Weekly Video News & Podcast

A +3.5% Gain For The Week

Feb 17, 2014

Podcast:

In this video:
01:02 US Non-Farm Payrolls worse than anticipated
03:02 GBP and Kiwi Dollar overall the big movers of the week
05:52 FPA user made 6.7% on one day using free suggestions

Well we’ve had good trades, fantastic results, big movements on the charts and last week’s Non-Farm Payroll’s – I was bang on.

Let me share more information with you right now.

Hi it’s Andrew Mitchem here welcome along. I’m from the Forex Trading Coach.Today is Friday the 14th of February and it’s a Valentine’s Day so hope you’re having a fantastic day with your love ones.

I want to talk about some really good trades that have occurred this week.

But before I must jump into that I must tell you about last week’s Non-Farm Payrolls.

How I predicted last week’s US jobs data would be worse than anticipated

I make these videos on Friday morning my time and so when I was making last week’s video and podcast that was sixteen hours before the release of the non-farm payroll’s which is Friday morning US time. That’s the early hours of the morning New Zealand time on Saturday.

So that was a long time before the announcement when I made a prediction on the last week’s video to say according to what I could see on the charts as a technical trader it looked to me like the US non-farm payrolls would be worse than anticipated and that’s exactly how they came out.

In fact the result was 40% worst than anticipated.

The anticipated result was around 185,000 new jobs created for the month. The actual result came in at 113,000 jobs, so a huge difference there, a 40% reduction from the actual to what was anticipated.

But the great thing is as a technical trader is that we could see the likely result of that news announcement and more importantly the likely direction some sixteen hours prior to that announcement coming out. It was almost like staring at us – glaringly obvious on the charts that was the likely outcome.

I just wanted to let you know that you don’t have to wait around for those news announcements, the big spreads and things like that because the charts were telling us well and advance what the likely result was going to be and the likely direction and of course it worked really well.

GBP, USD and NZD are the big movers for the week

So onto the charts themselves this week – we have seen that USD continue to fall following on from that non-farm payroll announcements that poor results for the US jobs and we’ve seen being the GBP very strong this week.

We’ve also seen the Kiwi Dollar and also the CAD to lesser extent but also those showing strength.

Gold and silver have continued to climb all week.

The EUR is the interesting one this week. On Tuesday and Wednesday we had a big reduction – there was a bit of a clue on Tuesday with the Pinbar showing on the daily charts the price then fell on Wednesday and then on Thursday it was completely reversed and it’s pushing back up again looking to continue from what I can see right now.

Today being Friday I’m looking for Buy opportunities on the EUR/USD and Sell opportunities on the US/Swiss Franc.

Right now as I’m looking at the charts that to me seems the likely direction but the GBP and Kiwi Dollar overall definitely been the big movers of the week – pretty much straight up day after day.

+3.5% Gain for the Week

As a result to that we’ve had a really good week on my own personal trades. I’m up over 3.5% right now for the week and that’s trading with only 0.5% risk on any trade.

I’m up around just over 1% for the week on the daily charts.

A break out strategy that I use and teach my clients has made 0.5% and the four hourly charts I’m up around 1.8% so far for the week, so all up pretty much around 3.5% gain with very low risk and I’ve still got some trades open behind me here.

Two trades still open from today’s day charts and two trades still open and looking really good on the four hourly charts both involved buying the GBP. So they’re ticking along nicely behind me.

So this week I haven’t had a lot of time personally to trade really shorter timeframe charts. But all up if I was to put a time figure on the amount of time I’ve actually spent trading I would say it’s probably under looking at charts and taking the trades probably 2-3 hours this week tops and still I’m up at 3.5% for the week.

So when you get trades like that on those longer timeframe charts they don’t involve sitting watching your charts all day and night – you don’t have to do that. I just like the daily charts and the four hourly charts.

I haven’t even taken very many trades on any other short timeframe charts. In fact my hourly charts this week I’m just about break even – it was slightly positive but nothing very much.

So the longer timeframe charts for me this week would been the real money making trades.

Forex Peace Army Member makes +6.7% return in a Day

Also interesting to note on the strength and weakness analysis that I placed out there on my site and on Forex Peace Army each day (They’re not specific trades as you would know as only my clients get those) but even so I’ve still had eighteen of the trade suggestions close the day in the anticipated direction as suppose to ten which have not.

So even with those free posts that I placed on my site and on Forex Peace Army everyday for you, there are still have some really great opportunities to trade in the direction of those anticipated directions and so if eighteen out of the twenty eight have ended up closing the day in the right direction, you can be sure that if you go down to the shorter time frame charts there’s great opportunities there trading in the likely direction.

Also I’ve had feedback from someone on Forex Peace Army – I don’t know this person, they’re not the client of mine, but just using my daily suggestions this person said they made 6.7% on one day this week.

That’s an incredible amount of money for one day.

I don’t know what their risk is but they’re using my suggestions, placing their own trades in the anticipated direction that I’m talking about and they made 6.7% in just one day.

It was twice what my bank will pay me in one year and this guy made it using free suggestions just in one day, so great trading there and it was really pleasing that people are making some great returns from the help that I put out there.

Webinars, Calculator and E-Book

That leads on to one last thing: don’t forget to sign up there’s a heap of free things on my site of course there’s the free calculator, there are free webinars and I’ve also now had Chapter 6 of my Forex journey book “From Dairy Farmer To Forex Trader” has been released.

You can of course get that chapter by chapter, one is being released each week that’s probably again to be around another ten weeks there before the book is completely finished but you can watch that on video, on PDF file and on audio MP3.

Have yourself a great weekend. Once again don’t forget Valentine’s Day. Make sure you look after the special one in your life and I talk to you this time next week.

Bye for now.

A Warning for All New Forex Traders – Plus Job News Predictions

Feb 10, 2014

Podcast:

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An Important Warning Message Fore New Forex Traders – Plus Jobs News Predictions

In this video:
00:56 Unrealistic goals and expectations
03:49 Don’t expect to make a fortune on day one
05:33 A trade made a full profit in 1½ hours
07:24 Having a successful trading system

I’ve got a warning for new traders. Let me share more information with you right now.

