until a few weeks ago has had a massive reversal, 1700 pips downwards, almost in a straight line. You look at that and then a couple of weeks ago, I think it was the 4th of January, we picked a buy trade based off the way that we trade off the daily charts against that 1,700 pip downtrend. It’s worked out beautifully. You can go and look on charts, Pound/Yen daily chart 4th January, 2019, you’ll see the trade that we took.

However, it’s definitely a higher risk trade because it’s against that massive downtrend. When you look back at the Pound/Yen over say November into December, you’ll see lots of opportunities for continuation patterns. That is, the bigger picture downtrend looking for a pullback or a retracement back up and then the opportunity to go down again, to sell short to look for the Pound/Yen to drop. That’s exactly what it did. Time after time and time again. Because of course nothing does a straight line; it’s goes down, it pulls back, it goes down, it pulls back, all the way through as it steps its way down in that example.

Continuation patterns are a higher probability trade setup

So, continuation patterns. No one near as dramatic on the charts. They don’t look quite so exciting do they? However, higher probability trades definitely if you know how to trade them properly. So we always look for more than just a candle setup; we look for confirmation of the price, what is the price has it bounced there before? What is the level, is it a round number? Is it a support and resistance level? Is it bouncing at like the upper or middle or lower Bollinger band? Do we have divergence positive negative? Hidden standard? All those type of things that we add to the mix to say, number one, this candle pattern looked really good. It’s a reversal trade or it’s a continuation trade. But then we add things to it.

In Summary: Reversals and Continuation trades

So, in summary, reversal trades really really dramatic, slightly higher risk because you are trading against the bigger picture. Continuations maybe don’t look quite so cool on a chart, but they are certainly higher probability because you’re trading with the main direction but after it’s had a slight retracement or pullback.

Look for “u” and “n” shapes on the charts

So the other thing to look for, two very, very basic patterns in terms of n-shapes. Small letter “n”. So what does that mean? Well, let’s say we’ve had the price pull up and then we’ve had confirmation to go short. It could be reversal or a continuation. But if you see that n-shape, that small letter “n”, it just helps to give you that sort of picture of where we are in the chart. That’s a great opportunity to go short. Likewise, the “u”, letter “u”, small letter “u” if you had a downtrend and then confirmation to go long, that letter “u” on a chart … “u” and “n” is very, very powerful. What they do is they tend to have like only two or three, four sometimes, candles setting them up they tend to have trendline breaks, then tend to have exhaustions, and they tend to be great reversals and continuations.

New look website launched this week

So if you’d like to know more, all you need to do is visit our new-look website, theforextradingcoach.com, which was launched this week. Same kind of information on there, just looks a little bit cooler. Modernised it a bit. You can also contact me through the contact tab on that page. Anything you’d like me to discuss on future videos and podcasts, or if you have a specific trading question that you’d just like me to help you with, then feel free to contact me at the Forex Trading Coach. Once again, this is Andrew Mitchem. I’ll see you this time next week.

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#304: Helping you trade the right way in 2019 and beyond

Jan 14, 2019

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Helping you trade the right way in 2019 and beyond

In this weekly video:
00:21 – Happy New Year
00:41 – A lot of political events
01:14 – Having a strategy and a plan
02:33 – My favourite time frame chart
03:21 – H12, H8 and H6 charts
04:01 – Take the higher probability trade setups
04:38 – Shorter time frame charts
05:33 – Forget about making pips

2019, what does it hold for you as a Forex trader? Let’s talk about that and more right now.

Hey traders, Andrew Mitchem here, the Forex Trading Coach video and podcast number 304.

Happy New Year

Happy New Year and happy start to 2019. I want to discuss a few things with you on today’s video and podcast that’s going to help you as a trader into 2019 because quite likely we are going to see some fairly difficult trading conditions will be my guess at this stage.

