Weekly Video News & Podcast

How To Trade Continuation Patterns and Reversal Patterns in Forex Trading


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In this video:
00:40  Reversal Patterns in your trading
02:14   Trading on continuation patterns quite a lot

02:56   Overall +1% up for the week
04:48   Made a 3.6 to 1 risk to reward trade on the daily charts
06:02   Seen some strength in the USD, Swiss Franc and GBP

 
Hi, in this video I’d like to talk about continuation patterns and reversal patterns so let’s start now.

Hi, it’s Andrew Mitchem here, the Forex Trading Coach.

 

Reversal and Continuation Patterns

Today is Friday, the 21st of June. And remember last week I said I was going to talk about continuation patterns or reversal patterns so that’s what I wanted to start with on today’s video. When I’m trading I’m looking for one or the other so in other words if we were in lets say in uptrend at the moment and we saw a pattern to go short and it looks like it’s an over-bought area and we’ll then looking after large uptrend to sell a currency that is what I call a reversal pattern. It looks quite dramatic on your charts because you’re finding that most people are buying a currency and then all of a sudden I’m entering a short position and taking that pattern. But I’m only taking that short position after I’ve got confirmation that it looks like the currency pair that I may have topped out and now it looks like that it’s going to reverse so that’s a reversal pattern.
The continuation patterns, probably a slightly safer pattern and it’s one that I have a couple other indicators and other things I’m looking for to backup the continuation pattern. But overall on a chart this is what we’re looking for.

Let’s say we were in a large uptrend and then we already had that pullback but that pullback goes only so far and so we’re getting like the pullback, say a retracement of the previous uptrend so the retracement back down after an uptrend. And then after we’ve had that pullback down again then what I’m looking at doing is seeing some form of pattern there some form of candle pattern and other indicators, maybe a support resistance bounce whatever it might be but primarily based on a candle pattern saying nows the time to go long again for buying that currency pair after it’s had a pullback but bearing in mind that the overall direction has been up then it had a pullback and then we’re looking at going long again.

And so I trade those continuation patterns quite a lot. I find they’re very safe because it means you’re trading with the overall in this case uptrend but after we’ve had the pullback looking at going long again so you are trading with the predominant trend. But its two patterns that I trade I look for all the time, I also teach that on my course. So just wanted to let you be aware of the two types the reversal patterns and the continuation patterns. Two very, very powerful slightly different but very powerful setups to look out for on your charts.

1% account gain this week

On to my trades personally this week. I’ve had a slightly tougher week this week. Had some good trades and a few loosing trades. Overall I’m about +1% up for the week right now and I still have Friday to go, being Friday morning here in New Zealand, we still got the entire day to go. And I have taken quite a numbers of trades today. But overall for the week on my set and forget trades that all my clients get I’m up just over +1% for the week on closed out trades and on a EUR/GBP breakout system that I use, it’s set just once a week, it’s a breakout system that’s part of my strategy. I’m up +1.5% on that so that’s a close at +1.5% for the week for a profitable week on that strategy.
But on my other charts on the few other daily charts I’ve taken and some four hourly and it’s a one hourly down around 1.5% for the week and so overall net I’m up just over +1% for the week on closed trades with behind me here a good number of trades open. So if they come through then I might end the week on around between a 2-3% gain depending on how these trades go here. But whatever they do I will be closing pretty much all of them before the end of the trading week.

High Reward:Risk Trades

A couple of trades I wanted to point out. Now these trades were both mentioned to my clients yesterday so on Thursday and one of them was to take a short position on the EUR/USD. Now throughout the day the EUR/USD moved 140 pips from its high and its lower point and the trades that I took and suggested made 124 pips. So it’s a pretty amazing trade. It made 124 pips out of a total daily range of 140 pips with that trade with a stop loss it made a 3.6 to 1 risk to reward.

So if you are trading let’s say for round numbers a 1% risk on that trade, you’ve had made 3.6% gain on that one trade so very high risk to reward. The other trade that I suggested to my clients yesterday also hit full profit was the NZD/USD. And that trade moved 183 pips throughout the course of the day. And I picked up 152 pips on that trade. But remember the profit target and the stop loses were set at the beginning of the day. I didn’t know it’s going to move 183 pips throughout the day but my profit target was set at 152 pips for technical reason but you can see what a great trade again that was that made a 3.2 to 1 risk to reward so in other words risking 1% of your account on that trade it made 3.2%.

So two fantastic trades there very, very small draw downs on those trades and both reaching their profit target and exiting for full profit within the 24 hours of the day so two really great trades there.

USD Strength and Commodity Currency Weakness

Overall on the charts right now today I can seen some strength in the USD also strength in the Swiss Franc and there’s been renewed strength in the GBP towards the end of the week. Weakness, it’s been the commodity pairs again or currencies again. We’ve seen weakness in the AUD, huge weakness in that again, NZD, CAD and also on the gold and silver and silver itself against the USD is now down to a level that we’ve not seen since September, 2010. It’s now down below 20$USD an announced. So a very low levels there and right now they still look like they’re continuing to fall as I’m looking behind my charts before I started this video. So gold and silver falling, AUD, Kiwi, CAD still continue to fall.

I’ve had some great feedback from people again this week, some fantastic emails and also people who are following me on Forex Peace Army reporting that they are making excellent profits from just following my daily analysis of the market.

Also, if you do have any comments you’d like to share here on this page, please do enter them in the discus box below.

So thats all for now, have yourself a fantastic weekend I and look forward to talking to you this time next week.

Bye for now.

