How do you know the best Forex pairs to trade?
In this video:
00:25 – A common issue – what to trade, which direction and when to trade
00:54 – Unnecessary risk and confusion
01:15 – Trade with the daily direction
01:50 – Eliminate the common problems
02:20 – Free information posted daily on my website for you to use
02:50 – A trade example
04:30 – Client makes +8.51% on a live account this week
04:53 – The value of investing in yourself
05:30 – The ultimate goal is to make money from your trading
How do you know which currency pairs to trade, what time frame to trade, when to trade and which direction? So let's talk about those problems and more right now.
Hi Forex Traders, Andrew Mitchem here, today is Friday the 1st of April.
A common issue – what to trade, which direction and when to trade
And a very common problem that so many people share with me is that they have such an issue with their trading of having a lack of understanding really, they are not sure which currency pairs to trade, when they should be looking at their charts, which pairs to look at, what direction the trade is likely to move in, which time frame to trade. There is quite a lot of issues going on there.
Unnecessary risk and confusion
All of those things cause a lot of confusion. They cause most people to probably take to many trades, over trade and therefore what that is doing is it's causing unnecessary risk on your trading account. Now we know the issue, let's see how we can address that.
For me I have like most things in my trading quite a simple solution to this issue.
Trade with the daily direction
What I do I tend to try and take my trades within a day in the direction in the direction that I see the longer time frame charts moving. To help people with that I post on my website, free of charge, each day the likely strengths and weaknesses of different currencies and also different pairs for each day and that is valid from 5:00 PM New York time through to 5:00 PM New York time the following day, so for 24 hour time frame.
Eliminate the common problems
What it helps you to do is to take trades using your own strategy on the time frame charts that suit you and to only take trades that are in that likely overall direction. What that does is eliminate a lot of bad trades setups and eliminates a whole lot of issues around confidence, about loss, money, whatever it might be, it helps to eliminate a lot of those current problems within your trading.
Free information posted daily on my website for you to use
I analyse the strength and weakness of all the currencies and all the currency pairs every day and so I suggest to do is have a look on my website every single day, just log into my website and get that free information. Of course for my clients they receive a whole heap more than that, they receive specific trades with the reasons for taking the trades, the directions, the exact entry point and exit point etc. that's for clients, they pay for that information and it helps them to trade all different time frame charts within that day. If you are not a client then just log into my website and have a look under the latest daily directions because it really will help you.
A trade example
As an example let's say the British pound, US dollar. They let's say were to sell off, I'm looking for short positions ideally on the British pound, US dollar. I do that by looking at the British pound and I'm seeing lot's of weakness throughout the British pound against the US, against the Yen, against the Frank, the Kiwi, the Aussie, Canadian, etc,. At the same time let's say I'm seeing strength in the US and I'm seeing strength in the US against the Euro, against the Pound, all those, against the Yen, the Frank etc,. Put the two together and I'm saying “For today I'm looking for short positions.” What that helps me do is when I go to say one hour time frame charts, four hour time frame charts and I see short positions setting up, cell positions setting up on my charts. I know that it's trading in that likely longer term direction.
What it also does is it stops me from taking buy positions or long positions on that pair today. Those long positions may or may not work out depending on your strategy and your approach to trading. However, I know that for today the likely overall direction is for the British Pound, US dollar to drop therefore why would I want to be taking buy positions? I'm much more likely to get high probability trades, higher reward through this trades by taking cell positions for today.
Make sure that you jump onto my website daily, have a look at that information, it's free there for you to go and have a look at. Of course if you want to know more then you can jump onto my course but that's a whole different level again for those people who wish to invest in their own education.
Client makes +8.51% on a live account this week
Talking about people who wish to invest in their own education. I had a fantastic email yesterday from a client of mine in Texas in The US who has made 8.51 percent on their account so far just this week trading just the daily charts.
The value of investing in yourself
It just goes to show what can be done once you have invested in yourself, you learn a good strategy, you have some backup help from a mentor and you understand what you are doing within your trading and you have that ability to then take trades for yourself. Imagine that 8.51 percent and that was only sent to me on Wednesday, or sent to me Thursday my time, but Wednesday in The US. This client still had another two days of trading, yesterday and today's trades to take. Just shows what can be achieved once you have a good understanding.
I hope that helps you because ultimately what we are trying to do out of trading is to be profitable and to make money and to enjoy our trading.
The ultimate goal is to make money from your trading
In order for all that to happen you have to have a strategy, you have to have an understanding of the market, you have to stick to that strategy and people paid for losing trades but also when you do get profitable trades make sure that they are such great rewards to risk trades that they make up for any losses that you had plus more. If that helps, let me know, leave a comment below underneath this video and I look forward to bringing you more trading news and information, this time next week.