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One trade makes more money than keeping your savings at the bank for a year

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One trade makes more money than keeping your savings at the bank for a year.

In This Video:
00:34 The Anatomy of the Trade
01:09 The Latest Development on the Swiss Bank Scene
02:51 So much potential in the Forex market

In today’s video and podcast, I want to share with you how I made more money in just one trade, this week, than you’ll get paid by most banks around the world in an entire year. So, let’s share more details about that right now.

Hi Forex traders, it’s Andrew Mitchem here, The Forex Trading Coach and this is my first weekly video for 2015 and as you can tell, it’s absolutely glorious weather here, in the middle of summer, in New Zealand. Today is Friday, the 16th of January, and I want to share some details with you regarding a trade that I took this week.

The Anatomy of the Trade

It was a trade that I took on the US/Japanese Yen (USD/JPY); it was taken on Monday, on the first day of the week, on the weekly chart. That trade made a 3.2 to 1 return which is a fairly good trade for a weekly chart trade but its hit profit target in only three days.

Now, I risk half of one percent on that trade, 0.5% of my account on that one trade, with a 3.2 risk to reward on that trade. That means, I made a 1.6% gain on my account just on that one trade.

The Latest Development on the Swiss Bank Scene

And so, you’d be aware by now that overnight, today, we’ve had the Swiss National Bank has, they’ve stopped trying to intervene with the Swiss Franc and so, the Franc, for the last three years, has been held above the 1.2000 level against the Euro and they’ve suddenly decided to stop that.

And so we’ve had massive, massive gains on the Swiss Franc. And the Euro/Swiss Franc doesn’t really move a great deal – normally it moves 20, 30 pips a day, tops – and overnight it’s moved 2,300 pips, so almost 100-times its average daily range since that news’ announcement, so massive news announcement. And now we might, sort of, see the Euro/Franc or a lot of other Franc pairs moving a lot over the next few days.

The Interest Rate Environment in Swiss Banks

But the interesting thing that I’ve got here is I’ve just printed off some bank interest rates out of Switzerland. Now, these are printed, sort of, live as of today. The savings bank rates – 0.01% and if you have over 500,000 Swiss Francs, they’re going to pay you an amazing 0.025%. So, when you look at that, now I’m sure that there’s other banks that may be paying a touch more depending on the actual investment but this is what I’ve just printed off the Internet here.

So, the highest that I can find on a savings account over half a million Swiss Francs is 0.025%. So that’s, obviously, not particularly exciting. The point I’m making though is that the Forex market offers you so much potential. In the one trade just taken four days ago made me 1.6% – just one trade!

So, when you look at the interest rates of the traditional way of investing, the bank saving rates, Forex – once you understand it, once you have an understanding of how to analyze the market, the gains are massive.

The other thing I want to mention also is because of course we’ve started 2015, make sure you have yourself a trading plan. You know, have a plan, write it down, stick to it! If you didn’t get a copy of the plan that I offered at the end of 2014, I’ve got a copy here, I’m happy to email you a PDF version of the trading plan outline that I use.

So if you’d like that, just enter your details on the form below this video. So that’s it for now, as you can see it’s nice and sunny, nice and glary. I’m off for a dip behind here in the pool – it’s too hot otherwise, so look forward to talking to you this time, next week.

CLICK ON THE IMAGE BELOW TO GET ACCESS TO MY TRADING PLAN TEMPLATE

trading plan

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  • Ahmer Khan

    WARNING….!!
    TRADING COMMODITY FUTURES, OPTIONS, CFD’s SPREAD BETTING AND FOREIGN EXCHANGE (“FOREX”) INVOLVES HIGH RISKS AND CAN CAUSE YOU A COMPLETE LOSS OF YOUR FUNDS.

    95% forex traders lose their money in forex.

    Can show your myfxbook verified trading history ?

    • Hi Ahmer,
      I share all of my trade results with my clients on my live webinars. I trade in front of clients on those sessions and I place specific trades and market analysis ahead of time each day for my clients to use. Ultimately it’s the performance of people who take my course that should be of importance rather than my own.
      Regards,
      Andrew

      • Ahmer Khan

        Hi
        You want to sell a course without showing your verified trading history which raise a question against your credibility.
        Why would anyone trust a word of mouth claiming to be a self proclaimed profitable trader?

        Can you show your stats like this.
        http://www.myfxbook.com/members/FXViperTrading/fx-viper-live-master-account/616112

        • Caroline

          Hello Ahmer,
          You don’t have to purchase the course. If you think that what Andrew is saying is not true, then don’t buy his course. If you criteria to purchase a course is an account on myfxbook, and he does not have time for that, then simply move on with your search.

          I have followed Andrew’s commentaries for a long time now. I am not a student of his course, because I trade my own successful strategy. People who make real money online trading don’t need myfxbook account to show forth their results. Those who want to sell books will make sure they have an myfxbook account for a short time and convince the novice that they have good results.