It’s All About The Japanese Yen Strength


Podcast:
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In this video:
01:00    Big movements on the daily charts
02:28    Live training room webinar with 150 people registered
03:26    The importance of the various support and resistance levels
04:47    How you get yourself a really good solid trading plan
06:42    More of continuation and reversal trades next week

Japanese strength this week

Well it’s all been the Japanese strength this week, yet again let me tell you more right now.

Hi every body Andrew Mitchem here.

Today’s Friday the 14th of June. And that’s right it’s been about the JPY strength, yet again this week.

We’ve seen the Yen pairs just falling. We’ve seen a lot of weakness on the US/Yen, the Canadian/Yen, like the Aussie/Yen, the Kiwi/Yen, and I’ve taken quite a number of those trades myself and done very nicely on them, again this week. So there’s two weeks in a row where we’ve seen that.

From time to time, we’ve had the odd day where the prices have pulled back slightly. But overall it’s definitely been JPY strength, and also throughout the week a lot of weakness in the USD itself. But it’s just been great opportunities, looking for those opportunities and those trades out there. Every time we’re looking at shorting anything against the Yen, we’re being jumping in on those trades.

Big Movements for many pairs this week

Now, there’s also been some really big movements especially on the daily charts. And so, as a result of that it’s meant that the stop losses that I’ve been suggesting and placing on the trades on the daily charts have been quite large in somewhere between around 70 and around at 100 pips in cases. But even though that sounds large, don’t forget that when you’re risking with  a set amount of risk per trade and you’re using a sensible risk to reward it means that as a consequence the profit targets that we’re looking for are somewhere around the 250-300 and I’ve even got some trades still open behind me, here, on the US/Yen and Canadian/Yen, that the profit targets are up around 330 pips, but again it comes back to risks to reward, like I’ve said so many times.

And if you’ve got a trade, of let’s say for round numbers 100 pip stop loss but a 300 pip profit target, you’re still achieving that 3 to 1 risk to reward trade that we’re looking at achieving, especially on those longer time frame charts. Now again, you could go back to, let’s say an hour chart, and you may have, let’s say again for an example a 25 pip stop loss but the profit target may be somewhere around 70-80 pips, so again it’s still giving us that same 3 to 1 risk to reward.  But some big moves and it’s been a great opportunity for cashing in on the strength there on the JPY.

 

Live Trading Room Webinar – Important Support and Resistance Levels

Yesterday, I had a live training room webinar for my clients. We had about 150 people register and attend that webinar. It was a huge turnout, really good people from all over the world on that. And we took some trades, I had 2 trades on the 1 hour charts, and 2 trades on the 4 hourly charts that I took live in front of people. And I had some trades, quite a number of trades already still open, before the webinar started.

But I spent a lot of time looking over, obviously live trades, and when they showed, looking at a lot of chart time, answered a huge amount of questions for people. So a lot of good, valuable information was shared there. And then also we were looking at where trades might be going in the future, and we also concentrated on daily charts and 1 hour charts.

We didn’t go so much into the 4 hourlies, yesterday, but that’s again for a future event. One thing that we did discuss, and it’s really important, that a huge number of clients are starting to really see the importance of the various support and resistance levels that I use within my strategy. And that could be a number of things, the daily pivot points, obviously a very important level, and that is a level that where price will often go to and turn around and bounce at that level, within a given day. So I’m very strongly looking at daily pivot points. We’re also looking at round numbers, so that’s a number that ends in a 50 or a 00 a double 0.

And the other thing I’m looking at on a daily chart, and so, when I’m looking for bounce levels and the furthest that a price will go, the resistance 3 and support 3 levels, because as my clients know, and as I know, and because we’ve seen it so many times, that very often the furthest the price will go within a day is the support 3, if it’s a short position, or resistance 3 if it’s a long trade. And it happens so many times, so those pivot points and support and resistance levels are critical within your trading because what they do is give you guidelines, they give you places to aim for, and they give you sort of boundaries, of sort of “Well the prices have already reached here for today, quite likely it’s not going to go any further”.

So when you combine these support/resistance levels, the pivot points, the round numbers, put that together with the candle patterns, and daily strength and weakness, and you can see how you get yourself a really good, solid trading plan which makes me lead on to one more thing.

I’ve got here some print outs that I’ve just printed out before I made this video just that I want to share with you. Three comments that I’ve had sent through this week. There’s the three of them, there, that I’ve had sent through.

Happy Clients Feedback

The first one I’ll read to you from Christopher, he asks some other questions, but also at the end, he said, “By the way, I’ve made +7.78% return on my capital since the beginning of the month. I’m so pleased I took your course”. This was written yesterday, the 13th of June.

Another one just came through today on Friday, the 14th. This is from Lucy. “I’m currently up +10% in one week with only 1 risk, sorry 1% risk on any given trade. I’ve currently got 5 trades that I’ve taken; I’ve only had 1 stopped out.” So there’s a +10% gain there, for Lucy.

And the last one, this is from Trevor Brewerton, who’s down on the south coast, the south island of New Zealand. “Andrew, I’d like to say thank you for last week’s trades. I’m really busy at the moment, so I only had time to take your daily trade suggestions. At the end of the week my account was up +6.38% by risking only a quarter of 1% per trade. So I’m very happy about that.”

Well, I’m sure you are, Trevor, and that’s great news to have that. So thanks for sharing that information, and thanks for allowing me to use your names there, as well. Of course whenever I ask for names, like Trevor, and give his whole name Trevor Brewerton, of course we had permission first.

So it’s really good that clients are coming through with, you know, and sending me through that information, sharing their results. The webinar, yesterday, had exactly the same – lots of people sharing their results, how happy they are since they’ve taken the course.