A lot of political events

A lot of political events happening right now with Brexit still undecided, political unrest within Europe, issues in South Africa, China of course, and the US and Trump and difference enhancements in how the world and the market reacts to all of that. On top of that, you know there’s still Russia and there’s lots of things happening politically around the world that can affect us as traders whether we like it or not. Whether we’re technical traders or fundamental traders, the political events do have a bearing.

Having a strategy and a plan

What can we do about that? Well, to me it’s really important that you obviously have a plan and you have a strategy in place. THat’s kind of a given, but for me one of the things that I stress to my clients is having the ability to look at various timeframe charts throughout the day or the week and I think it’s really important. Let’s discuss that.

If you’re looking at say like the monthly charts or the weekly charts, of course for some people they’re too big, they’re too slow, they take too long to mature trades. Some people seem to think that they can’t trade them because they don’t have a big enough account or they can’t afford such a big stop loss, which is actually incorrect, but that’s a different subject. But for the me, the monthly and the weekly charts are trades that kind of tick along in the background doing their own thing, bigger picture, I’m happy to leave them in for several days, several weeks, sometimes even several months if needed, and they’re sort of like … Kind of like the bread and butter behind the scenes. Still high reward to risk trades, in fact very high reward to risk.

Spread virtually has zero effect at all on say like a monthly or weekly chart and they just sit there looking at the bigger trend, the bigger picture and very, very nice charts to trade when you see good setups.

My favourite time frame chart

Come down to slightly shorter than that and that’s the daily chart. Now that’s still after 15 years of trading, that is still my favourite timeframe chart to trade. Why? Because I can look once a day. It’s faster than obviously like the weekly and the monthly. It has more relevance to what’s happening in the market right now and it’s juts a great chart to trade. Once a day look at the charts, are there any good setups on the daily charts? Yes or no? If there are, take them.

Generally I find one or two, sometimes three or four a day and that’s what I post to my clients on our membership site. Really high reward to risk trades, easy to place, put them on.

H12, H8 and H6 charts

The bigger picture is less of an issue, it’s more riding that sort of … That movement within the course of a few days. Then you come down short a timeframe again. I’ve got software that allows us on MT4 to trade charts like twelve hours, eight hours, six hours, fantastic charts. Absolutely amazing charts and timeframes to trade and we trade those on our webinars and on our forum site extensively.

Take the higher probability trade setups

If you don’t have that software, which by the way is only included with my course, then you can trade four hour charts and four hour charts are also really good because that allows you to look maybe sort of two or three times a day if you can at the close of a four hour chart and again, look for only the high probability setups. I think that’s another lesson for this year, don’t just take 50/50 trades, make sure you’re patient, make sure you wait, make sure you are selective, you only take those high probability trade setups.

Now of course, trading, it’s not an absolute given. It’s not. You can have an A grade setup and it will still fail from time to time, that’s just part of probability, part of trading. You have to accept that as part of being a trader but if you are consistent and you take those

Shorter time frame charts

A quality trade setups consistently, you will make money from trading and it won’t take you much time, but if you do want to spend a little bit more time than you can go down to say one hour charts and get that very small movement within the market accepting you’re in a trade for maybe several minutes, maybe an hour or two.

I personally don’t trade anything lower than a one hour chart. My strategy, my system works equally as well on fifteen or even five minute charts if you really want to, it just it doesn’t suit me. I like doing things like this, this is on my property here, we’ve put a pond in and we’ve planted about 3,000 native trees around the place here several years ago and to me, trading is about enjoying life and putting the two together. If you want to trade things like five minute charts, then go for it, do it, but maybe say pick an hour or so per day and do that but don’t sit at your charts all day long every day sort of being trigger happy pulling … Trying to get one or two pips out of the market all the time.

That again, brings me back to the final subject, which you have heard me talk about many, many times.

Forget about making pips

Actually forget about pips, they do not matter. Look at making percentages, have high reward to risk trades, and look at the percentage that you risk on every trade regardless of the trade or regardless of the timeframe chart. Keep that low, keep that consistent, high reward to risk trades, and you will do well in 2019 as a Forex trader.

Once again, this is Andrew Mitchem, the Forex Trading Coach. I’ll see you this time next week with more updates.

