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Where You Should Place Your Stop-Loss, and Why
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Where You Should Place Your Stop-Loss, and Why
In This Video:
00:20 A Question on Stop Losses
01:29 Connecting your Stop Loss to Market Conditions
02:48 Standardise your Approach, not your Stop Loss
04:52 The Markets this Week
I want to talk about where you should place your stop-loss, and why. So let’s talk about that and some more great trading information right now!
Hi Forex Traders, this is Andrew Mitchem here, the Forex Trading Coach and today is Friday, the 6th of March and I want to talk about where you should place your stop loss and why!
A Question on Stop Losses
The reason for that topic is that I’ve had an email here from Wackyl – I hope I pronounced that right – and the question is, “Would you please tell us about the placing of our stop-losses. I know that most people do it wrong. I’m not sure that the way I am doing it is right!”
So that’s the question that’s come through and really, when you think about stop loss, what is it? Well, we know it protects the trade but when you think about it, a stop loss should be placed at a level that means that if the trade that you take goes wrong, goes against you, then it’s no longer valid. So, what that means is that you need to look at your charts, in terms of placing your stop loss.
The problem is that most people just place a random, or not so much a random but a set level at random places. So, what I mean by that is people were to say, they’ve placed a stop-loss at 20-pips. Why 20-pips? Who knows! That’s what the Internet or someone tells them they need to place their stop loss at 20-pips or 50-pips or whatever it might be. It’s generally something ending in a zero and that’s the way that most people trade.
Connecting your Stop Loss to Market Conditions
Now, when you think about the logic behind that, what relevance does that have to the trade setup? What relevance does it have to the current price? What relevance does it have even to the time frame of the chart or even in the pair that you’re trading?
You see, if you’re trading on the Euro/New Zealand (EUR/NZD), for example, the movement in that is massive in comparison with a pair such as the Euro/British Pound (EUR/GBP). So, if you took a 20-pip stop loss on the Euro/Pound, that’s a reasonably big stop-loss for that particular pair because it doesn’t move much. However, if you put a stop loss at 20-pips on the Euro/New Zealand (EUR/NZD), that’s like the spread plus a small movement and it’s wiped you out of the trade.
So, you need to understand what time-frame chart you’re trading, what currency pair you’re trading; the reasons you’ve taken the trade; why did you take the trade? Look for things within placing your stop loss – things such as the price itself – what level is the price at? What’s the actual number of the price? When you’ve taken the trade, where do you want that stop loss to be? Not just 20-pips but I want to have it protected, let’s say if I’m buying a trade, I want it below the last swing-low or I want it below the pivot point or a previous support and resistance level or a round number or the candle-setup low – if you’re taking a buy trade.
Standardise your Approach, not your Stop Loss
So, think about your stop loss not in terms of “It’s always going to be 20-pips or it’s always going to be 50-pips”, but for this particular trade and this particular setup, on this pair and on this timeframe, it needs to be here! And, from there you then work out your position size!
So, once you understand the pair that you’re trading, the stop loss amount – you can then calculate your position size or your lot size – and I’ve got a great free tool available on my site, if you don’t know how to do that. And what that allows you to do is to control your risk. So, every trade has an equal risk on it – so, for me it’s never more than half of one percent – 0.5%. You’ve probably seen and heard me say that so many times but if I have a strict money-management rule in place, it means that I have very few emotions within my trading because I know that if I see a setup, I know its probability of success. I also know the return from each trade before I take it.
So, not only do you need to ensure that your stop loss is in the right place, you also need to ensure that there’s plenty of room for that trade to move to get to that profit target that you are looking for, before any previous price action or any reason for the trade not to get there. You know, you don’t want to be – a little bit hard to explain but – here’s the previous swing-high and you want place a profit target way up here, well past it!
Well, the likelihood is it could get to that last swing-high and it could then bounce back again, so why would you want to place your profit target well above a previous resistance level? So, think about your stop loss and your profit target in a similar way. Look at the price action, the numbers involved.
So, hope that helps you and hope that answers the question that was emailed in.
If you have any other questions that you’d like me to talk about, any topics – please do the same thing and just email me: andrew@theforextradingcoach.com and I will answer those questions from now, and in future weeks.
The Markets this Week
So, further onto the markets right now and what’s happening – well, today being the first Friday of the month, we have the US non-farm payrolls, the non-farm employment change as it is now called, and that’s the first Friday of each month so that’s 8:30am on a Friday morning, New York time. It’s probably the one time of the month that I like to have almost all of my positions to close before then. Not so much if I am taking trades on monthly or weekly charts but almost everything else I have closed out.
And also, don’t forget that this Sunday, so this coming Sunday which will be the 8th, so, heading into the new week of Monday, the 9th, don’t forget that the US and the Canadian clocks change this weekend. So, for those of us outside of the US, 5pm New York time, when the charts open the first time of the week, that then becomes one hour earlier for everybody else outside of America and Canada.
So if you are following my free trading information, daily advice and analysis that I make, that’s available free on my website, just remember that that’s, now, going to be posted by five-thirty New York time, still! But if that’s been, let’s say, 11:30 for you, that now becomes 10:30 – one hour earlier! So bear that in mind when you’re trading from next week onwards.
So, this is Andrew Mitchem from the Forex Trading Coach, have a wonderful weekend and I will look forward to talking to you, this time, next week.
Take Charge of your Financial Future
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Take Charge of your Financial Future
In This Video:
00:39 How Secure is your Financial Future?
02:26 Trading Gives you Unbridled Control
03:43 The Forex Week that Was
Do you want to put the trust of your financial future into someone else’s hands or do you need to take control of your financial future yourself?
Let’s talk about that and lots more, right now!
Hi Forex Traders, it’s Andrew Mitchem here. I’m the owner of the Forex Trading Coach and today is Friday, the 27th of February. I want to talk about your financial future because it’s really important and it’s the aim and the topic of this webinar/podcast – It’s just to highlight a few of the risks, I suppose, of giving away the control of your financial future.
