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How to use Round Numbers as a FX Trader

In this weekly video:
00:29 – How to profit from using Round Numbers
01:15 – Strong Buying and Selling horizontal levels
01:53 – A level ending in 00 or 50 – price will react at these levels
02:52 – I use these levels in a variety of different ways – with a trade example
04:25 – How you can use round numbers
05:04 – Using a round number to predict my profit target and to add safety to a stop loss
05:35 – Use these levels and do some back testing
06:02 – Many traders fail to look at the price

I’m going to explain how you can profit from the Forex market by using round numbers. It’s really important so listen up. Let’s get into it right now.

Hey Forex traders! Andrew Mitchem here, The Forex trading coach. Video and podcast number 231.

How to profit from using Round Numbers

Now this is a really important lesson and I would like to explain to you how I use round numbers and how you can use round numbers to your advantage and to help you profit as a Forex trader. See the things that I like to do in trading, I keep things simple. To me it’s really important that as a professional trader and as a Forex teacher, I’m teaching people how to trade in an easy, simplified way that is practical. You see it’s all well and good having all these systems and lines crossing over and different things going on, but if it’s not practical and it’s not something that you can do in real time, and you can do with enjoyment as in like you’re not trading all of the time, than it doesn’t really mean a lot. So let’s talk about round numbers because they are very, very important.

Strong Buying and Selling horizontal levels

The reason I like them is I like psychological levels, reasons why people are buying and selling. I also love the use of horizontal lines on my charts. Now you might say why horizontal? Well, a horizontal line does not move. It’s always fixed. It’s not like a moving average or a MacD or RSI or one of those other, you know, sort of squiggly lines on your charts that are moving all the time.

A horizontal line is a horizontal line. I can see it, you can see it, it doesn’t matter who your broker is, what your platform is. It’s there for everybody to see if you know what you’re looking for.

A level ending in 00 or 50 – price will react at these levels

So think of it this way, a round number, and I call a round number something that ends in a 00 or a 50, so the price of the pair might be 0.7000 or 7100 or 7150, something like that. Something ending in 00 or 50. Think as in like why the price is reacting at those levels, so go back to a scenario we all know, let’s go to a shop.

We’re buying something and the price is $100 or $101 let’s say, but that doesn’t happen does it? Because when you buy something from a shop the price will be $99 or $99.50 or $99.99, you know, something like that. Psychologically round numbers are there everyday in what we do, what we buy, so it’s no different to trading Forex. Think of the 00s and the 50s.

I use these levels in a variety of different ways – with a trade example

I love to use those levels in a variety of different ways. To give you an example, just last night I took a trade on the New Zealand dollar, Swiss Franc on the four hour chart, you can go and find it on your charts. It was taken on the 29th of June, go and find it on your charts.

The price bounced through the 70 level, 0.7000 and it showed a really good set up and I could use that in a few ways, the price, and I was selling the New Zealand Swiss Franc. The price had already closed below the 70 level, the 70 cents level. It meant that I could then use that as an area to put my stop loss above that because in order for the price or for the trade to fail, it meant that the price then had to of rose back up through 70 and beyond in order to stop me out of the trade.

In the end the trade worked beautifully. I had a 2.6 to one reward to this trade, which meant at half per cent risk because you know that that’s the way I trade, I made a 1.3% account gain and I posted that trade as I took the trade to my clients on our forum site, and I also posted the result and you can see, you know, when I took the trade and after the trade’s finished. The great thing was I was asleep when the profit was hit. I took the trade at 9 o’clock on the Thursday night my time, here in New Zealand. Woke up this morning I’d made 1.3% on my account with that one trade, so it’s a great trade.

How you can use round numbers

So how can you use round numbers? Well, when you see the price reverse, let’s say, and it goes up and it hits a level and it hits say psychological bounce level, a round number, it then reverses for a reason. So if a round number’s the potential reason, that’s great. In my example on this particular trade, I used the 70 level, the price had gone through 70 level and closed below it on a sell trade, I could then use the 70 level to say if the price comes back, it’s not going to break through that 70 level and it went through by about one pick, and then continued down again into my favour, into my profit target.

You could also use it as a profit target. Well let’s say my profit was at 69, 0.6900. I wouldn’t need the price to go, I don’t want to think that the price is going to go through 69 to get to my profit target, I want my profit target at before that level. I mean my profit target wasn’t there. I’m just giving you an example. My profit target was using a fib level, but as an example I want to get profit out of a sell trade before the price has to go through the next round number.

Use these levels and do some back testing

So use round numbers in your trading. They are horizontal lines. They’re there on your charts, plot them on your charts, use them. Go back and look at charts, do some back testing and have a look at levels where on any currency pair where the price restored or bounced at a 00 or 50, they’re everywhere. Really, strongly encourage you to use that in your trading. That one tip alone could make you an absolute fortune from your trading because it just really helps.

Many traders fail to look at the price

You know people that use all these pretty patterns and all these charts and indicators and things, you know, they fail sometimes to look at the actual price, so it’s really important that you look at the price on the right hand side of the chart. What is the price of this currency pair and why? Hope that helps, round numbers are very, very important.

This is Andrew Mitchem the Forex trading coach. Have a great weekend. I’ll see you this time next week for more trading tips and information. Bye for now.

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Do you want to trade 5 minute FX charts?

In this weekly video:
00:22 – Should you trade 5 minute charts?
01:05 – Unrealistic way of trading – too much chart time needed
01:48 – Trading at silly times of the morning
02:45 – Less strength on a 5 minute chart
03:32 – Trading the W1 and D1 charts while in the US
04:22 – Less than 1 hour per day to trade full time
04:50 – 14 Continuation pattern trades made +5.5% gain last week
06:08 – Software to trade offline charts
06:34 – Conclusions?

Why should you trade the five minute forex charts? Let’s talk about that and more right now.

Hey, forex traders, Andrew Mitchem here, The Forex Trading Coach. This is video and podcast number 230.

Should you trade 5 minute charts?

I’m going to talk about five minute chart trades. Why should you trade them? Should you trade them? Let’s talk about that and see what your answer is in a couple of minutes from now. The reason I want to talk about five minute charts is I had an email from a guy in the UK called Michael. He came to me and said, “Look, Andrew, I’m struggling with my trading. I purchased a course.” I’m not going to name you the course, but he said, “Look, I purchased the course, been doing it for a little while and I’m getting nowhere.”

I said to him, “Okay, so tell me about the style of trading.”

He said, “Look, it’s all based on five minute charts.” Instantly for me that’s like a bit of a warning system going off there.

Unrealistic way of trading – too much chart time needed

I said, “Okay, Michael, what’s the issue? Why can you not trade the system?”