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#303: Evaluate Your Trading Year

Dec 17, 2018

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Evaluate Your Trading Year

In this weekly video:
00:31 – Was 2018 a good trading year for you?
01:02 – What worked and what did not work?
01:42 – Stop the searching and time wasting
02:31 – Surround yourself with real traders
03:14 – Client makes 7% gain in 1 week
03:52 – Daily analysis finishes 21st December and starts on 14th January 2019
04:30 – We love trading and see you in 2019

How has your trading gone this year and what are you going to do to make any changes as we head into next year? Let’s talk about that and more right now.

Hey, traders, Andrew Mitchem here, The Forex Trading Coach, with video and podcast number 303, coming from Nelson in the South Island.

Early morning here as I’m off for the day. We’re down here on holiday and just wanted to make this video. The last one for 2018. And really to talk about how has your year gone?

Was 2018 a good trading year for you?

What’s been good for you? What’s worked? What’s not worked? What time frame charts have worked? What type of strategies worked? And what is it that you need to do? Just use the next few weeks over Christmas, over New Year, to evaluate your trading and to really to put you in the right position for making next year a really good year for you.

Have you found that the technical analysis has worked? Have you found that maybe fundamental analysis has worked? Maybe you’re looking at a combination of the two.

What worked and what did not work?

Maybe you’re completely confused and you’re not sure what should work or what does work. Maybe your finding yourself glued to the charts all day and you’re finding that maybe 15 minute charts are just not working for you. It’s just too fast. Maybe you think that daily charts, or weekly or monthly charts, you don’t have a big enough account. Whatever it is, use these next few weeks to really workout what is going to make 2019, and beyond, work for you. Really important you do that.

Stop the searching and time wasting

I also think it’s important that a lot of people I hear from, who are not clients, they’re spending far too much time searching around Google, looking for the next latest greatest strategy. They’re spending too much time on forum sites and basically getting inundated with other people’s opinions and information overload. The old analysis paralysis going on there. You know, that can be dangerous as well because a lot of those places, in all honesty, are probably populated by people who don’t trade, who can’t trade, that type of thing. A bit of a generalisation, but you know, online, a lot of places like that, forums, etc., especially in the trading world, can be like that.

Surround yourself with real traders

It’s important that you surround yourself with real traders. People who are trading. People also not glued to the charts. Like I said, I’m here in Nelson, I’m trading off the daily charts this week. I put a few trades on the weekly charts as well, but I’m not trading much else, because I don’t want to this week, I’m doing other things. Got the family here, going around, been on the beach, although it was a bit of a cloudy day today. Just having a good time doing other things.

And really, you need to surround yourself by people who are, who I suppose walking the talk, not just talking it, they’re actually out there doing it, and I think that’s really important as well.

Client makes 7% gain in 1 week

Look, I’ll just received an email this morning from a client, Mickoli. And Mickoli said, “Hey Andrew, last week I was trading just on the longer time frame chats and I made 7% in a week.” Now, he’s risking 1% per trade, but we made a 7% return last week. So, ask yourself, do you want to do that from just trading 10, 20 minutes, once a day? And if you do, then you know where to find us, you know where the help is. Mikoli joined me probably about a couple of years ago, I’m guessing, without looking, and 7% in a week, just trading longer time frame chats, and so it can be done.

Daily analysis finishes 21st December and starts on 14th January 2019

Look, we’re taking a break now. We finish our free analysis on Friday, the 21st of December, and we don’t start again until the 14th, Monday the 14th of January. We’re taking a bit of a break. The market could be really volatile, it could be really quite, who knows. For the next few weeks I’m not too worried which way it goes because having a bit of a break, and it’s probably a good thing for you to do as well, have a bit of a break from trading. Charge up the batteries. Energise yourself. Ready to go again into next year.

But look, let’s make 2019 an awesome year for everybody. If you want our help, again, you know where to find us. We’re at theforextradingcoach.com.

