Podcast:

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Spotify | Android | iHeartRadio | TuneIn | RSS

Clients amazing trading results with Andrew Mitchem

In this video:
00:28 – Thanks for your support this year
00:55 – Clients amazing trading results
03:55 – Good trading takes time to master
05:27 – Would you like to improve your Forex trading?
06:00 – Have a wonderful Christmas

I’d like to talk about how has your trading been in 2015 and what would you like to see improve or change into 2016. Let’s get into that right now.

I’m Forex trader’s Andrew Mitchem, here, the Forex trading coach and this is my last weekly video and podcast for 2015.

Thanks for your support this year

I’d just like to say thanks for everybody whose been following me on YouTube, on my website, on iTunes, Android, on podcasts. However you‘ve been following along, great to have you along. Hope that you’ve really enjoyed these videos and podcasts. Judging by the feedback, people are just loving them, so great job and always continue to let me know what subjects you’d like me to talk about.

Clients amazing trading results

What I’d like to finish on for this year is just to give you an idea of some of the amazing results that clients have been getting through my coaching program. I held a webinar just this time last night and like to go through and talk about some feedback I’ve had from clients just on a webinar that I held yesterday. I’ve got some information here, some printouts.

I’d just like to go through and read them to you, because as a coach, I get really excited and absolutely thrilled by the results that people have been achieving. Because, let’s face it, people are putting in a lot time, a lot effort and a lot money up front to come to me and they could go to a number of Forex coaches out there and training programs, but they’ve decided to invest in my and my services and my course and strategy. The results are just absolutely overwhelming.

Let me just read out …

These have just been received this last week. Lucia said, “Andrew, I wanted to let you know this month I‘m up a 9.4% return on my capitol.” That’s one from Lucia, there.

Benjamin, now this is a really interesting one. Just to let you know at the beginning, Benjamin is risking a higher percentage that I might risk myself, but he said, “Andrew, first of all, thanks for you effort to create the opportunity to become a profitable in Forex. I’m trading your method for a year now and it’s a great time to share my honest opinion. Simply said, I generated 243.17% real profit.” Just outstanding. Like I said, the risk is 6% per trade, which for me is a little bit too high, but Benjamin over in the Netherlands is happy with that. Like he said here, he’s trading pullbacks on the hourly, daily, weekly, monthly time frames. Far safer way to trade greater reward to risk ratios. 243.17% return, just outstanding for the year.

John over in Whales, “Andrew, getting close towards the end of the year, just wanted to let you know I’ve made a 9% gain on my accounts so far this month on a live account.” Thank you for that, John. Like I said, these have just been received this week.

Mike over in the U.S. said, “Wanted to share this trade with you on the 1 hour chart, British pound, Japanese Yen. Had a 70 pip stop loss twenty nine profits high, get 1.7 to 1 reward to risk.” If he was risking 1% of his accounts, made 1.7% on one trade.

Chris over in Australia, “Andrew, I took a trade on the British pound, New Zealand dollar as a buy trade. You suggested that on the daily suggestions. On the four hour chart trade, I saw a trade took. It his full profit over night Australian time, while I was sleeping. 4.2 to 1 return trade.” Puts trade on in the evening in the European session, wakes up in the morning, Chris over in Australia, 4.2 reward to risk trade there. You can see, just amazing trade.

Good trading takes time to master

This was a fantastic one, this is from Collin down in Wellington in New Zealand here. He sent me a print out here of his trades that he’s taken just in the month of November. Thirty three trades and he made an incredible 51% gain on his account. The interesting thing is that, and I shared this with my clients last night on the webinar, is that Collin’s been with me since November 2012.

It just goes to show that some hard work, dedication and perseverance really does pay off, because I know, Collin, you’ve had some real struggles. You’ve had times where you’ve sent me many losing trades, but you’ve stuck at it, you’ve persevered and now you’ve just made 51% account gain on a live account just in the one month.

That’s just incredible. That is with very, very low risk trading because I can see all the trades here. They’ve all got stop losses and … Excellent trades, well done, Collin.

The final here from Jonathan, “Andrew, really happy to say I’m 6% up on my live account for the month, whilst working full time, picking a few daily charts, twelve, six, four hour trades. I’m feeling really confident with my trading. I’m not letting the charts and trades run my life. It’s so easy to get too involved watching the charts all day long. Have a great Christmas break.” That’s from Jonathan.

That’s just what I’ve received just in this last week that I’ve read out to clients on the webinar. That’s what people are achieving.

Would you like to improve your Forex trading?

If you’d like to know more or you’d like to improve you trading to get to those sort of levels, then what I’d suggest you’d do is just either contact me or, if you’re watching this at the beginning of the next week, just a few more days to go of my Christmas sale.

