Podcast:

Play

In this video:
00:37      Fascinating insights of New Zealand Prime Minister
02:00      +4.7% risk to reward on 4 hourly charts
02:42      Few things to learn from that risk to reward
04:20      NZD’s been the strongest currency performer

 

 

Andrew Mitchem with John Key, Prime Minister of New Zealand

 

Well I’ve just got home after having lunch with the Prime Minister.  It’s a true story and I’ll tell you about it right now.

Hi, Andrew Mitchem here, the Forex Trading Coach, today is Friday the 26th of April.

Lunch meeting Mr John Key, the New Zealand Prime Minister

That’s right, I’m buzzing at you, I’ve just had lunch with the New Zealand Prime Minister. It wasn’t just me, there was a group of business owners, local owners, and I was invited to attend and to have lunch with the Right Honourable John Key, who is our New Zealand Prime Minister.  A brilliant person to listen to, a fantastic speaker, a brilliant mind when it comes to numbers.

Talking a lot about governments overseas, about the world economy, budget deficits and where he sees the whole shift in power in the world and in the whole global economic situation over the next sort of 10 to 20 years. Really fascinating insight of how the whole political spectrum operates and talking about Obama and Cameron and other people that he’s in regular contact with.

So really, really enjoyed it; great opportunity.

It’s not every day you get to sit and have lunch with your own Prime Minister or any Prime Minister for that fact. So, I’m on a bit of a high right now because I’m a real fan of John Key. Incidentally, he used to be a currency trader, a Forex  trader over in New York and also in London; has made all his money out of Forex trading. So I suppose he’s a bit of a connection there and another incident of what, the thing that attracts me to him as a person.

But as you can tell, I’m buzzing so that was that.

High Reward:Risk Trades

On to the trades themselves this week, I’ve since sent through some videos that you may have seen some valuable insights into risk to reward. I call it reward to risk because I’m always looking at how much reward I get for how much risk I get.

I sent through a video last Friday of a GBP/JPY trade that I took on the 4-hourly chart that had a 4.7 risk to reward or reward to risk. So in other words, I made 4.7 amount of whatever it is I was risking. So let’s say if I was risking 1% of that trade, I would’ve made +4.7% return on that trade. I actually risk ½% so I made +2.35%. And then yesterday, I sent through another example of a trade, also on the 4-hourly chart on the GBP/CAD and that had about a +3.6%, I think it was, sorry a 3.6 reward to risk or for ½% risk on the trade, means I had a +1.8% return.

So a few things to learn from that. Risk to reward, obviously it’s crucial, it’s critical when you’re trading actually.  It’s so important it’s not funny. You really need to be looking for these trades that give you several times reward of the risk you’re placing on that trade. What that means is you can be wrong more often than not if you, you know, if your success rate’s not high and still make really good money. And that’s what I find with the 4-hourly charts and the daily charts.

Daily and 4 Hourly Charts Trades get you away from watching charts all day

So they not only have the advantage of not being tied to this thing, you don’t need to be tied to your screen all day long. Like if you add it up, I probably don’t watch charts for an hour absolute tops during the day, absolute tops – an hour.  And still do really well from it, so you don’t need to be watching charts all day, you don’t need to be scalping 1 minute and 5 minute charts all day and night. It’s just, you can do that if you want but it’s not necessary and you really don’t need to have to do that in order to make good money. And I think that’s one of the areas where a lot of us, especially newer traders, go.

They go wrong.

They think they need to go down and be scalping all the time, collecting all these pips and frightened to go out the door in case they miss a movement.

Well forget it.

Trade Less and make More

Trade less, enjoy your trading more, have less stress and make more money. So to me it makes logical sense doing that. So that risk to reward it also helps control your emotions as well.

The New Zealand Dollar Strength

This week we’ve seen a pretty mixed week in terms of the currencies, not a lot really happening in terms of overall strength or weakness consistently throughout the week. Overall I suppose you could say the NZD’s been the strongest performer at that. And also we could well have seen the bottom in gold and silver, hard to tell right now but it’s certainly been some good strong bullish movements back up in both gold and silver this week after the huge crash we had a couple of weeks ago.

So that’s all for now, I’m off to buzz a bit more about meeting the Prime Minister and look forward to talking to you this time next week.

Quick Links

FAQs

Contact
About Andrew
About Paul
Testimonials
Privacy
Disclaimer
Cookie Policy

Resources

Free eBook
Free Risk Calculator
Are You New to Trading Forex?
Are You About To Give Up Trading?
30 Minute Forex Trader Update
Online forex video course
One on One Coaching in Person
One on One Coaching – Online
© 2020 The Forex Trading Coach Ltd (NZ FSPR:FSP37396) provides general information and educational courses and materials only. This is not an offer to buy/sell financial products. We do not provide personal advice nor do we consider the needs, objectives or circumstances of any individual. Financial products are complex and all entail risk of loss. Over-the-counter derivative and foreign exchange products are considered speculative because they are highly leveraged and carry risk of loss beyond your initial investment, hence should only be traded with capital you can afford to lose. Please ensure you obtain professional advice to ensure trading or investing in any financial products is suitable for your circumstances, and ensure you obtain, read and understand any applicable offer document.

Latest Podcasts / Videos

#359: What Is Forex and How Do You Start Trading?

 Podcast: What Is Forex and How Do You Start Trading? In this video: 00:26 – The basics of Forex trading 00:46 – Coronavirus and the need for additional income 01:11 – Forex is the best market to trade – here’s why 02:10 – Trading currencies in pairs...

#358: If You Don’t Trade Forex Now, You Never Will

 Podcast: If You Don’t Trade Forex Now, You Never Will In this video: 00:24 – The world has gone mad 00:36 - Traditional investing is not working 01:00 – Why we trade the Forex market 01:21 – You need to be trading right now 01:57 – Email from a client...

#357: Are You Thriving or Just Surviving?

 Podcast: Are You Thriving or Just Surviving? In this video: 00:33 – Paul Tillman was here in NZ last week 01:12 – How we made profit from the Coronavirus news 02:06 – The stats show that only 5% make good money 03:05 – The system and strategy works in...

#356: Will the Coronavirus affect Forex Traders?

 Podcast: Will the Coronavirus affect Forex Traders? In this video: 00:20 – Joined by Paul Tillman from NC, USA 00:40 – Webinars, Trades and the Coronavirus 01:00– Recent webinars and how you can benefit – view the recording 02:45 – Our trading day...

#355: What Does Your Trading Day Look Like

 Podcast: What Does Your Trading Day Look Like In this video: 00:25 – How to structure your trading day 01:06 – You’re not going to be a full-time trader immediately 01:46 – Fit your trading around your current situation 02:10 – My trading day 03:45 –...