How to Trade my Strength & Weakness Analysis
In this weekly video:
00:29 – Daily Strength & Weakness Analysis
00:55 – Trades posted free by 6pm EST New York Time
01:29 – The likely direction for the upcoming day
02:20 – How to best trade the analysis
02:55 – Why trade with the trend?
04:40 – If you don’t have your own working FX strategy
05:30 – What happens if the price goes the other way?
06:33 – We’re not perfect!
I'm going to explain how you can best take advantage of the free posts that I put on my website each day, where I explain the likely daily directions and strength and weakness analysis. So let's get into that and more right now.
Hey Traders, Andrew Mitchem here from the Forex Trading Coach video and podcast number 312.
Daily Strength & Weakness Analysis
Want to talk about the strength and weakness analysis, that post on my website each day. If you got into the trade section or the Forex Trading Coach and on the right hand side each day you will see that I update it at about six o'clock eastern standard time, that's New York time each day. The likely directions, the strength and weakness analysis of various currency pairs for the upcoming day for the next 24 hours.
Trades posted free by 6pm EST New York Time
Now the trading day is for 5:00 PM New York time to 5:30 PM New York time. And at that time I'm posting trades like specific trades from my class and then by 6:00 PM we had the free analysis, which you can get if you're not a client every single day.
Now the free analysis, of course it's free but because it's free, it is a very basic form of what my clients get like you don't get the specific trades, you don't get the specific reasons for trades, you don't get the intranets for trades and don't get the bigger picture weekly and monthly trades either.
The likely direction for the upcoming day
But what you do get is the likely direction for the upcoming day and the currency strength and weakness of where I see potential bullish currency pairs and where I see potential bearish currency pairs. So as mentioned only clients get the next level, but there's lots and lots of analysis and useful information there for you to take advantage of if you're not a client. Around it's probably six or seven years ago, Forex Peace Army, the well known and respected review company, picked up on my free analysis and asked if I could post on their site each day, which I have done ever since.
And then leading on from that, a whole range of forex companies throughout the whole world, all over the Internet pick up on that daily analysis because they see it as valuable information for their readers. That sort of now available for you every single day to log in and take advantage of.
How to best trade the analysis
Now I had an email from a trader called Henry who said to me, “Hey Andrew, can you just talk about it, make a video about it, and explain how we can best make use of that analysis that you post there each day.” How many trade should we take, when should we enter? All those kinds of things. So the important thing to understand that these are not specific trades, they are likely trends, they're likely directions. And what you should be doing is you should be using your own analysis to take trades that are in that same direction as those likely trends that I'm seeing.
Why trade with the trend?
And why would you do that? Well, you think about this logically. If I'm seeing lots of strength in the Australian dollar, let's say as an example, and I'm seeing lots of weakness in the US dollar and against the Yen again, as an example, I'm likely to be saying for this day, I'm looking at bullish trades buy trades on the Australia in US dollar and the Australian Yen. So what that means is when you're taking your own trades using your own strategy, if you see sell trades like potential good setups that are sell trades on the Aussie Yen, you might think twice about that. You might reduce the risk on it or you might not take them at all because they're trading against the likely bigger picture. I flip that around and if on your own strategy, your own analysis, you see a four hour chart set up, let's say, and it's a really good strong buy trade on the Aussie US or the Aussie Yen for on that particular day, then what you're doing then is you're seeing a good shorter term bullish set up and it's in the same direction as the Aussie strength, the US weakness or the Aussie strengthen the Yen weakness.
So therefore we're looking for those pairs to be rising anyway. Bigger picture, scale that down onto your four hour chart or one hour chart or let's say as an example. And if you're seeing a bullish set up in the same direction as to where we're seeing that bigger picture then that surely has to add probability and add more weight to the chance of your trade, if the setups good being a successful trade, therefore being more profitable and helping you gain more from your trading. So that's how you should best use it.
If you don’t have your own working FX strategy
Now, of course, if you don't have your own strategy, then you can certainly come to us and look at what we offer. We've been doing this for almost 10 years, we've got a fairly good understanding of what works and how to help different people with different sort of strengths and weaknesses with people with different experiences throughout people, we've taught people have never traded ever, ever before.
Through to people who have been trading for or trying to trade for 10 years and I've failed. So we've taught all sorts of people from all different countries. The great thing is the strength and weakness analysis that we post. You can use that throughout the whole 24 hours from the 5:01 let's say, so when the new day starts to the end of that day, because that analysis is valid for the entire day.
What happens if the price goes the other way?
The other thing I've heard people go is they said, Andrew, I've looked at your strength and weakness and the pairs gone the other way. So as your strength and weakness, no good? And the answer clearly is no, that's not how you should be looking at it. Let's say, let's go back to our example of the Aussie US dollar and let's say that I'm calling buy trades and bullish directions and all that happens for that day is the Aussie US dollar just drops and drops and drops and drops.
And that can happen. But what is to say is if you're only looking for buy trades for that day, the chances of using a good quality bullish setup if the pairs just dropped or are virtually zero. So therefore my analysis might not be correct for that day and where I'm looking at the likely direction, but on the same hand, no damage done. Because if you're only looking for buy trades and the market just drops, then the likelihood of you finding buy trades or good quality buy trades it's not going to happen. So therefore you don't actually lose anything. It's not like you're taking lots of losses.
We’re not perfect!
So it really important point there also because as a real trader and that's the comments that so many people write back to me and say, “Hey Andrew, let you tell it as it is.”
And that's because here I am at home trading. You can see charts behind me here trading every day because that's what we are we're real people. We're not some corporate, we're not some flash company in London or somewhere like that. Well that's not us at all. We're real everyday traders trading from home kind of living the dream and working hard, but enjoying our trading and the rewards that come from it. And so that's the reality, some days we get it wrong, but the thing is if we get it wrong in the market goes the other way, the likelihood of taking losses is virtually zero because we don't see any quality setups anyway. So I hope that makes sense. You've got to look at things both ways, when we pick it right, and when we don't pick it right and that's the reality of trading.
So hope that helps and if you have any questions exactly like Henry did last week when he emailed me about this particular topic, just send me an email, [email protected] See you this time next week. Bye for now.