Hi this is Andrew Mitchem here from the Forex Trading Coach, today is Friday the 7th of February and I have a really important message and a warning for all new traders out there. Taking a loss is a part of trading you need to accept. If you can’t take losses then you probably shouldn’t be trading or at least not on a live account anyway. Taking a loss is something that most people really struggle with and they find it hard and of course it’s an unpleasant feeling not it likes to lose money. But you have to accept that it’s the reality and it’s a part of trading especially in your early days of trading.

Don’t Expect to make a fortune from day 1

The problem that I find with so many people and I’m talking to new traders mostly here is that they expect to win straight away from day one and it’s completely unrealistic. They have unrealistic goals and expectations in terms of the amount of money they’re going to make and how quickly they’re going to make it. Unfortunately I’m here to tell you that in most cases and most people your goals are unrealistic. It’s a bit harsh and not many people would tell you that but I’ve been trading the markets for over ten years and I’ve seen thousands of people in terms of people in terms of emails and correspondents and people who’ve done my course and I can tell you that most people who come to me before they’ve taken my course they just have such unrealistic expectations.

So I’m here to say, “Learn from your mistakes.” Because I believe that the best way of learning in trading is to make the mistakes that everybody is going to make and I’ve made so many mistakes myself. Make those mistakes but learn from them. Don’t give up but learn from them and accept mistakes and accept losing as part of trading. It’s just real life.

When was the last time that you took up a new hobby and you’re instantly amazing at it? It probably never happened. How many people do you know take up a piano and within a week or a month they’re playing in like a band or they’re playing in an orchestra? It just doesn’t happen. I’ll give you another example, I’m currently learning how to fly a helicopter and aiming to get my private pilot license. Now my instructor just makes flying that helicopter looks so easy. We just travel along and we just turn nicely and we hover nicely. He’s been flying for over 22 years. I’ve been flying for two weeks. I’m all over the place my helicopter is going like this he is forever grabbing the controls off me to trying and get me back to level again before it’s my go again. I’m all over the place and it’s no different to flying a helicopter to learning to play a piano to starting a new job. How many times have you started a new job and you’ve done your new job better than someone who’s been doing that job for 10 or 20 years? It’s just unrealistic to expect that to happen.

How many times do you take up a new career if you have no training for it? You expect to be brilliant at it. It’s unrealistic isn’t it? You can see how all these things go back to trading. People read on the internet that they can make 20, 50% a month and expect to do it. Fine, you can do it but you’re not going to do it on day one and you’re not going to do it treating yourself as a business for low risk and controlled risk. So I really want to point that point over there not to be a downer because I’m always an optimist and I’m always looking at the positive side of things. But you’ve got to be realistic in your trading.

Don’t expect to make a fortune on day one even if you done my course don’t expect to make a fortune on day one. It’s not going to happen. I would rather people who take any course but if you take my course or you learn your own strategy I would rather that you took six months and slowly worked your way through the system, gain confidence; went to a demo went to live; smaller amounts to bigger amounts and after six months you come back to me and say “Hey Andrew look I’m just loving after taking your course. I’m just loving the results, my confidence just sky high, my trading is going fantastically well but I was quite slow to start with. I much rather have that than people jump in and just try and rip and bust go like crazy and double their account in a month and then six months time and they’ll be here for them again. And that’s not a benefit to anybody whatsoever so just a point to be aware of like I said it especially affects new traders so just be really careful with that. That’s one thing I wanted to mention there.

Live Trading Room Session with a 4.8:1 Reward:Risk Trade

Also just to let you know I held a live webinar yesterday for my clients we then have a full room, a great trading room session, lots of information shared, looking at different scenarios and setups and looking for pull backs and then looking to continue trading with the trend again, took some live trades during the session and had some really good trades.

Likewise this week had some great trades I shared with my clients the trade I took on the EUR/AUD on only the 15min chart. It was a 4.8 to 1 risk to reward trade and it made a full profit in an hour and a half so if I was risking 1% on that trade that was 4.8% return on just one trade. So it just shows that what I’ve said at the beginning about unrealistic expectations yes you don’t need to be looking at making a massive amount but don’t forget I’ve been trading for number of years and a 4.8 risk to reward trade is one of the better trades that I would be taking in terms of the profitability but it just shows what it can be done with experience and with education and with time and with patience and with controlled risk.

I am Anticipating A Lower US Jobs Announcement

The other thing also of course today being Non-Farm Payroll day now was still 16 hours before the announcement while I’m recording this right now and the expectation is for 185,000 jobs to be created in the US for the month. Looking at the charts, well the US has been looking a little bit weaker recently. There’s been a lot of strength renewed strength and the EUR, the Aussie and the Kiwi over the last couple of days. So by looking at the charts like I said I’m 16 hours before the Non-Farm Payroll announcement right now while I’m recording. By looking at it, my anticipation, my estimate would be at this stage for the job payroll figured to come in probably lower than anticipated just by looking at the weakness that is showing in the US right now. Of course a lot could change over the next 16 hours before that but that would be I’ll be looking at right now.

So that’s it for today. Hope you’ve enjoyed that lesson. Don’t take that as a downer, don’t take it as negative, take it as realistic expectations that good trading does involved losses, good trading does involved getting yourself quality education. If you don’t have a successful trading system already good trading does involve time, it involves patience, it involves controlled risk but get all those things right it’s the best thing you could possibly do.

This is Andrew Mitchem here from the Forex Trading Coach have a great weekend. Talk to you this time next week.

The State of the New Zealand Economy and how it affects us as Forex Traders

Feb 3, 2014

Podcast:

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In this video:
00:31 Something that Forex Traders must be aware of
02:11 The New Zealand economy is looking strong
03:20 Important aspect of any business is to have a good leader
05:36 Free webinars every week

Hi, it’s Andrew Mitchem here the Forex Trading Coach, and in today’s video and podcast I want to talk about the state of the New Zealand economy and how it affects us as Forex Traders.

So let me share more with you right now!

The State of the New Zealand Economy

Hi, Andrew Mitchem here the Forex Trading Coach. Today is Friday, the 31st of January and that’s right I want to share some information with you about the New Zealand economy. Obviously it’s something that is close to me, living in New Zealand, but it’s just something as Forex Traders to be aware of. And I also want to relate that, to talk about our Prime Minister, Mr. John Key, who was an ex-Forex Trader. So you can see the story relates there to us as Forex Traders.