So that’s all I’d like to share for now.

Next Week – Continuation and Reversal Patterns

There was one other thing, actually quickly, we were talking about continuation trades and reversal trades.

I’ll talk about that more next week. So that will be next week’s topic.

So that’s all for now. Have yourself a great weekend. Look forward to talking to you next week, talking about those continuation and reversal trades, really important point to add to your trading arsenal, but more about that next week.

That’s all for now.

This is Andrew Mitchem, the Forex Trading Coach.

Here’s how Andrew Mitchem made a +9% gain on his account this week


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In this video:
00:18      +9% gain this week from risking just 0.5% per trade
02:09      Closing the trades out before that US Non-Farm Payroll announcement
03:49      A lot of strength has come in the JPY
04:29      Two new clients comments

Well, another +9% on my trading account this week.  A Fantastic week!

Let me show you how.

Hi, Andrew Mitchem here, the Forex Trading Coach.

Today is Friday, the 7th of June, already half way through another year.  And what an amazing week it’s been a +9% gain on my account this week from risking just 0.5 of 1% per trade.  And let me tell you how I’ve made those trades.

Well, I’ve made just over +4% on the daily charts. Now those are the same trades that I suggest to my clients each and every day.  I put the trade, the currency pair, the direction, the reasons for the trade, the entry and the exits, these are set and forget trades.

So just over +4% this week on those trades; I’ve made +1 ½% on a very simple breakout strategy that I use, and, again, my clients can use this, it’s just once a week you set that strategy up.  So there’s one and a half percent gain there.

I’ve made a +2% gain on the four hourly charts this week. I’ve only taken a handful, only six trades on the four hourly charts this week.  So, +2% gain there, and I’m +1 ½% up right now on Friday morning my time, on the open trades that I’ve got open.

So, all up, that’s just over +9% with a few trades still open, so great week, but really low risk.  So, it comes back to that 0.5% maximum risk per trade.  And you don’t need to be risking obscene amounts of money per trade or per week to do really well.  So, 0.5% maximum risk on all of those trades with +9% gain for the week and still 1 ½% open.

Non-Farm Payroll Announcement

But because today’s Friday and it’s Non-Farm Payroll day later my time, so that’s 8:30 US time, Non-Farm Payroll, the monthly announcement out of the US.  So, I will be closing out most of those trades before that announcement.  If you’re trading on a daily chart, you might be okay to leave them through the announcement, but anything from a four hourly chart and down, anything lower than that, definitely close those trades out before that US Non-Farm announcement.

Strength and weakness analysis

Strength and weakness analysis that I make for my clients each day, this week I’ve had twenty five trades that have ended up the following day in the correct direction and fourteen that have not.   Now, they’re not so much to say this is where the currency will end this time tomorrow, it’s to say this is the strength – I’m looking at strength in these pairs, or weakness in these pairs.

So, when my clients then go to trade on shorter time frame charts, it helps them to trade in the correct direction, or what the direction that I’m seeing myself for the upcoming day.  So, it helps you stay on the right side of the market and can really help eliminate some of those trades that may look like good setups, but end up failing.

And so twenty-five successful trade suggestions there and fourteen that ended up not being on the right side, but you still could have taken some successful trades out of those fourteen within the course of the day, it’s just that by the end of the day, they closed in the opposite direction than what I was anticipating at the start.

So, like I mentioned, Non-Farm Payrolls later today, the charts this week, what have we seen?

Well, we’ve seen a lot of weakness in the USD, huge weakness.  We’ve also seen some weakness in the commodity currencies continue from the last week and probably the week before, so therefore the AUD, the NZD, the CAD, all have weakened throughout the entire week, and the US has been the biggest losing currency of the entire week, some huge losses on Thursday.

The gainers have been the JPY, a lot of strength has come in the JPY, and also the GBP, the EUR and the Swiss Franc have also shown strength.  But, I mentioned to my clients today, being Friday, a lot of support and resistance levels have been hit today, and so I’ve actually taken no new trades on the daily charts myself for today, and also being non-farm payrolls. It’s just easier to stay out of the market, but I do have some trades that are open from this time yesterday, I’m just monitoring.  They’re the ones that are up +1 ½% on open trades as I speak.

New Clients Feedback

Also wanted to share with you this, I just had a couple of e-mails come through, and I’ve printed them out here. These are from two clients who have just joined over the last couple of weeks.

I’ll just read the first one. This is from Craig over in Perth in Australia:

Hi Andrew,  I’ve heard your course for a bit over two weeks now and I only wish I’d found this much sooner, as it would have saved me plenty of money which I wasted on so-called other experts.  So a big thank you to you, love the course.  Cheers, Craig.

So, it’s Craig over in Perth.

And another one here from Ray over in New York in the US:

Andrew, I’m blown away by your course.  I’ve been trading Forex for five years with only marginal success, but now that I’m into your course, I can see it coming together seamlessly.  Thank you for your excellent support as well, it’s very much appreciated.

So, that’s from Ray over in New York.

So, it’s a couple of people there that have joined up in the last few weeks. I just wanted to share those with you.  If you are thinking of joining my course, I’d love for you to be one of these people like here, like Ray and Craig.  People that have been trading for a number of years, especially in Ray’s case here, five years he says, and he’s blown away by the course.

Are you struggling with your trading?

So, if you’re struggling with your trading, if your sort of sitting on the fence, let me know what I can do to help you, contact me, send me an e-mail.

If there’s anything I can do to help you be successful with your trading, I would love to have that opportunity to help you.