As I’m recording this, there’s five days to go, so by the time you watch this, there may only be one or two days to go. Get into that Christmas sale if you can. Three different ways of joining. Discounted rates. Just to really help you with you trading into 2016 and beyond.

Have a wonderful Christmas

Finally, I’d like to say thanks very much for following, again. I hope you’ve really enjoyed these session. Hope you have a really enjoyable and relaxing Christmas time. I’m really going to enjoy having a few weeks away from no trading at all. I’m not starting trading until Monday the 11th of January. There’s just no point over those few weeks where the volatility could be all over the place, could be very thin, you just don’t know over that Christmas-New Year time. Just enjoy a few weeks away from the charts.

I’m going to be flying my helicopter as much as I can. Going to do lots of stuff with the family, with the kids. I’ve got family coming from overseas to visit for Christmas. Lots of barbecues, lots of swimming, lots of beaches and just get away from trading for a few weeks. Recharged the batteries, get back into it in 2016.

Have a fantastic Christmas. Happy New Year. Be safe, have fun, see you next year.

Podcast:

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Spotify | Android | iHeartRadio | TuneIn | RSS

How to trade high correlated Forex pairs

In this video:
00:50 – How I use currency correlation to trade
02:10 – Trading the short time frame charts
03:03 – Multiple charts all showing similar setups
03:55 – EUR and GBP weakness against the AUD
04:10 – 12 Days of Christmas special offer now live

Today’s video is all about currency correlation so let’s get into that right now.

Hi Forex Trade, this is Andrew Mitchem here, the Forex Trading Coach and I’m in Adelaide at the world famous Jacob’s Creek Winery. We’ve just had a nice sample of some of their reds and very good they are too.

Today’s video and podcast is all about correlation. I’ve had an email from John and John said to me, “Hey Andrew can you talk about correlation? How you use correlation. How you look at different time frame charts and really what’s your take on it? What do I need to do so I’m not taking too many trades or highly related and correlated?” Really, John, my take on it is this.

How I use currency correlation to trade

Because I’m a technical trader, I like to look at the charts and trade what I see. Give you an example. Just this morning, I’ve taken 2 trades on my charts that are on right now. One’s on the euro Australian dollar. The other’s on the British pound Australian dollar. You could argue that they’re quite highly correlated because of course the euro and the pound can be quite highly correlated and of course they’re both taking positions against the Australian dollar.

Technically wise on a data chart, they’re looking fantastic. On a weekly chart that I’m trading in the same direction as what I’m seeing. For me it’s not too big an issue. Overall I‘m seeing a lot of strength in the Aussie dollar right now as I’m recording this and I’m seeing some weakness in the euro and also the British pound.

I’ve taken both of those positions. Both sale positions. As I’ve just looked on my charts just before I started making this video, they’re both looking very good. Of course, because they’re highly correlated if both do end up making all go in the right direction then they’re both likely to go that way.

Likewise if they go the wrong way then could be quite highly likely that they’ll both maybe be stopped at if they both go wrong. That is really as I’m looking at the charts right now.

Trading the short time frame charts

When it comes to shorter of time frame charts, I’m still looking for trades in the same direction on those same 2 pairs. Really it’s a case about seeing what’s on the charts at the same … What’s showing right now as I’m looking at my charts.

Of course, because I’ve taken those 2 on the daily time frames, if I see any other Australian dollar pairs today then if they’re on different time frames charts then yes I’ll take them if they’re showing the good technical setup. For me today, I might be looking for buy trades on the Australian dollar pays.

I’m also seeing some weakness in Japanese yen so if I can see some opportunities to buy the Australian dollar Japanese yen, then it’s all really trading with my longer term view and trading what I’m seeing on the charts right now.

Multiple charts all showing similar setups

To give you another example there John, if let’s say, there were 5 Japanese yen pairs let’s say. All showing the same looking signal at the same time then really that’s probably a few too many to be taking unless you drastically reduce the risk that you take on all 5 of those. You could look at taking all 5.

The other way of looking at it is to say, “Well which of the corresponding currencies are looking either very, very strong or very weak against the Japanese yen at that time.” Then look at maybe picking out 1 or 2 of those. Exactly the same way that I’ve done today on the Australian dollar pairs.

Yes, I can see some strength in the Aussie US and the Aussie yen. Against the Canadian dollar also.

EUR and GBP weakness against the AUD

But to me because there’s so much weakness in the euro and there’s so much weakness in the British pound, those 2 technically and longer term with the strength and weakness are the best 2 pairs to be taking today.

It’s my view on correlation. I hope that helps you.

