#205: Sticking with the Basics is the key to success
In this video:
00:35 – Danger – We all want the instant fix – but be patient
01:15 – Most Forex traders will go through this stage
01:33 – The foundations and basics are crucial
02:35 – Live webinar with clients proved that the basics are so important
04:24 – I post daily trades and hold webinars to enforce the basics
05:09 – Wait for the high quality setups
As with most things, sticking with the basics is absolutely key to your success, and it's no different in Forex Trading. Let's talk about that and more right now.
Hi, Traders. Andrew Mitchem here from The Forex Trading Coach. Today is video and podcast number 205, and I want to talk about getting back to the basics, and how very, very important that is for your long-term success as a Forex Trader.
Danger – We all want the instant fix – but be patient
Now, as people, as Forex Traders, whatever it is we do, we all what that instant fix these days. No one's patient. No one can wait. Everybody wants the answer. In trading, so many people want the get rich quick scheme. It won't happen. Everybody's sort of wanting to pay for an answer.
No one's prepared to work at things, and it's a big, big issue. We all want the shiny object. We want the next thing. We want our quick fix. If it doesn't work, we're onto the next thing. We scrap that. We're on to the next forum, we're onto the next robot, the next indicator, whatever it might be. You know what I mean, don't you? Because, I know you know, because I've been there and done it myself.
Most Forex traders will go through this stage
If you're in that learning stage as a Forex Trader, I can almost be certain that you're doing that or going through that process right now. If you're not, then you're probably going to be. It's a big danger to get into those, so if you haven't reached that stage so far, stop what you're doing right now, listen to this video and podcast. It's really important.
The foundations and basics are crucial
Reasons being whatever we do in life whether it be raising a child, building a family, building a house, flying a helicopter, learning to trade Forex, whatever it is, it's all about the basics and there's so many aspects of life that that is so important in. Another thing that I, personally, do apart from flying is I've been practicing Karate for, oh, probably ten years now I think. Somewhere around about that. Karate is exactly the same. It's all the basics. It's repetition. It's doing these things hundreds and thousands of times so that you get them right and any shortcut, whether it be with your grounding, your footwork. If you don't get that right, like the foundations, the building blocks, everything else falls to pieces. You think about building a house. If you don't get your foundations, you don't get your groundwork, don't get your plans, all those type of things right, the building falls to pieces. Exactly the same is Forex Trading, you have to have those basics
Live webinar with clients proved that the basics are so important
Now with that in mind, the reason why I want to bring that subject up is just yesterday, I held a live two and a half hour trading room webinar with my clients. Clients from all around the world on the webinar. I'm trading on my screens behind me here. People can view my screens, hear me talking about different trades that I'm taking. Now the market was pretty quiet during the session. I had just took two trades, and so in amongst answering questions and answers for people, I showed a lot of trades that people have been posting on my forum site. Now I have a great forum site for my clients that they can go on, and share trades, and look at trade setups, post screenshots, et cetera.
There's been a huge number of really good trades posted over the last couple of weeks on that site, so I shared a lot of those trades on the webinar, and discussed them with my clients. Now there was a huge high correlation between the successful trades that people posted that had a lot of the basics in place, and some of the trades that people posted that didn't work out. Now the old one was a good technical setup that just didn't work. That's the nature of the market. Nothing's one hundred percent. Never has been. Never will be, but where people have posted trades that didn't work, that failed to get to that profit target, or got stop out too soon. In most cases, the basics were not there.
If the basics are not there, and the foundation of technical analysis was not there, then in most cases the trades failed. With the trades that were profitable, the vast majority of them had some great technical setups in place, and people saw them. They waited. They were patient. They saw the trade. Took the trade, but waited for the right set up. When that right set up occurred, they took the trade and, in most of those cases, the trade was profitable.
I post daily trades and hold webinars to enforce the basics
It comes back to those basics again. Get the basics of the foundation. Whatever your trading strategy. I teach that over, and over, and over again. That's why I post daily trades for my clients. That's why I hold live webinars. That's why I have the forum site. That's why there's lots of videos, questions, and answers, et cetera. It's all about getting the basics right.
Sometimes when the market is not showing you very many set ups, then it can be quite hard just to say, “Well, I can't take the trade right now. This trade's reasonable, but it's not really a great set up.” Then some cases, so many people want to just sort of push that trigger, they want to take that trade because they feel they should be trading.
Wait for the high quality setups
Whereas, the lesson is wait for those good high-quality set ups. When you see them, definitely take them. Don't be scared on taking them when you see them. Have confidence in your system and faith in your trading ability and your trading strategy, but be patient and wait for those good set ups. It's really, really important, so every time you go to trade, have a think about the set up. Is this really a perfect set up? Are all these things lining up in order? Are they showing at the same time? The confluence of events, you've probably heard that before.
If that is the case, it meets your criteria, it meets your reward to risk. It's trading. The reversal trades, continuations, with a longer term trend, whatever it is you look for, if you see those things on your charts, don't be scared to take the trade. If they're not all showing, let the trade go, so I hope that helps. Basics are key to anything that you do. Any foundation. Any building a company. Like I said, building a building, construction, flying, Karate, raising kids, whatever it is. You do those basics right, you give yourself a high probability chance of success, so I hope that helps.
Once again, this is Andrew Mitchem, from The Forex Trading Coach. Have a great weekend. I'll catch you this time next week.