Like I said, I’ve made over +9% this week, it is a better than average week, definitely, but if you’d like to be one of those people who is able to achieve results like that for yourself as an independent profitable trader, let me know.

That’s it for this week.

Be careful with Non-Farm Payrolls!

Look forward to talking to you this time next week.

The New Zealand Dollar bounces at 0.8000 against the USD


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In this video:
00:19   Just returned after a three week holiday and a tour of India
01:24   What sets Forex trading apart
02:12   This week on the charts
03:22   Strong and powerful bounce levels
04:29   More advanced training room webinars soon

Well the Forex market is an amazing market.  It allows you to earn money that is not related to how many hours you work or what type of work you do.

So let’s talk more about that now.

Hi, it’s Andrew Mitchem here, the Forex Trading Coach.

Today is Friday the 31st of May.

I’ve just returned after a three week holiday and a tour of India, and what an amazing place that is. If you’ve not been to India, it’s a place I highly recommend you go and see, just to see it, just to experience it, as it’s so different from anywhere else that I’ve certainly been.

It really is a country of extremes. It’s a country of extreme poverty, and it also has extreme wealth. It really is rather one end of the scale or the other, and really not a lot in between.  But just an amazing country to go and see, some fantastic people, lovely foods, great sites to see. So I highly recommend you do that.

Trade Forex From Anywhere

Like I mentioned at the beginning, when I’m trading I can trade from overseas, I can trade just once a day. And so that does allow a passive income, and trading’s quite a unique business, that it means you can travel, you can go overseas, you can do all sorts of things. And it doesn’t matter how much you trade, because the amount of trading that you do, the amount of time you spend on your trading, is not directly correlated to how much money you make from your trading. And that’s one thing that sets  Forex trading apart from most other businesses out there.

Number one you can trade from anywhere. But also, like I’ve mentioned over the past few weeks, I haven’t taken many trades at all, been concentrating on only the daily charts, but still made very good returns whilst being on holiday.

Get away from earning x Dollars per hour

And so you don’t need to be slaving away for hours and hours and hours at a particular job to earn X amount of dollars per hour. It also doesn’t matter how far up the ladder of that business you make it, whether you’re right at the bottom or you’re the manager because with Forex trading all of that is completely irrelevant.

And so again it comes back to just how powerful good Forex trading can be and how much of an income and a great lifestyle it can help create for you. So, I just wanted to cover that.

This week on the charts, what have we seen?

This week’s strong and weak currencies

Well towards the end of the week we’ve seen some strength into the Euro, into the GBP, and the Swiss Franc. We’ve had the Australian and New Zealand dollar, so the Aussie and the Kiwi, weakness throughout the whole week, carrying on from the previous few weeks, but we’ve also at the end of this week we’ve seen some weakness occur in the USD. Whereas the last few weeks the USD has been strengthening quite a lot. So there’s some weakness coming in at the end of this week. Whether that’s just a retracement or correction, time will tell.

NZD/USD bounces at 0.8000

Heading back to the NZD against the USD it bounced perfectly at the 0.80 level. Those of you who have been watching my videos for awhile now, you know that I concentrate a lot on round numbers. And a round number is a number ending in zero, and also fifty. The zeros are even more powerful. So have a look at the charts on the NZD. It bounced perfectly for the second time in a number of days at the 0.80 level. So when you get candle patterns and other technical setups working in conjunction with a strong, powerful bounce levels, that’s when you get yourself a really good trade, so keep an eye out for that one.

Trading Webinars for you to attend

Also, now that I’m back home in New Zealand, and I’ve finished my travels for awhile, I will be starting up my weekly “Introduction to Forex webinars”, so that’s aimed at those of you who are newer to trading. So they will be starting up again, exactly the same webinars that I was holding before I went away. But if you’ve not seen one of those, make sure that you do jump on, they’re a really good learning tool.

And for those of you who have been trading for a little bit longer, so somewhere maybe six months onwards. So maybe you’ve been trading for a year or two or three years even, and you still haven’t cracked the Forex market (and I know there are a lot of people like that). If that’s you, then I’ve got some great news.

In a couple of weeks from now, I’m looking at starting also another webinar, but for those of you who are more advanced in your trading. So giving away some really useful tips and information to help take you to that next level and finally crack this amazing Forex market.

So if that’s you, look out for that in a couple of weeks, and I’ll let you know when those more advanced training room webinars will be starting.

So that’s it for now.

As of next week I’ll be back into full swing trading into daily charts, four hourly charts, and possibly some one hour charts.

So I look forward to talking to you this time next week with some more Forex news and trading tips and information.

Bye for now.

Three percent in just two trades this week. Here’s how to do it!


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In this video:

00:19   3% made in just two trades this week
00:59   The charts this week
01:43   Looking at the daily charts – New York Eastern Standard Time
02:12   Higher probability of profit target

3% In Just Two Trades This Week – Let Me Show You How

Hi, Andrew Mitchem here, the Forex Trading Coach,


Today is Sunday the 26th of May. I’m in Kolkata (Calcutta), which is on the east coast of India, on the last few days of holiday here in India.  I just wanted to tell you about that 3% that I made on my two trades this week. I only took two trades.  One of them was on Monday, on a breakout system that I used, and the other one was on Friday using just the daily charts.

And so it just goes to show again that by trading less, you can actually make more.   I’m more than happy being on holiday here, touring around India and just trading a couple of times this week when I’ve seen good set-ups and making 3% for the week, it’s a really good return.

Just shows that you don’t need to be sat watching one minute or five minute charts all day long, because ultimately you end up paying your spread back to the broker all the time and being completely tied to the computer, and really that’s not what any of us really want out of trading.