12 Days of Christmas special offer now live

Don’t forget that by the time you’re watching this, my 12 days of Christmas sale will be live so make sure you jump on that. Obviously being 12 days of Christmas it’s only available for 12 days. Three very different and very unique ways of jumping onto my course at a drastically reduced price. Great opportunity there for people to get onboard and to help develop your training over the Christmas period and then start trading into 2016. I hope that helps.

Although I’m in a vineyard as you can tell by the weather behind me, it’s not looking too flash right now so I’m going to end the video and I’ll talk to you this time next week.

Podcast:

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Spotify | Android | iHeartRadio | TuneIn | RSS

Using limit orders to get in the Forex market at a better price

In this video:
00:45 A 2% account gain for the week while trading on holiday/vacation in Queenstown
01:05 Support and Resistance levels
01:50 Draw these levels on your charts
02:51 Use limit orders to get your position filled at a better price
03:30 Increases your reward:risk ratio

Would you like some trading tips on how to best use limit orders in order to get into your Forextrades at a better price? If you would, listen up, got some great tips to share with you.

Hi Forex traders, this is Andrew Mitchem here, the Forex Trading Coach coming today from beautiful Queenstown in the south island of New Zealand.

As you can see behind me, it’s just a stunning evening here, love this place. One of the best places in the world. It’s just so great to be here and to be able to trading daily charts and on Monday, I took some weekly chart trades and in my evening, I’m looking at 6 hours and 12 hour charts.

A 2% account gain for the week while trading on holiday/vacation in Queenstown

That’s it, probably no more than about 20 minutes of chart looking per day. Personally, so far this week, I’m up nearly 2%. I’ve got to be very happy with that.

On to today’s subject. I had an email from Rafael. Rafael said, “Hey Andrew, can you talk about how to best use limit orders in order to get into the best price? Can you also talk about support and resistance levels.

Support and Resistance levels

And why the price quite often bounces at those levels and how we can take advantage of that?”

Support and resistance levels can be many things. They can be previous highs, previous lows. They can be round numbers such as 00s and 50s, such prices ending in 00 and 50. Look for those on the charts. You can draw those with horizontal lines quite easily on your charts. You would just be amazed how often the price does bounce at those levels, or come very close to a 00 level. It will come all the way down and it will bounce and go up again. No different to you going into a shop and buying something for $9.99, or $99, things like that. Its psychological bounce levels.

Forex traders, we take that into accounts so often and it’s amazing how often the price does bounce at those levels.

Draw these levels on your charts

So, When you’re looking at entering a trade, look at those levels, draw them on your chart. See where there’s been previous swing highs and lows.

What you quite often find is, when you have support and resistance levels and don’t get the support levels, or price below the current price, that means that this support means that if price goes down to that level. It could be supported at that level and it may well bounce back again.

However, if it breaks through that support level, it quite often goes and sticks the next support level, which would be the next major level below that whereas resistance is a level above the current price and price will quite often get to that level. It could store at that price. It could then retrace a bit. If it does break through that level, then it’s quite likely to go up to the next resistance level, wherever that may be on your charts. It’s really important that you have a good understanding of where to draw support and resistance levels.

I use an indicator which draws them on my charts automatically for me, and it just makes life so much easier. You can also just see those levels on your charts yourself and manually draw them on if you need to.

But, what I’m looking at doing is,

Use limit orders to get your position filled at a better price

if I’m taking a bi-trade, let’s say. Rather than entering right directly into the market at the live price.

What I quite often do is take a buy-limit, so I’m looking at the price to retrace first and looking for it to bounce off of one of those support levels and then head back up into the direction that I’m looking for the market heading overall. Likewise, if I’m taking a sell trade, I won’t jump into the market straight away at the cell price. I look for it to retrace back further and then look to get in at that retracement level and then look for the price to head down.

It draws support and resistance levels on your chart. It gets you into the market at a far better price,

Increases your reward:risk ratio

which then means that generally you’ll find that your reward to risk, what you make out of the trade is at a far higher return then if you were just entering straight at the market. Of course, sometimes you may have to accept that you missed that because the price may not retrace far enough to get you into your predetermined level. That’s just part of trading. You accept it at the price. If it doesn’t retrace far enough, you just miss out on the trade and you don’t get filled.

If you do get that refill and then the market turns around and then heads in your direction, what you find is you get some great returns from your trades.

I hope that helps. If you have questions like this, just send me an email at Andrew@theForextradingcoach.com, and this time next week, I’ll be bringing you a video from Adelaide in South Australia.

Look forward to talking to you then.

Podcast:

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Spotify | Android | iHeartRadio | TuneIn | RSS

Should you use a Stop Loss?

