Are You In Search of The Holy Grail of Forex Trading?
In this video:
00:23 In search of the Holy Grail of Forex Trading
01:47 Accepting the changes within your trading
03:37 There’s no good at buying a strategy that relies on you
Are you constantly in search of the Holy Grail of Forex trading? If that sounds like you; listen up because I’ve got some really good information to follow.
Hi traders it’s Andrew Mitchem here, the owner of The Forex Trading Coach. Today is Friday, the 21st of November and I want to talk about a subject that I get asked so often and I’ve had another couple of emails about just this week. It’s about people constantly searching for what I call and what everybody else calls the Holy Grail of Forex trading and that really is like the ultimate system that just never fails and people are constantly looking for that, you know, that “perfect” system. Unfortunately it doesn’t exist; there is no such thing. But people are always there looking for the next thing, adding indicators, whatever it might be to make a system and a strategy that’s probably perfectly okay into something that’s even better.
The other thing of course that a lot of people do is they constantly changing between one system and another, they’re adapting bits of one system over here putting it into another system. People buy robots, they're made out to be just the most fantastic things, all at $97 you notice but, you know, they’re at there to solve everybody’s life problems by plugging and playing for $97. Hindsight and back testing looks fantastic, you put on a live account, it doesn’t work (in most cases) and then people there, they give up and never going to buy another robot.
Changing Market Conditions
Up comes another email on a month or so later, buy it again $97 on to the next system and that happens all the time. It doesn’t matter whether you’re attending webinars, whether you’re buying robots, eBooks, courses, strategies, whatever it is it just happens all the time. So, realistically as a trader you need to accept that the market is changing all of the time, it’s never the same.
Just to look at the Japanese Yen (JPY) over the last sort of few weeks. I’m not sure if you can see right behind me here, I’ve got the CAD/JPY (Canadian Dollar/Japanese Yen) just gone up and up and up and up and up. And the Yen (JPY) has done that against all of the weakness in the Yen (JPY); has just been a fantastic thing to trade. You know, there’s just been so much weakness on the Yen (JPY). There’s been an opportunity to continue buying it up and up. Likewise, there’s been an opportunity to wait for slight pull back to retracements and then buying another currency against the Japanese Yen (JPY). And it’s probably one of those times right now, the last few weeks with the Yen in particular against all currencies has been as good at time to be trading the Yen then it has for long time. Go back on your charts and look back to what it was doing earlier this year. “This did that”, did absolutely nothing, it was flat as a pancake. It was awful to trade the Japanese Yen (JPY) earlier this year. It was just, up one day down the next. Just a small movement, very small daily ranges.
The last few weeks and few months, has just gone crazy and it’s just been brilliant to trade. So accepting that condition are changing within your trading and the strategy needs to allow for that and cope with that and so do you because what happened back in the early part of this year, the conditions are different to now. So earlier or in the year you might be trading the shorter time frame charts to gain some profits out of the Yen pairs. Whereas today you might be trading the longer time frames, the weeklies, the dailies, the 4-hourly charts and make tremendous gains on the Yen pairs because the trends are there right now. So it’s constantly being aware of those changing conditions, trading the strength against the weaknesses and having a system and a strategy that suits you.
Buying A Strategy
There’s no good at buying a strategy that relies on you having to be there 3 o’clock in the morning because that’s when the strategy works or there’s no good at buying a strategy that works on just one currency pair because why restrict yourself to just one when there are so many pairs you can potentially look at. There’s no good at buying a strategy that relies on you scalping 1 and 5-minute charts if you’re the sort of person that just wants to look at your charts a couple of times a day.
So it just really depends on what suits you as a trader, having something that you understand. The problem with robots is most people have really no idea of what’s behind the strategy and the logic behind the robot. It doesn’t help you as a trader so it’s understanding, what works for you that makes common sense. That’s why I like price action. Price action makes sense to me. Support and resistance makes sense to me. Buying off of round numbers or using round numbers to your advantage as strong psychological barriers; that makes sense to me. It’s what the big institutions and banks are doing therefore I want to do the same. I’ve seen happen and work, candle patterns with support and resistance so many years now. I don’t need to change, I’m making great money and perfectly happy and understand the system that I trade.
So find what works for you, if you need my help just drop me an email [email protected]. If you have any topics or anything you’d like me to discuss on future videos and podcasts like this which I make every single week just send me an email and I’ll do my best to answer those questions for you.
So once again this is Andrew Mitchem from, The Forex Trading Coach. Have a great weekend and I’ll look forward to talking to you this time next week.