In this video:
00:42 Suggested trades give full profit results
01:30 Full profit on the EUR/USD trade
01:46 Daily strengths and weaknesses analysis posted on Forex Peace Army site
03:05 Metals continue to fall
03:54 Took four positions on the four hourly charts
04:32 Free Lot Size Calculator that people just love
Hi Andrew Mitchem here, The Forex Trading Coach.
Today is Saturday the 2nd of March, welcome along to another weekly video.
We’ve had a really interesting week this week. Yesterday I suggested 5 trades to my clients on the daily charts. I woke up this morning my time and three of them did hit full profit. They were the EUR/USD, USD/CHF and the AUD/CHF.
Now I got stopped out on the EUR/GBP due to a lot of weakness in the GBP that was slightly unexpected and the USD/CAD – I had a buy trade on that – And I’ve got some profit out of that trade but not full profit. But I’ve closed it before the close of the trading week.
One thing that was really pleasing – the EUR/USD moved around about 130 pips yesterday. I had a profit target of 1.2980. The price went down to around 1.2965 target so we had full profit and exited the trade with only around 15 pips left on the table. So that was just a fantastic trade to take. And full profit out of the trade and closed for the week.
Forex Peace Army Giant Update
You may have noticed on the Forex Peace Army site I’ve been posting my daily strengths and weaknesses analysis and those five trades were favoured in terms of which direction we were looking for the currencies to head yesterday.
If you are following those please do remember that those analyses that put on the Forex Peace Army site are not specific trades. It’s really important for you to understand that because some people are looking at them as a specific trade they’re not that.
They’re guidelines to say using your own strategy. This is where I’m looking for the main trend to head today. So for example with the EUR/USD – if you see any short positions using your own strategy and I was looking for short positions on the EUR/USD then you would be looking at taking those short opportunities when they arise and probably ignoring most of the buy opportunities because the overall strength or weakness for that currency pair was to head down for the day.
So I hope that’s cleared that up.
Elsewhere we have seen a sell off in the GBP and I would be expecting probably the EUR and the GBP probably against a lot of the other currencies – so against the USD specially to continue to fall into next week.
Gold and Silver both continue to fall as I mentioned last week so a big sell off on those for about the last three weeks or more.
Risk Per Trade Guide
Elsewhere, one thing that I’ve mentioned to a lot of people this week is to keep your risk per trade very low. It’s a really important thing. It helps you with the psychology of your trading with your emotions in your trading. It just means that you have some control over your account.
With Forex remember that there is a longer term project. It’s not get rich quick scheme. If you treat it like that it will get you and it will blow your account almost certainly. So treat as a business, treat that as a very low risk.
Personally I look at a quarter to half of 1% risk on my account per trade. So that’s very very low.
I’ll give you an example:
Yesterday I took four positions on the four hourly charts – last night my time. All four of them worked. But I took a quarter of 1% risk on each of them. So I ended up making some really good profit. I’ve made just over 2% return on those. But if those four had all gone wrong I know that the maximum I would have lost on all four going wrong would have been just 1% of my account.
So I can put the positions on without any fear, knowing that I’ve got a very very small risk per trade. So it’s really an important point that a lot of people fail to understand. If you need to know more about that make sure you download my free Lot Size Calculator available on my website. It’s a fantastic tool and people that use it just absolutely love it.
So that’s all for this week
Hope you have a great weekend and I look forward to talking to you this time next week.