Good Forex Trading Does Not Need To Be Complicated
In this video:
00:27 – Traders send me their complicated Forex charts
00:58 – Initially you think that the indicators tell you the answer
01:55 – You need to look at the price and remove the clutter
02:57 – Only look to trade upon the completion of a candle
03:30 – Don’t get overwhelmed with news events
04:31 – My Christmas sale is now live – see the link below this video
Good Forex Trading does not need to be complicated. In fact, the more simplified approach you have, the cleaner your charts, probably the better you'll do. Let's talk about that and more right now.
Hi, Forex Traders. Andrew Mitchem here, The Forex Trading Coach. Today is video and podcast number 207.
Traders send me their complicated Forex charts
I want to talk about an issue that so many people have. You see, people come to me and they show me screenshots of the way they're currently trading. It kind of just blows me away in terms of how difficult people make their trading, and unnecessarily difficult. We've all been there, haven't we? I know when I started trading I was looking at all sorts of different indicators. I was printing out, reading about them. It was just … The indicators were everything.
Initially you think that the indicators tell you the answer
They look really impressive, especially when you're new to trading, and you kind of think that they tell you the answer. Little do you realize that all they've done is made an accumulation of previous price action and plotted it on a graph somewhere, so they all lag time pretty much.
It's a real hard thing to get your head around, especially when you're new to trading because they do look really impressive. You think that your trading needs to be complicated. You think you need lines and arrows and stars and filled in bits all over the place. What you end up over time is realizing that, one, it doesn't work and what you also do is get a headache because you get confusion. You have different charts telling you different things and you really, you get the analysis paralysis, you know what I mean. Just Google complicated Forex charts and it'll be lines and squiggles all over the place.
The problem is that when you have more of these lines and squiggles you can't actually see the real important thing. That's what's happening in the price right now.
You need to look at the price and remove the clutter
Look at the candle patterns, look at the price that they are at. That's the important thing. Get rid of the spaghetti, all the lines and complicated stuff, it doesn't help you, believe me. Start with the basics, look at the price. What's the price telling you? What part of the chart is that in right now? Is that looking like a trend's going to continue? Is it looking like trends are back to reverse? Has it hit a prior support and resistance level? When it the price it's at now, like, a long time ago or more recently, what did it do then? Did it hit that level … Let's say it's in a up trend. Did it hit that level and then continue up? Did it hit that level, form a reversal bar, and then head down again?
Look at what's happening in the market right now. Look at what happened at that same price level a little while ago. Put that together and you'll really help yourself with your trading. You don't need to complicate your chart. Simplify your chart, simplify your trading, simplify your life, it means you will enjoy your trading a whole heap more.
Only look to trade upon the completion of a candle
The other tip that I will give you is make sure that you only look at taking a trade on the completion of a candle. If you're trading a daily chart, for instance, wait until the daily chart closes and then make your analysis.
If you're trading a one hour chart don't look at 20 past the hour and say, “I'm going to take a buy trade here,” because a lot could happen in the next 40 minutes until that candle closes. Only look at candle patterns and price on the completion of a candle. The other thing when you think about … That's technical trading I've been talking about.
Don’t get overwhelmed with news events
The other thing that people get really overwhelmed with is the fundamental trading. You see people thinking that they need to be in a professional trading room with CNBC going or they need to have financial magazines and papers and read financial news online. All this sort of price feeds and scorps and things coming in. Again, it's overkill, you don't need that.
If you're a fundamental trader then yes, be aware of what's happening in the news. For me as a technical trader I know what's coming up in the news. I know the major impact announcements. I know what currency they're likely to affect, if any. When the news has come through I'll look to see what the result was just so I'm informed. It doesn't really affect my trading because my own trading is what's on the chart right now. What are the charts telling me is actually happening right now in the market and that's how you make your money out of trading. That's how you make your decisions in real time.
My Christmas sale is now live – see the link below this video
I hope that's helpful. Don't forget that between Monday the 12th and Friday, the 16th of December I'm holding a Christmas sale. It's my annual Christmas sale. Three great ways to get on board with my course, three different payment methods. If you're looking to make 2017 the year when you become a successful and independent Forex trader than jump on to the Christmas sale. Three great ways to join, three very different ways to join. Have a look at the link below this video. Remember, the sale is between Monday the 12th and Friday, the 16th of December. It also gives you time over Christmas and New Year to study the course and really get familiar with the way that I trade, really for trading in 2017 and beyond.