He said to me, “Well, it’s requiring a lot of” his time, a lot of the chart time, like he’s sitting at the computer a lot. He’s got work to do. He’s got a wife and kids to commit to. He said, “I just can’t commit that amount of time to sitting there watching charts, and when I do sit there watching charts, I’m feeling like I’m forcing trades to happen. I’m overtrading. I’m constantly scanning different charts, different currency pairs. I’m on five minute charts looking for setup, scared to miss something, and almost like a gambling mentality, that constantly having to do something, scared to miss a trade.”

Trading at silly times of the morning

He also said that he has a mentor with his course who’s over in America. He gets up at like three or four o’clock in the morning to trade the European session. Michael’s there trying to go to work, and he’s trying to trade. There’s people getting up at like silly o’clock in the morning, crazy times in the morning, to trade these five minute time frame charts because they think they have to be there at that time trading these short time frame charts. You can get where I’m going with this. To me it’s crazy. It’s not sustainable. Even if you’re making money from trading five minute charts, if you want to do that then maybe select say like an hour or so at a time that you’re going to sit and do that.

My system works on five minute charts but I don’t trade five minute charts. The same principle applies, but the downside is also you have to commit yourself to sitting watching the computer. You feel like you’re forcing trades because you think [inaudible 00:02:40], therefore I’m going to look for trades.

Less strength on a 5 minute chart

The short time frame charts, if you’re a technical trader like I am, a five minute chart doesn’t really have a great deal of relevance because they still do work technically, but they have less relevance and less strength than say like an hour chart, or a four hour chart, or a daily chart, something like that.

The other thing is also you have to be really careful and mindful of news events. You also have to understand that the spread, the cost to take a trade, will have a significant impact on your overall profitability if you’re looking at small time frame charts. All these things you have to weigh up. My conclusion is why on earth would I want to sit looking at the charts all day trading five minute charts. I just think it’s crazy and it’s not achievable long term. Give you some ideas.

Trading the W1 and D1 charts while in the US

As you probably know, I just spent almost three weeks in America. I came back last week but I spent almost the three previous weeks in America. I just traded the weekly charts once a week and the daily charts once a day. Five o’clock New York time, their afternoon time, looked at the charts, took about ten minutes to scan through the charts, took a trade if there was something there, moved on. Very easy to do.

Now back home in New Zealand, I’m trading the same weekly and the daily charts but when the daily charts change over, I’m also looking at four hour charts, and six, and eight, and twelve hours at the same time. Then I’m looking at four hour charts as and when I can during the daytime every four hour increments. Then five A.M. eastern standard time, which is currently my nine P.M., I’ll look at the four, six and twelve hour charts again. In the daytime, I’ll look at the eight hour charts once more if I can.

Less than 1 hour per day to trade full time

Total time of trading less than one hour per day. I’m a full time forex trader less than one hour actually watching the charts looking for new time frame, a new setups because I know when to look at the charts. I know I can only look at a new potential trade setup upon the completion of a candle, very, very easy to have other things going on in your life, far more enjoyable than to sit watching five minute charts. I can promise you far, far more profitable.

14 Continuation pattern trades made +5.5% gain last week

Now last night I had a webinar with clients. I love the webinars because of the shorter time frames. Yes, I do go down and look at say like one hour charts, et cetera. On that webinar, I explained to clients that the previous week, last week, I found fourteen trades that had really good setups, as a continuation pattern on the four, six, eight, and twelve hour charts, just fourteen in the entire week. If you had taken all fourteen of those, which realistically you probably would not because of different times of the day being asleep or at work or something, but let’s say you did. You’d have made a five and a half percent account gain if you’d taken all fourteen of those trades that setup as continuation patterns.

I’m not even counting reversal patterns. I’m just looking at the higher probability continuation patterns. Fourteen trades in one week, maximum five and a half percent account gain if you’d taken all of them. Pretty amazing results for such a small amount of time. When you think about that, it’s something that you know when to look at the charts, you know what you’re looking for if you understand the way that I trade in my strategy. It’s all taught in the course but if you understand what you’re looking for, very easy to scan through a chart and go, “No, no, no, no, no. Yes, potentially trade then. No, no, no, no, no,” and you go like that. You can look through four hour, six hour, twelve hour charts, very, very easy to do.

Software to trade offline charts

I have some great software that allows myself and my clients to trade what we call offline charts, which are the made up charts, nonstandard empty four charts, such as like six and eight and twelve hour charts, fantastic way of trading, high reward to risk, low stress on the individual, very easy to plan your day around it.

If you’d like to know more, just send me an email Andrew@ForexTradingCoach.com.

Conclusions?

Conclusions, you make your own. If you want to trade five minute charts staring at the screens all day, or more relaxed and far more enjoyable, far more profitable and by the way, you’re not feeding your broker’s pocket by trading the higher time frame charts. You’re cool. If it was me, I’d go along with time frame.

This is Andrew Mitchem, The Forex Trading Coach.

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Continuation Patterns Give Better Results

In this weekly video:
00:33 – Back in NZ after spending a few weeks in the US training new and existing clients
01:20 – Continuation patterns and Reversal Patterns
01:58 – Looking for Continuation Patterns – Software to help
02:30 – Examples of trading a Continuation Pattern
03:36 – A trade example from today’s webinar – made clients a +1.15% gain
04:24 – More from 1 trade than you’ll get in 1 year from a savings account in the US

I’m going to explain why I much prefer taking continuation patterns. Let’s talk about that and more right now.

Hey, forex traders, Andrew Mitchem here, The Forex Trading Coach. This is video and podcast number 229. I’m going to talk about why I much prefer taking continuation patterns as the majority of my forex trading setups as a technical trader.

Back in NZ after spending a few weeks in the US training new and existing clients

So, back in New Zealand, after spending the last two and half weeks in the U.S., had a fantastic time over there. We did some free events and some live in–person one-day events in North Carolina and in Washington D.C. Had a great time, met some fantastic people, and we achieved some amazing success.

Really, actually rewarding to meet existing clients who have been with me for a long time. I had some clients fly right across from the other side of America, from San Francisco to come across to train. I had a number of new clients as well. So, it was really interesting to meet those existing clients in person and just to see how well they’re doing and to help new people with their trading. So, that was all about America. Back in New Zealand now this week.

Continuation patterns and Reversal Patterns

So the video today is about continuation patterns. So, as a trader … And I explained this to all of the people I taught last week. I’m looking for mainly two types of patterns. One is a reversal pattern. The other is a continuation pattern. Now, reversal patterns on the charts look really good. They’re very rewarding to see. They look dramatic.

As an example, there’s a large uptrend. We’re taking a sell trade because of a technical reason to do that, and the market drops in our favour. The opposite, of course, is a large downtrend, we’re looking, we’re taking a buy trade, the market reverses back up in our favour. Very dramatic, look very good, but slightly higher risk.

