Keep Your Trading Simple
In this video:
00:24 – The importance of keeping your trading simple
01:00 – Clients loving the logical, practical trading method
01.24 – Live trading room webinar feedback
01:40 – Many traders over complicate their trading – analysis paralysis
02:10 – The price will either go up or down
02:55 – Keep your trading simple and trade what you see
03:14 – A weak looking AUD$ – an example from this week
04:10 – What are the charts telling you?
As traders, we need to be using the K.I.S.S. approach. What is the K.I.S.S. approach? Let's find out now.
Hi, Forex traders, it's Andrew Mitchem here, the owner of the Forex Trading Coach. Today is Friday, the 13th of May.
The importance of keeping your trading simple
I want to talk about the importance of keeping our trading simple using the K.I.S.S. approach: Keep It Simple, Stupid is the acronym for K.I.S.S.
It's really important that we do that as Forex traders. It's important that we do that in so many things, but as traders, it's something we should really, really focus on. I've just finished my 7th birthday sale. Had a lot of people sign up, some just over the moon people, really happy, ecstatic people that they've been able to jump onto the course at such a drastically reduced price, so well done, you, if you jumped onto the course and took advantage of that special.
Clients loving the logical, practical trading method
One thing that I've learnt from the feedback from people already is that they're loving the trading approach that I have. They're loving the simple approach, the logical, straightforward, practical, easy to understand approach that I have to my trading. You need to have that because trading needs to be enjoyable but easy to understand and something that you can do all of the time. It doesn't need to be something that's so complicated that you get a headache just thinking about it.
Live trading room webinar feedback
Just yesterday I held my first live, two hour trading room session for those people who jumped onto the 7th birthday special, of course, with all the other clients as well. The feedback was that people are just liking that simple, straightforward approach.
Many traders over complicate their trading – analysis paralysis
But also I've noticed from talking to a number of those new clients and seeing some of the previous trading strategies that people just seem to be over complicating things. After all, if the complicated method's working, they wouldn't have needed to come to me as part of that 7th birthday sale.
I've seen some of the screenshots that people have sent me and been talking to people, it's just complete confusion. Analysis paralysis, people just over complicating what is and what should be quite a simple, straightforward thing.
The price will either go up or down
When you think about trading, what's going to happen? The price is either going to go up or it's going to go down. As a general direction, what are we looking for? Are we looking at the price to be quite tight in a range band market like we've seen this week, or are we looking for trends? Are the trends up or trends down? Really, that's when you break it down into simplistic approach, that's really all that can happen. The price, a currency pair is going to move up or it's going to move down, or it's just going to stay exactly where it is, and it doesn't stay exactly where it is for very long. It's going to go up and down in a zig zag, sideways approach, in a range band, or it's going to have some big trends up, pull back, and go again, or down, pull back, go again.
Keep your trading simple and trade what you see
That's all that can happen, so think of your trading in terms of simplistic approaches. It makes it far more enjoyable. Trade exactly what you see on your charts. I use a phrase of “trade what you see, not what you think,” and that helps to eliminate a lot of clutter in your mind. Keep your mind free, look at your charts, have a logical approach. What's this pair doing overall? What's this currency doing against all other currencies?
A weak looking AUD$ – an example from this week
As an example, is the Australian weak? Yes it is. Right now, as I'm making this video, the Australian dollar's weak. Is it weak against the US, is it weak against the yen, is it weak against the Kiwi, the Canadian, the Euro, the Pound, the Swiss Franc. The answer is, right now, yes it is. Okay, that is great. We know the Aussie is looking weak. What's looking strong? Okay, so maybe the US is looking strong, maybe the Kiwi is looking strong. Fantastic. Now we're looking for short positions on the Aussie US and the Aussie New Zealand. Right now the British pound's showing some strength, so I'm looking for buy positions on the British pound, Australian dollar.
What are the charts telling you?
I'm using that logical approach and then I'm breaking down, looking at the individual chart itself and I'm looking for either buying or selling opportunities in that direction of my longer term approach. Real simple, real easy, takes away a lot of the clutter. I'm not too worried about what's happening in the fundamental news announcements, I'm looking at what's happening on the charts. See the trade, take the trade. Keep it simple. It's the best way of trading, I can promise you.
If you'd like to know more about trading, just send me an email, [email protected] and look out for more videos, this time next week.