Looking At The Charts This Week…

On the charts this week, we’ve seen some strength in the Swiss Franc, and we’ve seen a little bit of strength in the Euro, and towards the end of the week, we’ve seen quite a lot of strength in the JPY.  And again, towards the end of the week, the US has weakened, but also seen quite a lot of weakness throughout the entire week on the NZD, the AUD, and the GBP.

And where we’re heading into next week? Well that comes back to looking at charts again.

The Importance Of Routine In Daily Trading

So, it’s important to have a routine with your daily trading.  For me, as I specialize mostly on the day charts and the four hourly charts, I like to do the same thing every day.  And when I’m on holiday, it means just checking the daily charts, so I’m not interested in trading anything shorter term this week.  But on a daily basis, I’ve been looking at the daily charts about a half an hour before the close of the day, based on the 5:00 p.m. New York Eastern Standard Time close of day, so around 4:30, a quarter of five, New York time.

I’ve been looking at the daily charts, looking for potential set-ups, looking for candle patterns that are likely to occur, looking for support and resistance levels, looking at places for my stock losses and for my profit targets.

Is there enough room to move from my profit target before the last swing high or swing low?  If there is, then it gives me a higher probability of my profit target for the new day to be reached.

So, I do that every single day, and it doesn’t take long, it’s something that’s a routine in my daily life and I don’t do it, obviously, I miss it at weekends because I can’t do it, but I look at it on a day by day basis.

How To Make Your Trading More Successful

So, if you want to trade just fifteen minute charts, then make sure you do the same thing at the same time every day.

If you want to trade four hourly charts, then make sure you can get to your charts every four hours.

So, it’s really important to do that, because then it sets up a plan, it sets up a routine for your trading, and ultimately it makes your trading far more successful.

So, that’s it for now.

Next week I’ll be coming to you from back in New Zealand again, after about a 17 hour flight.

So I look forward to talking to you then and hopefully you have a really good week with your trading.

Discover the beauty of trading Forex on the daily charts even if you are on holiday


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In this video:
00:16   Trading on the daily charts on a holiday
00:52   The US strengthened hugely this week
01:15   Huge market for Gold and Silver

I’m in the beautiful city of Jaipur on Northern India and I’ve been trading on the daily charts just this week so join in now and I’ll tell you all about it.

Hi Andrew Mitchem here the Forex Trading Coach.

Today is Sunday the 19th of May. And I’m in India as you know I’m on a holiday but I’ve been trading on the daily charts only and that’s the beauty of trading Forex. You can trade the daily charts, I’ve been getting up quiet early in the morning here because 9 o’clock in New York time is 2:30am in the morning here.

But it means that I can put my trades on, put on and leave them and set them then it means that later in the day I can come back to the hotel the next morning and check the trades again. So that’s what I’ve been saying over the last few weeks. What we’re looking at is trading less because remember there’s no prizes for trading more.

Look at trading less, get away from those 5 minute, one minute charts and get on to the daily charts, the four hourly charts. It allows you to do things like travel like I’m doing here.

And into the charts themselves this week what are we seeing? Well we are seeing the US strengthen hugely this week and at the same time, we’ve seen the NZD, the AUD, and the JPY weaken quiet considerably.

And looking at the charts I’ve just done we’re now into Sunday before the market opens for the next week. I anticipate that the prevailing trends will continue heading into next week.

Now of course I’ve got to mention Gold and Silver, I’m in India and everyone loves Gold and Silver here. There’s a huge market for it. Everything is dropping at this stage and it’s due to the US strength as well. And again looking at the charts it looks like the down trends may well continue.

So if you’re looking at trades for next week, look at short or anything against the US and consider taking shorts over the long term at the moment and look at selling Gold and Silver when opportunities come.

That’s it for now. I’m off back to enjoy the beautiful temples here in Jaipur and I look forward to talking to you this time next week.

US Dollar Strength Continues


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In this video:00:24   An increase in the non-farm payroll employment data

01:06   Strength continue in the US
02:00   Heading into the European session on Friday
03:12   Posting each day on the Forex Peace Army site
03:36   Trading just on the daily charts over the next three weeks

Well, as I mentioned last week, I was looking for an increase in the job numbers in the US non-farm payrolls and that came through, and we’re seeing US strength ever since, throughout the whole of this week.

Let me tell you more about it now.

Well, that’s right, if you remember this time last week, I was saying before the non-farm payrolls, when I recorded the video, that looking at the charts, the technical setups, it was looking like there was going to be an increase in the non-farm payroll employment data out of the States, and it came out about 165,000 jobs created as an expected 146,000.

So, about 19,000 jobs more created than expected.

So, good news for the US economy!

And like I said, you could see that was likely to be the result by looking at the daily charts especially, and the technical setups on the charts.  And I was calling that, as you would’ve seen on this video last week, but also for my clients, to look for that number to increase.

Now, as we’ve gone through this week – so the non-farm payrolls were last Friday, we’ve gone through this entire week, today being Friday, the 10th of May – we’ve seen that strength continue in the US throughout much of the week.  And I’ve been calling positions, looking for strength in the US dollar.  Right behind me on the chart here, we’ve got the US Swiss Franc, right now as I’m talking, just skyrocketing, going up and up and up.  So, there’s definite strength in the US.

Another piece of news and technical sort of change that will blend the two that happened together: I was calling short positions on the AUD/ USD this week. It was on the day that the Aussies dropped their interest rate, the cash rate dropped down by a quarter of one percent; and eight hours prior to that announcement, with my data, you had trading suggestions for my clients, and also the strengths and weaknesses that I post freely on Forex Peace Army, I was calling AUD weakness, and it’s just continued to fall and fall.

