How do you trust your Forex trading plan?
In this video:
00:24 An Important Aspect of Trading
02:16 Let the Trade Do Its Thing
04:26 Why Clients Do So Well
You need to be able to learn to trust your trading plan and your trading strategy. Let us talk about that and more right now. Hi Forex traders, Andrew Mitchem here, the Forex Trading Coach and today’s Friday, the 25th of September.
An Important Aspect of Trading
In this video and podcast, I want to talk about really, really important aspect of trading. It is all about once you develop the strategy or plan or system, having the ability to stick to it. If something that affects traders across the broad spectrum from absolute beginners, right through to more experienced traders and everybody in between and something that you really need to learn to overcome in order to take that step from being maybe a breakeven trader or a small profitable trader, it is becoming a really good trader.
Let’s talk about that and exactly what I mean. You see the problem that I see happening and what I experienced from feedback that I get from people, emails, phone calls, whatever it might be, is that so many people out there, I’m talking majority of these people are non-coaching clients of mine because hopefully once they have a coach and a strategy and a mentor, things change around for them. I am talking about people out there in general who don’t have anybody to follow or for guidance. The problem that I see is so many people they develop what they think is a really good strategy and a plan that works for them. That's prudent, that's great, but the problem is, they start fiddling with it.
They try to second guess the market and they break the plan and they break the rule so the system. Everybody is going to do that from time to time. No one is perfect. I’m not saying that but the problem is, is that people seem to think that they need sit there watching every pip move up and down because the market might move against them. In reality, the market doesn’t care about you. It doesn't care about me. It is going to do what it is going to do whether we sit watching those charts or not. What I am trying to say is, once you develop that strategy, try to stick it to it to the very best that you can without fiddling with it. Without intervening with it.
Let the Trade Do Its Thing
I personally find that the vast majority of my trades that I put on in my evening time, when I wake up in the morning, they’ve either hit their profit target or the surplus, for the vast majority. It is so great to see profitable trades when you weren’t there actually at the market intervening. Because if you have a strategy and you stick with it and you have a stop-loss in place for a reason, you have a profit target there for a reason, the majority of the time unless you see any obvious reason for me to edit that trade or to get out of that trade or partially close, again that is determined on your strategy. I’ll let you see that. Let the trade do its thing because you are not going to be able to influence it by sitting there stressing it by that trade, watching every pip of movement up and down and seeing that trade almost a full profit and then just missing and then going a bit closer and then just missing.
It is quite stressful to do that. When trades get into that situation and they are almost at full profit, I just walk away. Just walk away and leave them and then come back 5 or 10 minutes later or half an hour later, an hour later and 9 times out of 10, you will see that the trades hit full profit target in that time while you’ve been away, but you weren’t sitting there stressing watching that last few pips, and so to get your profit target. It is really important to understand that. That’s once you have a strategy. The other side that I see so many people struggle with is that they have a strategy, but then they start fiddling with the strategy itself in terms of adding things to it.
Going on forums, getting other ideas, adding the next greatest indicator or robot to what they have. This is like the phrase don’t reinvent the wheel. Once you’ve got something there, stick to it. If you like it, if it works for you, fantastic and stick to it, but don’t start after 2 or 3 losing trades, adding another indicator or suddenly becoming a news trader or when that doesn't suit you or adding a moving average or MACD or so whatever it might be, don’t start fiddling with a strategy that has been proven to work.
Why Clients Do So Well
A really interesting aspect that I find with my coaching clients is that they pay for a course and they pay good money for a course. For proven strategy and hopefully what they see as a good proven mentor and educator, but you see, if you pay for something you are more likely to stick at it. You are more likely to go through the course properly. You are more likely to attend live webinars, you are more likely to attend the membership sites and look at daily information and use the software, because it is all there laid out in the step by step process in front of you, but also you then become slightly accountable because you got someone there helping you along the way as a mentor, who is expecting you to be on webinars and is expecting you to log into the membership site daily and to see what he is writing to help you, but also don’t forget that if you paid for that system, you are more likely to stay with it.
If you get a free system or a system for $20, you are so easily going to be distracted and forget about that system even if it happens to be good. The fact is that you paid for something it means that you are going to focus on that, you are going to be on track. You are going to stick with it and make it work. That's another reason. On top of all the great strategy and the help and support that I offer for my clients, it is another reason why clients do so well.
If you'd like to know more about that or maybe not at a stage where you need that mentor yet or you think you need that mentor, just have a look at what I can help you with in terms of free information on my site in terms of webinars, software, calculators, eBooks, etc., but then if you want to take your trading to next level then yes it will cost you.
It is not different from going from like a cheap holiday to an expensive holiday or cheap car to an expensive car. If you want that next level of performance, then as with most things in life you have to pay for it, but if you pay for it, you look after it, you respect it, and you make it work.
Hope that really works you. If there's some more information that you'd like me to share on future videos and podcasts, just drop me a line or leave a message on the bottom of this video and I’ll answer those questions for you. Have a great weekend. This is Andrew Mitchem, the Forex Trading Coach.
Bye for now.