We love trading and see you in 2019

We love trading. We love travelling and trading. We love spending time with our families and trading. We’re out there doing the real thing and if you’d like to ever consider joining us, it’d be awesome to have you on board. But, whatever you decide, have an awesome Christmas, a fantastic New Year. Have a great time with friends and family. Try not to eat and drink too much. I’m going to try and do the same. That’s not eat and drink too much.

And I’ll see you next year. Have a great time over the Christmas break. See you in 2019.

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#302: 10/10 Winning Trades This Week

Dec 10, 2018

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10/10 Winning Trades This Week

In this weekly video:
00:27 – An exceptional week’s trading
01:06 – Large opening gaps this week
01:20 – Monthly US jobs news
01:52 – 4 trades taken live made +4.15%
03:00 – Forum site also includes other trades
03:39 – This shows what can be achieved

Hey traders, when you get 10/10 trades hit their full profit target, you know you’ve had an awesome week. So let’s talk about that and explain more right now.

Hi traders, Andrew Mitchem here from the Forex Trading Coach, video and podcast number 302.

As I mentioned, when you get 10/10 trades in a week all hit the profit target, the full profit target, you know you’ve had a really good week. That’s exactly what we’ve had.

An exceptional week’s trading

It’s just been an awesome week on the membership site that we have. So to start with, we have had 6/6 of our daily trade suggestions this week all hit their full profit targets. They’ve ranged between 1.5:1 reward to risk, which was the lowest, and all the other five are 2.2:2.8 reward to risk. So very high reward to risk on those trades there.

Large opening gaps this week

All six of those have been published on our membership site on Monday of this week, and if you have a look at your charts you would have seen those very enormous and quite ugly gaps on pretty much all the currency pairs at the beginning of the week. So Monday was a right off, we didn’t take anything then.

Monthly US jobs news

Today is Friday, and so later today we have the US non-farm employment change, the monthly results, and we have the US for their jobs data. So we’re expecting Friday to be a fairly quiet day probably leading up until that information. So I’m talking about just three trading days. We put six daily trades on our membership site, all in real time, all for people to look at to learn from, and all six have hit full profit.

On top of that, because I said 10/10, last night I held a webinar in the European session for my clients, a two hour long webinar.

4 trades taken live made +4.15%

I took four trades on a live account in real time in front of people. We had one trade on the one hour chart, that made a 2.4:1 reward to risk. Had a trade on the 30 minute chart that made a 2.9:1 reward to risk. Had another trade on a 30 minute chart made 1.8:1 and a trade on the 15 minute chart that made a 1.2:1. Put those four trades … Just those four trades together, half of 1% risk per trade, and anybody who followed that webinar, all my clients, would have made a 4.15% account gain just by copying those four trades. Taking them real time, you could see the trades setting up. I explained where the entry and exits were going to be, why we were taking the trade. 4%. 4.15%. That’s just an incredible amount, just following a webinar and learning in two hours real time. No hindsight, no just picking out good trades and ignoring the bad trades. 6/6 on the dailies, 4/4 on the webinar.

Forum site also includes other trades

On top of that, we’ve got our forum site where clients are posting trades. We’ve got our chat area on our forum site as well, where people are chatting and talking about different trades. All I’m doing is talking about the daily trades and the trades from my live webinar just yesterday. 10/10. An awesome week.

Does that happen every week? Of course it does not happen every week. But when the market is showing, the conditions are there, and the trades are there and you’re selective, it just shows what can be done once you know what you’re doing.

As mentioned, be careful with the US non-farm employment change data, it’s the last one of 2018. It could be quite volatile possibly just after that, maybe, depending on the result.

This shows what can be achieved

But it just shows what can be done if you know how to trade, if you’re following along with someone who knows what they’re doing, a mentor. 10/10. Can you get better? Well, you can’t get better than that, can you?

Just wanted to share that with you. If you’d like to know more or you’d like to see some of those trades or you’d like to jump on board with us at the Forex Trading Coach, just send me an email andrew@theforextradingcoach.com.

See you this time next week. Bye for now.

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