Looking for Continuation Patterns – Software to help

So, to counteract that, my preferred way of trading is to look for a continuation pattern. I’ve got some great software that works on the MT4 platform. My clients all have access to it and it helps to give us a few reasons of why continuation pattern is likely to form and to give us confirmation that the reversal has happened, and the continuation is now back to resume, giving us an ideal opportunity to jump into the market at that point and ride the existing trend after a retracement or after a slight pullback.

Examples of trading a Continuation Pattern

So, what does that actually mean? Well, let’s say the market’s trending upwards. As it’s trending upwards, there may or may not be opportunities to ride that, but what I’m preferring to do is look for a retracement or pullback and then an opportunity to ride it back up again. Take the opposite of that, the market’s moving down, and then we’re looking to wait for the retracement or the pullback and then look for opportunities to take the market down again and to take short positions, sell positions as the continuation of the main trend happens after a reversal or retracement. So, it’s a very safe way of trading. You blend it all together with everything that I teach, everything that I’m looking for, and you add to it the bigger picture, the longer term strength and weakness, which again I teach in part of my course.

A basic version is available free of charge on my website every single day for you to go and have a look at, but when you blend all of this together, the bigger picture, the trend, the retracement, all the pullback, and then the opportunity to ride the trend in the same direction again. That is when you have probability trades and very good reward to risk.

A trade example from today’s webinar – made clients a +1.15% gain

To give you an example of a trade that was just taken just a few hours before I recorded this, in the U.S. session webinar today, which is for my clients, and only for clients, we had a buy trade on the Canadian, Japanese Yen four hour charts. A fantastic continuation patterns set up on the charts. And it worked [inaudible 00:03:55].

It retraced to the exact levels that we’re looking for, for the entry, and it moved to the profit target absolutely perfectly within one candle, which is four hours, being a four-hour chart and hit the for-profit target. So, clients who follow that one trade with half of 1% risk made, a 1.15% account gain, which is an absolutely fantastic reward considering this was just one bar.

More from 1 trade than you’ll get in 1 year from a savings account in the US

Now going back to America, you wouldn’t get paid 1.15% on a normal savings account in an entire year. We just did this live in front of all clients who are on the live webinar in one bar. It just goes to show what can be achieved if you wait for the right setups and you don’t take hundreds and hundreds of setup, so you wait for those higher probability setups. The way that I like to trade personally is wait to see them on the higher timeframe charts.

This was a four-hour chart example. The trade worked beautifully. So, 1.15% account gain in one candle or four hours taken live in front of clients. That is something that excites you and it really should because something … There’s a high probability low-risk trading style. If you’d like to find out more, you need to jump onboard with my course.

So, once again, this is Andrew Mitchem, The Forex Trading Coach. Have a great weekend. I’ll talk to you this time, next week. Bye for now.

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How Important Is Your Win Rate?

In this weekly video:
00:23 – I’m in Washington DC with Paul Tillman holding training sessions
00:50 – Should you be concerned with your win rate?
01:30 – 40% win rate and making money
01:50 – Free and paid training in the US
03:00 – Amazing client’s success

Andrew Mitchem: How important is win-rate to your trading success? Let’s talk about that and lots more from America right now.

I’m in Washington DC with Paul Tillman holding training sessions

Hi, traders. Andrew Mitchem here, The Forex Trading Coach video and podcast number 228. I am here in Washington DC with Paul Tillman.

Paul Tillman: Hey, everybody.

Andrew Mitchem: A couple things we want to run through. Just to let you know that we’re in Washington right now. We are holding some live events tonight and tomorrow night, Thursday and Friday, and that this weekend coming we’re holding some live full-day training sessions. Did exactly the same in North Carolina last week. Had tremendous, tremendous success.

Should you be concerned with your win rate?

One of the parts that I want to just quickly run over is a lot of people said to me, and these were people who were not clients at the time, these are new traders. They were saying I’m really concerned about win-rates. When we went through the session, it was actually interesting. The more you think about, the more win-rate is actually not that important. I’ll just explain why.

We had a guy who was talking about having a 90% win-rate and was actually losing money from his Forex trading. Reason being is he was taking lots of small profitable trades, sort of small either pips or percentages, and then having one or two huge great losses. The problem was the losses, of course, were wiping out all the gains. Yes, he may have had a 90% win rate, but he was losing money.

40% win rate and making money

We then get a client of mine who was talking and saying, “Well, I’ve got a 30% win rate, and I’m making money.” In fact, Paul, who is sitting right next to me here, who’s been with me for two years has got around a 40% win rate but is still making really good money. I believe he made about 4% on his account just last week. With that and more, I’ll hand you over to Paul.

Free and paid training in the US

Paul Tillman: Absolutely. We’re here in Washington DC. Right here Washington Monument and we’ve got these live sessions. We’re doing free sessions tomorrow and Friday and then paid training into the weekend. We’re going to be doing this all over the United States in the weeks and months to come so definitely watch out for that.

I want to talk just quickly, we were on the metro coming into the city. I heard a few guys talking saying, you know what, I pulled 56 hours this week. I pulled 60 hours this week. The thing that he said at the end really caught our attention. He said, “Well, that’s life.” We’re thinking, “Well, that doesn’t have to be life.”

I sit here and Andrew and myself, we might trade four or five hours a week total, and you get that supplemental income and then you ramp up to a full income. You don’t have to get in suits and ties and go to meetings all the time. Your work-life balance is incredible, phenomenal. It just goes to show you what you can do in just a few hours time making great gains on your account and all it takes is a little bit of education, coaching from us, webinars, forums, just all kinds of great things that we can offer you with The Forex Trading Coach.

Amazing client’s success

Andrew Mitchem: Yeah, absolutely. I couldn’t say any more, really, because we’ve got proof. We’ve just met so many people in the last week and we will again this coming weekend, I’m sure, that have just had tremendous, tremendous success after just a small investment in themselves, small investment in their education. Like Paul said, just sort of committing to being on a few webinars, copying what we do each day once a day, 10 minutes, and that’s it. If you’re interested in really turning finances around, having a really good work-life balance, travelling around places like this, we’ve just had a great time here this week. It can be done.

As Paul mentioned, yeah, we just sat there on that tube, on the metro this morning, and these guys all in their suits are all doom and gloom, and off to work in their offices, and not particularly happy with life. It can be turned around. If you take that step to make that decision that Forex is right for you.

That’s all from Washington DC. This time next week I’ll be back in New Zealand and look forward to bring you more videos and podcast then. Bye, from Washington.

Paul Tillman: Take care, everybody

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Real Trading Results

In this weekly video:
00:28 – Coaching sessions in the US
00:53 – Amazing trading results
01:36 – Client from the UK makes 6.5% in 20 days
02:12 – What makes the results so good?
02:46 – Great to meet clients in person as to see how FX is changing their lives
03:45 – Get to Washington DC next week
04:18 – Join my online video course if you’re unable to join us live next week

I want to share with you some results that clients have been making on live accounts in real time in the Forex market. Let’s get into that and more right now.

