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Why you should trade different time frame charts

In this weekly video:
00:23 – It’s important to trade a variety of charts
01:00 – Different pairs have different characteristics
01:23 – Standard MT4 chart time frames
02:17 – H12 charts showed great trade setups
02:54 – No more time is needed to trade the offline charts
03:47 – Do not rely on one time frame
04:36 – High reward:risk trades

I’m going to explain why I like to trade a variety of different timeframe charts as Forex trader. Let’s get into that and more, right now.

Hi traders, Andrew Mitchem here, the owner of the Forex Trading Coach. Video and podcast number 301. I’m going to explain to you the importance of why I believe it’s very important that you trade a variety of different timeframe charts as a Forex trader.

It’s important to trade a variety of charts

You see, different Forex pairs, different currencies have different personalities, and they all move in different kinds of ways.

Some are very fast moving, some are very slow moving. A little bit like people in some ways. The danger is, if you rely just on either one currency pair or, more importantly, just one timeframe chart, then you could be limiting the available trades that you see.

Different pairs have different characteristics

Different pairs have different months of the year or different days of the week or even different hours within a day that are better or worse for the different currency pair.

The problem is, is let’s say you just traded the four hour charts let’s say. The problem is, is what happens if the four hour charts that particular day or that week are either very volatile, and they’re moving way too fast, or they’re very quiet, and they’re just dead?

Standard MT4 chart time frames

The problem is then is you’re missing out on so many potential opportunities on other timeframe charts because you might find that the four hour charts that week that you trade them, they just don’t show very many possibilities.

With a standard MT4 account, the main timeframes that I trade myself are the four hours, the daily, the weekly, and the monthly. That’s good, but what I’ve done is I’ve developed some software, which I give to my clients as part of my coaching course, that allows us to trade other timeframes charts on the MT4 platform. We trade especially the six hour, the eight hour and the 12 hour charts. Depending on the week, for instance last week, the 12 hour chart showed some fantastic trade setups.

H12 charts showed great trade setups

This week, the four hour charts have been showing some really good setups, and it’s all depending on the nature of the market at the time. The problem is, is that you don’t know in advance what next week’s going to show us. What’s going to be the best timeframe to trade? You don’t know. When people come to me, and they say, “Andrew, what’s the best timeframe chart I should trade?” I say, “Well, it depends.”

So, there is no one answer that’s correct. It depends on the market at that time. That’s why I like to look at a different variety of timeframe charts. But the beauty of it is, is it doesn’t mean to say that you’re spending a great deal of extra time trading.

No more time is needed to trade the offline charts

You see, when the daily charts change over at 5:00 PM New York time, at that same time, I can look at the 12 hour, the eight hour, the six hour and the four hour charts.

I’m looking at the daily charts anyway at that time, so for an extra, maybe 10 minutes, I can scan through those other timeframe charts and look for different trading opportunities. That’s the beauty of it. As mentioned, this particular week right now, four hour charts on our forum site have gone absolutely crazy. There’s all sorts of different four hour charts setting up. Last week it was 12 hour charts that were showing the best trade setups on that week.

Why? Well, it’s just the different nature of the market as opposed to last week as opposed to this week. But the point of this is to say, “If you want to give yourself the best opportunity, try and look at more than one timeframe chart because just relying on one, you may be cutting yourself short and not giving yourself the best opportunity.”

Do not rely on one time frame

The beauty of the way that we trade, the way I teach and the way that we trade, is that the same principal, the same approach, the same setups, the same what we’re looking for for entry and exits, are identical regardless if it’s a four hour timeframe chart a weekly chart. It doesn’t matter. The patterns are the same, the way that we’re entering and exiting is exactly the same. It’s just a case of scanning through different charts.

But, of course, because we’re only looking at a trade or potential new trade at the close of a candle, you know exactly when you need to go and look at your charts. That’s the beauty of trading that way.

High reward:risk trades

The other thing that we find extremely beneficial is because we’re looking at those four hour charts and above the majority of the time, the reward:risk is so high on those trades. You don’t even need to get a 50% win rate, you can be even lower and still be making exceptionally good returns because our reward:risk is so good.

That’s another advantage for trading those slightly longer timeframe charts. Less chart time, less stress, news doesn’t really matter, reward:risk is so much better, spread becomes almost insignificant and you put the trade on. You know your entry, you know your exit levels, let the market do its thing.

Hope that helps. Try and get yourself into a habit of looking at two or three different timeframe charts throughout the week to give yourself the best trading opportunity.

Once again, this is Andrew Mitchem from the Forex Trading Coach. Any questions, just send me an email: andrew@theforextradingcoach.com. See you this time next week.

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The most important things you need to do in order to be a good Forex trader

In this weekly video:
00:25 – An overview of being a good trader
01:11 – The right attitude and mindset
02:15 – Work out what works for you
03:03 – Patience is key to success
03:45 – Understanding position sizing and reward:risk
04:38 – Be slow, steady and consistent
05:30 – Don’t listen to most of the information online
06:14 – Keep things basic
07:40 –  Contact me if you’d like to take your trading further

I’m going to discuss the most important aspects that makes a successful Forex trader. Really important information, listen up, here we go.

Hey traders, Andrew Mitchem here. The owner of the Forex Trading Coach with video and podcast number 300.

An overview of being a good trader

I thought for the 300th episode, we’d take basically an overview of the most important things that in my opinion you need to have developed in order to become a good trader, to become a successful trader. In no particular order, but really when you think about it, if you’re going to be a Forex trader, you’ve got to enjoy it. There’s no point in doing something if you don’t enjoy it. Don’t just think oh, I’ve seen this thing online and it’s easy money. I can make passive income, I can give up my job because I hate my job. Whatever it is, a lot of people have some very weird and quirky reasons for getting into trading, but the most important thing I think at the very beginning is you have to enjoy it. You’ve got to have a bit of a passion to want to do it, to get a bit of a buzz out of doing it. Those types of things, so that’s really important up front.