In this video:
00:35 – Always use a Stop Loss
02:04 – Every trade should have the same risk
02:30 – Where to place your Stop Loss?
03:40 – What position size do I need?
03:55 – Clients making excellent returns

Should you use a stop loss as a Forex trader? Let’s answer that question and more right now.

Hi Forex traders, it’s Andrew Mitchem here. Today’s Friday the 20th of November and I’ve received an email from Dan, I believe he’s in the US, and Dan said to me, Andrew, I’m not sure if you use stop losses. Can you tell me if you do use a stop loss in your own trading and if you do, how do you place that stop loss?

Always use a Stop Loss

The answer Dan is, absolutely yes, 100 percent I do use a stop loss and I always use a stop loss. Why? Well, because it’s an insurance protection against my trading account. What I don’t want to see is my trade go wrong and go drastically wrong and I lose a huge amount of money from my one trade. It’s just not a good way to trade.

So many people come to me and they say, look, I’ve just got stopped badly, if only I didn’t use a stop loss I would have then remained in trade and would have made some money. That’s possibly true in some cases, in many cases from time to time, but the problem is, is that it’s just the ones that you pick out. What you don’t see when you identify those ones that just get stopped down is the ones that may have hit your stop loss and then gone a lot further. For me, I always use a stop loss, have to use a stop loss. I think you then become a, almost like into a gambling situation if you don’t use one.

That’s just my personal opinion, but hey look, 11 years after I started trading, I’m still trading today and I’ve never come close to blowing an account by using that safe approach to my trading. I mean, you think of it this way, if you have an equal risk on every trade like I do, an equal risk regardless of the timeframe, of the chart, regardless of the length of time the trade’s in the market, regardless of the currency pair, regardless of whether it’s a reversal pattern, a continuation pattern, doesn’t matter what it is, every trade has the same risk.

Every trade should have the same risk

The only way that you can control that risk is to have a stop loss in place, because once you know where that stop loss needs to be, you can then calculate the lot size, the position size that you need to place on that particular trade so that if that trade goes wrong, you lose a set amount of money, a percentage of your account or a set amount of money, which ever way that you like to trade.

Where to place your Stop Loss?

In order to get that right, you need to know where to place your stop loss. For me, the stop loss needs to be placed at a level that says, this is a safety level for this particular trade.

If this level gets hit, wherever you decide to put it and I’ve got many ways of where I, you know, well not many ways, but I’ve got ways of where I know I’m placing my stop loss on every trade. You have to accept that if this level gets hit, then I’m accepting that the trade set up that I saw at the time is wrong. I get it wrong, it’s unlucky, the market goes against me, whatever the reason is, it gets stopped down so I have to say that if this level gets hit, and I’m buying up here, and if the price moves down and gets, hits this level and I’ve got stopped out, I accept that I’m incorrect on that trade.

It goes against me, I lose money, but I know a predefined amount of money or percentage of my account that I lose on that trade and I can live with that. I’m happy with that level. It’s a comfortable level, it doesn’t hurt me, it doesn’t mentally scar me, it doesn’t get in the way of ruining my trading account. That’s why personally I always go to no more than half of one percent.

What position size do I need?

Once I know my stop loss amount in pips, I can then work out the lot size needed. Absolutely, Dan, to answer your question, 100 percent yes, always, always, always, without fail, always use a stop loss.

Clients making excellent returns

Moving on to some other news that I’ve received this week, had a couple of emails just sent through just yesterday from clients. One Mike, and Mike also fromthe US, sent me a great example of a trade he made, 1.7 percent on a British pound, Japanese yen one hour chart. Great trading there Mike. Another trade from Chris over in Australia who made an amazing 4.2 to 1 reward to risk on a British pound, New Zealand dollar four hour chart trade, so risking half of one percent, Chris made an amazing 2.1 percent gain just from that one account, sorry, just from that one trade.

A four hour chart trade, put the trade on, he sent me a screen shot, it’s a beautiful set up. 2.1 percent of the account gained.

If you’d like to know how these guys are doing this and you’d like to have my help with allowing you to be able to trade successfully, just all you need to do is get on to one of my webinars, send me an email, get in contact with me, download that calculator on my website if you’d like to know about controlling risk. I’ve had a great week personally, myself. I’m up 4 percent for the week so far, which I’m more than happy with, still got one day to go, but it’s been a good week for a lot of traders. If you’d like to jump on board, let me know.

This is Andrew Mitchem, the Forex Trading Coach.

Podcast:

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Spotify | Android | iHeartRadio | TuneIn | RSS

Why over-trading can be harmful to your Forex success

In this video:
1:06 Why Focus on A-Grade Trade Setups
2:44 Be Selective with Trade Positions
4:13 Less Can Be More!

Want to talk about why over-trading can be harmful to your Forex success, so let’s get into that right now.