And again, one of the charts behind me here, I was just looking at the AUD right now, even heading into the European session on Friday, just continuing to fall.  But, again, the charts were showing me well before the news announcement, what the likely effect was going to be.  And again, I come back to the point, that’s why I’m a technical trader, because the charts tell me where the market is likely to move and that’s all I worry about.  I don’t really worry about whether the news comes in and what the figure is, whether it’s good or bad, because the charts tell me much of that information, 90% of the time, the charts will tell you in advance.

So we’ve seen US strengthen, we’ve seen Aussie weaken, and we’ve seen the JPY weaken tremendously throughout this entire week as well.

So, this weekend I’m heading over to Singapore for a couple of days, and then over to India for three weeks, can’t wait to go there.  Like I said several weeks ago, it’s been on my goals list for a number of years now.

I’ve turned forty, it’s my goal to go there at forty, so that’s what I’m doing.  I will be continuing to post my daily trade suggestions, my actual trades with the entries, the stock loss, the profit targets, for my clients while I’m in India, and that will be at 2:30 a.m. local time over in India.

And I’ll also be posting a brief post each day on the Forex Peace Army site.  So, I wanted to point out that even though I’m away, I’m going to continue to work remotely and look after my clients; it’s my number one priority, looking after clients and providing them with good service and good, quality trade setups to make them profitable.  After all, that’s what people who come to me are looking for, they’re looking to be profitable, and they’re looking to be independently profitable, and that’s what I can provide.

Now, over the next three weeks, personally, for my own trading, because I am going to be on holiday, I’m going to be trading just on the daily charts.  I may also look at the weekly charts to see if there’s any setups, but I’m going to be trading mostly on the daily charts.  I’m not really going down to four hourlies and hourlies, because I’m on holiday, I just want to go and see India, and explore the sights and sounds and the foods and the cricket of India.  But, it will be really interesting in three or four weeks’ time from now, and I’ll keep you updated how the trades go and how my personal results are going from trading just once a day on the daily charts.

So, keep watching the videos.

This time next week, I’ll be in very hot India where it’s about 43 degrees centigrade and I’ll be coming to you somewhere in India with another weekly update.

So, I look forward to talking to you this time next week.

A fantastic week of trading with a +4.2% account gain


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In this video:
00:23  +4.2% gain this week on the daily, four and one hourly charts
01:05  Lots of new clients sign up with the birthday promotion
02:19  What’s your win rate?
03:58  Aussie Swiss Franc took a short position on the daily chart
05:11  Looking for a higher U.S Non-Farm Payroll figure

Well, no lunch with the Prime Minister to report this week, but I had some fantastic trades with a +4.2% gain on my account so far this week.

Let’s look into it now.

+4.2% gain on my account this week

That’s right.  A +4.2% gain so far this week on my account through the daily charts, the four hourly charts, and a couple of one hourly charts.  Haven’t done a massive amount of trading because the set ups haven’t been there.  But still, a +4.2% return, with just half a percent risk on each trade.

I want to go through and talk about some of those trades, because it’s really important to understand what trades are taken, be very selective with the trades.  But like I’ve talked about in the last few weeks – really important to have high risk to reward trades.

As I said to start with, no lunch with the Prime Minister this week, so slightly boring there, but it’s not every week you do that.  Really enjoyed last week, as you probably found out.

Lots of new clients sign up with the birthday promotion

Also had a lot of new clients sign up this week with the birthday promotion that I’ve been holding over the last couple weeks.  So, if you’re one of those new people, fantastic.  Really pleased to have you here.  And I know a lot of people were on yesterday’s live 2 hour trading room webinar. And we took about three trades on that session.  It was also a really good opportunity to introduce those new people to some live trading and to see the actual process occurring in real time.  We also had a really good opportunity to review some daily charts, four hourly charts, and one hourly charts through the session.

Really interesting again, I had a client from Namibia.  He’s been with me for about, probably 2 years now.  He said, “Look, I’ve had really good success.”  I think he had a 3% gain for the week so far.  He was closing down due to today being non-farm payrolls – closing down his trades for the week.  But a 3% gain.  And he just said “Hey look, Andrew I don’t need huge win rates.” And I think he had something like 3 winning trades, and 2 losing trades.  But still a 3% gain for the week.  I was really pleased to share that information, which is fantastic.

What’s your win rate?

I also want to talk about a phone call I had today.  I had a lady call me and say, “Look, Andrew.  What’s your win rate?”  I said, “Well, look, it doesn’t really matter that much. Well, it kind of does matter, but you don’t need to have a huge win rate.”  And so, I think she was expecting me to say something like a 90% win rate.  And it just is nowhere near that.  90% win rate is fine if you’re sort of scalping a few pips here and there, and you’ve got a very low risk to reward on your trades.  However, if you can get around a 50-60% win rate with your trades, yet you’ve got somewhere like between a 2 or 3 to 1 on average risk to reward, you’re going to do extremely well.

Just to clarify those daily trade results so far from this week: daily charts are up +2.4% for the week, with a 0.5% or half a percent risk on each trade.  And I’ve had 4 winning trades and 4 losing trades.  But, still a +2.4% gain with very, very low risk.  So again, it comes back to you can see how important the high risk to reward trading is.

On the four hourly charts and the one hourly charts, I’ve had trades this week.  I’ve had 5 winning trades and 7 losing trades.  So, I’ve got more losing trades than my winning trades this week, yet I’m still up +1.8% on those shorter time frame charts.  And again, starting to sound like a broken record.  You can see how important it is to have bigger gains out of your winning trades and control your risk on your losing trades.