Hey traders. Andrew Mitchem here. The Forex Trading Coach. Video and podcast number 227 coming from Raleigh in North Carolina in America.

Coaching sessions in the US

Now just yesterday I held a free intro session for people looking at jumping into Forex Trading and tonight we’re doing exactly the same thing in Raleigh and then at the weekend we’re holding some live events here, live training events and then moving onto Washington D.C. next week, so that’s what we’re up to in America.

Amazing trading results

But what I want to talk about in this video and podcast is some of the amazing results that clients are achieving. Now I’ve just been holding a webinar in the US session with Paul Tillman who’s a client of mine who lives here in Raleigh and the results are just amazing. We had a guy Javier, who a few weeks ago I mentioned on the videos and podcasts. I met Javier just yesterday. He lives here. He made 18% in the last nine weeks on live account. Paul himself, he’s made 4% so far just this week. I‘m up 2.5% and I’ve been here just trading daily charts. I‘m up 2.5% on my live account so far in just being in America for a few days.

Client from the UK makes 6.5% in 20 days

On the webinar I had a client in England and he said that he’s made 6.5% in the last 20 days on live accounts again and these are people who have taken the course. They’ve studied the course. They’ve attended the live events. They jump onto the forum site and it’s just happening all the time. I met another client last night, a guy called Andrew Terkington who lives here in Raleigh. He’s been a client for I think about three months and he had made something like I think he said about 8% in that time on a live account. It’s happening time and time again.

What makes the results so good?

Why’s it happening? Why does this happen to clients? Why it’s such a great success rate? Well, many reasons. One I’m a real trader. I’m here in America and I’m trading in the afternoon time now. 5:00 p.m. eastern standard time is when I‘m posting my daily charts, so I’m posting that in real time for people to follow. We’re holding the live webinars. We’ve got the live forum site. We’ve got live chat for clients to talk to each other. We’ve got software. All these things are basically to ensure that clients have a really high success rate of being successful.

Great to meet clients in person as to see how FX is changing their lives

It’s just really great to meet these people who have been clients, some for years such as like Paul has been a client for over two years and as you meet them in person and see where they live. See what they’re doing and how being successful at the Forex market is actually changing their lives. It’s just a great thing to see.

Last night I went out for a meal with Javier, with Andrew and with Paul and it’s great to be sat with four people together. The four of us sat there together all making money and actually Paul said “I wonder how many people can sit down at a table of four with other successful Forex traders?” Not only knowing people who trade Forex to start with but successful and profitable traders and all four of us are just examples of that, so it was very, very pleasing to see and nice to see how well people are doing. If you happen to be in the area, if you happen to be in the Raleigh area then try and get along to the weekend event.

Get to Washington DC next week

If you’re in Washington D.C. we‘ll be there this time next week. Next Thursday and Friday we’re holding some free intro to Forex sessions in Washington D.C. and then next weekend, that’s the 10th and 11th of June, we’re holding two one day live events in Washington at the Sheraton Hotel, Reston. There’ll be information about that below this video and podcast if you’re keen on attending. If you’re not in America or you too far away from Washington or North Carolina that’s fine.

Join my online video course if you’re unable to join us live next week

If you want to be successful I really encourage you to jump onto the video course. Sure you can’t have the live trading that we’re offering here, right now but the video course is what everybody else gets. It’s just a remarkable … Remarkably high number of successful traders after taking the course. I’m off to enjoy the sights of Raleigh in North Carolina. I’m having a great time here some amazing people, nice weather. A great place to be trading because you’ve got the US morning session and then in the afternoon, 5 o’clock you’ve got the close of the daily chart. At that time we can look at 12 hours, 6 hours, 4 hour, 1 hour charts etc. Really twice a day and that’s it. That’s all you need to look at your charts and that doesn’t matter where you live in the world and you can achieve results like these people are achieving.

This is Andrew Mitchem the Forex Trading Coach in Raleigh in North Carolina. I’ll see you this time week when I’ll be coming to you from Washington D.C., the Capital. See you then. Bye.

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Why the Daily Trend is so Important

In this weekly video:
00:34 – Currencies are moving all the time
01:00 – I look at the Daily charts at the close of the candle
01:42 – Analysing the charts
02:30 – Adding probability to your trade
03:20 – Free daily analysis published each day
03:39 – Client makes +18% account gain on a live account in 9 weeks
04:24 – I’m heading to America this weekend – come and join me live in the US

Why is the daily trend so important to your trading success? Let’s talk about that and more right now.

Hi, traders. Andrew Mitchem here, The Forex Trading Coach. This is video and podcast number 226 and I’d like to talk about and stress the importance of understanding the daily trend and the likely daily direction, and how that can make such a big difference to your overall trading success.

Currencies are moving all the time

Currency pairs are moving all the time, different currencies are moving all the time. Some are strong, some are weak, some are going sideways. We really need to know how do we use that information to our advantage because things are changing. News events come out, price hits certain levels, political events, whatever it might be, things are always changing. It’s very hard to know what the trend is right now unless you make some form of analysis.

I look at the Daily charts at the close of the candle

What I do is each day, I’m looking at the daily charts on the close of the candle. Upon the completion of the close, the 5 PM Eastern Standard Time, that’s New York close of day chart, on the daily chart, I go through the different daily charts. I’m looking for stronger currencies and weaker currencies and then, putting the two of them together. You have a very strong currency that’s strong against all others or most others, very weak currency that’s weak against all others at that time.

Putting the two together and looking for ideal currencies that are likely to be moving up or currencies moving down, but it’s not just a case of looking for strength and weakness only.

Analysing the charts

You then need to analyse what part of the chart that price occurs in. You’re looking at candle patterns, you’re looking at the formations or the candles, other factors influencing that actual candle pattern right now. At what part of the chart is it appearing in? You’re putting all those things together and then, what I’m doing is I’m making an analysis of where I see which currencies for that particular day are favouring buy trades and which are favouring sell trades.

Now it does not mean to say that by the end of the day if I’m looking for buy trade, it does not mean to say that that currency will end up closing higher than it opened. If it does, fantastic, but it doesn’t mean to say that will happen. What it means is when I then scale down and look for trades within the day.

Adding probability to your trade

If I see trades within that day that are setting up in the same direction as my longer term trend and longer term direction, surely that adds more weight and more probability to the likely outcome of that trade being a successful trade and in my favour.

What it does also is it helps to eliminate what I call false set-ups, set-ups that technically can look quite good, but they’re against that bigger picture, against that bigger trend. Now, of course, some of those will work, but the probability is less so if it’s trading against the longer term picture or the bigger likely direction for that pair for that day.