Hi Forex traders, this is Andrew Mitchem here. The owner of the Forex Trading Coach, and in today’s video and podcast I want to talk about why over-trading can be so detrimental to your Forex success, and it’s a problem that so many traders have.

I know full well what it feels like, because when I started trading I was in exactly the same position. I think the problem is that now most people feel that now they want to be a trader. Whether it’s a part time trader or a full time trader, they feel that they have to always have a position open, or many positions open into the market. Otherwise they feel like they’re not really trading, and so I think people then jump into trades almost like without getting the perfect setups. They just take trades because they feel that they should be doing something, and are just a bit worried about moving or missing moves in the market.

Why Focus on A-Grade Trade Setups

Whereas what you really needs to be doing is eliminating those sort of 50/50 trade set ups, and really focusing on those A grade set ups. Those trade setups that give you those high probability trades, and those great reward to risks. If you can concentrate on those, and try to eliminate some of those more 50/50 setups then you’ll do far better from your trading.

As an example this week I took five trades on Tuesday … Well first of all let’s start with Monday.
Monday I saw nothing. Monday was a really quiet day. Couldn’t really see anything justifying/worth taking.
Tuesday I took five positions over all the different time frames that I look at, and in fact only one of those trades actually got filled into the market because I placed my trades as pending limit orders. Four of them didn’t even get filled in the time allocated to get filled, so those four were automatically deleted. Now the one that did get filled made full profit, and it made 1.52% on my account, and it was just over a three to one reward to risk trade. That was Tuesday.
Wednesday I took two trades.
Yesterday, being Thursday, I took three. One of them has profited, and two have been stopped out.
Moving into Friday, today, I’m probably not expecting too much to happen, because today’s the first Friday of the month.
Therefore it’s non-farm payrolls, or non-farm employment day, so all I’ve taken five, seven, ten trades so far this week, and I’m up 3.9% on my account right now. With still one day to go.

Be Selective with Trade Positions

It just shows that you don’t need to take a huge amount of trades in order to be profitable. For some people ten trades in the week might be a lot. For some people it may be quite a small amount. Just depends on how you trade, but the important thing is to be selective on the positions that you do take.

Just to give you another example, I was talking to some clients of mine over in Canada. Who’ve been with me for several years, and they’ve developed a trading robot, NEA. Using my strategies and principles of trading, and on a live account so far this year, so ten completed months, there up over 44% on their account. With just a 4% draw down, but the interesting thing is they’ve only taken 38 trades. Well the robot’s only taken 38 trades in the entire ten months. That’s taking less than four trades per month, yet they’re still up 44% on a live account.

Now if you say to most people, “I’m going to take only 38 trades in ten months.” Most people would just think that’s completely boring, far too slow, not enough price action, not enough excitement. Talk to them, and you say, “Look automatically we’ve just made 44% in ten months with only a 4% draw down.” You can see the different mindset the investor would just jump on that chance. Whereas the trader who is maybe new or more a gambling mentality, might look at 38 trades a year and think that’s completely boring.

Less Can Be More!

It just goes to show you that less can be more, and select those high probability trades. Trade less. Don’t feel that you’ve got to be in the market all the time. Basically all your doing is not only stressing yourself, but also paying your broker if you’re constantly taking lots of positions.

That’s the lesson for this week. I hope that helps. If you have any questions about trading, drop me an email at andrew@theforextradingcoach.com. I look forward to bringing you more information. Videos and podcast this time, next week.

Podcast:

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Spotify | Android | iHeartRadio | TuneIn | RSS

Can a trading strategy work in the long run without curve fitting and over optimizing?

In this video:

00:57 Having Your Own Strategy
02:53 Why Trade Price Action
06:14 The Best Trading Option

How do you know if your trading strategy is going to work in the long run without curve fitting and without over optimizing? Let me explain more details about that right now.

Hi Forex traders, this is Andrew Mitchem here, the Forex Trading Coach and today is Friday, the 23rd of October. I’ve received an email from someone saying, “Hey look Andrew, I’m developing my own strategy, but my problem is I really have no confidence in that strategy long term, like in the long run. How do I know that it’s going to work in the longer term, in several weeks from now and months, years and many years from now? How do I know that without curve fitting my strategy and over optimizing it as time goes on?”

Having Your Own Strategy

It’s something that affects probably most Forex traders when they have their own strategy. It’s almost like, do you have confidence that that strategy has not only worked in the past, but will work in the future and of course, no one knows the exact answer to the future but there are certain things you can do to put probability on your side and I explain about that shortly. Because the problem that many traders face is that they come up with a strategy and then they curve fit it, so by curve fitting I mean they almost make it fit to the perfect conditions. With optimization, you almost take the perfect settings, if you’re using a group of let’s say indicators to make the most profit with the least draw down, etc. on back testing data.

