How To Keep Your Forex Trading Stress Free
In this video:
00:34 The Trading Slave
02:05 A Lot More Relaxed Way of Trading
04:40 Don't Forget: Clocks Change in New York
Would you like some tips about how to keep your trading as stress free as possible? If you would, listen up, I got some great tips and information for you.
Hi Forex traders this is Andrew Mitchem, the Forex Trading Coach. Today is Friday the 30th of October, and I've got some great tips and information to give you and to share with you right now, to try and help keep your trading as stress free as possible.
The Trading Slave
The reason I want to talk about that is because I was watching a video on YouTube just this morning, and it was a video of supposedly a very successful Forex trader. I've got no doubt that this guy is extremely successful, supposedly a multi, multi millionaire through his trading, and that is wonderful, because there's very few people who are actually very successful at trading. I'm not knocking the guy in terms of his Forex achievements, definitely not, but what I did see on the video was an enormous amount of stress that the guy was under.
He had screens all over the place. Sure, I've got four screens behind me here, but he had screens everywhere, with different news feeds coming through, and Twitter feeds, and all sorts of different feeds and audio going, and TV in the background with CNBC, and it was like in this little cave or dungeon that he was trading in. According to the video, he was a basically a complete slave to his trading. He was trying to capture about three pips here, and five or six pips there, and watching news events and just on the phone, on Skype, on everything. It was almost over-stressful just watching the guy, and it was just a video on YouTube. That's all well and good if that's what he wants to do. As I mentioned, he seems very successful, so I've got no issues with the actual results. It's just that the way that he was trading, to me, I personally believe there's better ways of trading.
A Lot More Relaxed Way of Trading
I'm not to say that my way is the right way or the only way, far from it, but what I like to try and do is try and take the longer term approach to trading, and look at those slightly higher timeframe charts. The beauty of that is if you trade by looking only on the completion of a candle, then what it does is it frees you up. Just to give you an example of that, I've been flying for about three hours today with my wife. I placed my daily chart trades, I looked through the four hours, the six- and the 12-hour charts all at the same time which is my morning time here in New Zealand. Place the trades, the kids went to school, I was then off, been flying the helicopter for about three hours and I've just got back.
It's now heading towards the European session now, and I'll look at the 4-hour charts and then again, tonight my time, I'll look at the four-, six- and 12-hour charts and that's it for the day. Again, that's the beauty of trading those longer timeframe charts. Because I place pending limit orders on those trades, I'm not having to sit there stressed about every single pip moving up and down and being there at the perfect time, or when that perfect opportunity shows, or when there's a news announcement. If, for instance, I'm taking a buy trade on the longer timeframe charts, very rarely am I actually placing a buy trade right at the market and actually waiting for a retracement first. I don't sit there and wait for that retracement to happen. I'm just placing a pending buy order, like a buy limit to fill, if the market retraces first, to get me into the better price. That dramatically increases the return from that trade.
As I mentioned, there's all sorts of ways you can trade. It's just that for me, that is a lot easier to work around my life, and around my family, my kids, etc., my other sports and enjoyments outside of trading. You don't need to have that TV going with CNBC and every Twitter feed or every Reuters feed. You just don't need any of that there. Just look at the charts and the charts will tell you what you need to know.
I hope that helps. It's definitely, in my opinion, a lot more relaxed way of trading. A lot more stress free way of trading, and just because of that, it becomes more enjoyable. If you'd like more information about topics like this, just email me, [email protected] and I will cover any topics and Forex help and information that you guys need on future webinars and videos and podcasts exactly like this.
Don't Forget: Clocks Change in New York
Have a great weekend, and don't forget the clocks change in New York this coming weekend, so if you do trade off the 5:00PM close of day charts like I do, for all of us outside of the US and Canada, that is one hour later next week than it currently has been. Don't forget that.
Talk to you this time next week. Bye.