I like to use trends and trade with the trend, not always just for the trend. Sometimes after, I retrace and then I pull back and then looking for the trend to move down or up, whichever it’s doing after we’ve had some form of retracement. It’s a really important point there.

Free daily analysis published each day

But I publish free information on my website daily for the public, but I publish a lot more specific information, of course, for my clients on the membership site including specific daily trades with the actual entries and exits and reasons for the trade. That’s the first thing I wanted to mention.

Client makes +18% account gain on a live account in 9 weeks

A couple more things, I held a webinar just yesterday for my clients, a live webinar, two-hour webinar and I took some trades live during the session and I had a comment from a client in America called Javier. Javier’s been with me for nine weeks and he’s been posting on my forum quite actively for nine weeks. He’s made an 18% gain, 1, 8, 18% gain on his live account in the nine weeks since he’s joined me. It’s just a fantastic result and it just shows what can be achieved if you follow the strategy, the setup, and you contribute to forums, etc., like to my forum, not general forums, but my own forum for clients and it shows what can be achieved when you put that time and effort and commitment in. It’s the second thing I wanted to mention.

I’m heading to America this weekend – come and join me live in the US

The third thing is on Sunday, and today, right now as I’m recording this is Friday so, in a couple of days from now, I’m heading on a plane from Auckland through to Houston in Texas, in America and then, the next day Houston up to Raleigh in North Carolina. Next week, I’ll be in America, there for almost three weeks holding some free information evenings in North Carolina and then followed by some live in-person training, some one-day event trainings on the Saturday and Sunday of next week and then the following week, we head to Washington, DC and we hold some live free information evenings and then again some live in-person Forex training days for people who wish to become clients. Really looking forward to that.

I’ll be joined on that trip by Paul Tillman who’s a client of mine who’s been with me for just over two years. Paul averages 3 to 4% consistently per month on his account on live account since he’s joined me and he is going to be a representative of The Forex Trading Coach in America and so, I’m really looking forward to meeting up with Paul in person and meeting up with anybody who, like if you’re in America, you’re watching this and you’re half keen on learning to become a good trader, you really need to be at one of those weekend events. I’ll put a link to those events below this video. If you’re watching, I have a video on my website or on YouTube, there’ll be a link below. It would be great to see you in America next week or the week after.

Once again, this is Andrew Mitchem, The Forex Trading Coach. Look forward to talking to you this time next week when I’ll be in the States.

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How Big Should Your Stop Loss Be?

In this weekly video:
00:33 – What size should your stop loss be? It depends
01:10 – The way I like to trade
02:30 – You need to factor all those things together.
03:44 – Adjust your position size – use my free lot size calculator
04:27 – Should you use a trailing stop instead?
05:30 – Don’t simply move your stop loss to breakeven
06:08 – A set and forget approach

How big should your stop loss be 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 225. In this episode, I want to talk about a really important subject. It’s all about, how big should your stop loss be?

What size should your stop loss be? It depends

My initial answer is probably not what you wanted to hear. My initial answer would be, it depends. It depends on a lot of things, so I can’t give you a straight number of pips answer. I’ll tell you why shortly. Stop losses, they’re really important. In my opinion you should definitely use one. Some people say, “Don’t use them at all”. They say, “If you don’t have a stop loss you can’t get stopped out of the market”. The problem that I see with that is that, that’s fine in theory. The problem is that one or two bad trades that goes against you, and it just keeps going. Those are the trades that can do some serious damage on your account.

The way I like to trade

The way I like to trade is, I like to have a controlled and equal risk on every trade that I take. It doesn’t matter what the strategy, what the time frame or the chart is. What the currency pair is. What the day of the week is. What the direction of the trade is. It doesn’t matter. Therefore, when I’m taking those trades, I need to know the size of the stop loss. But I don’t just take a generic stop loss. I don’t say, “This trade is going to have a 30 pip stop loss”, or, “This trade’s going to have a 50 pip stop loss”. You can not trade successfully like that, because a 30 pip or a 50 pip stop loss doesn’t mean anything.

The stop loss size of your trade needs to be determined by a few things. One, your overall strategy. Two, the currency pair you’re trading, because of course different pairs have different movements, so different amounts of move within a day. As an example, if you were trading the Euro and British Pound, vastly different to have a stop loss of 30 pips on that, as opposed to the British Pound and New Zealand Dollar, which could move 200 or 300 pips in a day. As opposed to the Euro/Pound that might move 50 pips in a day. It also depends on the time frame of the chart you are trading, and it also really importantly depends on the current market conditions.
Always place your stop loss at a level that protects the trade

You need to factor all those things together. What you should do is, always place your stop loss at a level that suggests that if that level gets hit and the price gets to that level, you accept that you’re wrong, the trade is wrong, the set up is wrong. Whatever it might be. You accept that you take a loss on that particular trade. That’s how you should place your stop loss. The level that gives the trade room to breathe, room to move, but also says that, “If it gets to this level, then I’m wrong”. That’s fine. You’re going to be wrong as a Forex trader. No one is 100 percent accurate all of the time. Having a stop loss at that level that’s a safety buffer, a safety level.

Once you have that, you can then calculate the stop loss size in pips, but it should never be just 30 pips or just 50 pips. It should never be a set level depending on what pair or what time frame you’re on. You shouldn’t do that. You should put that stop loss there according to that actual trade itself. That’s why my answer is to, “How big should your stop loss be?”, is, “It depends”. Because it really does.

Adjust your position size – use my free lot size calculator

Once you’ve calculated that stop loss size, you then need to adjust your position size, the amount of lots that you take on that trade, to ensure that if that stop loss gets hits with this position size, I lose X percent of my account. In my cases, always no more than half of one percent of my count. 0.5 percent of my account gets lost. It’s only half of one percent. That’s the maximum. You can use my free lot size calculator. What I will do is I will put a link below this video to the lot size calculator. If you don’t have it, make sure you get a copy. It works on any MetaTrader 4 platform. It’s a brilliant piece of software. It’s yours free of charge. Use it, and use it to your advantage.

Should you use a trailing stop instead?

Moving on from a fixed stop, a conversation that I had with my clients on my live webinar just last night was all about the use of a trailing stop. Personally, I’m not really a fan of a trailing stop, because again it’s like, do you choose 20 pips to trail, or 50 pips, or whatever is should be? It’s a hard thing to actually determine.

I would personally, and this is what I suggested on my webinar, I would personally say that you either look at, if you move into profit. Your trade’s into profit. It hasn’t got to your profit target yet. You’ve got a few options. You could look at closing part of that trade out, to guarantee that you’ve locked in some profit, and the rest is still in the trade. You could move your stop loss up to a fixed level. In my opinion that’s a better way of doing it. A combination of closing part of the trade if you wish to, and/or moving your stop up or closer to the entry point, and then into profit by using fixed levels rather than trailing stops. By that I mean look for previous swing highs or lows or round numbers, etc.

