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Daily Currency Movements and Trading Videos

#222: Why I Follow The Charts

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Why I Follow The Charts

In this video:
00:33 – The KISS approach – See it in real time from the right hand side of the chart
01:36 – News becomes my opinion but the charts are fact
02:02 – You don’t need to worry about news announcement
02:38 – Have a look at the GBP charts from Monday
03:54 – I see the trade setup and take the trade
04:56 – I’ll be teaching live in North Carolina and Washington DC in June

As a Forex trader, I follow what the charts are telling me. Let's talk about why that is right now.

Hi Forex traders. It's Andrew Mitchem here, the Forex Trading Coach. Today is video podcast number 222 and I want to talk about why, as a technical trader, I watch what the charts are telling me and I trade what the charts are telling me. It's a really important thing.

The KISS approach – See it in real time from the right hand side of the chart

As a trader, I love the K.I.S.S. approach, the Keep It Simple Stupid approach, because your technical trading or any form of trading needs to be simple. It needs to be something that you can see and apply in realtime without all the benefit of hindsight.

The charts do that for me. They tell me what's happening in the market right now on different currency pairs, depending on what timeframe I'm looking at, depending on what pair I'm looking at, I can then analyze strength and weakness against or for which currencies are showing strength and which are showing weakness right now. I can see which are showing exhaustion, which are range bound, which are trending, which are reversing, which are continuing. All sorts of different things that I'll look at in trading. But really easy to see it in realtime from the right hindsight of the chart and that's an important fact or an important point. You have to be able to trade from the right hindsight of the chart, look at what's happening right now in the market, when the candle is closed, make an opinion, and trust that opinion, and take that opinion. Because it's actual fact. It's what's happening in the market.

News becomes my opinion but the charts are fact

If I was to trade news, that becomes sort of my opinion as opposed to someone else's opinion. The charts are fact. It's where the price is right now, where it's been, its high, its low. Has it formed support at a certain level? Has it bounced at that level in the past? Is it at a round number? All these sort of things, as a technical trader, are fact because it actually happened.

You don’t need to worry about news announcement

I don't need to spend hours and hours studying the news events. I don't need to be at my computer just before a news event, waiting for it to be a better or worse announcement. I don't need to do any of that. I don't have to worry about the spreads or the charts freezing at a news announcement. None of that.

I'll give you an example. Earlier this week, we had Theresa May, the British Prime Minister, call a “snap election” in Britain. Completely unexpected. Hardly anybody knew about it because most of her cabinet didn't even know about it. Most people did not know that was coming.

Have a look at the GBP charts from Monday

However, go and have a look at your charts on the daily chart. Go and have a look at, say, like the British pound, Japanese yen, or British pound, Canadian dollar, and most of the British pound pairs. But those two, in particular, were showing very good, strong bullish buy setups on Easter Monday. Now, most years you would not expect too much decent price action on Easter Monday, especially on a British pound pair when Britain shut for Easter. However, go and have a look. Go look at your charts when you finish this video or podcast. Go and have a look at your charts on the daily charts. Look at the British pound, Japanese yen, as an example on Monday.

Then on Tuesday, when the announcement came out, the British pound shot sky high and went through the roof and it went crazy. But the charts, the day before on the daily charts, were showing a very good, strong, bullish buy pattern.

Is that luck? Is that complete and utter chance? Is that fluke? Or did I just get lucky? I'm not sure. But all I can tell you is that the charts were showing a very good, strong, bullish buy pattern, long in advance of that news announcement coming out.

I see the trade setup and take the trade

Take it what you make of that. All I know is that as a technical trader, I see the trade setup and I take the trade. It doesn't become a my opinion. Is the British election been a snap election. Is that a good thing? Is that a bad thing? A labour suddenly going to form with someone else? Is the Scottish lady going to intervene? All these different things that's happening over there. I don't need to particularly worry too much about them as a trader because the charts are telling me what's happening.