The right attitude and mindset

Then you’ve got to have the right mindset and the right attitude towards it. Now a lot of people come into trading and they blame people, they blame the market, they blame the broker, they blame their coach, they blame everybody but themselves. You can’t do that. You can’t sort of start throwing hands up in the air and throwing your toys out of the cot if after the first month of trading it’s not working for you because the reality is if you have that kind of mental approach, that thought process, then the likelihood is it’s not going to work for you, doesn’t matter how long you do it. You’ve got to have that sort of understanding that you’re in this as an investment, you’re going to get yourself educated, you’re going to take your time, do it slowly, and if you do it that way, then things … You’ve got a far better chance of making it work for you. That whole mental aspect and approach is really, really important. You can’t be like too fiery and just throw everything, blame everybody if things don’t go right. It’s your problem. Harsh but true.

Next thing is you’ve got to work at what works for you. Now it might seem a bit obvious to say that but it’s got to be …

Work out what works for you

You have to develop a way of trading that actually suits you, suits your personality, suits other commitments that you have, suits how much or how little you want to trade. Those types of things. Do you want to be a scalper? Well, no harm in being a scalper. I don’t personally do it because it doesn’t suit me but you can still trade my strategy on five minute charts if you really wanted to, but you’ve got to work at what works for you in terms of the type of trader that you are. You’ve got to understand that if you’re looking for certain patents, you’ve got to be consistent with them. If you’re looking for strength and weakness, you’ve got to be consistent with that trading approach. It’s really important to get all of that together.

Patience is a big one. We’ve talked about that recently on these videos and podcasts. Patience is a massive, massive key to being successful. I’ll give you a great example.

Patience is key to success Patience is key to success

A client of mine posted on our forum site just this morning an amazing trade on the 12 hour charts. They saw the trade, it was the first one they’ve taken for the week on that pair, and they waited for it, they saw the set up, they took the set up, they made a 3:1 reward:risk out of that trade, but they waited towards the end of the week to get to that stage because earlier in the week on that pair, on that timeframe, nothing else was showing. Patience is a big key. There’s many examples about patience and how being patient helps you.

Understanding position sizing and reward:risk

Understanding position sizing, understanding reward:risk, those types of things very, very important understanding that really in my opinion you shouldn’t look at making pips. Forget pips, they don’t really matter. You can’t go down to the shop and buy something in pips. You’ve got to understand that where you put your stop losses, where you put your profit targets. Try to get reward:risk that’s in your favour, maybe a 2:1, a 3:1, whatever it might be depending on your approach and strategy. You’ve got to understand how to use a certain level of support resistance levels, pivot points, round numbers to help you with your stop loss. Let’s say protecting your stop loss. Don’t just say, “Hey, I’m going to put a 20 pip stop loss.” Well, what does 20 pips mean and 20 pips on something like the Pound/New Zealand is very, very different to 20 pips on the Euro or Swiss Franc, so understanding different pairs, how they move, that type of thing, is very, very important also.

Be slow, steady and consistent

Be slow, steady, and consistent. Well, I think that’s a really important key. As I mentioned earlier, if you’re the sort of person that flies off the handle because a couple trades go wrong and you start blaming everybody else. It’s probably not going to work for you. You’ve got to be slow, you’ve got to … I’ve had people in the past go, “Hey Andrew, I took your course three weeks ago and it’s not working for me. My trades aren’t working.” It’s like, “Well, three weeks, come on! Give it some chance.” At three weeks you should be still learning strategy, following what the person is doing, attending webinars, those type of things. Don’t expect miracles basically within a minute of just trading a new system. It’s not going to happen. Slow, steady gains, consistency, understand a system is far more important and then long term, you’re away. Once you understand how it works, you’re away but take your time up front. Really important to do that.

Don’t listen to most of the information online

Don’t listen to most of the other info out there. Now I think that’s another big key. Trying to avoid most of those sort of forum sites or sort of buying those $97 robots, those type of things. Most people, even family members, family and friends, a lot of people will tell you that in gambling you don’t know what you’re doing and you lose your money, you lose your house. Ignore those people. If trading is something you want to do, get to understand how it works. Get yourself educated. Get support on your side and basically ignore the masses out there that will tell you it’s no good. A lot of those people either aren’t educated themselves or they’re people who have tried it and done something stupid to blowing their accounts, etc.

Moving on from there, don’t complicate it. Trading shouldn’t need to be complicated. You don’t need to make it complicated.

Keep things basic

It’s not that complicated once you have a system and a structure that you understand, so really important to come back to those basics and get all of that right and it comes back to the very first point of enjoying it. It’s great too if you’re able to make money from trading and absolutely love it, but you’ve got to enjoy it, you’ve got to get a bit of a buzz from it and really look forward to doing it. Most people with a normal job they absolutely love Fridays and they hate Mondays.

For me, it’s the opposite. I absolutely love it when the market opens because it means that I can get back doing the thing I love again, trading again. Weekends, yeah sure, everybody loves weekends, but I can’t trade. If that’s you, then trading is for you. If you love the Monday mornings and the market opens, then that tells you you’ve got the trading bug, which is great. But don’t forget, of course, you can still use the weekends for doing your research and looking at like your weekly charts [inaudible 00:07:05] your upcoming daily charts for the beginning of the new week, so you can still do research and back testing and analysing your results and things like that, but you’ve got to have the enjoyment of trading.

I hope that helps. Really proud to have got to video and podcast number 300. Thanks for watching, thanks for listening, thanks for supporting me, and really pleased with all the comments and feedback that I get week after week, and so pleased that all my information is out there helping you.

Contact me if you’d like to take your trading further

If you do want help, you know where to find me. We’ve been at the Forex Trading Coach for nearly ten years, a huge achievement. Helped thousands and thousands of Forex traders just like yourself throughout the world. If you’d like to join us then we’ll be glad to have you and to help you becoming successful. This is Andrew Mitchem from the Forex Trading Coach. I’ll see you this time next week.

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Should you trade the news?

In this weekly video:
00:29 – News trading – does it work?
00:58 –  Or are you a technical Forex trader?
01:38 – Trading the US jobs news
02:20 – Australian employment data
04:18 – The choice is yours
05:19 – Send me your trading questions to andrew@theforextradingcoach.com

As a trader should you trade the news announcements or not? Let’s talk about that and more right now.

Hey traders, Andrew Mitchem here, the Forex Trading Coach with video and podcast number 299.

So today I want to talk about news and trading around the news. Should you do it? Should you look at trading those high impact news announcements that come out every day of the trading week or not?

News trading – does it work?

Really, it depends on you as a trader as a person whether you want to or not. So really, if you’re not sure a news trader or a fundamental trader is someone who trades news announcements. It basically becomes an opinion on whether you think that news is good or bad for a currency. You get the high impact news announcements like interest rates, employment, those type of things. Or you are a technical trader, like I am.