Don’t simply move your stop loss to breakeven

Don’t just move your stop to break even. Because really, break even doesn’t mean much. It’s just a feel good thing. It just makes you feel good because you know you can take a zero loss on that trade, or you might make a small profit or a small loss.

Break even isn’t particularly that good a position for a stop loss. Depending of course on the price at that time. But I would rather move your stop up to certain levels, keep moving it up if you need to. Locking in some profit. Guaranteeing some profit, and keep moving it according to previous price action if you with to do that.

A set and forget approach

The other option of course is you take the simplistic approach of set and forget. You say, “This is my stop loss. This is my profit target. I will let the market do its thing”. To be perfectly honest, in a lot of cases, that often is the best way to trade because it takes your emotions out of the trade. You know the very worst you can do. You know what’s going to happen if you get to the profit target. You leave the trade alone.

Different types of ways of trailing stops and moving stop losses if you wish to do that. But overall, think about your stop loss for the safety of the trade. Adjust your position size accordingly, and use my free lot size calculator. A link will be below this video.

This is Andrew Mitchem, the Forex trading coach. Have a great weekend. I’ll see you this time next week with some more trading tips and information. Bye for now.

Thanks again, I’ll see you this time next week.

Download my Free Forex Tool – The Lot Size Calculator! Click here!

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Weekly Video

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What happens when the going gets tough?

In this weekly video:
00:29 – How do you react when trading gets tough
00:43 – I had a bad start to the week but ended up making +1.5% gain for the week
01:35 – I stuck to my plan and strategy
02:25 – Client makes +14.5% account gain in the last 30 days on a live account
03:22 – Trading your system not your account size
04:55 – Major news events so be careful
05:27 – My 8th Birthday Sale is live this week – register your interest using the link below
06:20 – A Global community of Forex traders – come and join us

What do you do when the going gets tough with your trading? Do you give up, or do you keep going? Let’s talk about that and more right now.

Hi, Forex Traders, Andrew Mitchem here, The Forex Trading Coach. This is video and podcast number 224. I want to talk to about what do you do as a person and as a Forex trader when the going gets tough?

How do you react when trading gets tough

Because it’s very easy to just throw everything out and go, “It’s not working.” Blame the broker. Blame the system. Blame everything when things go tough.

I had a bad start to the week but ended up making +1.5% gain for the week

I’ll give you an example, just this week I’ve had quite an average week with my own personal trading through Monday, Tuesday, and Wednesday. It was like “Oh” … I’m fine, I’ve been trading like 12 years, but I can see people go that stage, “This is not working” or “Do I start to tweak something.” “Do I change my method.” “Do I add something.” “Do I give up.” What do I do? It wasn’t really bad it was just not a great start to the week.

Then, yesterday being Thursday, I had a tremendous day. Great profitable trades and it’s made up for all those losses. Got me back to breakeven for the week and now into profit. Right now as I’m talking to you, we’re on Friday, and I’m over one and a half percent gained for the week. It’s gone from being a really pretty bad week through to a very good week.

I stuck to my plan and strategy

The reason it’s done that is because I’ve stuck to my plan. I’ve stuck to my strategy. I haven’t given up. I haven’t thrown my toys out of the cot and gone “Oh, it doesn’t work.” The problem is that so many people especially the newer traders do that too quickly.

You have to try and avoid doing that. You’ve got to control your emotions. Sure no one likes to have losing trades and losing periods of time, but everybody does. You need to be able to accept that and take it and continue because when you‘ve have good periods, as I did yesterday. Yes it’s nice to celebrate that and go “Oh wow, didn’t I do well.” But it’s also about not getting that go to your head either and then doing stupid things on the next few days which go and blow all the good work. It’s really important to have that balance.

Client makes +14.5% account gain in the last 30 days on a live account

Another example is a client of mine called Xavier who lives over in America. He posted a message on my forum site for clients, and he said, “Over the last 30 days, he’s taken 120 trades in total.” Which is quite a number of trades but he is a very active Forex Trader. 89 of those trades have lost, and 31 of those trades have been profitable. You could look at that and go “That’s not particularly high ratio.” A lot of people would say with those 89 losses they might have got fed up or stopped trading. But Xavier has said his up 14 and a half percent account gain, low risk, per trade, but it made 14 and a half percent on the last 30 days of trading. So it’s tremendous account gain. You think about that 14 and a half percent in 30 days. You can’t get that at too many banks or other ways of investing around the world, but Xavier’s done that.

Trading your system not your account size

He made a great point here he said, “That you have to trade your system, not your account size.” He said, “It’s all about trading the system, sticking to the system.” And what he’s done with that high number of losses is he’s controlled his risk, and his kept his loses very small. A number of those trades would be like breakeven trades or small losses, things like that. When he’s had profitable trades, and the markets moved in the direction of the trade that he’s looking for, he’s had very high gains.

He posted a couple of trades on the forum site, and one of them had 3:1 reward risk. One had a five, and there was even one on his account that he posted that had a 7:1 reward risk on that one trade. What he’s doing there? Is he’s saying “Look I‘m controlling my risk if I take a loss? It’s going to be a real small loss or controlled loss. Then what I’m also doing is when the market moves in my favour, I can move my stops up to protect the trade of guaranteed profit, close part trades, but also when the market is moving in my direction, I’m getting huge gains out of that.”

Once again 14 and a half percent in 30 days of trading. You’ve got to seriously look at that and go “Wow, this is some excellent trading going on here.” But as I said with the topic of it on podcast, when the trading gets tough, what do you do?

Major news events so be careful

Xavier keeps going because he knows the strategy that I’ve taught works. It’s worked for him, and it continues to work. It’s an important point there.

On the charts today, we’ve got the US non-fund employment change data, and at the weekend we’ve got the second round of the French election. Just be really careful when you see these big news announcements. You’ve noticed from a few weeks ago with the first round of that French election, huge gaps on a Monday morning, especially on the Europairs. We’re likely to see that again this Monday coming. Of course, it could depend on the outcome of the results, but likely to see big movements, big gaps. Just be really careful when you see that.

My 8th Birthday Sale is live this week – register your interest using the link below

The other thing that I’ll quickly let you know is that I’m sure you know already, is that Monday and Tuesday of next week. It will be 8th May if you’re in America and Europe it’s when it starts your time, but the 9th of May which is also my own birthday and its also the eight birthday of the Forex Training Coach. I’ve got an annual sale, great way of joining us and getting results like Xavier. At a drastically reduced fee. Now the Forex Trading Coach is eight years old next week. It’s something I’m immensely proud of. I’ve taught and helped thousands and thousands of Forex traders all around the world. When I look back and look at the companies whether they be signal services, educators, brokers, whatever they maybe, from 8 years ago, not too many of us are still growing today. I’m really proud of that fact that it’s helping people of what I do.