You'll also notice the British pound went sky high. Then the day after it, then stalled at that level and it came back again. Well, technically, it was going to do that because it reached a certain level, which it had hit in the past on most of the British pound pairs, and it was quite likely it was going to hit that level as resistance and then pull back again. Then it's come back a little bit. Now we're seeing bullish price action. It's likely to then go further upwards again. So all technically based and it all is there to see on the charts.
I’ll be teaching live in North Carolina and Washington DC in June

That's today's lesson. The other thing I'd like to share with you quickly is in June, on the 3rd and 4th of June, I'm going to be teaching live in North Carolina. On the 10th and 11th of June, I'm going to be in Washington, D.C. If you're in America or Canada or anywhere else and you're able to get to America on those dates, I'd love to see you there for some live, in-person tuition. There's a link below this video. If you're watching the video, there's a link below that you're able to click on to that will take you through to a free to join webinar, which will explain more about my visit to America at the end of May and early June. I'd love to see you over there to help you further develop your Forex trading.

Once again, this is Andrew Mitchem, the Forex Trading Coach. Have a wonderful weekend and I'll see you this time next week. Bye for now.

Click Here to Sign Up Now for my Webinars for US Traders!

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#221: The no.1 Biggest Mistake I See Forex Traders Make

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The no.1 Biggest Mistake I See Forex Traders Make

In this video:
00:34 – Most traders take too big a position size
01:00 – Forget about making pips
02:40 – Understanding the current market conditions
03:26 – Reduce the risk you take per trade – use my calculator
05:40 – Trader risks it all on one trade

I'd like to discuss the number one biggest mistake that I see Forex traders making. It's a really important point, let's get into it right now.

Hello Forex traders. Andrew Mitchem here, The Forex Trading Coach, and this is video and podcast number 221. I want to talk about the number one biggest mistake that I see Forex traders all over making, and it's as simple as this.

Most traders take too big a position size

People trade with too big a position size. Their lot size is ridiculous in most cases and it causes too many problems. As a trader, these are the facts. You need to trade with low risk per trade, you need to have controlled risk per trade. You need to know what the very worst outcome is on that particular trade, and also, when you think about that.

Forget about making pips

You really need to forget about making pips. I've got a saying that “Pips make you poor”, and what I mean by that is that the actual thought process, like the mental approach of trying to make X number of pips is ridiculous. It is not a way that you're going to end up being a good trader. What you need to do is have low risk per trade and controlled risk per trade, so you know the worst you can do on that trade, but to calculate that, yes you need to know the stop loss of the trade, but you need to make that stop loss equate to certain percentage of your account. You see, I see people out there all the time, not really having a clue what they're doing and they're placing say one standard lot on a trade.

Why would you place one standard lot? What does it mean? It's different for every trade, isn't it? Some people might say, “Oh, now I'm going to place two standard lots, or 0.5 lots.” Whatever it might be, but they put the same one every single trade, and it has no relevance to what currency pair they're trading, because don't forget, different currency pairs have different amounts they pay out per pip of movement. It has no relevance to the timeframe of chart they're trading, and generally, the shorter the time frame chart you trade in general, the smaller the stop loss will be but quite likely the smaller the profit target will be in pips. If you're just out there chasing pips, it really is almost doomed from the start. There's a number of issues that people have there, so they're placing too big of a position size without really knowing what they're doing.

Understanding the current market conditions

The problem is, also people don't really understand the market conditions at the time. “I place a 50 pip trade,” that's what you hear from a lot of people, 50 pip stop loss per trade. “Aren't I good? I'm using a stop loss.” Well, what does 50 pips mean? 50 pips on a British Pound/New Zealand Dollar is very, very different to 50 pips on a Euro/British Pound. 50 pips on a daily chart is very different to 50 pips on a five minute chart, so you need to get into context of what it is you're doing and what timeframe you're trading, what the conditions are in the market right now, what currency pair. All these sort of things need to be taken into account.

Reduce the risk you take per trade – use my calculator

What you can do in order to help yourself is to reduce your risk that you take per trade down to something that's small, low, conserved, manageable, and eliminate a lot of the emotions involved in trading. I've got something that's definitely going to help you. I have a lot size calculator freely available on my site. It's been on my site for years and years, actually. It's got tens of thousands, I think probably into the hundreds of thousands of downloads by now, from traders all around the world. It's been on my website for probably I don't know, eight, maybe more years or so. It's just an invaluable tool. It works on the MT4, MetaTrader 4 platform. It's freely available.