Well, obviously New Zealand’s a very small economy. But it’s actually one of the few countries and economies around the developed world that’s been through the recession, the recent recession, and has come out relatively unscathed. And it’s an amazing feat really when you consider the problems that the current government, the current National Government lead by John Key, faced when they took over from the Labor government.

You see they’d had huge budget deficits and we then had the Christchurch earthquake, which devastated the second largest city in New Zealand; and is still in recovery even today. Of course globally we’ve been through one of the biggest recessions since the 30’s. All that has been stacked against New Zealand when you consider that New Zealand is an export economy; relying on the export of most of our products that are made here, primarily agriculture goods. And all of that has occurred with the New Zealand dollar being at an historical very high level. So of course with the New Zealand being high, that’s actually bad for the exporters, because the amount of income that they produce is reduced, due to the increased value of the New Zealand dollar.

Likewise another one of New Zealand’s big industries is tourism, with many people wanting to come here to see the, all the amazing things that New Zealand has to offer. For people coming into New Zealand having the New Zealand dollar very high has meant that for them coming here, it means they actually get “less bang” for their buck; and they actually get less money coming into the country which makes it far more expensive to actually be here on holiday and to spend money here.

So two negatives there; in terms of bad news for the exporters and bad news for the tourism industry. However throughout all of that, the New Zealand economy has thrived. We’ve also just had some great news in terms of the employment statistics, the government now has the Country out of a budget deficit, which they promised to do when they first came into power. So putting all this together with the global recession and with the Christchurch earthquake it’s an amazing feat for such a small country, in just a few years. I put that largely down to our leader, and Mr. John Key, as I’d mentioned; is an ex-Forex Trader.

The Importance of Good Leader

Leadership in any business is critical and having the right leader in charge is such an important aspect of any business. I believe really that running a country is no different than running a company, it’s just that the company is a very large one that happens to be called New Zealand. You still need to be in charge of people and in charge of economics and the politics that go on behind the scenes. So I just think that we’re extremely lucky to have such a fantastic Prime Minister that not only runs the Country well in terms of day to day aspects such as the hospitals, the schools etc but also economically running the country extremely well and it’s quite a rare balance to get that, and so having someone with the caliber of John Key is just an amazing benefit for us; as a Country. Like I mentioned he used to be a Forex Trader. So there is a bit of a link there. So any of you Forex Traders watching this, or listening to this podcast, you know that’s how John Key started many years ago when he was over in New York.

Looking for some good Price Action next week

On the charts this week, well we’ve had a bit of a sideways movement for a lot of the week. It’s not been a particularly great week for trading in general and so now that the weeks almost finished, we’re looking for next week to kick start into some better price action. I’ve heard some recently good traders, just that there’s nothing happening in terms of overall strength or weakness, particularly throughout the entire week.

Forex E-Book & Trading Webinars

Don’t forget to, make sure that you sign up to receive the weekly updates that I have for my eBook; it’s called “From Dairy Farmer to Forex Trader”. It shows my journey to becoming a profession Forex Trader and there’s a huge amount of tips and information and advice within that book that can really aide your own trading. Had some great feedback from people, just helping people because they’re at varies stages throughout their Forex career and their journey and they can see how I’ve been also at that same stage; and how I’ve overcome that. The steps I’ve taken to overcome that to get to where I am trading today.

Also don’t forget the free webinars that I’m holding each week, and if you haven’t downloaded the Lot Size Calculator yet, make sure you jump onto my website and do that. It’s a brilliant tool for helping keeping your money management with very low risk, and helping to control your emotions within your trading. The feedback from people that have used that Lot Size Calculator, you know most people that write back to me just say that it’s invaluable and now they trade using it, they can’t imagine trading without it. So it’s great that it’s helping people to progress within their trading.

So that’s all for now, this is Andrew Mitchem from the Forex Trading Coach. Look forward to talking to you this time, next week.

Forex Tips and Advice of How to Manage Your Stop Loss

Jan 26, 2014

Podcast:

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In this video:
00:24 A good way to manage your stop losses
01:31 Stop loss base on a horizontal level
04:10 A Russian client made an incredible 4.7 to 1 risk to reward
06:26 A lot of strength in the GBP, Euro and Swiss Franc

Forex Tips and Advice of How to Manage Your Stop Loss

I want to give you some information, some tips and advice of how to manage your stop loss. Let me share more information with you right now.

Hi it’s Andrew Mitchem here the Forex Trading Coach. Today is Friday the 24th of January and on today’s video and podcast I want to explain about a good way to use your stop losses, so how to manage your stop loss when you’re in a trade. You see it’s a question I get asked quite a lot and I even had the same question arrive in my inbox this morning from someone just seeking some advice and say, “Hey Andrew can I use something like a Parabolic SAR or that’s the example he gave this morning or any other type of indicator to help manage the stop loss on a trade once the trade is open.

The problem with most indicators and the parabolic is no exception is that it tends to lag badly on the price and time. And you can’t really just use one indicator and rely on that dot on a chart to say this is where my stop needs to be or when it changes from below the price to above the price, this is where you know when I need to get out of the trade. That’s just not a good way of using or managing a trade.

A stop loss based on a horizonal level

What I suggest the people they do and my clients know this already is that I suggest you use a stop loss based on a horizontal level. Now that could be something like any type of support from resistance level so rather than just using an arbitrary figure like an indicator or like say 20 pips or 50 pips or whatever it might be that has no relevance to the timeframe of the chart or has no relevance to the currency pairs or the time of day and what I suggest you do is look for horizontal levels.

For instance if you were taking a buy position and your trade was in good profit. What you can do is move your stop loss. Let’s say you have your stop loss at the low of a setup candle. The trade moves into some fairly good profit but hasn’t reach the full profit target yet. What you can do is look for let’s say like the daily pivot point. Look for the next swing low or previous swing low so you’re moving your stop loss up in gradual increments but based on technical levels of what’s been already respected by the price in the past.