How Secure is your Financial Future?
I’ve got a great example here, I’ve printed it out – I’ve got a copy open on the screen behind me here and it’s from the New Zealand Herald, which is the local national newspaper here in New Zealand. And the headline is – New Zealand Super Fund, which is like a retirement pension fund, loses $200million after a risk-free loan to a Portuguese bank. Now, this was a headline this week!
I just wanted to read the first line – “Almost $200million of tax-payer money invested in a Kiwi super annuation fund has been lost after a Portuguese bank, where the money was supposedly in a risk-free loan, collapsed.” Now, that’s a huge amount of money – it’s tax payer’s money – it’s something that a lot of people have to contribute to through their wages, into like a national retirement fund and that 200million’s been lost in supposedly a risk-free venture there.
So, the question becomes, if you give up your control of your financial future to someone else – whether it’s another company, whether it’s a property investment company; any sort of financial investment that you’re handing control over to someone else – what can you do about that when things go wrong?
A lot of people do hand money over, or in terms of the government super annuation funds like the one over here in New Zealand, it’s not so much voluntary – you have to contribute towards those funds and then you find that huge errors occur. The fees keep continuing, don’t they? You notice the fees never stop, yet the performance is never related to the fees in a lot of cases. And, one of the things, I suppose, when it comes back to trading is “I’m in control!”
Trading Gives you Unbridled Control
Whether I make good trades or bad trades, profitable trades or not profitable trades – that’s purely up to me! So it’s up to me to understand what I am doing; having the education or the knowledge within trading. But, the good thing is, once you have that education and that knowledge, and you know what you are doing, the returns that you can make for yourself are often substantially greater than most other ways of generating income or generating a return on an investment.
So it really does make you, sort of, question really what are you doing about your future? Are you someone who just likes to hand control over and let someone else manage that or put it in a bank and then it’s almost nothing, like we’ve talked about in many of the recent podcasts – or do you want to take control yourself and really that’s where, I suppose, as a Forex coach, I can help you with that.
Because, Forex offers so many of the great benefits that we’ve all come to know and see. So yeah, just wanted to point that out and just to get you thinking yourself – you know, what are you doing about your future? Your financial future! If you want to take control then do something about it.
The Forex Week that Was
On the markets this week – well, we’ve seen the British Pound (GBP), we’ve seen the New Zealand Dollar (NZD) and the Australian Dollar (AUS) rise, quite considerably this week but I’ve just noticed that overnight, so Thursday heading into Friday, the US Dollar (USD) has strengthened a lot. So for me heading into Friday, looking at the longer time-frame charts – the daily charts, 12-hourlies, 6-hourlies, 4-hourlies – I’m now looking for selling opportunities on a lot of pairs so for the U. S. Dollar (USD) to strengthen and drive down the likes of the Euro/US Dollar (EUR/USD), the British Pound/US Dollar (GBP/USD), the New Zealand/US (NZD/USD); the Aussie/US (AUS/USD), and many other pairs as well.
But to me, on the charts, the US has strengthened significantly overnight, which is, now giving us good selling opportunities on a lot of the U. S. Dollar related pairs.
So, coming back to what I’ve started with – taking control – I can see what’s happening on the charts. For a lot of this week, I’ve been looking for buy trades on those pairs I’ve just mentioned. Now, all of a sudden, I’m seeing potential sell setups, so I’m look at changing the direction that I’m looking at trading for today and looking to profit from that!
The beauty of Forex, of course, is earlier in the week I was profiting taking buy-trades on a lot of those pairs. Today I’m looking at profiting taking sell-trades! So, the future’s in my hands, and it’s up to me to make that work rather than handing that control over to a complete stranger and seeing what, you know, a lot of these so-called experts are doing with these government investments related industries. For me personally, I want to be in control so hope you do too!
So this is Andrew Mitchem from The Forex Trading Coach, look forward to talking to you this time, next week!
When Trading Forex, Account Size does not Matter
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When Trading Forex, Account Size does not Matter
In This Video:
00:54 A Popular Misconception with Account Sizes
02:34 An Amazingly Versatile Calculator
03:48 Why the Lot Calculator Makes a Difference
Did you know that if you wish to trade the longer time frame charts, you don’t need to have a large account size in order to do that?
So let’s talk about that and more, right now!
G’day Forex traders, it’s Andrew Mitchem here, I’m the Forex Trading Coach, and today it’s Friday, the 20th of February and I want to read out an email that I’ve had here from Taminash, who’s written to me and said:
“You’ve mentioned that you risk about half of one percent on your account when taking most of your trades and trades are between one and a half and about three risk-to-reward return.
So, my question is how big a size account do I need to start trading Forex if I wish to make a living out of it.
One trade you showed has a stop-loss of 62 pips, which means the account size should be about a $120,000 if you are risking half or one percent on your account.” – That’s the email!
A Popular Misconception with Account Sizes
That’s actually incorrect! You see a lot of people have the perception or the thought that you need to have large bank account size because you’re trading longer time frame charts that have bigger pips, as stop losses. And it’s completely false and unfortunately, when people start thinking about the number of pips that they’re making or the number of pips they’re risking, they think that I can’t risk 62, as in that example on the email, or 162 because it means that if I get stopped out, I’m going to lose too big a percentage on my account.
It’s just something that’s just, you need to change your thinking and your mindset and understanding of money management or risk in order to completely change around what most people tell you on the Internet because chasing pips and trading for pips, to me, just isn’t the way to go!
Using my Lot Calculator to Help Plan Trades
So, if you think of it this way, well first of all, make sure you get my Lot Size Calculator – it’s freely available on my website – just get yourself a copy and it will help explain and all the information I’m about to share. Plus, it will allow you to trade really easily and accurately. So, the way that I like to trade is regardless of the currency pair that I am trading, regardless of the direction, regardless of the time-frame of the charts, and regardless of the pips, as in the stop-loss amount, every trade has equal risk. So, for me it’s half of one percent – for you it might be one percent or a quarter or whatever it might be – whatever suits you as a risk tolerance, ensure that every trade has the same risk.