What I'll do is I'll put a link to that calculator below underneath this video. It won't cost you anything, freely available. It's my gift to you to help you out, and what it means is all you do is you drag it on as a script onto your MT4 chart. It knows what your account size is because it calculates your account size, it knows what your currency denomination is, and it also knows what currency pair you're trading because you're dragging it onto the trade and the pair that you're about to trade. All you need to do is enter the risk that you want to take on that trade. It's defaulted as nought point half Sorry, 0.5 of 1%, half of 1%.

You can change it if you wish to, and all you need to do is enter the stop loss of that particular trade in pips, press “Okay” and it will tell you you need to put in X number of lots and if you put in that number of lots on your trade, and you have the stop less at the level that you said you're going to have it at, that means that the very worst you can do if you get stopped dead on that trade is lose half of 1%, if that's the risk that you calculate on the calculator. It's a brilliant tool. It's so, so useful and what it does is it changes your mind. It changes your thinking, it changes your whole thought process, mentality around trading, gets you thinking more like a professional trader, gets you worried less about trying to make so many pips. It's a great tool.

It really will help you because that is really the biggest mistake that I see most traders taking, just risking crazy amounts.

Trader risks it all on one trade

In fact, I had a phone call just yesterday from a guy who said that It's slightly off subject because this was more binary options. They told him to put his entire account risked on one trade over the Brexit several months ago, and of course it lost. Crazy, crazy things that some people are doing out there. Now, I know that was binary options and in my opinion, you should stay well clear of them, but even as Forex traders, so many people just risk crazy amounts per trade without really knowing what they're doing.

Control your risk. It'll help you long-term in the end by an absolute country mile. It'll make your trading better, it'll make it more enjoyable, it'll make your longevity as a trader better, and you'll end up doing so much better longer term.

I hope that helps you. Once again, this is Andrew Mitchem, the Owner and Trader at The Forex Trading Coach. Have a great weekend. I'll see you this time next week for video number 222. See you then, bye.

Click Here to Download my Free Lot Size Calculator

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#220: How much is a good weekly return from trading the Forex market?

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How much is a good weekly return from trading the Forex market?

In this video:
00:25 – What is a good return as a Forex trader?
00:40 – JAS Funds is at +2.6% for the week
02:05 – Low drawdowns, low risk trades
02:35 – 3 trades taken on a live webinar made coaching clients +1.25%
03:17 – Learning from watching a trader in real time – Weekly webinars for clients
04:10 – 2 live webinars for US and Canadian clients this week – link below

How much would you consider is a good return? Let's talk about that and more right now.

Hi, Forex traders, Andrew Mitchem here, The Forex Trading Coach and this is video and podcast number 220.

What is a good return as a Forex trader?

I wanted to talk about what makes a good return as a Forex trader. It means different things to different people. It depends whether you have a relatively small account, whether you have a big account, whether you are just starting out or whether you're a bigger, longer term investor. Let's talk about the different scenarios.

JAS Funds is at +2.6% for the week

As an example, this week on the manager accounts that I manage as part of JAS Funds, we're up 2.6 percent. It's a great return, I'm very, very happy. If we can do that every week I'll be extremely happy. Unfortunately we don't do that quite every week, but this week has been a very, very good week.

The key for us at JAS Funds is to have low risk for trade, it's to have a low draw down and it's to have high reward to risk trades. 2.6 percent gain in one week is an exception gain and investors are very, very happy. When you're trading with millions of dollars, you've got to have very low risk and very small draw downs.

However, if you were on say, let's say a 1,000 or $2,000 account, something like that, yes you could have higher risk and it's quite easy to see how people might make say, 10, 20 percent in a week or even in a month but that's something that you can do if you're on a smaller account if that amount of money doesn't mean the world to you. If one or $2,000 is your maximum account size and that's a huge amount to you, then you need to be very low risk, understanding how to trade and almost forget about the monetary return at this stage. Again, it's a bit like a video I made a few weeks ago, you have to think like an investor, so that's a really, really important thing to look at.