I used to do that myself, you know, I’m guilty as anybody. When I first started trading I used all sorts of different back testing software, and some very good software as well, but the problem is that I was always curve fitting and optimizing my strategy. Of course you then go and say, yeah, this is the best strategy ever. It’s going to beat everything that there is, just made me X amount of millions and millions of dollars and so you take it live and of course inevitably it doesn’t work in the current conditions and it fails and you go through the whole cycle again.

You think, oh maybe if I add this indicator or tweak this a little bit here or there or change this, you know, you think that will suddenly be the magic fix and the same thing happens. You go through the cycle again, and you take it live, it might make a dollar or two to start with and again, it probably fails. As I said, I’ve been there myself and I know that the issues and the frustration that that causes, but there is a solution, well I certainly found a solution that works for me. That is to come back to price action trading.

Why Trade Price Action

I’m a big believer in price action trading and my strategy that I’ve got going behind me on the screen, if you’re watching the video, sorry if you’re listening to the podcast, you can’t see, but my strategy has been unchanged for eight years now. The reason that it’s been unchanged for eight years is because it’s based on price action. Price action will always be price action regardless of the market conditions and that’s why I have full confidence, not only does it work really well for the last eight years, I’ve got confidence it’s going to work for the next eight years and more, into the future.

The reason is, is because a lot of strategies unfortunately only work if the conditions are a certain condition. Let’s say a lot of strategies only work if the market’s trending really, really strongly. Other strategies only work if there’s a range bound market or at certain times of the day. Other strategies only work on certain currency pairs or certain timeframe charts. When you think about that, why is that? I can’t see any logical reason why the strategy’s any good, it will only work on the Euro/US Dollar (EUR/USD) 15 minute chart, let’s say as an example and that shouldn’t be the case.

Why would a strategy only work on let’s say the Euro/US Dollar (EUR/USD) 15 minute timeframe chart? I can’t see why that would be the case. What’s so unique about that currency pair and that timeframe to say that this so called super strategy doesn’t work across other timeframes and other pairs? That’s another great thing when it comes back to price action and the way that I trade, is that my strategy works equally as well across all currency pairs and all timeframe charts.

Now as an example, if I turn around here and tell you what I’ve got open on my charts, live right now, I’ve got trades on the:

• Aussie/New Zealand (AUS/NZD)
• Pound/Yen (GBP/JPY)
• New Zealand/US (NZD/USD)
• Pound/Canadian (GBP/CAD)
• Pound/Yen (GBP/JPY)
• Aussie/ Franc (AUD/CHF)
• Pound/New Zealand (GBP/NZD)
• Euro/New Zealand (EUR/NZD)

I’ve got eight different currency pairs open on the charts behind me on various different timeframes, 1-hour charts, 4-hour, 6-hour, 12-hour, daily and weekly. Various currency pairs, various timeframe charts.

As you can see, because the strategy is price action based, it works across all timeframe charts and various currency pairs, all currency pairs. It comes back to the simple fact is if the market is range bound and going sideways, then quite often there are very few good trade set ups. Yet if the market starts moving up or down and there’s pull backs or extensions within the market, then quite often you will find very good set ups based on a price action based strategy.

It really means that no matter what the current market conditions or what the future markets will be, if you have a good strategy that’s soundly based on price action and price levels and that’s proven to work in the past, there is no reason why that isn’t going to work, no reason why it would not work successfully into the future.

I hope that that helps and just be really careful if you are someone who does optimize and curve fit, especially if you use far too many indicators, because there is that danger of trying to make it perfect for today’s conditions and in the future that strategy may not work.

The Best Trading Option

In my opinion, the best option there is, is to always come back to price action and look at what the charts are telling you, because the charts tell you what’s happening in the market right now. Trading from the right hand side of the chart is really, in my opinion, the only way you can make really good money through Forex. What’s already happened in the past is great information to be able to use, but it doesn’t make you money today as in taking a new trade. Only that right hand side of the chart onwards is really where you’re going to actually place your positions into the market and make money.

Of course, that’s not as easy as it sounds because that is the hard part of trading, is being able to not have the benefit of hindsight and what’s happening in the future, but being able to make your decision based on what you see right now in the market. That again, is having a good solid structure and a plan in place.

If I can help you further with that, what I suggest you do is hop on to one of my free webinars that I hold. I hold webinars for new traders and webinars for more experienced traders and of course for my coaching clients, I hold live trading room sessions where I’m trading on my charts here behind on a live account in front of my clients who see me taking trades on various timeframes charts throughout the two hour session.