So how do you go about doing that because I can already see and think of a lot of people saying, “How do I do that?”
An Amazingly Versatile Calculator
Well, all you need to do is you change the position size, the lot size, that you place on a trade according to the trade that you’re taking, and its stop-loss and its currency pair. So, there is a mathematical equation in order to do that but the Lot Size Calculator that I have freely available for you to use and download, does that all for you!
It recognizes the denomination of your accounts, whether you are trading in US Dollars (USD) or British Pounds (GBP) or New Zealand Dollars (NZD), whatever it is. It notes the account size that you have on your balance at the time. It knows the chart that you are trading because you are dragging a script, an MT4 script onto a chart so it knows the payout that you get paid per pip for that particular pair, because of course all pairs vary, and you then enter the risk tolerance, set a default half of one percent (0.5%).
The only thing that you actually need to enter is the number of pips you’re risking on that trade. Put that into the equation and it will say you need to trade at 0.32 lots or 1.65 lots or whatever the amount is according to the trade and your account size.
Why the Lot Calculator Makes a Difference
What that does is that it places every trade as equal. So, if you lose a trade on a five-minute chart trade that has, let’s say for example, a 12-pip stop loss, you lose half of one-percent. Take it to the other extreme – if you place a trade on, let’s say, a daily chart with a 153 pip stop-loss, to make up an example, and that trade loses, you lose half of one percent.
The only thing that’s changed is the position size you take. Obviously, the smaller time frame has a lot bigger position size than the longer time frame but the risk, the monetary risk is equal. And that’s the bit that’s key – you see, if you can have your trades at somewhere, like the email said for me personally, somewhere between one and a half or three to one return, as an average, you can have several losing trades but a few good trades more than makes up for that, plus more.
The other thing that’s quite an underestimated part of trading of course is the whole head and heart situation – the psychology behind trading! If you have a pre-known risk when you enter that trade, you can place that trade with the comfort and reassurance that if that trade gets stopped out, I know the maximum I can lose for that one trade. So, therefore, you’re not sort of chasing the trade and you’re not becoming emotionally involved in that trade.
Every trade is equal – doesn’t matter what the currency pair, what the time frame, what the stop loss is – they are all the same. And that really does help you with your trading psychology. It just makes your trading a whole heap calmer and a lot easier.
A Wrap-up of the Week that Was
Onto the charts, just a quick wrap-up of what’s happened this week – I’m short on gold right now on a trade behind me but the one that’s been an awful pair to trade, on the longer time frame charts especially, has been the Euro/US Dollar (EUR/USD). You know with the whole Greek situation and you look back at the last two or three weeks on the Euro/US Dollar (EUR/USD), it’s been up one day, it’s been down, it’s been up – it’s been like a yo-yo – not a good pair to trade at this particular point, on the longer time frame charts.
So when you see those type of range-bounce situations, there’s actually bit of a wedge forming on the charts and, so, something’s going to happen soon because the price on any currency pair doesn’t like being, sort of, tight for too long. Something will break out one way or the other. Don’t know what that is yet because I can’t see that information on the charts.
But, when you get sideways movement and you get sort of, just, range-bound prices like the Euro/US Dollar (EUR/USD) is right now, just don’t trade at all or change time frames to much shorter time frames if you want to trade it. But on the longer time frame charts, right now, I just can’t see any point because there’s no clear direction on the Euro/US Dollar (EUR/USD). I’m hoping, by the time maybe you watch this video and into next week, that may have changed because, like I said, something very soon is around the corner.
Either the Euro/US Dollar’s going to break up or down, one way or the other and we could, then, see some good trends. But right now, I can’t see anything so I’m looking at other time frames and, particularly, other currency pairs on the daily charts.
My Latest Live Training Room Webinar
Just want to finish by letting you know that I held a live two-hour training room webinar for my clients last night. I took two trades on the one-hour charts – one was profitable, the other was not. But overall, out of those two, there was still a profit to be gained due to the higher returns on the profitable trade and I also had trades on the four-hourly charts, the six-hourlies and the 12-hourlies.
Now the great thing with those charts, those longer time frame charts – the four, six and twelve – is you don’t need too much time spent watching your charts and being at the screen. You don’t need much time at all. The four, the six and the twelve, all change over, twice a day, at exactly the same time, which is 5pm New York time and 5am New York time. So, you can trade multiple time frame charts to see the best technical setup all at the same time. You don’t need to be glued to your screen all day, which again is a big problem of many new traders.
It’s great to spend time watching charts and getting the experience of the price moving up and down at different times of the day, different days of the week but, longer term, you don’t want to be sat glued to your charts. Well, I’m guessing you don’t – I don’t anyway. Probably most people who’ve been trading for a long time don’t want to because there’s better things to do and you can make more money by trading better, higher quality setups on longer time frame charts, and go and do other things while the trades are actually working behind the scenes for you.
So, hope that helps. This is Andrew Mitchem from the Forex Trading Coach. Have a great weekend and a fantastic trading week, next week. Look forward to talking to you, next Friday.
Bye for now!
Graft and Dedication Fetches Great Returns!
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Forex Trading – Graft and Dedication Fetches Great Returns!
In This Video:
00:22 Getting Started in the World of Forex Trading
02:08 There’s no Such Thing as Easy Money
03:16 A Peek at my Last Webinar – Great Trades Galore!
05:25 Forex Trading versus Money in Savings Accounts
If you want to be a good trader then you really do need to put the effort in up front in order to succeed, so let’s talk about that in this video, right now!
Hi traders, it’s Andrew Mitchem here, the owner of The Forex Trading Coach, and today is Friday, the 13th, so hope that’s not a bad omen for you.
