Why I Trade With The Main Currency Strength and Weaknesses Each Day

In this video:
00:25     An important part of my daily trading routine
04:59     US Non-Farm Payrolls on the 1st Friday of the month
07:13     The Lot Size Calculator and how you can get your copy? I want to explain why I really enjoyed trading with the main currency strength and weaknesses each day. Let me share more details with you right now. 
Hi traders it’s Andrew Mitchem here from the Forex Trading Coach and today is Friday the 6th of June.An important part of my daily trading routine

I want to talk about currency strength and weakness. For me it’s something that’s quite important and it plays an important part of my daily trading routine and I like to share with you the reasons why because to me it’s quite a logical thing. If a particular currency is looking very strong and it’s looking strong against all other currencies and you then have another currency looking very weak and that’s looking particularly weak against all almost other currencies it seems logical to be trading in the direction of that pair when you put the two together. 
You take the strongest currency pair or your strongest currency and your weakest currency. Let’s say the strongest currency is the EUR and the weakest currency is the USD as an example put the two together it makes sense for today to trade as looking for buy trades on the EUR/USD. Now a few days time we might find that let’s say for example the same two you might find that next week the USD might be looking really strong and the EUR’s looking really weak. Again put the two together and it makes sense for that day and the upcoming day to be looking for short positions on the EUR/USD because your main dominant strength at that time or your main dominant direction for the EUR/USD to be falling so to me it makes logical sense. 
Well that’s fine but how do we use it and what advantages does it give us. Well  to me it helps keep me on the right side of the likely direction for that upcoming day so I go back to the example again let’s say the EUR is looking strong the USD is looking weak. For today I’m looking for predominantly buy-trades only on the EUR/USD and again what that does for me well it keeps me on the right side of course where I’m assuming or I’m looking for that currency to go. But what it also does is it helps me with confidence it helps me with not taking short positions on that pair for the day. Let’s say that the EUR/USD is going up really nicely and I haven’t taken any trades. I’ve either missed them or haven’t seen any it’s going up nicely but then it pulls back. Now a lot of people might be taking sell positions on that EUR/USD but I prefer to leave those setups. I might see a really good sell setup but because my main dominant strength for that day is for buy-trades I’m ignoring the sell setup. I’m letting the sell position or the retracement the sell off happen and I’m much preferring to then wait for bullish candles and buy setups in order to jump in as at a lower price at a better price and then ride the EUR/USD backup again after it had its retracement because don’t forget no currency just does that nothing goes up in a straight line or 45 degree angle line. 
Everything moves up and down. It moves up it pulls back and moves up and it has a bigger pull back sometimes but all together still moving up but it may move up and then retrace many, many times within that overall uptrend. The other scenario is let’s say I’m looking for buy trades on the EUR/USD and I don’t see any and the EUR/USD just sells, sells, sells just keeps falling day. What does it mean for me? Well most importantly it means I probably haven’t ended any buy-trades because I haven’t seen any. So I haven’t seen any haven’t ended any it means I haven’t lost anything so that’s another aspect to having your sort of anticipated direction based on logical reasons if that doesn’t come through of course it doesn’t come through everyday no-one gets it right all the time but if it does end up completely against your anticipated direction for the day you just generally find that there are few, very few or no good setups in your ideal direction. 
That’s fine it just means you just don’t take any trades. Like I said you don’t lose. So the great thing with that is it’s not likely of taking lots of buy-trades just because you think it’s going to go up; you can’t do that, you can think and have logical reason that it’s going to up but if it doesn’t do that then you don’t take any trades because they don’t show. So hope that clarifies it and I also hope it clarifies the reason why for me understanding the likely direction for pair for the day is such an important aspect of my trading.US Non-Farm Payrolls on the 1st Friday of the month

Now today being the first Friday of the month we have the US Non-Farm Payrolls or Non-Farm Employment change data coming out of the US. It’s expected to generate 214,000 jobs last month was 288,000. I would be anticipating that the number is going to come out less that would be in my feel for now and that’s based on the fact that I see some weakness today being Friday in the USD. 
We’ve got almost another 12 hours when I’m recording this right now until the release of the non-farm payrolls so it’s quite hard to say for sure but right now to me the US is looking a little bit weaker for today therefore if that continues it’s likely that the employment figure should come out lower than forecast. So by the time you watch this you’ll know the answer and you’ll see whether I picked that correctly or not. 
Either way I’m not a news trader so I won’t be actually watching the charts or taking any positions based on that news anyway it’s just something to be aware of and more importantly as a technical trader it’s important to be aware of those higher impact news announcements such as the non-farm payrolls because for me I want to have all my trades on a daily chart and down closed before that announcement. 
If I have charts or trades open of the monthly and weekly charts I’ll let them stay in the market over that news announcement but everything else I probably had have it closed or certainly close part of the position or manage the trades such as moving stop losses etc., because with those high impact news announcements anything could happen and the market can spike or the spreads could widen and it just really hard to control your position over that news announcement. So the easiest thing is just to close out before that.
The Lot Size Calculator and how you can get your copy?

 Other thing I wanted to mention if you haven’t yet got my Lot Size Calculator make sure you get it there is a free download on my website. All the time day after day, week after week I get just emails back to people just really appreciating how simple to use but how effective that Lot Size Calculator is. It works on the MT4 Platform and it helps keep your position size equal per trade and it makes you forget about how many pips you make because it really doesn’t matter. 
It’s the risk that you take on a trade as opposed to the risk or the gain you make on a trade. So it’s the risk as opposed to the gain the reward to risk over trade is much more important than wondering how many pips you make. I’ve never yet been to a shop spent pips but when I’m making a percentage gain on my account I can certainly take that money and go spend it so that pretty much sums up why I’m firm believer and not trading with pips. So hope you have a fantastic weekend. Look out for that non-farm payrolls – just keep an eye on it and make sure it doesn’t affect any open positions and I look forward to talking to you this time next week. This is Andrew Mitchem from the Forex Trading Coach.