You could move your stop loss up to below a round number so for instance if you are trading the EUR/USD, instead of putting your stop loss at say 1.3510 if you’re buying you were better off having your stop loss down below 1.3490; 1.3495 something like that down below a horizontal level such as a round number and I’m calling round numbers anything ends in 00 or 50. If the price tends to move up you could then move your stop loss up to just below the 50 level or it keeps going and you still haven’t reach your profit target up below the next 00.

If you’re in a shorter timeframe charts you could be looking for swing lows or previous bounce levels, things like that. That’s going to give you a lot better protective stop loss in place that allows the trade to go through and hit your hit full profit target and without coming back and taking you out to a stop too often. So that would be my advice there.

4.7:1 reward:risk trade on the 1 hour charts

I held a live webinar for my clients yesterday. We had a full room again. Just a fantastic webinar, lots and lots of live trade examples between trades that I took myself and trades that clients had open or took live during the session. We probably had close on about ten trades that we took live. Just a lot of trades. One that I want to pick out was from a client of mine over Russia and he had a trade on the EUR/JPY on the one hour chart during the session. He placed the trade, he put his stop loss on, he put his profit target on and it hit profit within the 2 hour live webinar and he made an incredible 4.7 to 1 risk to reward out of that trade.
So for example if he was risking 1% of his account on that particular trade setup he made an amazing 4.7% return on just that one trade within under 2 hours I think really it was under 1 hour because the Euro just took off beautifully while we’re on the webinar. So that was just a great trade, many examples I took trades on the one minute charts, the five minute, the fifteen, I didn’t take fifteen myself but other clients did. One hour charts, four hour charts trade I had already open and daily charts of course and I even show the examples of weekly charts.

So just go to show, it doesn’t matter what timeframe suits you, what time of the day you can trade, what part of the world you live in, when you can trade it really doesn’t matter. It’s what suits you and what you see as a good setup. That’s the important thing so when you have a good technical trading system, it will work on any timeframe chart and on any currency pair. And so that’s what makes a price analysis so different to most other systems. You see there’s a lot of systems out there and people say just use it on the one hour chart on the EUR/USD, nothing else or just use it on the EUR/CAD five minute chart and nothing else whatever it might be. That’s not what I call true technical trading. Technical trading will work on any timeframe on any market and that’s what I offer my clients which is why so many of them do so well.

As you can see from the gentleman over in Russia making up 4.7 to 1 risk to reward trade live in front of us on the webinar just brilliant trading and so pleasing to see results like that happening live. There’s no better way of learning than watching something happen in front of you live at that time. No hindsight, no cherry picking, no just taking the best trades, ignoring the others just what’s happening there live right in front of you. So it’s just a great tool there for my clients to use. If you’d like more information just contact me about that and I can send you some information.

GBP strength and CAD weakness this week

On to the charts themselves this week well we’ve seen a lot of strength in the GBP and lately on the Euro and the Swiss Franc and we’ve seen a lot of weakness on the AUD and the CAD. Now if you follow my strength and weakness analysis you’ll see that on Wednesday I was suggesting a lot of strength in the GBP and a lot of weakness in the CAD. And there were two news announcements that came out almost twelve hours after I’ve made that prediction or that analysis and one was the unemployment data from the UK, the other out of Canada was the interest rate announcement.
So it was fairly clear to see well before like 12 hours before those news announcements, what the likely direction was going to be. I don’t know what the figures going to be, what the outcome’s going to be but I know with high probability what the likely direction is going to be. And I’ll put that on the Internet on my post, on Forex Peace Army for everybody to see more than 12 hours before those announcements came through and then followed through in the same direction as my analysis. I actually suggested looking for buy trades on the GBP/USD and on the GBP/CAD that day both provided many great setups.

Last thing I want to mention is chapter 3 of my new EBook “From the Dairy Farmer to Forex Trader” has been released this week. You can get that on the Forex Army website and you can also get a copy of the video, the PDF file and the audio MP3 via my site just by signing up on the EBook tab within my site.

So that’s all for now have yourself a great weekend. It’s in the middle of summer over here in New Zealand so I’m off outside to enjoy the sun, enjoy the pool, hope you guys in Europe and the States not so cold. I realise you’re going through a very wet time, a very cold time right now. We are very fortunate to be in summer so I’m going to make the most of it.

Look forward to talking to this time next week. This is Andrew Mitchem from the Forex Trading Coach . Bye for now.

The importance of reading technical charts for your Forex trading success

Jan 19, 2014

Podcast:

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In this video:
00:37 Having a good trading plan in place
01:57 USD has been relatively strong all week
03:25 New e-book released this week
04:19 Get the free lot size calculator from my site

In today’s video I wanted to tell you why reading the charts, the technical charts are so important to your trading success. Let me share more information with you right now.

Have a good trading plan in place for 2014

Hi again, its Andrew Mitchem here the Forex Trading Coach. Welcome back to the first video and podcast for 2014. I hope you had a fantastic Christmas and New Year’s break. Now that the markets are back into action it’s just a great time to get back into your trading again. I want to talk about technical trading shortly, but first of all now we are into the New Year and I also want to just talk about making sure that you have a good trading plan in place to start a New Year afresh. So what I mean by that is make sure you understand, number one your strategy but make sure you have a plan of when you are going to trade. What days of the week, what times of the day, what currency pairs, what types of set ups, where your profits are, where your stops are and so have a realistic goal in place and something you can focus on that is going to aid your trading heading into this year. What you don’t want to do is to get to that mid-year and then suddenly find that you are sort of randomly taking trades here and there without any real plan in place so make sure you do that right from the beginning of the year.

USD strength this week

I also want to talk about technical trading. On Friday last week we had very bad employment data of the US. The non-farm of payrolls were really bad but then heading into this week, and today being Friday so a week later, on most of the pairs what we have seen is the US actually strengthen. So it goes to show why you need to be looking at your charts. Yes it’s great to have a fundamental view in some respects but it does become an opinion whereas the charts tell you what is actually happening right now what in the market. You see so the non-farm payrolls were bad the US has being relatively strong all week.

I’ve been calling weak Australian dollar trades on Wednesday, Thursday and today, Friday and so a day before the employment data of Australia I was already calling short positions so Wednesday I was calling short positions and Thursday before the news came out or well before the news came out I was also calling short positions and the Australian unemployment figures came out really badly as well and so the Australian dollar continued to crash about a 300 pip drop from its peak but having that technical knowledge a day and a half prior to the news I was already calling looking for short positions on the Aussie dollar. In the end that came through also in the technical, the technical came through and fundamentals followed it but technical show well in advance what the outcome of the Australian employment data was likely to be.