Getting Started in the World of Forex Trading
In today’s video, I want to talk about why, as Forex Traders, you need to put some effort in up front, especially. You know, ongoing effort of course, but especially if you are new to trading or your learning a new system, you definitely need to put the time in and the commitment up front because like everything that’s good, it doesn’t come easy and there’s so many people that tell you, out there, how easy Forex is to trade and how you can become a multi-millionaire and double your money every month. You know, that’s rubbish!
You cannot do that without effort and commitment and dedication to your trading. But I can definitely tell you that if you put those in, and some time and some effort and commitment, and go through the good times and the bad times, then there’s nothing that beats it!
As you can see, behind me here, I am back here at home in New Zealand. I’ve spent almost two weeks over in the UK, and its winter time over there or being a commuter over there is just not fun, in my opinion. There’s a lot of people there that just don’t look happy. You know the, sort of, mundane getting on a train, getting on a tube, working in a high rise – it’s great if that’s what you like but for me, personally, it just really highlights how lucky we are in some ways, to be Forex traders. But then, I think about it and I think, luck’s maybe not the word to use because if you’re out there being a successful trader then it didn’t just happen by accident. It took work and effort and commitment!
So, I look at it and think well, yeah that hard work pays off but, you know, like anything, it’s not easy but there’s definitely a way there to make trading work for you.
There’s no Such Thing as Easy Money
Just also need to tell you a quick story about, actually, a client. I won’t name names for obvious reasons but he’s come to me after about one month of being through my course and said, “Look, I have to be making 10 to 15% per month, you know, I just have to!” And I’ve said to him, look you know, that’s realistically not going to happen, to start with. Yes, sure, after several months or half a year or so that may happen but don’t expect to be making huge amounts of money to start with. You know, you should probably take a month or two, at least, on a demo and prove to yourself that any new strategy or system, whatever it is – whether it’s mine or anybody else’s – you’re able to work that and trade profitably from that.
So, I think it’s quite dangerous that people jump onto a new system or strategy and after a month or so, whether they are making money or not, they’re expecting to make ridiculous amounts of money so early and realistically, that’s likely not to happen. So, again, it comes back to the same thing – the whole theme of this video and podcast is that dedication and put the effort in.
A Peek at my Last Webinar – Great Trades Galore!
On the flipside of that, I held a webinar last night for my clients and I’ve had another client who has been with me since last July and so, around, seven months or so now and he’s doing extremely well and he mentioned a trade that he took on the Gold/US Dollar pair, just last week. It made an incredible eleven to one return, just an amazing trade!
Showed us the entries and the exit levels! It was taken on the four-hour charts but the difference there is someone who’s been through the course, that’s put the effort in, attended all the webinars, asked lots of questions, worked out a time-frame that suits him and a technique within the strategy that suits him and there’s an eleven to one return trade.
On the same webinar, I took two trades, live in front of clients. They didn’t quite get to those levels but one of them was on the Euro/Canadian (EUR/CAD), on the twelve-hour chart – that hit profit a little bit after the webinar but within one bar, so within twelve hours, that hit profit and it made a 2.8 to 1 trade or, in other words, a 1.4 return on my account as I’m risking half of one percent (0.5%) on that account.
The other trade I took is still in the market as I am recording this. It’s on the Swiss Franc/Japanese Yen, also a twelve-hour chart trade and that’s a short position. I’ve got a great indicator that allows you to take any time frame on Meta Trader 4 (MT4) and create your own time frame. So, for instance, I can create six-hour charts, twelve-hour charts – whatever it is I am looking at trading. For me those longer time frame charts are great because they mean less screen-time, less chart-watching and just really high returns.
Like I said, the trade on the EUR/CAD was a 2.8 to 1 trade and just made it beautifully! So, 1.4 the Franc/Yen has opened right now at 0.7, so combine those two – that’s 2.1% on my account, just on those two trades that taken live in front of clients.
Forex Trading versus Money in Savings Accounts
Compare that with some of the bank interest rates that I found last week in the UK. I had to take a picture of this one. It was a bank, I won’t name them, but I went in there, looked at the interest rates on the savings accounts and it really made me laugh. If you’d been a client of this bank for over fifteen years, and if you had fifty thousand pounds in your savings account, they were going to pay you an amazing, gross figure, of 1.5% interest per year.
So you look at that and you think, well, why would anybody want to have that huge amount of money invested after being such a loyal client of this particular bank to earn 1.5% gross and there’s two trades that I took live, in front of clients, just yesterday that, with one trade still open, that’s up 2.1%, just by clicking two trades.
Very easy to do – it’s already made more than the loyal client after fifteen years is going to receive at this particular British bank in an entire year. So once again, it shows the benefits of Forex; it shows that with some effort, some dedication, some hard work, just immense benefits from trading Forex. And of course, the other thing, being on the other side of the world for the last couple of weeks, I’ve been able to carry on trading.
It’s not like a physical job where, you know, you’ve got to stop your income for any length of time.
So, that’s it for this week. Hope you’ve enjoyed this video and podcast. If you have any comments, just email them through to me or leave them on the bottom of this video area, on the discussion panel below. Great to help you if you do have any questions or comments!
Once again this is Andrew Mitchem from The Forex Trading Coach, have a good day!
Technical Trading or Fundamental Trading – What works for you?
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Technical Trading or Fundamental Trading – What works for you?
In This Video:
00:40 How Technical Trading has Benefited Me
01:49 Technical Trading gets Another Bonus Point
02:56 No Profitable Fundamental Traders found
The debate continues here in London regarding the benefits of either being a technical trader or a fundamental trader.
So let me explain exactly what I have been up to right now.
Hi traders, it’s Andrew Mitchem here, the Forex Trading Coach. I’m here in London at the last day of the second conference that I’ve been to and just had a really exciting week here. Met a lot of fantastic people, a lot of traders and a lot of people within the industry and, it’s just been really interesting to see the difference between talking to the people who are pro-fundamentals in trading and the other people, like myself, who are more into technical trading.