Amazing AUD/CHF trade

A trade I also want to mention: Aussie Swiss Franc took a short position on the daily chart.  Recommended it to my clients.  It was an amazing trade.  The trade moved, or the bar moved within the day 133 pips.  The trade we were looking at, because I was looking for a retracement, a short position, so I was looking for the position to move up or retrace first and then drop – which it did exactly.  The trade I was looking for had 108 pips out of the trade, out of a daily move of 133 pips.  So those daily trades, when you get trades like that, you want to take a picture of them.  Take a photograph, and say, “Look this is just a textbook setup, and it worked a treat.”

Good Non-Farm Payroll news ahead?

Because its Friday today, we have the non-farm payrolls later: my time tonight, 8:30am  U.S. time on Friday, which will be Friday, the 3rd of May.  Who knows where it’s going to go.  I would be looking to think the U.S. is going to gain in strength.  By the time you’re watching this video, the non-farm payroll and the weekend’s come.  You know, it’s going to do one or the other.

Looking at the charts today, I’m looking for U.S. strength.  The charts are suggesting that the U.S. looks like it’s going to strengthen.  It will be really interesting to see by the time you’re watching this video, what actually happened on that non-farm payroll announcement.  But right now, my guess is U.S. strength, and so probably good or better than expected job numbers.

So we’ll wait to see.

If you do have any trades open on any non-farm payroll announcement, if it’s a daily chart or a weekly chart, you can let the trade ride through that.  Anything shorter than that, any timeframe shorter with a smaller stop loss, I’d be getting out of the trade before that non-farm payroll news announcement.

So that’s all for now.  Look forward to seeing what that news is, and also catching up with this time next week you for some more Forex news.

Bye for now.

Lunch with the Prime Minister – an ex-Forex Trader


Podcast:
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In this video:
00:37      Fascinating insights of New Zealand Prime Minister
02:00      +4.7% risk to reward on 4 hourly charts
02:42      Few things to learn from that risk to reward
04:20      NZD’s been the strongest currency performer

 

 

Andrew Mitchem with John Key, Prime Minister of New Zealand

 

Well I’ve just got home after having lunch with the Prime Minister.  It’s a true story and I’ll tell you about it right now.

Hi, Andrew Mitchem here, the Forex Trading Coach, today is Friday the 26th of April.

Lunch meeting Mr John Key, the New Zealand Prime Minister

That’s right, I’m buzzing at you, I’ve just had lunch with the New Zealand Prime Minister. It wasn’t just me, there was a group of business owners, local owners, and I was invited to attend and to have lunch with the Right Honourable John Key, who is our New Zealand Prime Minister.  A brilliant person to listen to, a fantastic speaker, a brilliant mind when it comes to numbers.

Talking a lot about governments overseas, about the world economy, budget deficits and where he sees the whole shift in power in the world and in the whole global economic situation over the next sort of 10 to 20 years. Really fascinating insight of how the whole political spectrum operates and talking about Obama and Cameron and other people that he’s in regular contact with.

So really, really enjoyed it; great opportunity.

It’s not every day you get to sit and have lunch with your own Prime Minister or any Prime Minister for that fact. So, I’m on a bit of a high right now because I’m a real fan of John Key. Incidentally, he used to be a currency trader, a Forex  trader over in New York and also in London; has made all his money out of Forex trading. So I suppose he’s a bit of a connection there and another incident of what, the thing that attracts me to him as a person.

But as you can tell, I’m buzzing so that was that.

High Reward:Risk Trades

On to the trades themselves this week, I’ve since sent through some videos that you may have seen some valuable insights into risk to reward. I call it reward to risk because I’m always looking at how much reward I get for how much risk I get.

I sent through a video last Friday of a GBP/JPY trade that I took on the 4-hourly chart that had a 4.7 risk to reward or reward to risk. So in other words, I made 4.7 amount of whatever it is I was risking. So let’s say if I was risking 1% of that trade, I would’ve made +4.7% return on that trade. I actually risk ½% so I made +2.35%. And then yesterday, I sent through another example of a trade, also on the 4-hourly chart on the GBP/CAD and that had about a +3.6%, I think it was, sorry a 3.6 reward to risk or for ½% risk on the trade, means I had a +1.8% return.

So a few things to learn from that. Risk to reward, obviously it’s crucial, it’s critical when you’re trading actually.  It’s so important it’s not funny. You really need to be looking for these trades that give you several times reward of the risk you’re placing on that trade. What that means is you can be wrong more often than not if you, you know, if your success rate’s not high and still make really good money. And that’s what I find with the 4-hourly charts and the daily charts.

Daily and 4 Hourly Charts Trades get you away from watching charts all day

So they not only have the advantage of not being tied to this thing, you don’t need to be tied to your screen all day long. Like if you add it up, I probably don’t watch charts for an hour absolute tops during the day, absolute tops – an hour.  And still do really well from it, so you don’t need to be watching charts all day, you don’t need to be scalping 1 minute and 5 minute charts all day and night. It’s just, you can do that if you want but it’s not necessary and you really don’t need to have to do that in order to make good money. And I think that’s one of the areas where a lot of us, especially newer traders, go.

They go wrong.

They think they need to go down and be scalping all the time, collecting all these pips and frightened to go out the door in case they miss a movement.

Well forget it.

Trade Less and make More

Trade less, enjoy your trading more, have less stress and make more money. So to me it makes logical sense doing that. So that risk to reward it also helps control your emotions as well.

