The Key Ingredients Needed To Be a Successful Forex Trader
In this video: 01:15 Don’t rush things! 03:17 Having a system that actually suits your personality 06:09 New look website
I want to talk about what you need to do in order to be a successful trader. Let me share more details with you right now.
Hi traders it’s Andrew Mitchem here from The Forex Trading Coach today is Friday the 20th of June and I want to talk about some of the really key ingredients that you need to have in place within your trading and within your whole approach to your trading in order to ensure a long term success as a Forex trader.
Don’t rush things!
So the important thing to remember is if you’re fairly new to trading don’t rush it. Some people become really excited by trading and they rush into it and they want suddenly become Forex experts and professional traders and fund managers and they want to suddenly give up their job and become a full time trader when realistically they've probably not even made money on a demo account so it’s really important that you don’t rush it because obviously put it out their own Internet to be such an exciting fast paced easy way to make money type of business and realistically it’s not it takes time, work and dedication like anything else that’s good in life so my advise though is don’t rush things take your time and go through the whole process as you would with any other business that you’re starting into or any other hobby or whatever it might be that you join. You know, you start slowly and you work your way up no difference to Forex trading. So take your time and be consistent with what you do.
Having a system that actually suits your personality
The other thing is don’t chop and change systems; a thing that almost everybody would have done. I used to do it when I started trading so much of the time and I know it’s a big common issue and mistake and problem that so many people get into because they try rushing things and a system that they try and doesn’t work instantly or it works and it doesn’t for the next several weeks after.
People are very quick to jump on to the next latest greatest Holy Grail type of system or they have a system that they’ve been given all their purchase or they've invented themselves and they didn’t start tinkering with it and optimizing it and adding more indicators and changing things. Well realistically if you have a good solid strategy and system in place you don’t need or you shouldn’t need to change it providing it makes sense too and that leads on to the next thing.
Whatever system or strategy that you use whether you want to become a technical trader or fundamental trader a combination of both, you use a mechanical system whether you use my system or someone else’s system your own system whatever it is it doesn’t matter.
It needs to work for you and you need to feel comfortable with it. A lot of people will say, “You know technical trading doesn’t work; other people say fundamental doesn’t work yet there are people on both side of the fence that make it work perfectly adequately.
There’s nothing wrong with combining their approaches and so people that say that one or the other doesn’t work all the time it’s just nonsense because it does for some people. I just happened to personally chose to be a technical trader. It doesn’t mean to say that fundamental doesn’t work it means that fundamentals are not what suits me and so it’s important to have a system that actually suits your personality so that’s another really important point and just because someone is selling a system that happens to be all about news trading doesn’t mean to say it’s going to work for you.
I might be selling a system that’s all about technical trading it doesn’t mean to say it’s going to suit everybody you know if what suits the individual. And also you need to have a system that works at the time of day that suits you on the type of time frame that suits you. So for instance if you’re the person that loves just you know some fast paced action and you just like to trade a couple of hours a day then you need to be on the shorter time frame charts.
However if you’re the sort of person that likes to just have a more relaxed approach to your trading then you probably more suited to the longer time frame charts. If you have other work commitments or family commitments then maybe the shorter time frames don’t suit you or it could do but if you’re willing to be able to spend just an hour or two per day likewise if you have a lot of other commitments maybe four hourly charts or daily charts or weekly charts are what suits you so it’s important not for me to tell you what suits you it’s important for you to figure that out for yourself.
And again with currency pairs some people like looking at huge number of currency pairs others just like looking at one pair.
I’ve got a client in particular here I have a lot of contact with just trace the EUR/JPY only nothing else. Myself I look at all currency pairs and again there’s nothing wrong with looking at just one or there’s nothing wrong at looking at a lot of them.
Again it what suits you and it’s what you feel comfortable with, what makes logical sense to you, what you can make money with that type of approach that suits your personality so it’s really important that you understand what suits you and don’t let someone else tell you what’s right or wrong.
The other thing that’s really important of course is to have very low risk per trade it doesn’t matter what type of style of trading you are low risk is really important as are high return from trade so a high reward to risk trading scenario. In my opinion it’s one of the most important things that you can have as well. So put all that together have a plan in place, stick to your plan and it will work overtime. It's not going to work every day or every trade or every week but overtime you will have a very profitable system.
I know that because that’s what I have in place and not every day or every week am I making money but overall I'm making really good money from a system that in my opinion is a logical system, makes a lot of sense to me, it suits my trading personality and I have so many clients from, right now 48 countries around the world that I’m making money from trading the same system so you kind a think that it’s going to work as it works for all of these people.
New look website
Other thing that I want to mention just briefly behind me here you might see over my left shoulder; right as you’re looking at screen. I’ve got brand new website that’s being developed. It has the same domain name but just a new look website so by the time you’re watching this video or listening to this podcast that should be live.
The last thing I wanted to mention I met up with a client last week when I was standing in beautiful Queenstown in the South Island and again as a side issue I mean you can trade from anywhere in the world just need your laptop and internet connection so I was down their trade in Monday and Tuesday from there they did the skiing with their family on the weekend. Met up with a client, first time I’ve actually met him and his results over the last few weeks were since it has been live 2%, 5% and 1% in the last three weeks so 8% gain on a live account in the last three weeks it just shows what it can be done he has adapted my system to suit him in terms of the time frame to his trading and the risk approach etc., and it just goes to to show; 8% in three weeks what a great start to live trading that is so it can be done you just need the strategy in place, the system in place and stick to it.
It sounds so easy of course it’s harder to do in reality but honestly that’s the only way to do it it’s having a methodological plan and as you’ve been quite boring about your trading doing the same thing over and over and over again because of it works why change it.
So hope that really helps you. This is Andrew Mitchem from The Forex Trading Coach. Have a fantastic weekend I’m off to watch the fantastic great amazing All Blacks in New Zealand right our team tomorrow the most successful sports team in the world and so they’re playing England tomorrow in my local town of Hamilton so hopefully that will be a three- nill series win to the great All Blacks. You’ll find out this time next week if they win and pretty sure and certain that they will. They’re very high probability team. So have a great weekend and I’ll talk to you this time next week.
Hi, I’m Andrew Mitchem – a full-time Currency trader, Investor and Forex Trading Coach. I’ve been trading the Forex markets since 2003 and I’ve developed a system that has made trading Forex very profitable for me.
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