          I have traded for 9 years now and have seen the valleys and the mountains in trading. At this point in time, all those that I mentor do not doubt me or my results, because it is their results that matter. Once they start having results, I have another ambassador. I don’t need myfxbook.

          Goodluck with your search. Andrew will help you improve your trades.

          • Hi Caroline,
            Thank you for your comments. You have summed it up perfectly. I’m not out there running round the stages of the world with the celebrities flogging a system. I’m at home in my office enjoying life and trading. If people wish to join along for the ride and use my strategy and knowledge that is great. If not, that’s also fine. I’m just trying to help out people in the massive world of Forex trading.
            Regards,
            Andrew

          • Ahmer Khan

            Are you his personal lawyer ?

            First of All, I do no need his course even for free because he has no understandings of fundamentals. FYI, Andrew left myfxbook after his 10K to 1 Million challenge fiasco. He has a lot of time for marketing.
            http://www.myfxbook.com/members/10kto1million

            If he do not want to show his history then he can show verified results from his broker AxiTrader.
            Jarratt Davis is a mentor who has verified trading records.
            https://www.linkedin.com/in/jarrattdavis

            Regarding to this blog post topic.
            Professional Traders never suggest forex trading is better then saving funds into a bank. Every broker, Mentor, or financial adviser always put a Risk Warning along with these kind of content but we know Andrew is a marketeer.

          • Hi Ahmer,
            You are correct, I am a Technical trader and I do not need an understanding of fundamentals. Just like you, I have developed a way of trading that works for me (and many thousands of others). Just because you may trade fundamentals, do not knock those who choose not to.
            On the other comments you are incorrect. As for the comment about the banks, it’s an opinion. It seems you do not agree with what I say and again that’s fine. Different opinions are what makes the world go round my friend (and the FX market!)
            Andrew

          • Ahmer Khan

            Each and everyone who trade forex know that forex trading reward is much higher but why don’t you post about RISK ?
            Are you insecure people will not buy your course after knowing about the fact 95% people loose money in forex.

            Recently a top tier A category Broker FXCM lost more than 230 million dollars due to SNB trading floor removal for CHF. The brokerage was about to freeze their operations and their stocks were halted already.

            Of course bull fighters make a lot of money but not everyone can be a bull fighter.

          • Hi Ahmer, I talk about risk all of the time and have done so for years. It’s a big part of my trading style. It’s very important to any traders long term success. It’s all over my site and my weekly videos. I’ve even mentioned it in this one.
            Andrew

          • Ahmer Khan

            Correct, You always talk about good things. You always show profitable trades on forums. Show me a single losing trade you have ever posted on forums?

    • LR Thomas

      Ahmer just a comment on your account growth, your average win is 6.76 pips and your average loss is 113 pips, you have a huge win rate but that risk reward ratio is extremely high risk and is not applicable at all to this post.

      The point Andrew is making is that a trade using very low risk can make a higher return than the banks he is not saying that high risk trades which can subject a traders account to massive drawdown is the way to do it.

      • Hi Ahmer,
        I agree with the above comment.
        However if this works for you, well done, go for it.
        It’s just not the way that I’d like to trade.
        Andrew

        • Ahmer Khan

          The question is not about my trading. This is all about your credibility.

          • I’d suggest you stick with Jarratt. You seem to be doing a good job at promoting him.
            I have a lot of respect for him. He’s in the same industry and loves it from what I can tell. Good on him, we share the same passion.

          • Ahmer Khan

            To be honest i don’t want to promote him but at least he has a credibility in the FX World and not a word of mouth. I learn from his Analysis for free and the other person i like is Chris Capre.

      • Ahmer Khan

        That account is not mine. That guy is one of our friend managing Million dollars clients funds. Whatever point andrew is posting but he don’t have verified trading history and whatever he says in videos is completely a word of mouth. You are talking about risk reward ratio, Even Jarratt Davis does not care about Risk Reward Ratio.

  • David yeo

    I totally agreed with Ahmer Khan, if you are a true winner in the market why not show it? You course is not cheap, you should convince ppl by showing the verified results. Or perhaps your apprentice trading results. Remember, they will be no course seller telling they are a loser in the market. If all are winners (from the word of mouth) then why they are still 95% failed?

    • Ahmer Khan

      If you can sell a $2000 course to 10 people per month then you don’t need trading forex.

      • ozytodd

        Ahmer why don’t you run your own course then you can charge what you like.

        I follow both Jarratt and Andrew and they both have good and bad points,
        I have seen Jarratt make some very wrong calls and Andrew made the right call on the same pair in which he made profit and Jarratt a loss
        Andrew doesn’t claim to be no 2 best trader by Barclays ….
        ,Andrew is humble, he charges $2000
        Jarratt charges over $3000
        A wise man once said
        “Don’t worry about the splinter in his eye ,worry about the Log in your own “…..

        • Ahmer Khan

          Jarratt Davis runs SmilE Global Management where he manage 250 Million Dollars and charge 30% performance fee on a high watermark basis.

          http://www.smilegm.com/about/

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