How Technical Trading has Benefited Me
And, I just wanted to run through, with you, a few trades that I’ve taken and why I strongly believe that the technical’s definitely the way to go. Last week, on the video, I mentioned about a trade on the weekly chart that I mentioned about the Aussie/US Dollar (AUS/USD). Well, that fell and took my profit target out and made about 380 pips – exactly a four to one return on that trade, so in other words, risking half or one percent, making two percent.
It took about seven or eight trading days to get there! The interesting thing is that it actually hit the full profit target on the release of the Australian interest rate drop. And so, I suppose, you could say the fundamentals dropped the Aussie down a touch further with that interest rate drop. But for me, as a technical trader, the charts were screaming out, were strongly suggesting, sell the Aussie-US and that was, you know, ten days prior to that announcement.
And, like I said, I actually mentioned that specific trade to my clients and I mentioned it last week on the video saying it was still open – it’s now gone and hit the full profit target.
Technical Trading gets Another Bonus Point
Well, I’ve been away personally, I’ve only been trading the daily charts. I haven’t really had time to trade anything, sort of, more shorter time than that but I’ve had trades here on the New Zealand Dollar/US Dollar (NZD/USD), a short on that, and that’s made a two-to-one trade. Also took a short position on the New Zealand/Yen (NZD/JPY), and again, all mentioned to my clients, made three to one. The other interesting thing is, yesterday we had the New Zealand Dollar (NZD), the unemployment rate increased. It was worse for the economy. Yet, the New Zealand Dollar has strength and quite considerably from the big fall it’s been in.
Those two trades I mentioned – the New Zealand/US (NZD/USD) and New Zealand/Yen (NZD/JPY) – they were taken at the end of last week, on the dailies. They’ve hit profit – down at the target that I was aiming for. But now, after the trades are out, they’ve now sort of turned around and the New Zealand Dollar’s now, as I speak, it’s climbing up quite strongly. But that’s against the fundamental announcement of an increase in the unemployment rate, which of course is bad for the economy.
No Show by Fundamental Trading Profits
And so, again to me, it’s the fundamentals are fine to have a concept of and to know what’s coming. But the technicals, the charts, they show me what’s happening far in advance or the likely outcome, far in advance, and so to me, as a technical trader, I can only look at the charts and trade what I see on them and not what I think is going to be the news announcement.
So, as I said, at these shows, it’s been really interesting. I’ve not yet met someone here at this show, and the previous one, who’s a fundamental trader and who’s actually made any significant returns from their Forex trading but met a lot of people here who are technical traders that have done very well. And, my clients even though I’ve have been away for the last, sort of, almost two-weeks now, I’ve been posting my daily trades, still, from here and clients have made some really significant money.
So, had a great time over here in London and this time next week, I’ll be back in New Zealand and I’ll look forward to bringing you some more information about the wonderful world of Forex trading and how you can benefit from that by being a really good technical trader and understanding candle patterns and just follow along, if nothing else, just follow along with the information that I post, on my site, each day and the likely strengths and weaknesses, you know.
There’s plenty of people who’re making really good gains from just following that free information on a day by day basis because it helps them to keep on the right side or the likely right side of the market using their own strategies so, once again, this is Andrew Mitchem, the Forex Trading Coach, coming to you from London.
I look forward to talking to you this time next week.
Update on the Forex Markets from London, England
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Update on the Forex Markets from London, England
In This Video:
01:09 Update on the Forex Markets
01:57 Trading on the Fly, Literally
Hi, well I’m coming to you with a “selfie” from London for this week.
Let’s talk about what’s happened in the currency markets and what I am doing over on this side of the world, so let’s get into that right now!
Hi Forex Traders, Andrew Mitchem here, the Forex Trading Coach. Today is Friday, the 30th of January, and I’m over here in London, as you can tell, the Big Ben up there behind me and Westminster Abbey over here; and I’m here for a trading conference that’s on Saturday, Sunday, Monday and Tuesday, this week. So, been on the 29-hour flight over from New Zealand over to London, and certainly a lot colder over here, being winter-time!
Really looking forward to catching up with a lot of people at the conference, at the weekend! There’s a lot of new products being launched to do with trading, in general, and, of course, the Forex market and here to catch up with some brokers as well and really find out what are the better brokers around so I can, then, pass that information on to you guys and my clients and everybody who follows me.
Update on the Forex Markets
In the markets this week, well, the Australian Dollar’s (AUD) continued to fall further. I actually recommended a sell-trade on the Aussie/US Dollar (AUD/USD) on the weekly chart, to my clients on Monday, before I left New Zealand. And that was a retracement order and it retraced absolutely perfectly. It went no more than five pips negative and when I’ve looked at my charts, just about an hour ago, that trade was up about three and a half to one (3 ½ – 1) risk-to-reward trade and still not hit full profit but going really, really well.
And, the New Zealand Dollar (NZD) has also fallen a lot this week and the US/Canadian (USD/CAD) has continued to rise. Of course, the Euro (EUR) continues to fall and the British Pound (GBP) has also fallen with some strength there in the US Dollar (USD).
Trading on the Fly, Literally
As I’ve mentioned so many times before, that the beauty of trading is that you can trade longer time-frame charts. All I’ve traded this week, myself, is the daily charts and weekly charts, as I’ve had quite a lot of travel to do this week, obviously.
But you can still make some great money – so far, this week. I’m still up around three percent (3%) for the week and I’ve spent most of the week on an airplane and now, so finally, on the other side of the world. So, yet again, another benefit of the wonderful market that is the Forex market and how you can travel, trade and not glued to the screen all day and not glued to a 9 to 5 job.
So, I’m off to meet some people now and get ready for the conference I’m going to, so I look forward to bringing you really good and useful information that can help you with your trading, this time next week, once I’ve attended that conference and been through that and picked up some more ideas and some more opportunities for all of us.
