Waiting for an “A” Grade Trade Setup
In this weekly video:
00:27 – Wait for the A Grade trades
00:44 – Too many trades over trade
01:21 – Be patient and wait
02:04 – There are no prizes for trading more
03:29 – Have probability on your side as a trader
03:52 – Freely available helpful trading information on my site
Why should you wait for an A grade trade setup? Let's talk about that and more right now.
Hi, Forex traders. Andrew Mitchem here, the owner of The Forex Trading Coach, video and podcast number 243.
Wait for the A Grade trades
I want to talk about a subject that will almost certainly affect you and it's about overtrading, and it's about why you as a Forex trader should wait for an A grade trade setup. Whatever your rules, whatever your strategy, whatever your criteria, it's really important that you wait for that A grade setup. Why? Well, I just see so many traders who overtrade.
Too many trades over trade
They feel that they have to be in the market all the time. They're constantly watching their charts. They're looking for new trade setups. They're always feeling that itch, that mouse click, that computer keyboard button itch to take a trade.
A lot of people feel that if they call themselves a trader whether it'd be just a part-time hobby trader or more than that, they feel they have to be in a trade, have to be in the market otherwise they're not doing anything. Unfortunately, it's not good for your long-term longevity and your long-term health as a Forex trader.
Be patient and wait
You see, it is really important that you are disciplined and that you're patient and you wait because if you don't, all you're doing is overtrading. You're getting more and more stressed. Trades are likely going wrong. Your win rate is going to be low. You're going to get angry at the market. You're lacking that discipline, that self-control and then you start blaming other people. Things go wrong. You're losing more money than you're making. You then look for another strategy, another robot, another magic pill and the cycle just keeps going round and round and round. I'm sure you understand what I mean.
In order to do that, it is really important that you are disciplined and you do wait for your A grade setup because I have a phrase that I say to my clients.
There are no prizes for trading more
There are no prizes for trading more. What that basically means is just because you take more trades does not mean to say you're going to make more money. In fact, it's generally the complete opposite. The only thing that certainty about taking more trades is all you're going to do is take more money out of your account and put into your broker's account. Really, we don't want that, do we? After all, as traders, we're more interested in what's in our account than we're feeding to the broker all the time in entry fees and in spread fees, all that type of thing. It's not good. You do not have to be watching your charts all the time. You do not have to be feeling like you're taking trades all the time because long-term that's not good for you. You have to have your trading that's enjoyable and it has to be realistic to accomplish.
Sitting, watching your charts 24 hours a day, seven days or five days a week is not realistic. Sitting, watching your charts 8, 10 hours a day is not realistic. It's not enjoyable that's for sure. You certainly can't travel. You certainly can't do that over and over again. Almost certainly, you'll burn yourself out. You just have to stop or you just lose your account and you'll be forced to stop or you'll blame the market. You'll say that Forex doesn't work. It's a scam. It's a gamble. The broker is against me, all these things that people will for whatever reason say and that will be your conclusion.
Have probability on your side as a trader
What I'm trying to get across, my point is be disciplined. Be patient. Wait for that A grade setup because if you do wait, you know that probability is on your side when you see that A grade setup. If you do wait, you will end up taking better quality trades, having high reward to risk trades and growing your account consistently and that after all is the key to Forex trading.
Freely available helpful trading information on my site
If you need my help on that, there's plenty of information on my website on theforextradingcoach.com. There's free calculators. There's free webinars. There's even a free course. There's lots and lots of information on there. There's 243 videos of trading information including today's video, lots of information. There's information about how I can help you with my full course. If you want to go that step further, enroll and join us on The Forex Trading Coach journey. If you do, it'll be great to have you. Have a look at my website for further details. Have a great weekend. I'll see you this time next week. This is Andrew Mitchem, The Forex Trading Coach. Bye for now.