In this video:
00:34 The wrong way to trade
0345 New Zealand dollar is looking very strong
06:20 Lot size calculator for free
Glued To Your Charts?
Do you ever get the feeling that you are completely glued to your charts? You’re frightened to miss every move every single pip of movement. You’re glued there all day long you just can’t escape your charts. If that sounds like you let me share a few more details with you right now.
Hi everybody its Andrew Mitchem here, The Forex Trading Coach welcome along to my latest video and podcast. Today is Friday the 14th of March. I want to talk about trading less because trading less is actually trading more. What I mean by that is that most people find that in order to make money through trading they feel that they have to trade more and more. They have to scalp the making lots a little trades, making pips here and there. Well I think that is actually the wrong way to trade and the way that I trade and the way that I have more time than most other traders and actually enjoy life as well is that I trade the longer time frame charts. I want to share some examples with you right now.
You see I’ve taken trades on the monthly charts, the weekly charts the daily charts, the 4 hourly charts and the shortest time frame that I normally go to unless I’m trading live in front of my clients on the webinars is the one hour charts but that is generally only during the European session. The majority of my trades are weekly charts and daily charts or 4 hourly charts. The great thing with that is that means I can plan around my trading. If I’m trading weekly charts it means that just once a week on a Monday morning I need to look at my charts. If it’s a daily chart that I’m looking to take a trade from just once a day at 5pm New York time I look at my charts. If it’s a 4 hourly chart I look at different times throughout the day on the close, the completion of the 4 hourly chart.
So it’s really important that if that’s the way you’re looking at trading that you chose a broker who has a 5pm EST that is New York time start of day; really important that you do that. Look on the daily charts that have 5 full complete day candles. Some brokers have 6 and have what I call a small Sunday candle. If your broker has that it is probably a good idea to change brokers and go with a broker who starts their day at the correct time which is 5pm New York time. So the start of the day is actually Sunday in New York at 5pm and that doesn’t change throughout the year regardless of what the clocks do in your local time. 5pm New York time is always the start of each new trading day. So make sure you have that on your charts.
Weekly Chart Trades
Now for some examples, I took a trade two weeks ago on the NZD against the USD on the weekly charts. It’s hit profit yesterday. It has made a great 165 pip profit. The biggest drawdown that the trade had at anytime from its open was only 17 pips. It had a bigger stop loss than 17 pips but from when the trade got filled it only went negative by 17 pips and it and it closed by 165 pips yesterday. It meant that I put the trade on 2 weeks ago and it took me probably 30 seconds to choose to take the trade and to place it. I did nothing with it. I left it open over the weekend because it was a weekly chart trade and because it was still looking strong it’s now closed. It took 9 days, 9 trading days but that’s fine. It didn’t take any more effort on my behalf and still made a great return.
Strong New Zealand Dollar
Interestingly that yesterday the New Zealand official cash rate was lifted by .25 points it’s now up to 2.75% which is one of the highest interest rates in the developed world, yet two weeks ago I could see that coming on the weekly charts and all of this week on the daily charts I’ve been calling for buy positions looking at a very strong New Zealand dollar. In fact I’ve mentioned it on many of these podcasts over the last few months. The New Zealand dollar is looking very strong. We see the news come in line with where the charts are telling us and we had an interest rate rise in the Kiwi dollar yesterday.
I also want to tell you about a trade that I took on the weekly charts again on the EUR/USD. It is now 183 pips up and it has just hit full profit. It had a stop loss of 57 pips a 3.2 to 1 risk to reward trade. So if I was risking let’s say 1% of my account on that trade then I made 3.2% return on my account just from that one trade. You see I’m not paying my broker lots of multiple entry fees, lots of spread costs. It’s just one spread cost and it’s on the weekly charts. Little stress, little effort on my behalf. Great trade, great return. Take that out even further and I have a trade on the US Swiss Franc on a monthly chart. Now that trade right now just before I started recording this video and podcast, that trade is up 145 pips yet the biggest draw down from its entry point is only 4 pips. So you can see that is just a fantastic trade on the monthly chart . I’m just going to keep an eye on that and in a few weeks time at the end of the month and just assess what it is looking like. More than likely at that time it would have hit full profit anyway.
It is really important from your trading that you’re enjoying your trading, have time to do other things. You actually don’t annoy your family because you’re constantly glued to your computer and to your screen. You know that is no fun for anybody at all; at least of all your family. My advice is, if you don’t like your shortly time frame charts, if you don’t suit those, if they don’t suit your personality. Go for those longer timeframe charts. There is nothing wrong with scalping the 1, 5, 15 minute charts, nothing wrong with that at all apart from you probably find that the majority of people are suited to the longer time frame charts. Also don’t be worried about the number of pips you need as a stop loss. You see a lot of people get quite concerned that “I can’t take that trade because it’s got a 100 pips stop loss” for example. It doesn’t matter.
Get Your Copy Of My Free Calculator
Use my lot size calculator make sure that every trade has an equal risk percentage of your account, forget the number of pips you’re risking, forget the number of pips you’re making it doesn’t matter. It is the risk to reward of the trade that matters. That goes across any time frame chart. It really doesn’t matter whether you’re trading a one minute chart or a one month chart.
I hope you found that really useful. If you don’t have my lot size calculator make sure you get a copy. It’s free to use on your MT4 charts. You can get it free on my website.
That’s all for now this his is Andrew Mitchem from the Forex Trading Coach. Have a great weekend look forward to talking to you this time next week.