So, that’s it from London and the “selfie” video. I’ll still record another video from here next week, just before I leave. But that’s it for now – this is Andrew Mitchem from The Forex Trading Coach saying goodbye from a rather chilly and cold London.
Bye for now!
How Safe is your Money with your Current Broker?
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How Safe is your Money with your Current Broker?
In This Video:
00:43 The Dilemma of Putting all your Eggs in One Basket
01:48 Segregation leads to Greater Safety and More Opportunities
03:28 Capitalizing on Market Opportunities
Is your money safe with your current broker? Let’s talk about that really important issue and lots more, right now!
Hi Forex Traders, it’s Andrew Mitchem here and I’m the owner of the Forex Trading Coach. Today, it’s Friday, the 23rd of January and I want to talk about safety of funds and for you to know, is your money safe with your current broker? The reason, obviously, is to do with the Swiss National Bank announcement, the big gaps that we saw in the markets when I talked about this, this time last week, and as a result of that, a number of brokers and some well known brokers have either gone bust or are in severe financial difficulty.
The Dilemma of Putting all your Eggs in One Basket
And so, it’s sort of, as traders with our money in different places, different brokers, it’s really important for us to be assured the best that we possibly can that our funds are safe. You know, there’s no good having a hundred thousand dollars sat with a broker and making fifty thousand dollars in the year and then, just when you want to go and bring that money back into your own bank account, any of it or part of it, the broker doesn’t have sufficient funds there or they’ve gone bust.
So it’s not a great situation of course!
And so, for me it’s important to have segregated funds and try and find out from your broker, as best as you possibly can, about the safety of your own funds and the whole quality of them as a company. So that’s one thing just to be aware of and a tip that I’ve got for you – now I’m not saying you should have to do this but it’s a really useful tip, I believe – let’s say you had one hundred thousand dollars to trade with, in your Forex account. Rather than having the whole one hundred thousand there, why don’t you look at reducing that?
Segregation leads to Greater Safety and More Opportunities
Let’s say, reduce it to fifty thousand and keep the other fifty thousand in a bank account, in your home country, or some place that you can access it and it’s likely to be safe. But then, trade the fifty thousand that’s left with your broker at double the normal risk that you would. So, for instance, if on a hundred thousand account, you’re trading at half of one percent risk per trade (0.5%) , if you felt more comfortable to bring fifty thousand back, into your own, normal, bank account and keep fifty thousand in your trading account, trade that fifty thousand with, lets say, 1% risk knowing full well that you do have other money in reserve if your account should get a touch low.
But even with one percent risk, to be honest, it’s quite a low amount. So, it’s just something to consider that you could do especially in the light of what’s happening with the brokers out there right now or some of them. So, of course, due to that announcement out of the Swiss Bank, we’ve seen a lot of movement in the Forex markets and, to be honest, as a trader there’s been some really good movement, apart from the big gap that the news announcement caused, last week. It’s given us some great opportunities and there’s been some really big movements.
The Euro, for instance, has continued to go down and down and down and down – It’s now at a level, as I am recording this, that’s not been seen since September, 2003. So, you know, that’s a long time, that’s twelve-thirteen years ago or twelve years ago, that we’re now at such a low level. And I’ve taken short positions on the Euro today, looking for that to continue even further.
Capitalizing on Market Opportunities
I had a webinar for my clients last night and some of the results that people are sending through, telling me about – just tremendous results. I had a lady, in her first week of trading, in her first week made +2.3% on her live account, so fantastic news there! Another guy, last night, said that he made a 4 to 1 return trade on, I think it was an Aussie-Yen trade on the six-hour chart. And so, with a half-percent risk, that was a 2% gain on his account, just on one trade. So, it just shows that with these big movements, there are some fantastic trading opportunities out there for us to make some good money.
So, I hope you’ve had a good week, I hope you’ve made a lot of money from the big movements out there. Just to let you know that this time next week, my weekly video and webinar and podcast will be coming to you from London. I’m off, over to the other side of the world for a couple of financial conferences, next week. And so, I’ll be recording from London, where it’s only about one degree as opposed to outside, right now, here where it’s about thirty degrees. So, I’m going from very, very hot to very, very cold – not sure it’s a great idea, leaving here in summer, but I’m really looking forward to catching up with a lot of people at the couple of financial conferences in London, this time next week. So, I’ll talk to you then from the other side of the world.
Bye for now!
One trade makes more money than keeping your savings at the bank for a year
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One trade makes more money than keeping your savings at the bank for a year.
In This Video:
00:34 The Anatomy of the Trade
01:09 The Latest Development on the Swiss Bank Scene
02:51 So much potential in the Forex market
In today’s video and podcast, I want to share with you how I made more money in just one trade, this week, than you’ll get paid by most banks around the world in an entire year. So, let’s share more details about that right now.
Hi Forex traders, it’s Andrew Mitchem here, The Forex Trading Coach and this is my first weekly video for 2015 and as you can tell, it’s absolutely glorious weather here, in the middle of summer, in New Zealand. Today is Friday, the 16th of January, and I want to share some details with you regarding a trade that I took this week.
The Anatomy of the Trade
It was a trade that I took on the US/Japanese Yen (USD/JPY); it was taken on Monday, on the first day of the week, on the weekly chart. That trade made a 3.2 to 1 return which is a fairly good trade for a weekly chart trade but its hit profit target in only three days.
Now, I risk half of one percent on that trade, 0.5% of my account on that one trade, with a 3.2 risk to reward on that trade. That means, I made a 1.6% gain on my account just on that one trade.
The Latest Development on the Swiss Bank Scene
And so, you’d be aware by now that overnight, today, we’ve had the Swiss National Bank has, they’ve stopped trying to intervene with the Swiss Franc and so, the Franc, for the last three years, has been held above the 1.2000 level against the Euro and they’ve suddenly decided to stop that.