Or are you a technical Forex trader?

The technical trader looks at charts and looks at patterns and price action and price levels and technical indicators and you make your trading decisions from there.

Of course, some people can use both. Although I’m a technical trader, of course I am aware of the news announcements and what’s coming up and which currency they are likely to affect. I go and check what those results are. But the fundamentals do not affect my trading; I’m purely a technical trader. Because for me the charts tell me everything I need to know. Now, as a fundamental trader years ago … 10, 12, 14 years ago, I used to trade nonfarm payrolls and nonfarm employment change.

Trading the US jobs news

First Friday of each month, US employment data. You speak absolutely easy, used to make a fortune from it, because you’d put a straddle on, a buy and sell stop, and the market would just break out massively one way or the other. I used to make a lot of money.

But of course today, brokers have wised up on things like that. It’s very hard to take straddle trades. The price can sometimes freeze on your charts around the high impact news times. The spreads can massively widen. All those kind of things. So that was a long time ago when that was easy to trade. Today it’s very, very different.

Australian employment data

To give you an example, just yesterday on Thursday there was the Australian employment data came out. Now, a lot of jobs got created, far more than expected. The unemployment went down. So very, very good news for the Australian economy. However, on Wednesday on my membership site, and actually on the free information I post on various websites, I suggested buying the Australian Dollar against the US and against the Yen. But for my clients as a specific trade we had buy the Australian Dollar/US Dollar at these levels and the market order stop loss here and profit timing there and the reasons why. It’s all taught in the course. Real simple. But we had an Australian Dollar/US Dollar buy trade on the daily chart based off the close of Tuesday’s candle for Wednesday trading session.

Yesterday, that trade hit the full profit target for a 3.2:1 reward to risk. So if you take a 1% risk on that trade, it made you 3.2% account gain. I took a 0.5% risk so it made a 1.6% account gain from that one trade, which took me about 30 seconds to see and about another 30 seconds to place on my platform. A 1.6% account gain. Simple. Yes, it took just over a day to get there. But the thing that I’m wanting to let you know is that we were seeing the strength in the Australian Dollar over a day before the announcement came out. The announcement came out and the Australian Dollar went up against the US. But we were in the trade long before that. No stressing around news time, no worrying about the spreads or the price freezing or any of that.

The choice is yours

So I’m not going to tell you that news trading is no good and don’t do it. Many people like to tell you out there online that technical trading is no good and you shouldn’t do it. A lot of news traders will tell you that. Now, it’s a bit like skiers and snowboarders, or rugby and rugby league or different things. To me, we’re all doing the same thing. We have the same passion, the same enjoyment. So I’m not going to tell you that you shouldn’t be a fundamental trader just because I’m not. I don’t believe in that. Like I said, a lot of people mistakenly and wrongly, in my opinion, do that. If you find technical trading works for you, be a technical trader. If you find that fundamental trading works for you, be a fundamental trader. If you like the blend of the two, do that. Whatever works for you.

All I’m saying is that for me, as a technical trader, the charts tell me everything that I need to know. I know when to take a trade, where my stops should be, where my profit target should be. I know my risk, I know everything well in advance without any stress about having to worry about any news or anything like that.

So I hope that helps. Now, next week is video and podcast number 300.

Send me your trading questions to andrew@theforextradingcoach.com

If you have any trading questions at all, anything you’d like my opinion on, then feel free to send me an email andrew@theforextradingcoach.com. I will cover your questions and topics and trading information over the next few videos and podcasts.

So I hope that helps. This is Andrew Mitchem, the Forex Trading Coach, have a great weekend. I’ll see you at this time next week.

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Why you need patience to trade Forex

In this weekly video:
00:26 – The key to being a successful trader
01:03 –  The reality of trading
01:38 – Less is more
02:14 – Live webinar with clients
02:43 – Real trading example on the EUR/USD
03:44 – More trades selling the EUR/USD

I’m going to explain why you need to have patience in order to be a successful Forex trader. Let’s talk about that a little more right now.

Hey traders, Andrew Mitchem here, the Forex trading coach with video and podcast number 298.

The key to being a successful trader

Now the key to being a successful Forex trader is having patience. Now many people get into trading thinking it’s going to be fast, action paced, moving markets all the time, lots of screens with news channels and things coming through and high action pace, traders sat there, can’t miss a single bit of news, they can’t miss a single pip of movement. They’re there taking trades within milliseconds, getting in and out of the market all the time, real fast action paced stuff.

Now that’s the perception and the reality is or the reality should be if you are going to become a good trader and to last as a Forex trader.

The reality of trading

The important thing is that you need to do the exact opposite. The reality for me, it couldn’t be farther from the truth. I don’t have any news channels going, I don’t look at any news feeds. I’m looking at the close of a candle and I’m displaying patience. You don’t need to be sitting at your charts all day long, all day and night, in order to become a good trader.

Less is more

Think of the phrase ‘less is more’. It applies to trading absolutely perfectly. Why would you want to make, let’s say 2% on your account in a week and you’ve taken 50 trades as opposed to maybe making 2% on your account in the week and you’ve maybe taken 5 trades? Which is going to be more enjoyable? Which is actually making you money? Which is more long term beneficial? Which is actually putting money into your account rather than your broker’s account? Patience is the absolute key.

Live webinar with clients

Now just last night I held a live webinar with my clients and a very successful client typed in on the chat that we had saying, “Hey Andrew, I’m taking trades only on the currency pairs that have a certain direction showing on the monthly chart and that same direction showing on the weekly chart, and then I’m taking trades only on that pair in that direction for that week’s worth of trading.”

I’ll give you a great example, so today’s Friday the 9th of November and we’re just about getting close to the Thursday’s daily handle closing at 5:00 PM New York time.

Real trading example on the EUR/USD

Now I’m just about to take a sell trade in and suggest to my clients we look at a sell trade on the daily chart on the Euro/US dollar. Now at the beginning of the month, beginning of November, I took a specific monthly chart Euro/US dollar sell trade.

On the weekly chart, I’m also looking for sell trades, and then today, being the last day of the week, so for the first four days of this week, there have been no suitable set ups on the Euro/US dollar on the daily charts, but today I’m going to take one very shortly. We have a specific way of entering and exiting, etc., but I’m takin a sell trade on the daily chart that happens to be in the monthly and the weekly direction.