Low drawdowns, low risk trades

Now as I mentioned with JAS, we're looking at very low draw downs, but an annual return, we're looking at somewhere sort of 30 percent and above and if we do that year after year, then that's an exceptional return that investors are absolutely ecstatic about and so are we as traders. Again, it's about understanding what's important for you and what type of trader you are and what account size you have and why you're trading.

3 trades taken on a live webinar made coaching clients +1.25%

I'll give you another example of some great trades, just last night I held a webinar, a two hour live webinar in European trading session for my clients and I took three trades on the session live.

Two were on the one hour charts and one was on the six hour charts. The six hour chart trade lost and I lost half of one percent and on the other two trades, we gained a profit on both. We made a net gain of 1.25 percent on that account, risking half percent. On the JAS, which is the fund management, I'm only risking a quarter of one percent and so but on my personal account, I'm risking half of one percent because it's my own account. I made 1.25 percent and so did all the clients that copied those three trades just on the webinar just yesterday.

Learning from watching a trader in real time – Weekly webinars for clients

It's not just about for them the actual copying the trades, it's understanding why I'm taking the trade and it's seeing the trades live in real time. They could have all gone wrong, they could have all worked, it's about seeing that in real time, seeing the setup, being confident in the system and taking the trade. That's what clients get so much benefit from, from the weekly webinars that we hold. One week I hold a live webinar in the European session, the following week Paul, who is a client of mine in America, he holds a two hour webinar in the US session and then the following week, I'm European session, then he goes US session, etc., so we have weekly webinars now for clients.

A great service and clients are just loving the weekly sessions. It doesn't really matter where in the world you live, you can get onto one of those as a client.

2 live webinars for US and Canadian clients this week – link below

That's it with the webinars, the other thing, talking webinars actually, next week I'm holding two live webinars for traders in America and Canada with Paul, live sessions. There's a link below this video. I'd love to see you on those if you are in America or Canada, especially for you guys over there. Really looking forward to holding those webinars and that's leading on to me coming to America in June to do some live training.

If you'd like to know about JAS Funds and having your accounts managed, if you are a wholesale investor and you have a minimum of $100,000 in your trading account, then you would qualify for JAS Funds. Email me, Andrew, at the forextrainingcoach.com if you'd like details on JAS Funds.

Have a great week and I'll see you this time next week. This is Andrew Mitchem for Forex Training Coach.

Click Here to Sign Up my Live Webinars for US Traders

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#219: How To Trade Forex In Less Than 1 Hour Per Day

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How To Trade Forex In Less Than 1 Hour Per Day

In this weekly video:
00:29 – Trade full time by spending less than 1 hour at your charts per day
00:42 – I’m coming to America in June to teach Forex
00:57 – Most people spend too long watching charts
01:40 – The less time you watch your charts, the better you will trade
03:10 – Trading 12, 6 and 4 hour charts
05:07 – 1 hour per day cover all charts
05:44 – I’ll be in America in June – live trading events in North Carolina and Washington DC
06:22 – Live webinars for US traders in April – the link is below the video

Would you like to know how to become a full time forex trader by spending less than one hour trading per day? If you would, listen up. I've got some great news for you.

Hi, Forex trader. Andrew Mitchem here, The Forex Trading Coach, and this is video and podcast #219. I've got two great bits of information to share with you today.

Trade full time by spending less than 1 hour at your charts per day

Number one I'd like to share with you how you can trade as a full time forex trader by spending one hour or less looking at your charts per day. I'm sure you'd like to know that. Number two, I'd like to share with you some great news.

I’m coming to America in June to teach Forex

I am coming to America, so if you are in America or maybe in Canada I'd love to come and meet you. I will be in America in the first two weeks of June in North Carolina and Washington, DC so more about that at the end of this video and podcast.

Most people spend too long watching charts

Let's start with the trading itself. Would you like to know how to trade full time in one hour or less per day? The problem is that so many people think that to become a full time forex trader they need to give up their job, they need to just stare at charts all day, they need to have CNN going, they need to have screens all over the place, and you don't.

