In this video:
00:27 The secret – don't trade Mondays
01:53 The most reliable days for Forex trading
03:23 Seeing a lot of strength in the USD
04:07 Overall a good trading week with over 2.5% gain
05:32 Keeping you out of poor trades
Hi in today’s video I am going to show you how you can trade less and make more. Sounds attractive, doesn’t it?
Let’s get into it.
How You Can Trade Less and Make More
Hi it’s Andrew Mitchem here from the Forex Trading Coach. Welcome along today is Friday the 23rd of August 2013. And that is right I want to tell you how you can trade less and make more. It sounds really good; so the secret is don't trade Mondays. And so it is something that I have been contemplating for quite a while and it’s something as a trader; I still like to trade every day and but I’m learning over time that Mondays are just a such a unpredictable day. And so that is 5 p.m. Sunday when the market opens in New York time onwards but for me here in New Zealand that’s Monday morning.
And so I'm looking at stopping trading on the longer timeframe charts, on the daily charts and making strength and weakness analysis on a Monday. The problem is that when I'm doing that I'm looking at Fridays completed day and I'm also comparing Friday with Thursday at times as well. And on the Friday or many times on a Friday the US has news announcements that can affect the currencies quite a lot towards the end of the week.
The other problem of course is we have the weekend, and sentiment changes over the weekend. A lot of things globally can happen and then when the market opens up on a Sunday night American time, Monday morning Wellington time – so much could have happened. And when the market opens into the Asian session, and then European session, onto the US session things can completely change in the sentiment and the thoughts of traders; than what they were thinking back last weekend to last Thursday and Friday.
The Best Days To Trade Forex
So I'm finding that the most reliable days: Tuesday, Wednesday, Thursday and Friday; without a doubt. If I had to choose three out of those it would be Tuesday, Wednesday, and Thursday but Friday I'm still finding really good. Most of the time, I am closing on a Friday night my time before the US session even starts. At the very latest I'm closing before the end of the week, but if you want to have some more time have yourself a three day weekend.
You know how fantastic would that be just to have three days; Sunday, Saturday, Monday no trades at all. If you do want to trade on Mondays then I'm generally looking at the shorter timeframe charts, and actually trading what you see occur at the time without too many preconceived ideas of where the currency should be going. Let the market decide and let the sentiment do its thing for the beginning of the new week and then as giving your guide heading into Tuesday onwards where the currencies the strengths and weaknesses and different currencies are likely to be heading later into the week. So that just save you a full days trading; made you a four day trader then that's just a great thing to happen.
A Great USD/CAD H1 Chart Trade with a 2.2:1 Reward:Risk
The other thing I want to talk about is the webinar that I held yesterday for my clients. I took four live trades myself during the webinar and had a trade on the USD/CAD just closed right now for 2.2 risk to reward trade. It was taken on the hourly chart trading in the direction of the daily so trading buy position on the US cad because I could see a lot of strength in the USD and a lot of weakness in the CAD. Put the 2 together and I was looking for the buy trades on the US cad.
I did make one mistake and you know everybody makes mistakes. I took a sell trade on the Euro USD that was looking quite nice; the problem is, I was selling into a round number and I didn't see it at the time I was doing a live webinar. And it was still a reasonable set up but looking at it now in high sight it was a trade that lost; and looking at it in high sight I should not have taken the trade but you know everybody is human and everybody makes mistakes. If trading was the easy everybody would be multimillionaires from it. But you just need to stick to the rules, and if you break the rules like I did it gets you.
A 2.5% Account Gain This Week
But overall good news I've made over 2% on the week using the daily charts and the shorter timeframe charts so I am up about half a percent right now. So it’s still a pretty good week over all around 2.5% with some trades open here behind me. What are we seeing this week well as I mentioned the USD is showing a lot of strength this week; right now heading into the end of the week the JPY is looking very, very weak and also the AUD, the NZD, and the CAD have been fairly weak throughout the whole course of this week. So that’s what we’re seeing in the charts.
Round Numbers – Look Out For Them
And another thing just last thing I wanted to mention round numbers; I've talked about them many times before. I was looking at the GBP again the NZD and it bounced up the psychological huge barrier of two (2.0000). And so two is a massive number; I didn't take any buy trades on that currency because the pound and New Zealand was heading into that level. Even though there was strength at that time on the pound and weakness in the Kiwi definitely you’re not going to take it buying into a huge bounce level like that. And it’s exactly what is done looking at the charts behind me now just before I started the recording the GBP/NZD is now pulling back down from that huge 2.0000 level. So use those round numbers. They really aid you with your trading. They help keep you out of poor trades.
That's it for now.
This is Andrew Mitchem from the Forex Trading Coach. Look forward to talking to you this time next week. Have a fantastic weekend and talk to you soon.
Bye for now.