When the daily is lining up and I’ve had a pull back and I’ve had some indecision, now I’m getting a confirmation candle, I’m going to be taking a sell trade.

More trades selling the EUR/USD

Now just on that webinar yesterday that I talked about, I also took a sell trade on the one hour chart also on the Euro/US dollar because I’ve got the monthly, I’ve got the weekly, I had the daily, and then on the one hour chart, I had a perfect sell trade and it made full profit.

The patience is the key. Don’t go forcing trades. You don’t have to have them all lining up, that’s not part of this discussion, but it’s to show you that the patience and the A grade high probability trade set ups are really what you should be waiting for. Like I said, don’t need to be making 2% with 50 trades if you can make 2% with 5 trades or 1 or 2 trades. It’s all about patience, waiting for the set ups to show you those A grade set ups. When you see them, then you take them with full confidence.

I hope that helps. This is Andrew Mitchem, the Forex trading coach. I’ll see you this time next week.

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Confusion over which time frame you should trade?

In this weekly video:
00:27 – Which time frame chart should I look at?
01:11 –  A few options for you
02:02 – Only trade on the close of the candle
02:58 – Dedicate 1 hour a day to trade the shorter time frame charts
03:31 – I trade for 1 hour a day
04:44 – Different charts showing different things
06:10 – Complete confusion

Do you get confused trying to understand which timeframe Forex chart you should be looking at and you should be trading. If that’s you, listen up, I’ve got some really important information.

Hey Forex traders, Andrew Mitchem here, the owner of the Forex Trading Coach with video and podcast number 297.

Now a lot of people come to me and they say, “Hey, Andrew, I’m confused with which time frame chart I should be looking at.

Which time frame chart should I look at?

Which is the best time frame? Should I be looking at 15 minute charts, should I be looking at hourly charts? You also talk about trading daily charts, Andrew, so which is the best?” Now the answer is there is no one right or wrong time frame chart to trade. And it really depends on a number of things but also it depends largely from your point of view, the things you can control is what type of trader are you? And how long, how much time per day or per week do you really want to start or sit looking at charts on your screen? So you’ve got a few options. You could be the sort of trader that likes to sit and watch charts and you might like that price action, seeing price moving around quite a lot.

Which time frame chart should I look at?

If that’s you, then you should definitely be trading for shorter time frame charts, probably one hour charts and below, so 30 minute, 15, 5 minute, that type of thing.

However, if you are the sort of trader who likes to trade less and you’ve got other things to do, you’ve got jobs, you’ve got family, you’ve got other activities that you like to do, and you just want to say, I want to trade for a few minutes once a day or like that, then you should definitely be looking at the longer time frame charts. Now things like four hour charts possibly might be the shortest that you go to and you might like the longer time frames charts like the daily charts, weekly charts and even the monthly charts. And the great thing is with the way that I trade is, I only look at taking a new trade or potential new trade at the close of any candle.

Only trade on the close of the candle

So we are now into November, now we’ve just taken six trades based on the close of the October charts. Because they are monthly chart trades, they have some very big rewards to risk ratios, up around four to one. Now I’ve just placed those trades this week. I put six of them on and they’ve got half of one percent risk each. Now if they, if three of them make a profit and three lose, I’m potentially going to make some very nice profits but it took me just ten minutes to scan through the monthly charts at the close of October and into the first day of November and see the trades that were setting up and taking the trades.

So it all depends when you like to trade, how often you like to trade, that type of thing. The other thing you can do is you like the shorter timeframe charts. There’s nothing wrong with those time frame charts.

Dedicate 1 hour a day to trade the shorter time frame charts

What you could do is say, I’m just going to pick one hour a day that I focus on trading, say five or fifteen minute time frame charts, just because you like the shorter time frame charts mean to say you are completely glued to your screen, however the danger is a lot of people either become too reactive with their emotions as in like they force themselves to see a trade because they’re trading five minute charts, let’s say or they just sit at the computer for hour upon hour upon hour. That for me personally, I trade no more than one hour a day. That’s all it takes.

I trade for 1 hour a day

Now yes, I’ve got years of experience and I know what I am looking for but I look at the close of the daily chart at 5 pm New York time and I look at daily charts at that same time, I can also scan through, I’ve got some great software on MT4 that allows us, and that’s myself and my clients to trade twelve hour charts, eight hours and six hours and I also look at the standard four hour chart at that time. And scan through all those charts in no more than some 10 to 15 minutes.

And then from my point of view, I can look say four hours later or six hours later at the close of the four or six hour chart and then at 5 am New York time, I can look again at the twelve hour, the six hour, the four hour and I also look at the one hour time frame at that time of day because it’s into the European session by then and there is more activity than the 5 pm close of the day chart which is started almost into the Asian session when things are generally a bit quieter and spreads are bigger. I don’t want to be trading things on one hour charts at that time of day. But then it’s into the European session, I’m absolutely I’m looking for one hour chart trades if they show.

So that’s how to do it but the actual which charts you should trade because a lot of people get confused with saying, “Hey, look, I want to trade a one hour chart and this particular currency is looking really overbought and I go on to a daily chart and it’s looking oversold.

Different charts showing different things

And I’m confused and which should I look at?” The important thing is from the way that I look at it and the way that I have always traded, is you see the trade based on the time frame chart that you are looking at. So let’s say you saw a good looking setup on a one hour chart, trade that particular trade setup, look for it’s stop loss and its profit target, et cetera, based on what you see on that one hour chart.

Now don’t go and take the trade and then go down to a five minute chart and go, it looks like it is about to reverse on me and I’m going to close the trade, because that’s what so many people do. And for me it a case of if you are taking the trade based on a one hour chart trade, put your exit levels in there, your safety levels in there and then manage the trade if you wish to manage it. Some people just put a stop on, profit target on, you know your risk, walk away, leave it. But if you do like to manage your trade a little bit more, base it on the decisions you see on that one hour chart at that time. So like an hour later, is that trade still going well, yes or no? Is it looking like it’s reversing on me and it’s not quite going to hit my profit target, yes or no? Make your decisions based on that one hour chart trade of what you see at that time. It’s really important because otherwise you would just have complete confusion because naturally like a monthly chart’s going to tell you something different to a daily chart or a five minute chart. It just is.