The problem is that most people also think that in order to become a full time forex trader you need to be looking at price movements throughout the day. You need to be scalping, looking for news events. You need to be there watching your charts all day long. It's a big misconception because I can promise you that is not what you need to do in order to become a full time trader.

The less time you watch your charts, the better you will trade

In fact, the less you look at your charts once you understand how to trade the more you will make, the more profitable you'll be, the more you'll enjoy your trading and the more realistic it will be because you can keep continuing to do what it is you enjoy to do while you are trading. So let me explain.

Because I only look at the close of a chart, close of a candle, before I make any decision on what I'm doing, it's really easy because you can plan your day around the charts. Now, if I‘m trading on the weekly charts, I look at my charts just once a week at the beginning of the week when the market opens. It takes me 10 minutes per week to go through the weekly charts. Each day I look at the daily charts at the close of the daily candle at 5pm Eastern Standard Time. That's New York time. You can go to your charts, have a look at the daily candle when it's closed, and you can then make an analysis of what you're looking at doing.

If you understand technical trading and the way that I trade it's very, very easy within under 10 minutes per day to go through 20 to 30 different currency pairs depending on how many you want to look at and make an analysis. Are there any trade setups here? Yes or no? If there are, take them. Very easy to understand where to put your entries, your stop losses, your profit target, et cetera, and you can do it in under 10 minutes per day. Let's say that you're into Tuesday through to Friday. That's 10 minutes is all it's taken you because on Monday you looked at the weekly charts as well. It may be up to 20 minutes by now on a Monday, but 10 minutes a day is all you‘re taking to do the daily charts.

Trading 12, 6 and 4 hour charts

Then I love looking at charts like 12 hour charts, 6 hour charts, 4 hour charts. I sometimes go down to 1 hour charts but not that often. If I'm trading the 12 hour charts I need to look at my charts twice per day, at the close of both 12 hour charts. The great thing is that the 12 hour charts also close at the same time as the dailies so when I'm looking at the dailies I can then go and spend another 10 minutes at the very most looking at the 12 hour charts. Twelve hours after that, which becomes 5am Eastern Standard Time, I can go look at the charts as well.

I don't have to be there at 5am Eastern Standard Time. If you're an American you go, “That's 5 o'clock in the morning Andrew. I don't want to be at my charts.” That's fine. If you can't take those then don't take them. The way I also take those longer time frame trades myself is I'm using retracement entries. I'm not taking market orders, so you don't even have to be there at that exact time. You can put a limit order in to get filled at a later time, a later price, but you don't have to be there when the candle closes if you cannot make it. And if you cannot make it you cannot take the trade. You're able to take it later on a retracement if you want to take market orders and you can't be there. You got other things on. You're sleeping. You got work. You got kids. Whatever it might be. Then there's more trades around the corner.

So that's daily charts, 12 hour charts. I'm up to 20 minutes per day by now, or 30 because I'm doing the 12 hour charts twice. Then the 6 hour charts I also do and look at when I'm taking the daily charts. I also look at them when I'm taking the 12 hour charts and then potentially once more in the daytime, so we may be up to 30 to 40 minutes now. Then if I want to look at 4 hour charts, they also close at the same time as the daily charts close. They also close at the same time the 12 hour charts close 12 hours later, and you can maybe look once or twice in the daytime.

1 hour per day cover all charts

So no more than one hour absolute tops looking at your charts, and you can cover daily charts, 12 hours, 6 hours, and 4 hours. On a Monday, the beginning of the week, you can even cover a weekly chart as well.

Easy. High reward-to-risk trades. You don't have to be there at exactly that time if you're not taking market orders. Very easy to know where to put your entry, your stop loss, your profit target. Very easy to see if there's a trade, yes or no. Job done. One hour or less per day. No sitting at charts watching every single pip move up and down. No watching 5 minute charts. No worrying about the news. Don't do that. That's a really important point.

I’ll be in America in June – live trading events in North Carolina and Washington DC

Point number two I wanted to let you know about is I am coming to America so if you are listening to this podcast or watching this video and you are in the United States or possibly Canada and you're willing to travel, I am coming to do four live, in person training sessions in the US in June. The first weekend in June in North Carolina and the second weekend in June in Washington, DC. The actual venues haven't been arranged quite yet but we'll have those sorted very shortly.