And so we’ve had massive, massive gains on the Swiss Franc. And the Euro/Swiss Franc doesn’t really move a great deal – normally it moves 20, 30 pips a day, tops – and overnight it’s moved 2,300 pips, so almost 100-times its average daily range since that news’ announcement, so massive news announcement. And now we might, sort of, see the Euro/Franc or a lot of other Franc pairs moving a lot over the next few days.
The Interest Rate Environment in Swiss Banks
But the interesting thing that I’ve got here is I’ve just printed off some bank interest rates out of Switzerland. Now, these are printed, sort of, live as of today. The savings bank rates – 0.01% and if you have over 500,000 Swiss Francs, they’re going to pay you an amazing 0.025%. So, when you look at that, now I’m sure that there’s other banks that may be paying a touch more depending on the actual investment but this is what I’ve just printed off the Internet here.
So, the highest that I can find on a savings account over half a million Swiss Francs is 0.025%. So that’s, obviously, not particularly exciting. The point I’m making though is that the Forex market offers you so much potential. In the one trade just taken four days ago made me 1.6% – just one trade!
So, when you look at the interest rates of the traditional way of investing, the bank saving rates, Forex – once you understand it, once you have an understanding of how to analyze the market, the gains are massive.
The other thing I want to mention also is because of course we’ve started 2015, make sure you have yourself a trading plan. You know, have a plan, write it down, stick to it! If you didn’t get a copy of the plan that I offered at the end of 2014, I’ve got a copy here, I’m happy to email you a PDF version of the trading plan outline that I use.
So if you’d like that, just enter your details on the form below this video. So that’s it for now, as you can see it’s nice and sunny, nice and glary. I’m off for a dip behind here in the pool – it’s too hot otherwise, so look forward to talking to you this time, next week.
CLICK ON THE IMAGE BELOW TO GET ACCESS TO MY TRADING PLAN TEMPLATE
Your Trading Plan For 2015
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Your Trading Plan For 2015
In This Video:
01:12 Creating a Trading Plan Template
02:48 Setting Guidelines for Trading
05:31 A Christmas Offer Coming Your Way
Have you written your trading plan yet, for 2015? If you haven’t, I’ve got something here that will really help you. So let’s get into that right now!
Hi traders, it’s Andrew Mitchem here. I’m the owner of The Forex Trading Coach, one of the leading Forex education companies in the world, and I really would like to emphasise the importance of two things, as we come towards the end of 2014.
First of all, you can use this time to review your trading over the last year. Go back through your results, look at different time frame charts, different types of trades that you’ve taken and really analyse the market conditions at the time and to determine what sort of trades are really suiting you as a trader – what time frames, what pairs, what times of the day, etc. And then, the important thing from now on is to have a trading plan for 2015.
This was a topic that I discussed in depth with my clients just last night on our live two-hour trading room webinar which, by the way, some people took some amazing trades and made a whole heap of money live, while I was on the webinar, but more about that shortly.
Creating a Trading Plan Template
So, the Trading Plan – well, I’ve written one out here and I’ve got my own trading plan – it’s around eight pages long. I am not going to discuss the actual details of my own personal one – that’s something I discuss only with my clients – but I can give you an outline of how I go about developing that trading plan and also, on this page, underneath this video on this page, there will be a sign-up box which will… you can fill in your details on that and I’ll send you a blank copy of this very trading plan that I’m holding here in my hand.
So, it goes along the lines for this – First of all, write down what currency pairs you’re wanting to trade! It might be all of the trades, all of the pairs that your broker offers; it may be just a select few types of pairs, but write it down. The second thing – what days of the week am I looking at trading. Are you looking at trading only Tuesday, Wednesday and Thursday? Are you looking at trading just once a week? Are you looking at trading all five days? Again, write it down!
Then, break down each day – what hours are you looking at trading? You know, is it just on the close of the daily chart? Is it just on the close of the hourly chart? Whatever it might be, have that written down and then, look at what time frame charts that suit you. And you’ll start to know, over a period of time, what suits you. You might like the fifteen minute charts but you might find that they’re not profitable for you. You might think that the daily charts are too slow and too boring for you, possibly, but you might think that “hey, when I analyse my results, they’re actually making me more money than anything.” So, whatever it is that suits you!
It’s Also about Setting Guidelines for Trading
Make a note of what times that you are not going to trade! Again, could be coming up towards weekends or public holidays or major news events – whatever it might be – have that written down. And so, the list goes on like this, in terms of what setups am I looking at taking. What are the criteria for a trade that I am looking? Does that change depending on the time frame of the chart that you’re trading? Or the pair even? What type of trade are you looking for? Are you looking for reversal patterns, continuations, breakouts, scalping, news trading, whatever it might be again – have that written down!
Look at having a set of rules defining your entry and exit targets and so what you’ll find this does is when you have it written down, it helps to eliminate a lot of the emotions in your trading, when you actually have live money on the table, right now, like in the market. Because you have your rules set down in… written down and you can refer to them and look at them every day before you trade, so you are sticking to your rules.
I’ve got information here on trade management. I’ve got information on your goals in terms of how many trades you are looking at taking per day or per week; your profit targets that you’re looking at; how much are you looking at making per week, in terms of the percentage or even pips if you really want to trade in pips. How are you reporting your trades? Where do you go to analyse the setups you’ve taken? And then your contingencies – if things go wrong in terms of, what happens if you need to contact your broker in an emergency, making sure you’ve got your login details for your trading platform. What happens to you if your computer breaks down? What happens if your Internet breaks down? Do you have a back-up server? Do you have a back-up laptop? Do you have a back-up Internet connection?
So all that type of information, I’ve got written down here and again, enter your details on the form below this video on this page and I’ll send you copy of that trading plan and trading goals for 2015. I think you’ll find it really beneficial!