A Global community of Forex traders – come and join us

It’s just creating a global community of Forex traders who are just making excellent gains from their trading. If you would like to be part of that jump onto that sale straight away next week. I’m also looking forward to the next eight years again. It’s been a great first eight years, but we’re looking forward to another eight years plus more of helping other traders around the world and just growing this fantastic group of Forex traders.

Once again this is Andrew Mitchem, The Forex Trading Coach. Have a great weekend. Be careful of those gaps on Monday, which are likely to occur, and I’ll see you this time next week.

Thanks again, I’ll see you this time next week.

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Some of the best ways to trade in the current market conditions

In this video:
00:29 – Trading the current market conditions and my 8th Birthday Sale
00:48 – The current market conditions right now
01:55 – Go to the shorter time frame charts for setups
02:50 – Trades from my live webinar make profit of +0.6% gain
03:33 – Bigger picture in line with the trade
04:32 – Trade a mix of time frame charts and learn to adapt
05:25 – My 8th Birthday sale starts soon
06:25 – Not many others have lasted for 8 years
07:35 – Register your interest to ensure you don’t miss out

Let’s talk about some of the best ways of trading the Forex market in the current market conditions. That and more, right now.

Hello Forex Traders, it’s Andrew Mitchem here, the Forex Trading Coach. This is video and podcast number 223.

Trading the current market conditions and my 8th Birthday Sale

Two important topics today. Number one, I want to talk about the market conditions right now. What’s the best way of trading. I’ve got some great examples to share with you and also after that, I would like to share with you information about my upcoming eighth birthday sale, an absolute amazing way for you to jump on board and join a huge global group of Forex Traders, and successful Forex Traders. More about that, shortly.

The current market conditions right now

First of all, the market conditions right now. Well, with Easter now out of the way, the market is sort of getting back to a few more, what you would call, normal market conditions. But also, we’ve seen a few issues that have made the markets on certain timeframes quite tricky. We had the snap British election date announcement, just about a week or so ago. The beginning of this week, we had the massive gap up on most, or especially the Euro and Yen currency pays largely related around the French election news. That’s actually made the market on certain timeframes and the daily charts, in particular, are quite difficult because there’s been a lot of gaps up.

When you get that, you’ll likely to see one or two scenarios. You are either likely to see a retracement and then it goes again or you might see no retracement and it just keeps going. And of course in real time, it’s hard to know which of those two scenarios you’re gonna see.

Go to the shorter time frame charts for setups

But what I’ve found, is a really good way of trading the conditions in the market right now, is to go to slightly shorter timeframe charts. I’ve had tremendous success this week on six hour charts. Now most MT4 traders can’t trade six hour charts, unfortunately. I’ve got some great software that I’ve had developed that I share with my clients that allows us to trade off-line charts. Charts like six hour charts, eight hour charts, twelve hour charts, et cetera. But the six hour chart trades, and I shared it with my clients on my live webinar just yesterday, just some tremendous results. High reward to risk. Just need to look at your charts maybe two, three times a day if you can. Just some great trading opportunities.

So, if you don’t have that piece of software, what you can do is look at charts such as the four hour charts and also they have had some fairly good trading opportunities. Now yesterday on my live webinar, I took one four hour chart or actually I took three.

Trades from my live webinar make profit of +0.6% gain

One failed to get filled by just a fraction of a pip. Really annoying because it was a great trade. Another one missed that being filled by about three pips, but the one that did get filled, absolute perfect entry. Perfect exit and made a two point two to one reward to risk trade.

I also took a trade live in front of clients on a one hour chart that lost. The losing trade lost half of one percent. The profitable trade made one point one percent. Put the two together and on the two trades that I took on the webinar, I made a positive, plus naught point six percent can gain just on those two trades that filled. And of course, clients could copy that as well. That’s only with half of one percent risk per trade.

Bigger picture in line with the trade

The important point there though is that with that particular four hour chart set up, it was a sale trade on the New Zealand dollar Swiss franc. It was in my likely daily direction. There had been a lot of downtrend and nice pull back and then an opportunity to go short again after a retracement. Everything was setting up to be a great trade and it was a perfect trade. High reward to risk. The profit was hit within one bar, I think one four hour bar, and it just also shows the importance of high reward to risk trade. Because if you lose on one trade, you know no one likes to lose but it’s a fact of trading, you’re gonna lose, but if you have controlled risk, you know that half of one percent’s the most you’re gonna lose, but if you have a profitable trade that makes one point one, you’re still up really quite nice. A positive naught point six percent gain on the two trades. You’ve already got a 50% win rate out of the two trades. Real important aspects there.

Trade a mix of time frame charts and learn to adapt

To trade the current market conditions, I believe right now we need to be looking at some shorter timeframe charts if the dailies or the longer timeframe charts aren’t showing quite the set ups.

Having said that, I’ve had some good trades also on the daily timeframe charts. I had a great trade on buying the British pound Australia and then selling the New Zealand dollar, Canadian dollar. But overall, because of the gaps and then retracements et cetera. The daily charts have been a little bit sort of less quality set ups this week so therefore, to adapt. We always have to adapt in the Forex market. You then go to look at other timeframe charts. Ideally still sticking with the main trend and the main direction but just scaling it down to a slightly shorter timeframe chart and that’s some of the things that I teach on an ongoing basis. That’s the beauty of having live webinars because we discuss this all the time.

My 8th Birthday sale starts soon

So, that leads onto the second point for today’s video and podcast. My eighth birthday sale is approaching, only about a week to go. It starts on Tuesday, the Ninth of May if you’re this side of the world, that will be Monday the Eighth of May if you’re in America or Europe and you’re afternoon and evening time. It’s a 24 hour sale. That’s all it’s gonna be. Only 24 hours. The price is gonna start at an extraordinarily low, low price but it will be increasing all the time. It’s called a dime sale. It means the price starts really low but it just keeps getting up, starts moving up and up. Higher prices as the time goes on for the 24 hour period.

I really encourage you, if you’re interested, to register using the link below this video and just express a registration interest. It doesn’t mean to say you have to join. It’s just saying then I’ll send you some more information and tell you all about the upcoming sale so you don’t miss out.

Not many others have lasted for 8 years

What do we get? First of all, the Forex Trading Coach is celebrating its eighth birthday. There’s not many Forex Education companies around that have lasted the last eight years. When I think back to when I started, and I started trading Forex 14 years ago, but when I started the Forex Trading Coach, there were very, very few educational companies or any kind of Forex companies around eight years ago that are still going to day. So I am very proud of that fact and it comes down to the fact that we have a sensible strategy, a reliable strategy that works across all different currency pairs, all different timeframes, all different times of the day and the week. It doesn’t matter where you live in the world.