Live webinars for US traders in April – the link is below the video

To help you find out if that's what is the right thing for you, in the first week in April I'm holding two live webinars. So if you live in the US or Canada, get onto one of those webinars. I'm going to put a link to the page below this video and if you're watching on YouTube there'll be a link below this video also. If you‘re on the podcast just email me and I'll let you know what the link is. On the 3rd and the 5th of April I'm holding two live webinars. Going to be discussing all about trading, what it is, how you can benefit from it, and how I can help you if you'd like to come and see me in person in the United States in June. Great opportunity there.

I've not been to the United States to do live training before. I've been to many other countries but not to the US so great opportunity if you get a chance and you'd like to take the opportunity to be taught in person by myself and one of my very, very successful US coaching clients, a guy called Paul Tillman who's done extremely well since doing my course two years ago. Paul by the way is also holding my US live trading room webinars which are for my clients every two weeks as well.

Now for my clients, they have available to join in live two hour webinars every single week, so over 100 hours of live webinars per year to attend as a client now. We put on those extra 25 per year completely free of charge for clients. No additional fee at all. It just allows clients in the US time zone or maybe in Europe in their afternoon to jump onto the webinar. So every week, clients have the opportunity to either join myself or join Paul on a live two hour webinar.

That's another thing that I wasn't really planning on talking about on this video, but the two things are number one, how to trade in less than one hour per day. Number two, if you'd like to jump onto a webinar to find out about my visit to America in June, those webinars are the first week of April. I'm coming first and second weeks in June. Links are below.

Look forward to seeing you this time next week or on one of those webinars in April, or in person to say hi and shake your hand and help you with your training in America in June.

This is Andrew Mitchem, The Forex Trading Coach.

Click Here to Sign Up my Live Webinars for US Traders

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#218: How to Identify High Probability Trade Setups

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How to Identify High Probability Trade Setups

In this weekly video:
00:24 – Looking for trades that will work in your favour
01:03 – Most traders rely on an indicator
01:23 – You need to understand how to read the charts
02:12 – Putting multiple factors in your favour
04:05 – Look at the actual price of the currency and use round numbers
05:20 – Adding the daily strength and weakness
05:38 – Client makes +7% in 2 months trading the H4 charts

I'm gonna share with you some tips and ideas about looking for high-probability trade setups. So let's get into that right now.

Hi traders, Andrew Mitchem here, the owner of The Forex Trading Coach, and today is video and podcast number 218.

Looking for trades that will work in your favour

And I'm gonna be discussing with you, and sharing some tips and ideas of helping you to look for higher-probability trade setups. Trade setups that are gonna work in your favour far more often than they're not going to. You see, the problem is with a lot of traders, is they don't have a strategy, and they don't really understand the market.

And when I look around at different systems and different ideas that people tell me they're currently trading … And by the way, they're not making money on, otherwise they wouldn't be coming to me … And what they're doing, it kind of just doesn't add up to me.

Most traders rely on an indicator

Most people are relying on a indicator. They're looking for a line to cross over and another line on their charts. They're looking for a dot to appear on their charts or for a line to change colour, or all these type of things. And that really is not true technical trading.

You need to understand how to read the charts

You see, to understand trading properly, you have to understand the charts and look at the price. You have to understand what's happening in the market right now. And when you clutter your charts with too many lines and graphs and dots and stars, and all these things that people tend to, for whatever reason, think it's a really good idea to clutter their charts with … What you end up doing is not being able to see what's actually happening in the price, and understanding what's happening.

Someone sent me a screenshot the other day and said, “Hey Andrew, can you give me some advice on my strategy.” And I actually couldn't see the candle patterns underneath all this congestion of this big mess of spaghetti and lines and things on the chart. So it was horrible. And no wonder this person was confused, because there was just so much stuff going on.

Putting multiple factors in your favour

And I said to him, “Look. Strip that off, and start again.” And it was something that I discussed on my webinar with my clients last night, and it was all about putting factors in your favour to give yourself a high-probability chance of success. But what is it about this trade setup right now? Even when you understand candle patterns and price analysis, you still need more than just that.