If it’s something that you’re interested in, either hop onto one of those free webinars or if you’d like to go further and take it to that next step and become a coaching client and to join the live trading room sessions, then drop me an email or just register for one of those webinars.

Hope you have a great weekend and look forward to bringing you more Forex trading tips and information this time next week. This is Andrew Mitchem, the Forex Trading Coach.

Podcast:

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Spotify | Android | iHeartRadio | TuneIn | RSS

Why Forex trading is one of the best things to learn?

In this video:
00:28 Forex Trading Success Stories
02:20 The Lesson To Be Learned
03:20 The Great Thing About Trading

I want to talk about why I think that Forex trading is one of the best things you could possibly learn. Let’s get into that right now.

Hi Forex traders, this is Andrew Mitchem here, the owner of the Forex Trading Coach. today is Friday, the 16th October, and I want to talk about why I just love trading Forex. There’s many reasons, and I’m going to give you just a couple stories, to share with you.

Forex Trading Success Stories

I had a phone call yesterday, being Thursday afternoon, from a client of mine who lives here in New Zealand. He said, “Look Andrew, just been having some amazing success trading your strategy.” He was perfectly open and admitted that the first few months was not that great.

It took him a while to develop and understand the strategy and his own take on it, but he said, “Look, the last 10 months,” he’s been with me for about a year, “has just been absolutely fantastic.” He gave me an example of five trades that he took the night before, the previous night, on the 8-hour charts, and he made over 10% on his live account. It’s a pretty amazing figure when you think about it. Over 10%. I don’t do 10% on one day, I certainly don’t come close to 10% on one day, but this guy made over 10% on his live account on five charts. It was interesting that it was on the 8-hour charts. I’ve got some great software that I have for my clients, that allows us to create any timeframe charts that we wish to, on the MT4 charts.

You’d know, if you use MT4, that the standard charts are the 1-minute, the 5, 15, 30, 1-hour, 4-hour, daily, weekly and monthly. I’ve got great software that I give to all my clients, and allows us to create charts such as 6-hour charts, 8-hour charts, 12-hour charts, whatever timeframe you like. Even if you wanted, say, 2-minutes or 4-minutes, if you’re a very short timeframe trader. Brendan was making some great trades on the 8-hour charts and he shared it with me on the phone. We went through and looked at the charts and looked at the set ups. I also then shared that with clients on my live webinar last night. It was just great to show people this is what someone’s done, he’s seen the set up, he’s taken them.

The Lesson To Be Learned

The moral of the story, in his opinion was, you need to almost get rid of all the clutter that you think that you hear, that you see. Get back to the basics of trading what you see on your charts. He said, “If I don’t take any, worry about what’s happening on the news or anything like that, I’ll look at my charts and I’d go off what my charts are telling me is happening. Not so much what I think. If I start thinking the Euro’s going to go up, then I see some …” If you see sell/trade set ups, you may not take them, because you think it’s going up, so it’s really important to get back to basics and trade what you see on the charts.

That’s one great Forex story I’d like to share with you. As a coach, and as someone who’s helped Brendan along, I just get so much pleasure out of hearing stories like that, because it just really is such a great success story.

The Great Thing About Trading

The other story is that we’re trading, as you know, you can trade from anywhere, anytime. I was around one hour late with my daily suggestions today. Very rarely am I late, because I always make a point of being exactly on time, but I said to clients, “Hey, look. I’m away today, I’m flying at the time that the daily suggestions are written. I’m going to be one hour late. Sorry for that.” In the end it didn’t matter because we take pending orders, and they don’t get filled at exactly the time that I write my post anyway.

The great thing was I took my wife, my two girls, we headed for an hour and a half’s flight down to the east coast of the north island of New Zealand, or a place called Napier, had a few hours there looking around town, and girls playing on the beach, etc. I was in the Napier Airport Café, tiny little café, typing away, getting my daily trades posted to people and add-on free websites, and more specific trades for my clients. The great thing is that you can trade from anywhere, and that really is the beauty. I’m on my laptop, I had a lot of it all before pre-written, before I even left, of knowing what I was likely to be taking. Had three trades that I suggested to clients, wrote it all in, took the trades myself from the airport, closed the laptop and that was it. Done.

That is another wonderful part of trading that you can go and do other things, and more enjoyable things, than just sat watching charts all day long. That’s great, but you’ve got to realize that real life is far more important than sitting glued to a screen all day. You get that combination right, of being able to trade those longer timeframe charts, the 8-hour charts like Brendan was trading. I place my daily suggestions based off the day charts, and really, apart from that, I’m personally then looking at 4-hour, 6-hours, and 12-hour charts most of the time.