Complete confusion

So base your decisions exactly like I based my six trading decisions on the close of the October monthly candles based on the the monthly chart.

So I’m basing it on the monthly chart and I’m accepting that some of those trades may be open in the market for several months because they’re based on that longer time frame chart. No different to a one hour chart, I accept that the trade may be open for several bars or several candles. It’s just the difference is the actual time frame between several months and several hours. So it all depends on what you see on that time frame at that time.

So that’s the danger when you work from home and you record videos at home and your kids are wanting to come home from school and call you right at the time you make videos, the phone rings. So sorry about that. I’m going to end this video now and see what my kids are up to so thanks again. I’ll see you this time next week. Bye for now.

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Having no strategy is a recipe for disaster

In this weekly video:
00:25 – Why people trading without a strategy is a disaster ready to happen
01:30 –  When you learn how to drive a car you get tuition
02:25 – You’ll end up crashing
03:00 – Understand the market first

I’m going to explain why trading the Forex market without a proven strategy really is a recipe for disaster, so let’s get into that right now.

Hey, traders. Andrew Mitchem here from The Forex Trading Coach. We’re video and podcast number 296.

Going to explain to you why so many people get into trading without a proven strategy, and why that almost always is a recipe for disaster.

Why people trading without a strategy is a disaster ready to happen

Why talking about this subject? Well, it comes about because the last week, I’ve held two live, free to the public webinars with my colleague Paul Tillman, who’s based over in the US. On those webinars, we asked people to explain to us what is the biggest issues that’s holding you back as a Forex trader? What’s your number one problem?

While people had things like money management, a lack of time, and the psychology behind trading, not having confidence in their system, the whole lot really came back to the biggest problem was people don’t have a strategy. They don’t know what they’re doing. They lack knowledge, and therefore when you think about it, no wonder the stats say somewhere between 90-95% of all Forex traders lose money. It’s quite scary, really, because people enter into this without really knowing what they’re doing. It’s not good.

When you learn how to drive a car you get tuition

Let’s try and change that. Think of it this way: if you went to drive a car, you’d want to know what you’re doing. You’d want to know some rules, you’d have some knowledge about the vehicle, some rules about the road, how the vehicle worked, what you need to do, how you start it, how you drive it, how you accelerate, slow down, corner, reverse, all those type of obvious things as car drivers and vehicle drivers, we fully understand.

Think about to when you started to learn how to drive, how scary that was. But of course, probably what you did is you got some help, you got some tuition. Whether it was a professional driving company or friends or family, someone taught you how to drive. What to do, how to get into gear, how to accelerate, how to put fuel in the vehicle. All those type of things that you just normally take for granted.

You’ll end up crashing

Trading’s exactly the same. When you don’t know how to drive, you’ll end up crashing. When you don’t know how to trade, you’ll end up crashing. They both hurt. One hurts physically because you’re getting smashed up. The other hurts financially and emotionally because you’re getting smashed up. It’s exactly the same, so just think about it in that way. Go back to thinking when you first started driving. If you’ve got kids and they’re old enough, think about how they’re driving and how scary it is sat next to them, because really, they don’t know what they’re doing. But you’re trying to help them along, and trading is exactly the same thing.

Understand the market first

What I really, strongly urge you to do is when you want to get into trading, make sure you understand the market first. Make sure you understand the strategy, make sure you understand what works for you. Don’t just jump in and throw thousands of dollars into a trading account and then blame everybody, blame the market, blame the broker, blame everybody else apart from yourself. Because the problem is unless you’ve sought help and support from a proven strategy, a proven mentor, a proven system, then the disasters are likely to happen.

Think about it this way: when it comes back to cars again, if you know how to trade, you can then drive any car you like, because you’ve made enough money from your trading to be able to do that, and to put plenty of fuel in it. Off you go to have fun. A lot of it comes back to taking it steady, taking it very slowly to start with, understanding what you’re doing. If you get all the foundations right, like with anything, if you learn how to do the foundations of driving, then you have years of trouble-free driving and lots of enjoyment. No different to trading.

I’ll leave you with that. If you need any help with your trading, you know where to find us. This Andrew Mitchem from The Forex Trading Coach.

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Can you really make money with a small Forex account? (PART 2)

In this weekly video:
00:35 – Your account size does not matter
01:22 –  Do not count success in pips
02:52 – High Reward:Risk trades
03:46 – Yes, you can trade a higher time frame chart
05:07 – What type of trader are you?
06:05 – You can make money with a small FX account
07:15 – Listen to my interview with Imre

Can you really make money with a small Forex trading account? This is part two of that subject. Let’s get into it right now.

Hey, traders, Andrew Mitchem here with video and podcast number 295, and this is following on from last week’s video and podcast, which was about can you really make money with a small Forex account. That was part one. Today, this is part two.

So, following on from last week’s video, the main thing from that that you would have gained from that information is it doesn’t matter really what the size of your account is.

Your account size does not matter

You have to learn how to be profitable. And that really doesn’t matter whether your account is $100 or it’s a million dollars. If you can’t be profitable, and you don’t have a strategy, you don’t have a system, you’re not consistent, you’re not disciplined, it really doesn’t matter what the size of your account.

And on last week’s video and podcast, I gave some examples about how you can grow the size of your account from other sources of income, from selling signals, from trading from friends and family possibly, but there are other ways you can increase the size of your trading account right now, and of course, the best way is to make gains on your account. But if you’re not profitable, the rest of it doesn’t matter.

Do not count success in pips

So what can you do to be profitable? Well, one of the things that I find that so many people still fail to understand is they count their success or their failure in the number of pips they make. Now, just yesterday I held a one-and-a-half hour live webinar, free to the public webinar. Never once did I mention how many pips I’ve made or have lost. Doesn’t matter, completely irrelevant. The only time I use pips is when I’m looking at taking a new trade and I’m calculating my position size needed, and that’s according to the stop loss and pips that I’m taking on a trade, and that’s according to the risk I want to take, and it’s according to the currency pound trading.

So, yes I use pips in terms of I’m risking X number of pips on a trade, but don’t forget a stop loss should never have a fixed number of pips. Just because I’m trading the British pound U.S. dollar on a one-hour chart doesn’t mean to say I only use 20 pips as a stop, let’s say. It doesn’t matter. The stop loss needs to be in the place it needs to be for the protection of that individual trade, regardless of its currency pair, regardless of the time frame that you’re trading because the market moves in different, in different amounts.