We’ve also seen the New Zealand dollar peak at around the 0.84 level so its hit the 0.84 resistance level a touch over but it stalled at that level and currently it’s been falling and I’ve been calling short positions on the New Zealand against the US for the last couple of days and right behind me here its continuing to fall. So be really mindful there of keeping a good eye on what is happening on the charts technically.

My new E-Book has been released

Another thing I want to mention is my new e-book that’s been released. It’s been released this week and I’m releasing one chapter at a time so one chapter per week. The book is called “From Dairy Farmer to Forex Trader” and it’s my story about my Forex journey and there is some amazing information, some helpful tips and advice, things that I’ve learned over the years that can really help short cut your own learning process. So it’s going to save you a lot of money, a lot of heart ache, a lot of tears and a lot of time in terms of cutting out some of the errors and mistakes that I went through in my early days of trading so the aim is for you to eliminate those from your trading and short cut the whole learning process and get you to be a really profitable trader far quicker than those self taught traders.

Lot Calculator and Free Forex Webinars

Other things also, don’t forget to register for one of my free webinars I’ve got a free lot size calculator on my site and of course the e-book that I’ve just mentioned so lots of free information there to help you with your trading. So this is Andrew Mitchem from the Forex Trading Coach have a great weekend and have a wonderful trading week next week. Look forward to talking to you on Friday this time next week.

Bye for now.

Setting your trading goals for 2014

Dec 15, 2013

Podcast:

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In this video:
00:50 How you can progress with your trading goals heading into 2014
02:36 How many trades are you going to take per day or per week
04:30 Creating a trading plan
06:07 Good technical analysis

Let’s talk about your trading goals for 2014. Do you have any in place? If you do have fantastic but if you don’t let’s talk about some ideas right now.

Hi traders! Andrew Mitchem here, the Forex Trading Coach. Today is Friday the 13th of December so hoped you’re not too superstitious for that.

Trading Goals for 2014

Well as we head towards the end of the year in terms of the trading year we’re seeing some quite of movement on the charts mostly due to the lower volumes that are going through the market right now. So actually it’s really a good time of the year to actually spend over the next couple of weeks some time to reflect on what you’ve done good and bad this year and also how you can progress with your trading heading into 2014.

I’ve made a list here that I’d like to just run through with you that’s just going to give you some helpful hints and some tips about what you should maybe look for on your trading plan and your trading goals for 2014.

How much time do you want to spend on your trading

So start with, for example how much time you want to spend on your trading? How much time can you dedicate? How much time would you like to dedicate to trading? You don’t need to be spending like hours and hours every day but and also the more time you trade does not always mean the more money you make. But just write down how much time do you want to spend or can you spend trading each day.

What time of the day suits you to trade in terms of what works with your job if you’re working, with your family, with any the other social activities you might do. What days of the week suit you best? What times of the day suit you best to trade? What currency pairs do you like trading? Do you look at order pairs that your broker offers or do you concentrate on just the major pairs or maybe you’ve got one or two minor pairs that your favorite. So write those down.

Are you going to be trading only in the direction of the longer term trend or only in the direction of the daily trend using the strength and weakness analysis that I publish each day. Is that going to be something that’s going to aid you? For today, if you’re looking for Australian Dollar/ US to fall like I am today, am I only going to be taking trades on the four hour charts, one hour charts, fifteen minute charts in short positions only and ignoring all buy positions. Write that down if that’s a rule for you.

What are your trading Goals?

How many trades are you going to look to take per day or per week? What happens if you reach that limit? Let’s say your goal was to take no more than five trades in a day and you’ve taken five and you see really good setup? What are you going to do? Are you going to take it? Are you going to leave it?

What performance goals are you going to set yourself per day or per week? Let’s say that your goal is to make 2% per week and let’s say by Wednesday you’ve achieved over 2% and you see a really good setup. Are you going to take that or not? So you need to have these rules set in place. So what it would do by having that plan under those rules in place it will help eliminate the like sort of trigger reactions and the emotional reactions when you’re there taking trades live.

Will you close out trades at the end of the day? Will you close out trades at the end of the week? Will you close out trades only on reversal signals or are you going to employ a 100% set and forget approach to your trading? So in other words you put your stop loss and your profit target and you leave it. It depends what suits you. There’s really no absolute right or wrong way to approach your trade management but it what’s suit you that is important. Also, how much risk are you willing to take per trade? Are you willing to take like 2% per trade? I strongly suggest you don’t but some people or most people would tell you to trade between 2-5% per trade and I think that’s ridiculous. I employ a policy of 0.25 to 0.5% of 1% risk per trade so quarter to half of 1% risk per trade. That’s what suits me and that’s what I strongly suggest people do.

Also if you sort of put all this together, create a trading plan that works for you. Don’t worry about it fitting to someone else’s trading plan create one that works for you that you could realistically stick to and also you realistically achieve. Print that out. Pin it on the wall next to your computer. Look at it all the time look at it every day and look at it before you take positions to see if that what you’re about to do, taking a new position does it meet the criteria of your trading plan. Is it a suitable candle setup? Are all the other criteria that you’re looking for a setup are they all in place? Same with exits, if you are looking at taking, exiting a trade, don’t just do it on an emotional reaction. Exit for a reason and a reason that you’ve already got pre-planned, so that I hope will really help you to create a trading plan that’s going to aid your trading into 2014.

Good technical analysis

Other things just on the chart to mention: we’ve seen some strength in the US Dollar. All of this week we’ve seen a lot of weakness on the AUD. I’ve been picking weakness most of the days this week. Yesterday being Thursday I had around 5 pairs I think it was looking at short positions on the Aussie Dollar. It came through beautifully on all of them. So the charts once again were showing me what was likely to happen. Whether it would be fundamental whatever is the reason for the falling of the AUD and I had that already predicted and published well in advanced of that happening and so it just comes back to the fact that good technical analysis can definitely help you predict with high probability where the markets are heading.