The last count, I’ve got clients in 58 countries that have joined over the last eight years. So it really does not matter where you live in the world, how much time you have available, whether it’s lots or none or little. It doesn’t matter if you’re brand new to trading or you’ve been trading for years and years. I’ve got people who’ve joined who’ve been trading unsuccessfully for 10 years prior to joining my course. And now, in just a short space of time, it’s helped change their trading around and now they’re really successful and profitable, which is great news.

Register your interest to ensure you don’t miss out

So, have a look at the link below. It tells you all about the sale date. If you’re watching the video, you can see over my shoulder that’s what the page will look like. There’s a countdown clock. Register your interest. When that countdown clock hits zero, the page will redirect to the sales page and you can get started at just a crazy, crazy, low price. Everything’s included. There’s nothing left out. It’s the full course. The full five star rated course. It’s all the videos, the whole main strategies. You’ll have access to myself. Access to Paul, who is a client of mine, who is really successful in America. Weekly webinars. Two hour webinars. One European session; the following week one U.S. session. They all get recorded. There’s about eight years of recordings anyway. Great MT4 software. Support. A forum site. A Frequently Asked Questions site. Daily trades that I post every day of the trading week. Strength and weakness analysis. Specific trades for you to follow. Huge amount of information. That’s what makes it work.

I’m a real trader. I’m trading every day. I manage funds for people. I’m trading my own accounts here behind. I use the same accounts to trade in front of clients on live webinars. So, if that sounds something that is exciting to you and you’d like to become a successful trader, then click on the link below. Register your interests for the upcoming eighth birthday and in a week or so that goes live. There’s a great chance for you to go to join us as a Forex Trading Coach.

So once again, this is Andrew Mitchem, Forex Trading Coach video and podcast number 223. Hope you found that useful. Think about trading a variety of different timeframe charts in the current market conditions. It will really help you with your Forex trading.

Thanks again, I’ll see you this time next week.

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Why I Follow The Charts

In this video:
00:33 – The KISS approach – See it in real time from the right hand side of the chart
01:36 – News becomes my opinion but the charts are fact
02:02 – You don’t need to worry about news announcement
02:38 – Have a look at the GBP charts from Monday
03:54 – I see the trade setup and take the trade
04:56 – I’ll be teaching live in North Carolina and Washington DC in June

As a Forex trader, I follow what the charts are telling me. Let’s talk about why that is right now.

Hi Forex traders. It’s Andrew Mitchem here, the Forex Trading Coach. Today is video podcast number 222 and I want to talk about why, as a technical trader, I watch what the charts are telling me and I trade what the charts are telling me. It’s a really important thing.

The KISS approach – See it in real time from the right hand side of the chart

As a trader, I love the K.I.S.S. approach, the Keep It Simple Stupid approach, because your technical trading or any form of trading needs to be simple. It needs to be something that you can see and apply in realtime without all the benefit of hindsight.

The charts do that for me. They tell me what’s happening in the market right now on different currency pairs, depending on what timeframe I’m looking at, depending on what pair I’m looking at, I can then analyze strength and weakness against or for which currencies are showing strength and which are showing weakness right now. I can see which are showing exhaustion, which are range bound, which are trending, which are reversing, which are continuing. All sorts of different things that I’ll look at in trading. But really easy to see it in realtime from the right hindsight of the chart and that’s an important fact or an important point. You have to be able to trade from the right hindsight of the chart, look at what’s happening right now in the market, when the candle is closed, make an opinion, and trust that opinion, and take that opinion. Because it’s actual fact. It’s what’s happening in the market.

News becomes my opinion but the charts are fact

If I was to trade news, that becomes sort of my opinion as opposed to someone else’s opinion. The charts are fact. It’s where the price is right now, where it’s been, its high, its low. Has it formed support at a certain level? Has it bounced at that level in the past? Is it at a round number? All these sort of things, as a technical trader, are fact because it actually happened.

You don’t need to worry about news announcement

I don’t need to spend hours and hours studying the news events. I don’t need to be at my computer just before a news event, waiting for it to be a better or worse announcement. I don’t need to do any of that. I don’t have to worry about the spreads or the charts freezing at a news announcement. None of that.

I’ll give you an example. Earlier this week, we had Theresa May, the British Prime Minister, call a “snap election” in Britain. Completely unexpected. Hardly anybody knew about it because most of her cabinet didn’t even know about it. Most people did not know that was coming.

Have a look at the GBP charts from Monday

However, go and have a look at your charts on the daily chart. Go and have a look at, say, like the British pound, Japanese yen, or British pound, Canadian dollar, and most of the British pound pairs. But those two, in particular, were showing very good, strong bullish buy setups on Easter Monday. Now, most years you would not expect too much decent price action on Easter Monday, especially on a British pound pair when Britain shut for Easter. However, go and have a look. Go look at your charts when you finish this video or podcast. Go and have a look at your charts on the daily charts. Look at the British pound, Japanese yen, as an example on Monday.

Then on Tuesday, when the announcement came out, the British pound shot sky high and went through the roof and it went crazy. But the charts, the day before on the daily charts, were showing a very good, strong, bullish buy pattern.

Is that luck? Is that complete and utter chance? Is that fluke? Or did I just get lucky? I’m not sure. But all I can tell you is that the charts were showing a very good, strong, bullish buy pattern, long in advance of that news announcement coming out.

I see the trade setup and take the trade

Take it what you make of that. All I know is that as a technical trader, I see the trade setup and I take the trade. It doesn’t become a my opinion. Is the British election been a snap election. Is that a good thing? Is that a bad thing? A labour suddenly going to form with someone else? Is the Scottish lady going to intervene? All these different things that’s happening over there. I don’t need to particularly worry too much about them as a trader because the charts are telling me what’s happening.

You’ll also notice the British pound went sky high. Then the day after it, then stalled at that level and it came back again. Well, technically, it was going to do that because it reached a certain level, which it had hit in the past on most of the British pound pairs, and it was quite likely it was going to hit that level as resistance and then pull back again. Then it’s come back a little bit. Now we’re seeing bullish price action. It’s likely to then go further upwards again. So all technically based and it all is there to see on the charts.
I’ll be teaching live in North Carolina and Washington DC in June

That’s today’s lesson. The other thing I’d like to share with you quickly is in June, on the 3rd and 4th of June, I’m going to be teaching live in North Carolina. On the 10th and 11th of June, I’m going to be in Washington, D.C. If you’re in America or Canada or anywhere else and you’re able to get to America on those dates, I’d love to see you there for some live, in-person tuition. There’s a link below this video. If you’re watching the video, there’s a link below that you’re able to click on to that will take you through to a free to join webinar, which will explain more about my visit to America at the end of May and early June. I’d love to see you over there to help you further develop your Forex trading.

Once again, this is Andrew Mitchem, the Forex Trading Coach. Have a wonderful weekend and I’ll see you this time next week. Bye for now.

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