So what might be good last week on a trade on a one-hour chart may be very different from the market conditions right today. So yes, I need to know how many pips my stop loss is, but it doesn’t mean to say, let’s say it was 20 pips. Doesn’t mean to say, and the trade goes wrong it doesn’t mean to say, “Oh, I’ve just lost 20 pips.” Doesn’t matter. I’m losing X percent of my account.

High Reward:Risk trades

But also you can use that to your advantage because of course we want high reward-to-risk trades. So let’s say that your profit target just happened to be 60 pips, for easier calculation, 20 pip stop loss, 60 pip profit target. That gives you a three-to-one reward-to-risk trade.

If it hits the profit, I don’t make 60 pips. It doesn’t matter to me that I’ve made 60 pips. What it does matter to me is that I made a three-to-one reward-to-risk trade. For these numbers, let’s say I risked one percent on that trade. The trade goes wrong, I lose one percent. Because it’s made a three-to-one reward-to-risk trade, and it hits the profit target, I’ve now made a three percent gain.

I actually use a half percent rule, but that’s what suits me. So half percent risk on the trade means I make a one-and-a-half percent gain on my account. So it’s really important that you forget that actually counting your success and failure in pips have high reward-to-risk trades.

Yes, you can trade a higher time frame chart

Can I trade a bigger timeframe chart with a small account? Most people think they cannot, but of course you can. It doesn’t matter. Your stop loss on a daily chart might need to be 80 pips, it might need to be 135 pips. It doesn’t matter because it all comes down to having the correct position size for that individual trade. You’re still risking the same amount, whether it be that one-hour timeframe chart with a 20 pip stop loss or a daily chart with an 80-pip stop loss.

The only thing that changes is your position size, your risk is still the same. Let’s say that you have an 80 pip stop loss on your daily chart, and you had a 240 pip profit target, it’s still a three-to-one reward-to-risk trade, same amount of risk, same amount of reward. So therefore you can trade longer time frame charts. Don’t get caught into thinking that just because your account might be small that you therefore can only trade 15-minute time frames or 5-minute charts.

Forget that. You can trade any time frame chart regardless of your account size. You just need to adjust the position size. And if your account is really small, then go to nanolots instead of microlots, and you can then trade accurately again.

So any timeframe chart, I personally prefer the higher timeframe charts, any currency pair, any direction.

What type of trader are you?

What type of trader do you want to be? Do you want to take continuation trades or reversal trades? I personally take both. Time frame charts, look at the higher time frame charts.

So all those type of things can really help you. Now just because your account is small doesn’t mean to say that you cannot trade exactly the same as someone with a 10,000 account or a 100,000 account because treat it like it’s real. Don’t go, “Oh, my account’s just $500; therefore, it doesn’t matter if I lose.” Or, “I’m gonna just leave the trade open over the weekend, and I, if it loses, who cares? It’s just $500.” Do not trade that way.

Every trade should be there with your checklist. Has it met all these criteria? Yes or no? If it has, great. Take the trade. Manage the trade, or put your stop loss in place to protect your position.

You can make money with a small FX account

So you have to treat your account real regardless of the size of the account is small or large. It’s very important that you do that.

So that’s pretty much covered the things that you need to know.

Can you make money as a small-time Forex trader? Absolutely you can. Look at how much you’re making as a percentage gain. How much am I risking, how much am I making? Because if you make, let’s say, a 20% gain in six months on your $1,000 account, don’t just look at that and go, “That’s just 200 bucks. It’s pointless.” Look at that as a 20% gain in six months. How incredible is that? That’s a massive, massive gain.

So think of it in terms of a bigger picture. Think of it in terms of global scale. Or, go to your bank and find out how much they’re gonna pay you in six months for a term deposit. It’s probably one percent, you know. You’ve just made 20%. Think of it that way. That’s how you make money as a small-time trader because you have to learn how to trade properly first.

Listen to my interview with Imre

So I hope that helps. Now one thing that I’d like you also to do before you finish is have a look at my home page. There’s an interview there with a client of mine from Toronto, Canada, called Imre Gams. It’s an amazing interview from someone who started in the corporate world who gave up the rat race to learn to trade Forex and is now trading full time.

I really urge you to spend 30 minutes, watch through that video. It is fantastic. It is on my home page. I also put a link to it below this video and podcast.

So 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 watch Imre’s Testimonial

Click here to visit my website

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Can you really make money with a small Forex account? (PART 1)

In this weekly video:
00:23 – Trading with a small Forex account
01:06 –  Can I make money successfully?
01:30 – Why do so many people lose money?
02:30 – Keeping it simple is usually the best way to trade
03:18 – Learn how to trade first
04:35 – The size of your trading account right now is irrelevant
05:10 – Invest in yourself
05:32 – Excellent trades taken live for good account gain
07:34 – Next week’s video and how you can profit from the Forex market

Can you really make money with a small Forex account? Let’s talk about that and more, right now.

Hi, traders. Andrew Mitchem here, the owner of The Forex Trading Coach, with video and podcast number 294.

I want to talk all about trading on a small Forex account, and can you make it as a small-time Forex trader?

Trading with a small Forex account

Now, I made a video along a similar subject line around two years ago, and it’s had an enormous amount of hits on YouTube. It’s had about 108,000 views, and lots and lots of comments, so I thought what I’d do is I’d split that subject up into more detail and cover it over this video and podcast, and also next week’s video and podcast. Why? Well, it’s obviously a very important subject, with so many people wanting to find out more about it, but it’s also quite a large subject, so probably more than just one episode.

So let’s start at the very beginning. With a small account, people want to know, can I make money successfully? Now, the answer is yes. The problem is, most people don’t know how to do that.

Can I make money successfully?

And I say the answer is yes, and I’m saying that with confidence due to my experience. I’ve been trading Forex for 15 years full-time, been teaching for almost 10 years. But the problem is, is as you know, and as I’ve repeated many times, the stats out there tell you somewhere between 90-95% of all Forex traders lose money, and that’s probably absolutely true.

Why do so many people lose money?

Now, there’s a huge number of reasons for that and we’ll cover the reasons now, and then on the next episode we’ll cover how you can overcome those.

