My 5 Trading Tips to Improve Your Results
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#457: My 5 Trading Tips to Improve Your Results
In this video:
00:35 – #1 Understanding Risk Management
02:26 – Download my Lot Size Calculator
03:02 – #2 High Reward:Risk Trades
03:59 – #3 Focus on a few Candle Patterns and Time Frame Charts
05:25 – #4 Forget Social Media and time wasting
05:57 – #5 Seek high quality trading education
07:22 – Bonus #6 – Blueberry Markets
I’m going to give you five tips that will massively help change your trading results around. Listen up for those five tips right now.
Hey, trader. This is Andrew Mitchem here at the Forex Trading Coach with video and podcast number 457.
In this video and podcast, I’m going to give you five things that you can do right now today that will massively help change your trading around. Let’s get into those.
#1 Understanding Risk Management
Number one, you need to understand risk management. Everybody wants to see all the flash side of trading, all the results, et cetera. But in order to trade properly, you have to understand risk management and have to know how to control your risk. Because ultimately, one of the keys to staying in business and trading properly and trading long term is understanding controlled risk.
And it’s all well and good when you see people that say, “Hey, look, I made $100,000 in a month and I doubled my account in two weeks.” None of that really counts. It’s all just one-offs, if at all it’s true. But the important thing for you, because there’s two things I always say to people who are new that control your trading. One’s up here, one’s your head, the other’s your heart. You’ve got to get those two under controls, to your emotions, psychological, all those type of issues under control. And to do that, you have to have low and controlled risk per trade.
Now, most people out there all still, despite all these years of me banging on about don’t do it, people will still talk in pips. Forget pips. They will get you nowhere. They will not assist your trading. Do not worry about how many pips you make, lose, risk or anything like that. It does not matter. You try going down to the local shop and supermarket and go and buy something in pips. You cannot do it. Never have been able to, never will be able to.
What you have to do is yes, you can measure number of pips you’re taking on a trade, but that then has to relate to your position size. And so, it’s your position size that’s the key to your trade. And what that means is, if you use the right position size on each individual trade, you can trade all timeframe charts, doesn’t matter what the stop-loss is. Doesn’t matter what the currency period is, whether it’s a crypto or FX or metal, it does not matter.
Download my Lot Size Calculator
Understanding that is very important. I have a Lot Size calculator that will help you with that. If you don’t have it, I will put link on this video and podcast somewhere for you to get it. It works on MT4 and MT5. You simply drag it onto the correct chart that you’re about to trade. It knows the account size that you have. It knows the trade that you’re about to take in terms of the currency.
All you do is enter the risk that you want to take, and I recommend no more than half of 1%. And you enter the stop-loss of the size of the trade. It will tell you the lot size needed or the position size needed for that trade. Understanding risk management, number one, key.
#2 High Reward:Risk Trades
Number two, understanding that high reward to risk trades will be your friend. That is the way that you are going to make small little step back, big step forward, little step back, big step forward. That’s how you grow your account is by having high reward to risk trades.
You see people that go, “Hey, I’ve got a 90% winning system.” Wow. It means nothing. If they’re making less than their risking. It means nothing. You have to be making two, three, four times what your risk is per trade. That is how you will get ahead in your trading. It also means you do not need to have a 90% winning system. In fact, a 50% winning system with an average of, let’s say a three to one reward to risk on your profitable trades will make you a lot of money and will make you a consistent trader. That was number two, understanding high reward to risk trades.
#3 Focus on a few Candle Patterns and Time Frame Charts
Number three, focus on just a few candle patterns and focus on some timeframe charts that are showing the best candle patterns. Look for your trades at the close of a candle. Don’t worry about looking at a four hour chart trade if it’s only been open for one hour. Don’t look at a one hour candle at 20 past the hour. Forget it. Look when the candle closes.
And at that time, nothing else will change. All, any indicators that you use, any price levels, they’re all set. They will not move. When the candle closes, look for the patterns, making sure that you’ve got room to move for the trade, et cetera. And your stop-loss can be protected ideally by something like a round number or a previous high, previous low. But understand a few select candle patterns and then look at the timeframe charts that suit you. Don’t go trading daily and weekly charts if you think you like the high price or high paced action.
Likewise, forget trading five and 15 minute timeframe charts if you like to look at your trades just maybe once or twice a day. And therefore, if you are that person, you should be trading higher timeframe charts. Again, the pattern doesn’t matter. Or it doesn’t matter what timeframe you’re trading, it just depends on what suits you. But the pattern is the pattern is the pattern. It works once you know how to trade properly.
#4 Forget Social Media and time wasting
Number four, get rid of most of your time-wasting. There’s social media, searching through YouTube for all gurus, looking on different Forex websites for the latest, greatest system on different Forex threads and forums and things like that. Honestly, most of it is a complete and utter waste of your time. It will cause confusion. And it will take you away from the real thing, which is for you to develop something that works for you and to understand how to trade for you.
#5 Seek high quality trading education
And with that in mind, number five is about seeking education. Look, people are out there who have systems that work. People that have been trading for years and years who have proven to help thousands of traders. We’re one of the few out there that can offer that. We’ve been operating for now over 13 years. We have clients in 100 countries. We’ve got a 162 reviews on Forex Peace Army over the last 13 years, since 2009. Try finding too many others out there that can say that and help so many people.
Look, joining a group of like-minded people or trading the same strategy is absolute gold. It really is. It helps you because, let’s face it, you’re trading from home on a laptop, wherever you’re trading, wherever you live in the world. Probably no one else in your household has any idea of what you’re doing or what you’re trying to do. Most of your mates don’t, most of your family don’t. It’s something that takes the right sort of person, the right group of people to help you to progress. You need someone to bounce ideas off to ask questions to. And I think that’s a real important point of our trading community at the Forex Trading Coach, alongside all the other things that we offer. I think that’s something that can massively help all traders out them.
Bonus #6 – Blueberry Markets
And lastly, I said five. Let’s go for six points, give you a bonus one. If you’re looking for a good broker, have a look at Blueberry Markets. I mention them on all of my video podcasts. I’ve had more feedback this week from people that say, “Hey, Andrew, I’m so pleased that I’ve gone to Blueberry Markets. You recommended them. I’m absolutely blown away by how good they’ve been, their onboarding process, their support, their help, everything like that.” Have a look at Blueberry Markets if you’re looking for a new broker. Again, I’ll put a link to them on this post.
That’s it for this week. I said we’ll do five points. Given you six. Hope that helps. Stick to those five or six if you’re looking for a broker and they’ll help change your trading rate. Absolutely no doubt about it. I’ll see this time next week. This is Andrew Mitchem at the Forex Trading Coach. Bye for now.
Episode Title: #457: My 5 Trading Tips to Improve Your Results