An Important Warning Message Fore New Forex Traders – Plus Jobs News Predictions
In this video:
00:56 Unrealistic goals and expectations
03:49 Don’t expect to make a fortune on day one
05:33 A trade made a full profit in 1½ hours
07:24 Having a successful trading system
I’ve got a warning for new traders. Let me share more information with you right now.
Hi this is Andrew Mitchem here from the Forex Trading Coach, today is Friday the 7th of February and I have a really important message and a warning for all new traders out there. Taking a loss is a part of trading you need to accept. If you can’t take losses then you probably shouldn’t be trading or at least not on a live account anyway. Taking a loss is something that most people really struggle with and they find it hard and of course it’s an unpleasant feeling not it likes to lose money. But you have to accept that it’s the reality and it’s a part of trading especially in your early days of trading.
Don't Expect to make a fortune from day 1
The problem that I find with so many people and I’m talking to new traders mostly here is that they expect to win straight away from day one and it’s completely unrealistic. They have unrealistic goals and expectations in terms of the amount of money they’re going to make and how quickly they’re going to make it. Unfortunately I’m here to tell you that in most cases and most people your goals are unrealistic. It’s a bit harsh and not many people would tell you that but I’ve been trading the markets for over ten years and I’ve seen thousands of people in terms of people in terms of emails and correspondents and people who’ve done my course and I can tell you that most people who come to me before they’ve taken my course they just have such unrealistic expectations.
So I’m here to say, “Learn from your mistakes.” Because I believe that the best way of learning in trading is to make the mistakes that everybody is going to make and I’ve made so many mistakes myself. Make those mistakes but learn from them. Don’t give up but learn from them and accept mistakes and accept losing as part of trading. It’s just real life.
When was the last time that you took up a new hobby and you’re instantly amazing at it? It probably never happened. How many people do you know take up a piano and within a week or a month they’re playing in like a band or they’re playing in an orchestra? It just doesn’t happen. I’ll give you another example, I’m currently learning how to fly a helicopter and aiming to get my private pilot license. Now my instructor just makes flying that helicopter looks so easy. We just travel along and we just turn nicely and we hover nicely. He’s been flying for over 22 years. I’ve been flying for two weeks. I’m all over the place my helicopter is going like this he is forever grabbing the controls off me to trying and get me back to level again before it’s my go again. I’m all over the place and it’s no different to flying a helicopter to learning to play a piano to starting a new job. How many times have you started a new job and you’ve done your new job better than someone who’s been doing that job for 10 or 20 years? It’s just unrealistic to expect that to happen.
How many times do you take up a new career if you have no training for it? You expect to be brilliant at it. It’s unrealistic isn’t it? You can see how all these things go back to trading. People read on the internet that they can make 20, 50% a month and expect to do it. Fine, you can do it but you’re not going to do it on day one and you’re not going to do it treating yourself as a business for low risk and controlled risk. So I really want to point that point over there not to be a downer because I’m always an optimist and I’m always looking at the positive side of things. But you’ve got to be realistic in your trading.
Don’t expect to make a fortune on day one even if you done my course don’t expect to make a fortune on day one. It’s not going to happen. I would rather people who take any course but if you take my course or you learn your own strategy I would rather that you took six months and slowly worked your way through the system, gain confidence; went to a demo went to live; smaller amounts to bigger amounts and after six months you come back to me and say “Hey Andrew look I’m just loving after taking your course. I’m just loving the results, my confidence just sky high, my trading is going fantastically well but I was quite slow to start with. I much rather have that than people jump in and just try and rip and bust go like crazy and double their account in a month and then six months time and they’ll be here for them again. And that’s not a benefit to anybody whatsoever so just a point to be aware of like I said it especially affects new traders so just be really careful with that. That’s one thing I wanted to mention there.
Live Trading Room Session with a 4.8:1 Reward:Risk Trade
Also just to let you know I held a live webinar yesterday for my clients we then have a full room, a great trading room session, lots of information shared, looking at different scenarios and setups and looking for pull backs and then looking to continue trading with the trend again, took some live trades during the session and had some really good trades.
Likewise this week had some great trades I shared with my clients the trade I took on the EUR/AUD on only the 15min chart. It was a 4.8 to 1 risk to reward trade and it made a full profit in an hour and a half so if I was risking 1% on that trade that was 4.8% return on just one trade. So it just shows that what I’ve said at the beginning about unrealistic expectations yes you don’t need to be looking at making a massive amount but don’t forget I’ve been trading for number of years and a 4.8 risk to reward trade is one of the better trades that I would be taking in terms of the profitability but it just shows what it can be done with experience and with education and with time and with patience and with controlled risk.
I am Anticipating A Lower US Jobs Announcement
The other thing also of course today being Non-Farm Payroll day now was still 16 hours before the announcement while I’m recording this right now and the expectation is for 185,000 jobs to be created in the US for the month. Looking at the charts, well the US has been looking a little bit weaker recently. There’s been a lot of strength renewed strength and the EUR, the Aussie and the Kiwi over the last couple of days. So by looking at the charts like I said I’m 16 hours before the Non-Farm Payroll announcement right now while I’m recording. By looking at it, my anticipation, my estimate would be at this stage for the job payroll figured to come in probably lower than anticipated just by looking at the weakness that is showing in the US right now. Of course a lot could change over the next 16 hours before that but that would be I’ll be looking at right now.
So that’s it for today. Hope you’ve enjoyed that lesson. Don’t take that as a downer, don’t take it as negative, take it as realistic expectations that good trading does involved losses, good trading does involved getting yourself quality education. If you don’t have a successful trading system already good trading does involve time, it involves patience, it involves controlled risk but get all those things right it’s the best thing you could possibly do.
This is Andrew Mitchem here from the Forex Trading Coach have a great weekend. Talk to you this time next week.