As I mentioned, I had a live webinar – it was almost 2 ½ hours, in the end – for my clients, yesterday. Had some great trades! Some people were making trades at 4 to 1 return. I think there was a trade on there, somebody made a 6 to 1, so in other words – half percent (0.5%) risk, three percent (3%) gain! I had trades I took live on the hour charts, the 4-hour plus 12-hour and I had some over on the daily, weekly and monthly. I actually had a trade close on the monthly chart that made around a four and a half-to-one return. So, just great trades and some fantastic results that people are continually sending in!
A Christmas Offer Coming Your Way
Lastly, the Christmas offer – if you want to take advantage of this time of the year when things are potentially a little bit quieter in terms of work and things like that, to take some time to study, to educate yourself, to get yourself ready to be trading successfully in 2015, jump onto the signup page to register your interest in my Christmas special. You can see that behind me here. Right now there’s only a few days left to register your interest and then the offer will be going live on Monday, so probably about the time you’re viewing this video or listening to this podcast, the offer will be live for just one week only.
It’s a great offer; I’ve never done it before in over five years of coaching! If you’ve just wanted an opportunity and a reason to get some good coaching, this could be just what you are looking for and it will help you heading into next year.
So, that’s it for now! Once again, if you’d like to get a copy of that trading plan, enter your details on the form below this video and have a great weekend and I look forward to talking to you this time, next week. This is Andrew Mitchem from The Forex Trading Coach.
Bye for now!
Free Forex Trading Information from a Trading Giant
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Free Forex Trading Information from a Trading Giant
In This Video:
01:21 Where I post my free Forex trading information
02:34 Couple of emails from Paul in the UK
04:41 Tremendous Christmas offer
I am going to share with you a way that you can get daily, free Forex information to help you make money in the Forex market. Let’s get into that right now!
Hi Forex Traders, it’s Andrew Mitchem here. I’m the owner of The Forex Trading Coach and today, it’s Friday, the 5th of December and in today’s video and podcast, I’m going to share with you one of several ways in which you can get access to free, high quality, Forex information on a day-by-day basis, and information that’s posted in advance of the market moving that can help you make a huge amount of money out of the Forex market for free!
So let me share with you some various ways in which you can do that.
Daily Free Forex Trading Information
And so, each day, I post free, on various websites, market information. I do this in advance of the market moving. It’s not hindsight information; it’s not telling you what happened yesterday or last week; it’s not saying “the market might go up to this level” and “it might go down to this level”. I’m not saying any of that! I’m giving information about the likely directions for different currency pairs, and the strength in different currencies and weakness of other currencies, on a day-by-day basis – all for free, for you to be able to use.
Now, different places that I post that!
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I post that on my website, first of all, so you can go to the “News” tab on my website and look for latest daily directions. All the information’s there! So, just log into theforextradingcoach.com and go to that News tab.
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The second place that I post at, where you can find that information is on Facebook! Now, if you go and search for, all one word, “andrewmitchemtheforextradingcoach”, you’ll find my Facebook page. Be sure to “Like” it. If you like it, that will just, really, be great for me and it’ll be great for you because you can get the information. So, go to Facebook on a day-by-day basis.
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The other place I post it is on Forex Peace Army where I’ve been posting for almost two-years now on a daily basis. I was asked by the owners of Forex Peace Army. I am one of only three trading giants on that entire community website who post daily trading information.
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And the last place is on eToro. Now, eToro as you may know is a very large social trading website and it just so happens that I’ve got an email here, or two emails from the same person, two different days in a row.
I’ll just read them out to you.
How Free Forex Trading Info can Affect your Trade Outcomes
The guy’s called Paul, from over in the UK and he says, “Hi Andrew, I’m new to this but I have to say that yours is the best advice on eToro and you prove it pretty consistently. I’ve started copying other people but I’m not getting huge returns so I now use your guidance and I’m averaging one hundred to one hundred and fifty US dollars a day with a three and a half thousand US dollar eToro account”.
So that was written to me on Thursday and then today, being Friday, I’ve had another email from Paul who said, “Fantastic so far. You’re advice has earned me a hundred and seventy five US dollars today. “Can’t wait for your next post!” And so, that’s just from one person, two days following. Just, free information that’s out there; people making… you know, Paul’s just brand new to trading but people are making hundreds of dollars and some people are making thousands of dollars per day, just from that free information, so make sure you go there!
Like I said, if you do go to Facebook, please like my page. That’d be great.
It helps people!
You know, there’s information there that helps people, like I said, it’s there in advance of the market moving. It’s not hindsight information. So many people post, you know like “economists” post, hindsight information on what happened. It can’t help you really make money whereas my information can help you keep to the right side of the market.
I don’t post specific trades to the public. Of course I do to my clients and if you want to become a client then you can buy the membership on site, get specific daily trading information with trades that I’m taking, the currency pair, the direction, many reasons why I’m looking at taking the trade plus, of course, the exact entry and exits which over time, as a client, you’d learn to be able to spot those trades and take those trades at exactly the same entry and exit levels but it’s just there to help people to get the ball rolling, to understand what I’m looking at and to help train their eye to spot those same trades.
Now, lastly, if you would like to make 2015 the year that you really do succeed at Forex trading, I’ve got a tremendous Christmas offer that’s coming out between the 15th and 19th of December, so not long. It’s an offer like I’ve never ever done in over five-years as a Forex coach. You can either email me for information about that or if you look on the very top of my home page, you’ll find there’s a bar across the very top of the site that takes you through to the link, to be able to register your interest, so you get priority access to that offer when it becomes live because it will be limited numbers! So have a look on the very top of my website – theforextradingcoach.com. Look out for that link that takes you through to the sign-up page.
So that’s it for now, have a great week! We’re getting very close to Christmas so maybe only a couple of weeks of trading left in the year. This is Andrew Mitchem from The Forex Trading Coach, have a great week and I look forward to talking to you, this time, next week.
Bye for now!