You see, I'm a big believer in candle patternss and candle shapes, and where they occur. But you can't just say every bullish engulfing in candles means that price is gonna reverse and start moving up. You cannot do that. Likewise, if you use … Let's say Bollinger Bands. You can't say every time that the prices hit the upper Bollinger Band, it's now gonna start coming down again. Because it won't. It's like if you use divergence. Every time you see positive divergence, it doesn't mean to say the price is gonna suddenly reverse and start going up again, because it won't. You have to put a combination of different factors together.

And when I was sharing with my clients, just on the webinar last night … I was sharing with clients some of the trades that I've taken, and some that I hadn't taken, but some that I'd seen. Now, with the benefit of hindsight … Because at times I wasn't here, or I was sleeping … But I shared a lot of trades with clients. And when we had five or six different factors all showing at the same time, backing the trade up, all showing the same thing, the same confirmation … On most of those trades, we had outstanding, high reward-to-risk trades that went to their profit target, without hardly getting into any draw down at all.

And it's remarkable how consistent that happened. So it is all about putting those things together. You can't just rely on one indicator. You cannot rely on just one or two things. You have to start to look at the price.

Look at the actual price of the currency and use round numbers

Look at the price number. What is the number of the price right now? Like the level of the price. Just because your indicator paints a little star or dot to say, “Buy here,” you might be buying straight into a strong round number.

And there's some great examples on the charts. If you go and look at your charts, of where the price stalls or reverses, more often than not, it will happen at a round number. Now, what I mean by that is a number ending in zero-zero or five-zero. Now, go and have a look. Just try and … After you finish watching this video, listening to this podcast, just go and do that. Have a look at your charts. Scale down to the shorter time frame charts, like an hour chart or something, and see every time the price gets to a level and then comes back. More than likely, it's gonna be stalling at a round number.

So if you can start to add different factors, and confluence events together with the same technical strategy, and look at the price, and forget most of the indicators and wiggly lines on your charts … Forget most of that. Get back to true price. Where is the price coming to? Where is it bouncing? Why has it bounced at that level in the past? Is there a suitable candle patterns? Are there a few other things I look at and teach?

Adding the daily strength and weakness

Does it have the backup of the daily strength or weakness analysis to … Let's say, a bullish on the daily chart? On the Euro, U.S. dollar, let's say. On a 1 hour chart when I see a bullish pattern, and it's in the same direction as the daily chart, it just adds more and more probability of your charts of success.

Client makes +7% in 2 months trading the H4 charts

Now, I have an email here from a client called Alex. And Alex said, “I've been doing exceptionally well over the past two months, trading only the four at a time frame charts. I have a win-loss ratio of 75%, and my accounts up over 7%.” So that backs up everything I've just said. A high win rate, a higher time frame chart. It's not doing too much trading, not watching the charts all day. A 7% gain on live account in two months, from someone who's relatively new to trading. You could do that, too. If you'd like to know more, drop me an email. [email protected], or leave a comment below this video, and I would be more than happy to help you out.

So once again, this is Andrew Mitchem, The Forex Trading Coach. Have a great weekend. I'll see you this time next week.

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#217: How To Become One of The 5-10% of Traders Who Make Money From Trading

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How To Become One of The 5-10% of Traders Who Make Money From Trading

In this weekly video:
 00:30 – What it takes to become a successful Forex trader
01:12 – Why do so many people lose money from trading?
01.52 – Most don’t have a strategy or the right mindset
03:00 – How I can help you overcome these issues
03:45 – A trading strategy that is proven to work across all market conditions
06:16 – Live webinars for clients every week either in the European or US trading sessions
07:14 – Clients only Forum site to help and learn – building a trading community of like-minded traders
08:54 – Short cut the learning process

I'd like to share with you tips, help, and advice to help you become one of the 5 to 10% of Forex traders who actually makes money from trading, so let's get into that and more right now.

Hello Forex traders. Andrew Mitchem here, the Forex Trading Coach. This is video and podcast number 217.