Also we are in extremely low volume like I’ve mentioned. I’m looking at ending trading for the year, around the 19th or 20th so next Thursday or next Friday and I’m probably not starting again looking for new positions until Monday the 13th of January.

So that’s all for now. This is Andrew Mitchem from the Forex Trading Coach and if there’s anything I can do to help please let me know. Don’t forget to look out for my 4 day Christmas Special Promotion between the 16th and 19th of December. There’s a $900 US Dollar discount on the course fee, on the standard fee. It’s only between the 16th and 19th of December. Get in quick it’s a great offer. Look forward to helping you be a really successful trader in 2014.

Bye for now and have a fantastic day.

Why High Risk:Reward Trades are so important for your long term Forex success

Dec 7, 2013

Podcast:

Podcast: Play in new window | Download

In this video:
00:31 Trading the daily charts again
02:23 10/15 four hourly trades hit full profit last week
03:26 Setting your profit target based on a technical level
06:00 The importance of being a longer term thinker in trading

The importance of risk to reward to ensure your success as a Forex Trader

In today’s video I want to talk all about the importance of risk to reward and to ensure that you understand how important that really is to ensure your long term profitability as a Forex trader. Let me share more with you right now.

Hi it’s Andrew Mitchem here the Forex Trading Coach. Today is Thursday the 5th of December and I’m here in beautiful Queenstown in the South Island as you can see from the glorious scenery behind me.

This week I’ve been trading back to just the daily charts again and the four hourly charts and it’s a great thing to be able to trade those longer timeframe charts but it’s also important to understand that with them you generally have yourself a high risk to reward than you do on a shorter timeframe charts generally because the stop losses are slightly bigger due to the technical level it needs to be. The profit target is also bigger. And I find that in general on the one day charts, the daily charts, my risk to reward is somewhere between around the 2.5 to 3.5 risk to reward.

I’ll give you an example. A couple of days ago I’ve had a couple of trades selling on the daily charts on the AUD /NZD. The market order made exactly a 3 to 1 risk to reward and the retracement order made a 2.6 to 1 risk to reward. So two excellent trades there. If you took 1% risk on each of those that was a 1.5% gain on the market order and a 1.3% gain on the retracement order. That’s if you took 1% on each of those two trades. Personally I trade half a percent risk and I trade a quarter of 1% on each of those two positions but still a great result.

Four hour chart trades also have very high risk to rewards due to also the large stop loss and the large profit target but don’t forget you can’t take those because don’t forget the way that I trade, and the way that I encourage people to trade is we don’t worry about how many pips we make. Each trade has an equal account percentage risk so don’t get worried and concern that you can’t trade these longer timeframe charts because you see the stop loss and pip has been too big, it really does not matter.

4 Hour chart results: 10 out of 15 profitable trades

When you’re wondering why you’re here sitting and watching charts all day when I can trade daily charts and occasionally four hourly charts. Last week for instance I took 15 trades on the four hourly charts during last week and I had 10 of them hit full profit and 5 of them were stopped out. The ones that hit full profit averaged around a 1.7 to 1 risk to reward over the 10 profitable trades. You can see how you can make some excellent trades but without being glued to the screen all day.
Yesterday I had a GBP/CAD buy trade and made a 1.6 to 1 risk to reward so with the half percent risk that it still a 0.8% on my account just on one trade just yesterday so you just see what can be achieved there by having the risk to reward in your favor. Generally the shorter the timeframe the smaller the risk to reward but personally I wouldn’t go in anything under 1 to 1 risk to reward. I like to have about a 1.5 risk to reward as a minimum but sometimes it’s slightly smaller but generally not too much.

Important to set your stop loss and profit target at a sound technical level

It’s important also to see your stop loss based on a technical level and set your profit target based on a technical level. You just don’t suddenly say well I’m putting a 50 pip stop loss therefore I have to pull a hundred pip profit target. That’s not how you trade because 50 pips may or may not be corrected. It depends on the technical level needed for that stop loss and let’s say 50 pips was the correct level, you don’t just suddenly double it to make a hundred pips just because you want a 2 to 1 risk to reward. You need to put your profit target at a technical place for a technical reason and if that happens to be 1.85 risk to reward or 2.05 that’s the way it is you don’t just say well 50 pips stop means a hundred pip profit target. That’s not how you take good trades and to ensure good risk to reward. So I just wanted to make that point clear.

Elsewhere the other things I wanted to talk to you about, of course well trading daily charts and you can do that anywhere in the world. You know I’ve got clients in 46 countries so you know people have also different things going on their lives from their work to their family, in a sport, whatever it is and especially now coming up the holiday season, you know people can’t always be trading 1 and 5 minute charts and you know the great thing with the strategy that I trade is that you can trade those if you wish to and I’ve talked about them quite a bit over the last couple of weeks and I’ve talked about the success that I achieve on them and other clients have achieved on their short timeframes. But it doesn’t mean you need to be staring at charts all day and night if that’s not what suits you or for instance the situation doesn’t suit you. So you can take any timeframe that is available to you. And that is the beauty of forgetting about trading pips because you can take those longer timeframe chart trades and that is the beauty of having high risk to reward trades.

You see I quite often get people come to me and say “Hey Andrew you know what’s the winning rate of your strategy?” and yes it’s important but it’s not like critical and you know a lot of people expects systems to have a 90% win rate and I say “Well fine, go and trade that type of system if you wish to but I can almost guarantee that a system that has like a 90-95% success rate in terms of winning trades either has a very, very low risk to reward probably under 1 to 1 or it doesn’t have a stop loss in place at all. Now you can trade without a stop loss if you wish but I know there are people out there that you should never trade with stop loss, that’s fine if you want to trade like that.

Thinking longer term as a trader – the bigger picture

To me it’s really important to be a longer term thinker about my trading and it’s important to have that controlled risk and to know that my risk is controlled at a certain level that I’m comfortable with whatever that is, whether that would be half a percent, or a one percent, whatever that is that suits you but I know that when I take every trade that’s the maximum I can loose on any one position and that’s a really important thing you know emotionally to be able to keep trading. Plus also sensibly I don’t want to be risking obscene amounts on each trade and all of the sudden a trade goes wrong so just a few really important points there for you to consider. It will definitely aid your trading.

