Trade When the Conditions are Right
#419: Trade When the Conditions are Right
In this video:
00:23 – Knowing when to trade
00:48 – Why I trade candle patterns
01:42 – Don’t trade if the market is flat
02:39 – Look at this week’s trading charts
03:15 – Our results from this week
04:40 – Get onto one of my weekly webinars
When conditions are right, get trading, make profit, and enjoy it. Let’s talk about that and more right now.
Hey traders, Andrew Mitchem here at The Forex Trading Coach with video and podcast number 419.
Knowing when to trade
Now, trading conditions are hard to judge; it’s hard to know what kind of conditions we’re in right now. But one of the hard things I think people find with trading is they struggle with waiting and they struggle with being impatient. People just really want to take trades all the time because they think that’s what they have to do. For me, there’s a few easy ways around this.
Why I trade candle patterns
For me, it’s why I look at candle patterns. Because a candle pattern will tell me if it’s in the right part of the chart whether I have a suitable trading opportunity or not. It’s why I only look at my charts two or three times a day on the close of candles. I’m not there being impatient feeling that because I’m at my computer and I’m at the mouse and I feel I have to keep clicking. You know, you’ve got to get away from that impatience that people have with trading.
Unfortunately I see it all the time that people just take too many trades, and there’s a big, big problem. And you can see why; it’s exciting to trade and you want to trade so therefore you trade. But always look at the conditions. It’s why I look at round numbers. It’s why I look at room for moving to my profit target, it’s why I look at different timeframe charts as well. It’s why I assess strength and weakness. So I’m giving myself a high probability chance of a successful trade.
Don’t trade if the market is flat
Now, if the market’s flat and if the market’s not showing anything, I simply move on. I come back and look again later when the next candle closes. But if there’s nothing there, don’t take anything. Don’t just pay your broker lots of spreads and probably in taking losing trades. Because it’s so hard to climb back from that. You’ve got to have profitable trades that outdo your losses plus make some more and so that’s a real hard part of trading for so many people.
You can always find a trade if you go down to a shorter timeframe chart. You’re looking at real short timeframe scalping kind of positions. But that’s not what most people are about, and it’s not enjoyable for me, certainly. I don’t think it’s an enjoyable way to trade. You’re far better off being patient and looking a few times a day and then taking a trade with high reward to risk. Not this stressful feeling that you’ve got to watch every pip move up and down situation.
So when trading conditions are not there, they’re not right, don’t trade.
Look at this week’s trading charts
However, have a look at this week’s charts. Now Friday of last week was the US monthly employment data, so things were pretty quiet. Monday was Independence Day in America, so things were pretty quiet. But then Tuesday, Wednesday, Thursday we’ve seen some exceptional conditions. So just four days into the week so far as I’m recording this right now on my Friday morning, we have had some great trades. If the market is showing the conditions, you see the trade, you take the trade, you profit from it. Because that’s what you have to do when the market is giving you these opportunities.
Our results from this week
To share with you some trades from just this week my daily chart trades on our membership site – don’t forget all these trades are just with half a percent total risk per trade, very, very small risk – we’re up 2.8% on closed trades on our daily chart trades that have been published trades for our members to follow. I’m up 2% on our monthly trades that are still open right now, taken at the beginning of July. I’m up 2.2% on all other timeframe charts that I’ve taken myself this week. And our Pattern Trader software, our auto bot software, and also our Trade Copier service called Echo Trade Copier, is currently up 1.6% for this week so far.
So you put all that together and you think, well we’re only four days into the week when I’m recording this and Monday was a public holiday in America, so that meant most of Monday and part of Tuesday was not much happening anyway. Put all that together, and you can see that when the trading conditions are good, you see the trade, you take the trade, you profit from the trades and like I said at the beginning you enjoy it. Because you’ve rewarded yourself by being patient when market conditions were not there, you’ve been very profitable when the conditions are there. That’s how you trade. That’s the psychological aspect about it. You’ve got to be patient when it’s time to be patient, and when it’s time to take trade you’ve got to get in there and take those trades.
I hope this helps. This is Andrew Mitchem at The Forex Trading Coach.
Get onto one of my weekly webinars
By the way, if you’ve not been on one of my webinars make sure you jump on one. We hold webinars each week and you can also get an on-demand webinar recording as well. Especially for new traders, there’s one type of webinar if you’re brand new or relatively new to trading, jump on that webinar. If you’re more experienced then jump on the webinar for what I call the Frustrated Traders, for people that have been there, tried it, it’s just not working, they’re ready to give up. If that’s you, jump on that more frustrated trader webinar and I’ll give you some helpful tips and information, depending on whether you’re new or been there for a while and frustrated. I’ll put links to both of those webinars on this page somewhere so you can find them as well.
Have a great rest of the week. I’ll see you this time next week. I hope that was helpful, bye for now.
Episode Title: #419: Trade When the Conditions are Right