But some of the reasons, and in no particular order, would be, really, a lack of strategy, a lack of understanding of the market, a lack of understanding of good money management, a lack of discipline as a person, a lack of understanding of what type of trader you are or wish to be. Are you a technical trader, or a fundamental trader, or a bit of both? What timeframe charts do you like? Where are you going to put your stop loss? Where’s your profit target? What type of trades are you taking? Are you going to take reversal trades, continuation? Are you using indicators? Are you using no indicators? Are you using just price action? Are you going to trade just before the news? Just after the news? What is it that you’re going to do?

The problem is, is that unfortunately, most people don’t know their own answers to that. I can tell you, in all honesty, with many years of practical experience, keeping it simple, like the KISS approach, is generally the best one. So you don’t need to have lots and lots of strategies.

Keeping it simple is usually the best way to trade

You don’t need to have lots and lots of indicators and lines all over your charts. Now, some people say to me, “Hey, Andrew, why are you saying that when your charts behind here look really complicated?” Well, the fact is that they’re not. I have some clever software that alerts me, alerts my eye to certain candle shapes that I’m looking at, and then I mostly use horizontal support resistance lines, pivot points, and then I’ve got a couple of other indicators that come lower down in my priority, to add some confirmation. So you don’t need to clutter your charts, and that’s what works for me and works for my clients.

So coming back to the reality of it, can you make money? Well, yes, you can, but the important thing is, is that for right now, as a small-time Forex trader, it’s important for you to learn how to trade.

Learn how to trade first

You see, without that, the size of your account and how much you’re going to make, and can you give up your job, and can you have massive passive income and retire, and all that type of stuff, really, quite honestly, does not matter, because without understanding how to trade and how to make money as a small-time Forex trader, the rest of it’s irrelevant.

Now, there’s lots of ways you can grow your account. There’s many ways. You can add funds to your account from your own income or your own source of income, whether it be selling property, whatever it might be, but you can add and grow your account. You can make money from your trading and grow your account that way. You can get outside sources, such as you can sell signals. You could trade for other people who are small-time, family people, or friends, et cetera, and gain a commission that way. So there’s lots of ways that you can grow your own account, but it still comes back to the fact you need to know how to trade, because for some people, $10,000 might be an enormous amount of money. For other people, $10,000 might be just play money. So the actual size of your account right now is almost quite irrelevant.

The size of your trading account right now is irrelevant

I get people coming to me, saying, “Hey, Andrew. Look, I can’t really afford to join your course because my account’s only $1,000 or $500, yet your course is $2,000. It’s just, I can’t afford it. I can’t justify it.” My answer is, “Well, that’s your call. That’s your opinion.” But the thing is, is that how long are you going to go on trading that thousand or $500 account, losing money and then open another thousand or $500 account, and then another one, and then get frustrated, then give up? Or are you, really when you think about it, best off to say, “Well, I’m going to invest in me.

Invest in yourself

I’m going to invest in my education, and my knowledge, and my time, with the help of someone, and actually make sure that I can learn how to trade that thousand-dollar account because that’s the most important thing, learning how to trade”? It comes back to that so many times.

I’ll give you some examples. I held a live webinar, just last night, for my clients in the European session. I took three trades, live on that session, two on the one-hour charts, one on the 15-minute charts.

Excellent trades taken live for good account gain

Two of the trades hit profit and one got stopped out, and so with those three trades combined, with the two wins and the one loss, with 0.5% risk per trade, I and people who copied me made a 1.4% gain, just from those three quick trades on a live webinar. 1.4%. That’s pretty good when you consider most interest rates in savings around the world, on most standard banks accounts, are probably somewhere between about, probably less than one and maybe three or four percent, tops, depending on where you go round the world. We just made 1.4% on three simple trades last night.

Now, on that session also, I had two amazing bits of feedback from clients. A guy called Zhasee, he’s over in the Middle East, and he made a 6.9:one reward to risk trade on the Euro/US dollar, and that meant he had a 3.45% account gain, just from that one trade. We also had a typed-in comment from a guy called Colin, not actually sure where Colin’s from without looking it up, but Colin made a 7.7:1 reward to risk trade on the British pound/Canadian dollar four-hour chart. Now, that ended up being a 3.85% account gain with 0.5% risk. So you’ve got one guy making 3.45% and the other making 3.85, just on one trade each, with only minimal risk, only half of 1%. You might want to go, “Well, Andrew, that’s too small for me. I might want to risk 1%.” Well, therefore, the guys just made 6.9% and 7.7% on just a trade each. They’re not going to be doing that on every single trade, of course they’re not, but it just shows what can be achieved.

So, look, that’s the first video around the subject, more about the general information.

Next week’s video and how you can profit from the Forex market

On next week’s video and podcast I’m going to get into more detail about how you can profit from the Forex market as a small-time Forex trader, with some really good, real-life, practical examples to share with you. So look out for that, this time next week.

This is Andrew Mitchem, The Forex Trading Coach. I’ll see you on that video next week. Have a great weekend. See you then, bye.

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Would you like to turn your trading around?

In this weekly video:
00:24 – How can we help you with your trading
01:15 – 2 live webinars for you to attend and learn from
02:16 – A discounted joining link after the webinar
02:34 – 2 lucky attendees will be win a free place on our course
03:33 – Valuable trading information for you – register using the link on this page

Why is your training not going so well, and how can I help turn that around for you? Let’s talk about that and more right now.

Hey, traders. Andrew Mitchem here, the owner of The Forex Trading Coach video and podcast number 293.

Now, I want to talk all about why your trading is not going well. How can we help you with that? Also, at the end of this video and podcast.

How can we help you with your trading

I’m going to give you two very exciting bonuses, but more about that shortly. With trading, you’re all here to make money, yep? That’s why we’re trading. We’re trying to be profitable as Forex traders. Now, you know the stats. You see them all over the place. Some 90% to 95% of all Forex traders supposedly don’t make money, and you’ve got to ask yourself, “Why is that?” What is it that you’re doing differently, or more importantly, the 10%, 5% to 10% who are making money, what are we doing differently? And, how can you gain some of that knowledge so that you can join the 5% to 10% who are making money?

So to help you with that, I’m going to be holding two webinars, two live webinars, with Paul Tillman, who works with me. He’s over in North Carolina in America.