So that’s all for this week. I look forward to talking to this time next week when I got some more tips and Forex information to share with you.

So this is Andrew Mitchem from the Forex Trading Coach. If there’s anything I can do to help you progress with your trading, please don’t hesitate to contact me, email me Andrew@theforextradingcoach.com and don’t forget there are two webinars or two different types of webinars that I hold each week for my clients, those who are brand new to trading and those who are slightly more experienced but probably frustrated with their trading. If you haven’t attended one of those webinars yet make sure you sign up to one of them on my website and I look forward to helping you become a really profitable Forex trader.

So bye for now.

A conversation on a plane and how that relates to Forex trading

Dec 1, 2013

Podcast:

Podcast: Play in new window | Download

In this video:
00:34 A funny story from a business trip
02:14 Two trades on the one minute charts worked well this week
02:50 Learning different approaches to trading
04:17 Had thanksgiving in the States

How much do you really know about Forex Trading?

In today’s video and podcast, I want to talk to you about those small islands called Eastern Australia, better known as New Zealand to most people. I’ve got a funny story to tell you, and also how that relates to Forex trading and how it can really help you.

So let me tell you more right now.

Hi, Andrew Michem here, the Forex Trading Coach, today is Friday the 29th of November. And that’s right I want to talk about New Zealand, some people think of it as Eastern Australia, and how that can affect your trading. A bit of a funny story coming up, and I’ll explain more right now.

Well, I was on a flight last week between Honolulu and Kauaii, and I was sitting next to a gentleman from Texas. And he said “Are you from Australia?” and I said “No I’m from New Zealand.” He goes “I’ve been there years ago to Perth,” and I said “No that’s a long way away, that’s a different place. It’s in Australia I’m in New Zealand.” And we then carry on talking and a little bit later he said “You’ve got those terrible forest fires, in Sydney.” And I said, “No that’s in Australia. It’s a different country. I’m in New Zealand, a three and a half hour flight away.” And it got me thinking, because this guy was sure that Australia and New Zealand was all the same thing, and you know, so in his mind it was. And I kept saying “No Australia,” so I kept saying “No I’m in New Zealand” and he kept saying “Well that’s Australia.” – two completely different places.

So how does it relate to trading? Well quite a way, quite a number of ways really. When you think about it, you know we, we become sort of thinking along the same lines all the time, what you read, what you hear. And a lot of people come to me, and they say Andrew ,you know, I’ve done this and this in my trading, and I’m really experienced I’ve been trading for a long time, but I’m still not making any money. When you analyse that in a little bit more detail, you realise that they, what they think they know is not probably as much as you know what they think they know. And it’s to say that everybody can learn, and you can never stop learning in this market.

Trades on the 1 minute charts – not me – really!

You know, and I’ll give an example for myself. I just last night my time, I took two trades on the one minute charts on a live webinar in front of clients. And they both worked, they worked fantastically well. One made about a 1.7 risk to reward, the other I think was about a 1.3 or 1.4. But both worked really well. Now if you had said to me or spoke to me about a year ago, and said “Andrew, do you trade one minute charts?” I would have said, “No never, don’t be so stupid, I don’t go anywhere near that short time frame.” But when we were looking, there was a really good pull backs, and one minute charts had some really nice bounce levels. Took the trades, both worked as I said.
So everybody has to learn different approaches and learn to adapt, if it suits you. Likewise, I’ve got a lot of people that come to me and say, “Look Andrew I’ve been trading, scalping the market, or trading used, whatever it might be, but I’m still not successful, can you help me?” And after a while, when they’ve taken my course they’ll go, “Hey Andrew, I really do like those four-hour charts, or those daily charts, or weekly charts, or whatever it is. So, some people go from being very, very short time-frame, and thinking they know everything about trading because they trade five-minute charts or fifteen minute charts. But in reality, there is lot that they don’t know. But it’s not until they change do they realise that. And you bring it back to like the guy I was sitting next to on the plane, he thought he knew the whole geography of the world. You know Australia, New Zealand, well it’s the same thing, I’ve been to Perth, therefore I’ve been to New Zealand. It’s about eight hours away on a plane, it’s completely different. And exactly the same thing you can relate to Forex. So it comes down to just constantly learning, educating yourself all the time, if you want to succeed the best you can within this industry.

Excellent trade results this week

I’ve got some fantastic trades I’ve had this week, especially on those four-hour charts. I’ve got three behind me here, and five trades that three of them had green lights on when I started this recording. So there’s three more about to hit full profit as well. So just been a really good week. Of course had Thanksgiving in the States yesterday, and Black Friday today, so it’s been a little bit quieter with the USD itself. But overall it’s just been a really nice week for trading. For me the longer time frames, and then last night on the webinar the one minute charts. Also took a couple of five-minute charts and an hour chart, traded live on that webinar as well.

So that’s it for this week, a little bit of a different approach to the video and podcast, and a little bit how it related to a true story. You know, I’ve got to say that plane flight, it just made me chuckle, how, you know, how someone living in one part of the world, and they get very sort of, you know, they know a lot about that part of the world, but not about other parts of the world. And I thought well how can I relate that story to Forex trading?

Hope you’ve enjoyed this story, and I hope you can also expand your Forex knowledge and also look at other ways to trade if you need to, other time-frames, etc. So I’m here to help if you need any assistance with that, if you need a good strategy that works across multiple time frames, let me know.

This is Andrew Michem from the Forex Trading Coach, thanks for watching, and for listening, and I look forward to talking to you this time next week when I’ll be down in South Island in beautiful Queenstown. So I look forward to talking to you from Queenstown next week.

Bye for now.

Trading the Daily Charts when on Holiday or at Work

Nov 25, 2013

Podcast:

Podcast: Play in new window | Download

In this week’s video with Andrew Mitchem in Honolulu, Hawaii achieving great results on the daily charts despite business meetings.

In this video:
00:29 Trading just the daily charts
00:44 What can be achieved by just trading once a day
01:07 Enjoying the glorious beaches around Hawaii

Trading Forex on the Daily Charts when on Holiday or at Work

Well this week, I’m back trading the daily charts from beautiful Honolulu. Let me tell you why right now.