I did take one 1-hour chart on the webinar last night, on the Australian Dollar/New Zealand Dollar (AUD/NZD), selling it and it hit full profit, but most of the time, those longer timeframe charts allow you to get away from the charts, and go and do other more enjoyable things than just glued to a screen.

Just needed to share that with you. Hope that helps. If you do need any more information about trading, just drop me an email, or get onto my website and fill out the contact form, and I’ll get straight back to you.

Have a great weekend. This is Andrew Mitchem, the Forex Trading Coach.

Podcast:

Podcast: Play in new window | Download

Subscribe: Apple Podcasts | Spotify | Android | iHeartRadio | TuneIn | RSS

Should you use a trailing stop as a Forex trader?

In this video:
00:26 Do Trailing-Stops Beneficial
01:20 Trailing- Stop Issues
04:03 Just A Quick Survey

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

Hi Forex traders, it’s Andrew Mitchem here, the Forex trading coach. Today is Friday, the 9th of October. As you can see, it’s springtime here in New Zealand, and I thought it would be a great idea to get outside into the bit of fresh air, and away from the charts for this video and podcast.

Do Trailing-Stops Beneficial

I want to talk about trailing-stops. I’ve had an email here from Raphael, who said, “Hey, Andrew, can you make a video describing the benefits of trailing stops. I think it would make a great topic for your weekly videos.” I’ve had a think about that, because it’s a question that I get asked quite often. I’ve got to be really honest with you, I’m not a fan of trailing stops myself.

I’m not saying they don’t work, I’m just saying that within my own trading and the style of trading that I have, I don’t use trailing stops, and I’ll explain why. As a technical trader, I like to look at what’s happening on the charts, and I like to have a reason for everything that I do. I like to have a reason for placing the trade, a reason for my stop loss, a reason for my profit target, etc. That, as a technical trader, gives me confidence of why I’m taking a trade.

Trailing- Stop Issues

The problem that I have with a trailing stop is, how big a trailing stop do you use?

Do you use 10 pips, 20 pips, 100 pips?

What is it that you use?

Then you come back to the problem of your trading is then determined by how many pips you make, rather than the percentages, like I talk about in terms of the way that I trade with risk and money management.

I’m not a great fan of saying, “Hey, I want to move my stop, trail it by 20 pips,” because it depends on what pair I’m trading, because different currency pairs move at different amounts. It depends on the time of day that I’d be trading. The Asian session is generally a lot slower than, let’s say, the European sessions, so 20 pips doesn’t really mean a great deal. If I was trading the British Pound/New Zealand Dollar (GBP/NZD), 20 pips is absolutely nothing. Yet, if I’m trading the Euro/British Pound (EUR/GBP), 20 pips is actually quite a lot, because it’s a slower moving currency pair.

Again, you can see the issues with picking a trailing stop. Also, what determines 20 pips? Maybe it should be 30, maybe it should be 40? It’s hard to know exactly how big a trailing stop to use.

Of course, if you use MT4 and that’s probably the same with other trading platforms, is that a trailing stop will only work if you have your computer on. A hard stop loss, you can put that in and close your computer down and walk away from your charts, and your broker’s server keeps that on there on their platform, whereas a trailing stop only works if your computer is actually on, and connected to the internet. If you have a virtual server, not a problem, but I’m guessing the majority of people who are trading, don’t have a virtual server and they have their computer on. If your computer stops, you lose an internet connection, you close down your platform, then you lose that trailing stop figure. That becomes another issue.

For me, if I place stop loss, and my trade moves into some really good profit, let’s say, and I want to protect that profit, then I’d much rather move my stop loss to a technical level. Let’s say, I might be buying. I want to move my stop loss up to below the last swing low, or the candle low, or round number, or pivot point, whatever it is that I’m using as my strategy. Wherever I see a good support level, I might want to bring my stop loss up to below that last support level, to lessen my stop loss or to lock in some profit. That’s a really important point about the way that I much prefer to move stop losses, rather than just use a generic, an arbitrary figure from a trailing stop. The other thing I quickly wanted to mention is, I’m putting together something for later in the year, towards the end of the year.

Just A Quick Survey

At the bottom of this video I’m going to put a link there to a quick survey. Six questions, that’s all it is, it will take you no more than two minutes to fill out that survey. If you’re keen on helping me to help you by offering you the right information and right products to help take your trading to the next level, just take a couple of minutes if you could, please, and just click on the link below this video and just complete that survey. What I’m aiming to put together, is going to be something really exciting to help take your own trading to that next level. I hope this video and podcast helps you.

If you have any questions like Raphael here, just send those through by email, and I can talk about those topics for you on future videos and podcasts.

Once again, this is Andrew Mitchem, The Forex Trading Coach. Have a great weekend, and I look forward to talking to you this time, next week.