2 live webinars for you to attend and learn from

We’re going to be holding two webinar sessions together with myself and Paul on that webinar, on those webinars, and they’re going to be on the 17th and the 25th of October. Now, I’m going to put a registration link to the page below this video, and on that I’m going to ask you one very simple question: What is the main thing that’s preventing you from being a profitable trader? What’s your biggest problem when it comes to trading? On that session, we’re going to be answering those questions live to personally help you overcome those issues. So, it’s really important that you try to get onto one of those sessions. At least register, so if you cannot attend live you get to watch the recording, and we’ll answer those questions personally for you to help you with your trading.

Now, I mentioned earlier there’s two bonuses. The first bonus is for everybody who attends the webinar or watches the recording, so basically everybody who registers.

A discounted joining link after the webinar

 We’re going to give you a time-limited offer to join us at The Forex Trading Coach for a discounted fee. That’s the first thing. The second thing is, which is really exciting and I’ve never, ever done this in almost 10 years of coaching, is on each of those two sessions.

2 lucky attendees will be win a free place on our course

I’m going to be giving one lucky person access for our full course completely free. It’s going to be drawn live on the session, so if you’re live on one of those two webinars, each of the webinars, so there’s two free courses, one on each, completely and utterly no charge, free of charge, for you to get onto our five-star rated coaching course.

We’re going to be drawing that live on the session at the end of each of those two sessions. This is something, like I mentioned, it’s never been done before. It’s two and a half thousand U.S. dollars’ worth of value, which is our normal full joining fee. Completely for free for two lucky people. Make sure you register for one of those webinars. Make sure that you send us your question, the biggest thing that’s holding you back from being profitable, and make sure you get on there live. So, look, these are going to be great sessions. They’re going to be just myself and Paul. We’re going to have our charts on screen.

Valuable trading information for you – register using the link on this page

We’re going to be sharing our knowledge and our information, completely free of charge for you to help you become profitable and a better trader.

So, don’t forget to register using the link, which will be below this video, and I look forward to seeing you on one of those two live sessions.

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Using Currency Strength and Weakness

In this weekly video:
00:28 – How strength and weakness can help your trading
01:12 – Free daily information published daily here https://theforextradingcoach.com/weekly-video-news.html
02:15 – How to use strength and weakness to your advantage
04:47 – Coaching clients receive much more information
Why does the strength of currency really matter, and how can understanding that information help you with your trading? Let’s talk about that and more right now.

Hi, Forex traders, it’s Andrew Mitchem here, owner of the Forex Trading Coach with video and podcast number 292.

How strength and weakness can help your trading

Now, I wanted to talk about the importance of understanding strength and weakness within a currency pair, and how that can help you with your own trading. I get asked quite often, hey, Andrew, why do you put importance on the strength of a currency? How does it effect my trading, why does it matter, what’s the relevance?

And it’s something, when you think about the logic of understanding strength and weakness, it’s something that can dramatically help almost all Forex traders. So, regardless of your style of trading, or what your current strategy is, understanding the potential and the likely strength of a currency for that upcoming day, I believe can certainly help improve your results.

Free daily information published daily here https://theforextradingcoach.com/weekly-video-news.html

So, luckily for you, I publish, and I’ve done every day for the last seven or eight years, free information on my website where I publish at 5:00 at New York time, based off the close of the daily charts, the likely strength and weakness analysis for the upcoming 24 hours. So, it’s information that you can use to help better trade for that upcoming day, that new day.

Now, why does it matter? Well, one of the things you will notice out there is that a lot of people talk in hindsight. They say, you know, economists are very good at it, aren’t they? They’ll say, yesterday, the British pound did this, or the US dollar did this, or there was some economic event, and the result was better or worse than expected, and this is what happened.

Now, a lot of that really quite honestly is useless information, because all that helps is to understand why something moved. It doesn’t help us with like, taking new positions, not very much.

How to use strength and weakness to your advantage

However, if you can understand that, let’s say, the US dollar is looking, let’s say, really weak, and the Euro’s looking really strong, the likelihood is that the Euro against the US dollar is heading upwards. So, if you take that out to a bigger picture, let’s say if you look at the monthly charts, and you’re seeing the Euro against the US dollar very strong. And even the weekly charts, you’re seeing that the weekly charts are showing a lot of strength also, and so the daily charts.

Now, if you’re trading on any timeframe chart, let’s say a four hour chart for example, and you’re seeing all this strength in the Euro against the US dollar, and you’re then seeing the Euro, US dollar in four hour charts starting to pullback, and then it shows you a good strong bullish price action candle. It needs other things setting up, like it needs to be balancing at a good level, it needs a few extra things, trend line breaks, et cetera, to back it up even further.

But let’s say you get all those things lining up together, you got almost like the perfect thing setting up there. You got the bigger picture strength, you got the daily strength, and now on the shorter timeframe chart, you’re starting to see strength as well, all showing the same direction. Let’s say also Swis francs and the Pound results are strong against the US, and so is the Yen, and so is the Franc, and so is the Aussie, and the Kiwi ket’s say. And what that’s telling you then is that the US dollar right now is really, really weak.

Let’s say the Euro against the Canadian and against, let’s say, the Yen, or Franc, was also very strong. So, what it’s showing you is this massive amount of all round strength in the Euro, massive all around weakness in the US dollar. So, you’re seeing that on the currency pair, that as a strength on bigger pictures monthly, weekly, daily, and now down onto your four hour chart, as well.

Really, when you think about it, it has to all add up to say this is going to be a very high probability trade. Now of course, I’m assuming that you have a good strategy and the actually buy position that you’re looking at taking as a good setup technically anyway. But all it’s doing is saying we’re not buying. After a pullback, let’s say on the four charts, one hour charts, whatever it is you’re trading, but it’s with the bigger picture, and that’s where trading with strength and weakness can really help you.

So, have a look on the free post that I put on my website daily.

Coaching clients receive much more information

Now of course, clients get a lot more information, they get specific trades. They get information on the weekly charts, and on the monthly charts as well. I don’t publish all that on the free information, just the daily charts, but have a look, and it will dramatically increase your trading performance, because logic suggests that if the longer bigger picture is saying a currency pair is likely to be moving up, and you’re also taking the shorter timeframe chart, in that same direction, it kind of stands to reason that you have a higher probability charts of success.

So, that’s how you can best use strength and weaknesses, it’s a massive thing. Unfortunately, not a lot of people actually use it to their advantage. But when you do, it can dramatically help your results.

So, once again, this Andrew Mitchem from the Forex Trading Coach. I’ll see you this time next week.

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