In this video:
00:29 A simple solution of managing open trades – Set & Forget
01:34 Trade Management
03:45 Made an incredible +2.9% return in just 24 hours
05:01 Six out of six trades, all hit full profit
How do I manage my open trades? It’s a question I get asked all the time, so let me show you how I manage my trades.
Hi it’s Andrew Mitchem here the Forex Trading Coach. Today is Friday, the 12th of July.
How To Manage Open Trades
And that’s right, it’s a question I get asked all the time: How do I manage open trades? And of course there are so many different potential ways of doing that, and it’s something I’d like to share with you how I manage trades and how I teach my clients to manage their open trades. And really it comes down to being quite a simple solution. You see, for me, the way that I like to manage almost all of my trades is on a set and forget policy, or set and forget approach. And what that means is I have my stop loss in place for a reason, for a technical reason. I have my profit target in place for a technical reason, based on everything that I know and understand about the markets. And then, when I’ve taken that decision to place the trade, I know I have a set loss. So in other words, I have a set risk amount of my trade that if the trade gets stopped out then I lose X percent and that’s, say, half of one percent.
So that’s on the worst case scenario, the trade gets stopped out. But how do I manage the trade on an ongoing basis? Well, I’ll tried to leave the trade to do its own thing, because it doesn’t matter who you are, where you live, what you know, no one can control the market and so put the profit target in there for a reason and let the trade do its thing because you remove your emotions from your trading when you do that. And so really that’s probably the best approach you can take.
The other way of taking a management decision over your open trades and managing them is to really assess each ongoing chart candle. So in other words, if I’m taking a trade on the daily charts and the trade is still open 24 hours later, I’ll assess the look of the candle and the position of the candle on the daily charts if the trend let’s say, selling a currency pair, and the trend looks like it’s continuing down, then I will let the trend or the trade itself continue in the market, looking to ride it down into the second day.
If I’m taking a trade position on let’s say an hourly chart, I try and check the completion and the look of the bar on the completion of the next hour, so every hour that the trade is in the market. That’s if I’m deciding to manage the trade by actually looking at what’s happening. And so, what you tend to find then, is let’s say we were buying a currency let’s say the Euro USD on a one hour chart and the trade’s looking good, it’s climbing up really nicely, and then all of a sudden I see an exhaustion candle and a potential reversal candle so a bearish candle that looks like the market’s about to tip over and head back down again.
At that time, that’s giving me a clue to say it could be a god opportunity now to close out of this trade, because it looks like the market is going to then head back down against my buy trade. Probably still in some profit at that time but not reached the full profit target. So that’s the other way of doing it. You either completely set and forget, all of your trades, or you manage them on an ongoing basis by monitoring the completion of each next bar, so whether that would that be a 15 minute, an hour, or four hourly, or daily, whatever time frame you were trading.
So I hope that helps you there, but whichever you decide to go, it’s probably best to decide one or the other and stick to that method.
Live Trading Room Webinar with 6 Live Trades Taken
What else have we had this week? Well, this time yesterday I had a fantastic live two hour trading room webinar with my clients. Throughout the day I made an incredible +2.9% return on my account yesterday, just in the 24 hours yesterday and that was including daily charts, four hourly charts and one hourly charts.
Now on the live two hour trading room webinar, I took two positions on the one hour charts and four positions on the four hourly charts, so six positions in total on the webinar yesterday live, taken in front of my clients. Nothing is hidden, there’s no “cherry picking” of just the best trades, they’re taken live in front of everybody for everybody to see. So, I’m showing my account, I’m showing the reasons why I’m taking the trade, my stops, my profit target, everything is shown. And there is no better way of learning how to trade than attending one of these webinars.
And as a client, clients can log on every two weeks and there’s about four years worth of recordings – that’s a huge amount of information. But it just means that you’re trading with someone live, in real time, on a live account, on live charts, discussing the market, looking at what potential setups there are, when they occur, or jumping in at the market putting a stop here for a reason, a profit here for a reason, and just following the trade through. And so, six out of six trades that I took on that webinar yesterday – all hit full profit. So just a brilliant way of learning, and it’s something that I believe why so many of my clients become successful traders, because they can watch and learn in real time there’s nothing in hindsight there, it’s all real time trading.
What else have we had there? Well of course yesterday we had large moves in a lot of the pairs, and that did help contribute to the 2.9% account gain, but I picked them well in advance of those moves occurring.
Looking for Australian Dollar and US Dollar Weakness
Today, I’ve taken some trades, and I’m looking for US weakness and I’m looking for AUD weakness. Throughout the most of the week we’ve seen some US weakness, and over the last couple of days we’ve seen especially the Euro and the Pound gaining strength. But for today being Friday, I’m looking at AUD/CHF, AUD/CAD, I’m looking at short positions on that and the EUR/AUD, a buy trade that I’ve had in since yesterday and the GBP/ AUD; a buy trade on that as well.
Why The US Non-Farm Payroll Figures Were Going To Be Higher Than Anticipated
Lastly, I want to mention last week’s video. Remember on last week’s video I said I was looking and anticipating for a higher than anticipated non-farm payroll job announcement out of the US last Friday. So that was coming up about 10 or 12 hours after I made the video. And you’ll have noticed that the news announcement and news release came out way higher than expected, and I could tell, or pretty much tell that was going to happen by looking at the technical charts well in advance to that news announcement. It was a call I made here on this video before non-farm payrolls and it came through.
How did I know? How did I have a high probability chance of knowing that? Well it was all in the charts. All the news announcements were already factored into the charts and you could tell that at that time the US was looking strong and therefore that related to more than likely a higher than anticipated non-farm payroll job announcement, that’s exactly what we saw, hence why I’m a technical trader.
So if you would like to know more please send me an email to [email protected]. Leave a comment on this website and anything you would like to know please do get in touch with me.
That’s all for now, have a great weekend, talk to you this time next week.