The New Zealand Dollar Strength

This week we’ve seen a pretty mixed week in terms of the currencies, not a lot really happening in terms of overall strength or weakness consistently throughout the week. Overall I suppose you could say the NZD’s been the strongest performer at that. And also we could well have seen the bottom in gold and silver, hard to tell right now but it’s certainly been some good strong bullish movements back up in both gold and silver this week after the huge crash we had a couple of weeks ago.

So that’s all for now, I’m off to buzz a bit more about meeting the Prime Minister and look forward to talking to you this time next week.

Have a Trading Plan and look for a Confluence of Events


Podcast:
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In this video:
00:47    +0.25% risk per trade on a complete 100% set and forget approach
02:03    A high probability chance of a successful trade
03:20    Trading on a longer term basis
04:52    Offering a birthday promotion discount
 

Have a Trading Plan, look at a Confluence of Events and some Recent Results

In this video I want to talk about having a trading plan, look at a confluence of events and some recent results.

So let’s get into it.

Hi, it’s Andrew Mitchem here, the Forex Trading Coach.

Today is Friday the 17th of April. I had a live two hour webinar with my clients at this time last night. We had clients from 32 countries from around the world, a really good interactive webinar. Heaps of information shared, lots of live trades, some that I took myself and others that clients had open already prior to the webinar.

+4.45% from trading the Daily charts in the last 2 weeks

I also shared with my clients how over the past two weeks just by following my daily trade suggestions only, at only 0.25% risk per trade on a complete 100% set and forget approach, so that’s including staying open over non-farm payrolls, staying open over weekends etc., just a complete 100% set and forget approach, they have made +4.45% over the last two weeks since the previous webinar.

Now of course if you wanted to risk slightly higher, half of one percent 0.5% risk per trade that would have been a nine percent return over the last two weeks trading just the daily charts, just copying the trades that I post each day on my website for my clients. Takes people five to ten minutes once a day and that’s it.

So image  that, over nine percent, +9% return in just the last two weeks.

The Importance of having a Confluence of Events within your Trading

Now on that webinar we discussed in some length about the importance of having a confluence of events within your trading. So what I mean by that is when you’re looking at a new trade set-up, and let’s say you trade like I do and you’re looking at candle patterns and candle stick analysis. It’s all well and good to actually find a potential continuation or reversal candle but to back it up you need more than just that, because nothing by itself works. You can’t just rely on just a candle pattern, or just a certain indicator, or just a pivot point. It needs to be a multiple confluence of events to give yourself a high probability chance of a successful trade.

And that’s what we talked about, we were looking at not just the candle pattern but where does it occur within the chart?

What’s happened before it and what time of day is it?

Where does it bounce?

Does it bounce at a certain level for a reason?

Has it bounced there in the past?

Has it exhausted prior?

Has there been a trend line break?

Do we have divergence?

Do we have a bounce of a round number? All sorts of different things.

Are we trading with the strength and weakness of the daily trend as well, or are we against that?

So we looked at a huge number of pairs and certain time frames. We look at the daily charts, the four hourlies, the hourly charts and they even found a few five minute chart trades to share as well, because just because I like the longer time frame that doesn’t mean that everybody does.

So we looked at all sorts of things, looking at some really good trade setups.

Ensure you have a Trading Plan

The other thing I wanted to share with was I’ve had a few e-mails from people and I’m a little bit, a little bit scared I suppose you could say. I asked people on the Forex Peace Army site, “If you don’t have a trading plan, let me know.”

Some of the results, I’m a little bit sort of concerned. This is non-clients I’m talking about, people don’t seem to have a good trading plan, and it’s something that you really do need. You must have a trading plan; it’s the same as any other business. Treat your trading a longer term basis, don’t be worried about just having a losing trade or two or like opposite to that don’t be like really excited because you have one or two winning trades. Look at your trading as a longer term business. Look at it over the course of a week, then the course of a month, or a quarterly length of time.

It’s not all about doom and gloom because you’ve had one loosing trade, you know look at it in a lot longer term. One person wrote to me and said, “Andrew I’ve had some good trades but now I’m down this week 85% on my account.”

It’s like what – 85% down in a week, what on Earth are you doing?

It just shows me people don’t understand money management and they are sort of treating their trading as a gamble and don’t have that plan so really ensure you that have the plan. If you need some help with that, just email me, andrew@TheForexTradingCoach.com and  I’ll send you some information to help you out.

40th Birthday Promotion, get a $400 Discount

Last thing I want to talk about is my 40th birthday promotion. Myself and my wife as you probably know already we’re off to India for three weeks in May to celebrate my 40th. I’ve always wanted to go to there and it’s one of my goals. I have trading goals and I have personal goals and going to India is one of my personal goals and I’m fulfilling that. I’m going to be trading and carrying on trading the daily charts and looking after my clients and answering emails while there, but I’m not going to be trading anything shorter term.

To celebrate that I’m offering you a discount of my course it’s a $400 discount to celebrate Andrew’s 40th birthday. There’s information about that offer on my site, on the home page it’s an offer I’ve never run before, never had a price discount before and I’ve been coaching people since 2009 so it’s not likely I’m going to be doing this again either. That runs out the first of May if it’s something that interests you, you wanted to be looking taking my course, you’ve been on the fence, you’re not quite sure, do I don’t I? If it’s price that’s worrying you, look this is a $400 discount, a genuine discount it ends on the 1st of May.

I encourage you to take advantage of that.

I look forward to helping you becoming a successful Forex trader.

So that’s all for now and I will talk to you this time next week.