Hi, it’s Andrew Mitchem here, the Forex Trading Coach, and today I’m in beautiful Hawaii, at Waikiki actually just outside Honolulu. That’s right, today and all this week, been over here, I’ve been at business meetings, but I’ve actually been trading just the daily charts. And the daily charts have just had some fantastic results again. And I’ve talked about this a little while ago, I want to go back and reiterate it again.

You remember back in May I was trading daily charts, just the dailies, when I was over in India. And it just shows what can be achieved by just trading just once a day. And if you can’t trade everyday that’s fine also.

Trading Short on the Australian and New Zealand Dollar

I’ve taken some fantastic trades looking at –well yesterday I shorted the AUD/USD and the NZD/USD and took a buy trade on the GBP/AUD –all work fantastically well, and all took me less than 15 minutes to set up and trade. And that was it. And the rest of the time I’ve either been at meetings or enjoying the glorious beaches behind here and traveling around Hawaii.

It’s really important to understand that you don’t need to be trading real short time frame charts all the time. We’ve been talking about one and five minute charts here recently. This week of course, I’ve been here; I don’t want to be sitting watching five minute charts going back to that longer time frame. Percentage wise you can still do extremely well being up just over 4% on the week being here.

It’s really important to get back in that again, that mindset. Like I said, the Aussie and the Kiwi have been weakening pound and the US has been strengthening.

That’s all for now look forward to talking to you this time next week and I’ll be back in New Zealand again.

Bye for now.

Forex Trading Results – What everyone is after

Nov 18, 2013

Podcast:

Podcast: Play in new window | Download

Forex Trading Results – What everyone is after

In this video:

00:22 How to get great results in trading
01:09 Really good week on the daily charts
02:26 Clients who have made great results in trading
04:28 Getting control over finances
05:48 Strength in the GBP and USD

Today I want to share with you some information about results, because at the end of the day that’s what everybody is after in their trading – its results.

Let’s talk about that right now.

Hi, it’s Andrew Mitchem here from the Forex Trading Coach. Today is Friday the 15th of November and I want to talk about results because everything else in trading you can have all the interests you like everything else it doesn’t really matter unless you’re achieving results and that’s one thing I’ve seen as a coach that’s really important for me to not only achieve great results myself, but also to ensure that my clients achieve great results and if it’s something you would like me to help you with I am more than happy to do so.

But it’s something that of course that that’s what everybody gets into trading for is to achieve great results and percentage returns on their accounts and make some money. Whether you want to completely replace your existing income or make more income, or whatever it might be, passive income. It’s all about results and that’s what makes my course different.

Just to give you some examples, it’s been a really good week for me this week on the daily charts. Every trade I’ve taken has hit full profit. I’ve made 3.5% on the daily charts with half of a percent risk on each trade. I’ve made 1.1% on the 4 hourly charts. I’ve made 1.8% on the 1 hourly charts. I’ve lost a quarter of one percent on the 5 minute charts and I’ve made one and a half percent on a break out system that I use just once a week. So all up and I still have all of Friday to go so the first 4 days of this week that is +7.65% account gain but with very, very low risk. That is the important thing also. It’s all well and good to have a 7.5, 7.65% account gain but if you’re risking sort of 3 or 4 percent per trade it’s not really quite such a good result but I’m risking only half of 1%. So 7.65% in the first 4 days of this week and we still have Friday to go so a great result.

But I held a live webinar for my clients last night and we took some trades on that and some trades made profit and others lost and that’s the way trading goes but just some really good information, valuable information with live trades taken in front of people. I had a client on that webinar, Richard, who said that he made, and he shared with us the trade; one trade on the 4 hourly chart on the GBP and JPY and it was in the direction of what I was anticipating the pound to go yesterday which was upwards. He made a 4.5 to 1 risk to reward trade. He took a quarter of 1% risk on that trade. So just a 0% to 5% risk and he made 1.125% return on his account. Richard, I think he is over in the UK, so that’s more, a bigger gain, 1.1% on his account in one trade just in an hourly chart and it made it under an hour and made full profit in under one bar. Then his bank will pay him in an entire year so it just shows what can be achieved. 4.5 to 1 risk to reward. It was about an 11 or 12 pip stop for about a 50 something pip profit. Really good trade and hit full profit straightaway so thanks for sharing that on the webinar yesterday Richard!

Had an email this morning from Gary up in Auckland not far from me here. Gary said he made 2.5% yesterday just in the day. Had another email yesterday from Claire down in Clashaire she made over 2% last week so people making money consistently. That is the important thing and like I said in the beginning it’s the results that count. What I’m really keen on passing on is that you know you can have managed accounts you can buy Robots, if you’re lucky enough to find one to ever make you money, you can have trade copying, you can have little arrows buying and selling here and there with indicators that you don’t really know how they work. But the difference for Forex education and good education is you are in complete control. You have the ability to trade when you want what time frame charts you want, how often you want, what time of day, what pairs, what direction, what position size, everything is in your control.

I strongly believe with any finances the more you are in control of it yourself the better. You know you don’t want some robot being in control of your funds. It’s a bit like owning your own property or looking after your own investment properties or shares or whatever you might invest in. As soon as you let that control go and hand that over to someone else you really are at the mercy of them or their system.

So I love good quality Forex education because it means you are in control of the trade and it’s an education, it’s something you can pass on and it’s something you can always do. If you buy robot and you’re just happen to strike it lucky and the robot makes you some money one month, how’d you know how the system works, how’d you know how its developed, how’d you know what conditions that works in and if it suddenly turns sour and it goes wrong how long do you give it before you pull the pin? Or find another one or trade copy someone else. With your own trading it’s something that once you mastered it you can do it forever on any market and that’s the beauty of good quality education.

So other things I want to quickly mention. Yesterday we saw a lot of weakness on the JPY, we’ve seen strength in the GBP and also some strength in the USD. Now, tomorrow is Saturday and I’m off to Hawaii for the week on a business trip so I won’t be posting my daily post on Forex Peace Army on my website because 5pm New York time will be around lunch time over in Hawaii and it’s when I’ll be having meetings, but I will be recording a video and a podcast the same as this, this time next week hopefully from a nice beach somewhere in Hawaii so I look forward to talking to you then.

Have a fantastic week and I’ll speak to you next week on that beach somewhere in Honolulu.

Talk to you then.

Bye.

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