What it takes to become a successful Forex trader

I want to talk about what it takes to become a successful Forex trader. How I can help you shortcut your learning path and save you lots of time, money, headaches, and frustration. Does that sound good? If so, keep listening. Okay, so there's a common number put around that somewhere between 90 to 95% of all Forex traders lose money.

How accurate that figure is I don't know but wherever you research online, somewhere between 90 to 95% is the figure that's commonly used. So, let's accept that that figure is correct for now.

Why do so many people lose money from trading?

Why is that and more importantly, what can you do to make sure that you're in the 5 to 10% of all Forex traders who make money? Because ultimately that's what you're here for, and it depends how important that is to you, and there's various ways of being a good trader but let me share with you my tips and secrets from around 14 years as a full time Forex trader, and I've seen all sorts of different people and companies come and go in that time believe you me, so I've got a fairly good, extensive knowledge of the Forex industry.

Most don’t have a strategy or the right mindset

Okay, so the problems are most people don't have a strategy. Of course, it's the obvious number one thing. They don't have the mindset of what it takes to become a good trader, they don't have a style that suits them, they don't have back up or help. People very easily get distracted when things don't work out, and you tend to get the … You know the phrase, “Blind leading the blind?” That is a very common problem in the Forex world. People find that when things don't work out for them, and their trades aren't working, they go to try to add something to it. They'll go and search for the next holy grail and the next best system, the next indicator, the next bit of news trading, whatever it might be. They're always on the search for the next thing rather than sticking to what they know.

It's a big danger. When you're out there by yourself trading it's very easy to get distracted and start searching online, so what can I do to help you overcome that?

How I can help you overcome these issues

I'd like to explain why such a massively high proportion of my coaching clients become very, very good Forex traders. In fact, one of them, a guy called Paul over in North Carolina in the US, he's now come onboard with me as part of the team. He's now holding live webinars in the US timeframe, so the US trading sessions. He's that successful I've said, “Look Paul, I'd like to offer you a position as part of the group,” because he's done so well.

There's lots of people out there like Paul who have taken my course and done very well but let's start at the very beginning, and the basics.

A trading strategy that is proven to work across all market conditions

I provide a strategy that's proven. It's as simple as that, it's a proven strategy. It's been proven for years. I've been trading this particular strategy for over 10 of the 14 years I've been trading. I've been teaching it for almost eight years. It's well proven, it's proven, doesn't matter where you live in the world, what timezone you're on, how many hours you can dedicate to trading, what currency pays you like, what timeframes you like, what the market conditions are. It's proven across all of them.

That's the important thing that you need to start with, a strategy that works, a strategy that has logical sense, that works in all market conditions and is proven. That's the first thing. Second thing, I provide daily, like every single day of the trading week, I provide daily analysis for my clients. It includes specific trades that are taken off the daily charts. At the beginning of the week, I also mention weekly charts, at the beginning of the month I also mention monthly charts but every single day I mention trades that I'm placing myself based off the daily charts. The reasons for taking the trade, the candle patterns, the set up, all the reasons why I'm looking at taking that position, it's all done in advance of the market moving.

There's no hindsight involved, it's real time, you can make money from it by just understanding it, copying it, learning from it. The entry positions, the stop loss, the profit target, the reasons why. It's all taught in the course anyway, but every single day I'm writing this information for my clients to train their eye in real time, so that one, they can learn from it, two, they can earn from it, and three, they can then go and apply that same philosophy, same principle that they're seeing day after day after day, and apply that same strategy and principle to any other timeframe chart that they wish to trade. It's a real time trading. It's not, “Oh, yesterday I might have done this,” or, “Yesterday I did that,” and hand picking good trades. It's not that at all.

You get the good trades, the bad trades, everything in real time. It can be applied, doesn't matter where you live in the world, to apply that onto your account. You have the strategy, the daily trades, strength and weakness analysis, where I'm looking for strength and weakness with different currencies as well. Now, part of that's freely available on my website, but the clients actually get so much more. Only clients get the specific trades.

Live webinars for clients every week either in the European or US trading sessions

Live webinars, just mentioned, I've just taken onboard Paul who is now going to be holding two webinars per month, one and a half to two hour live sessions per month in the US trading session.

First one was just yesterday, and the alternate weeks, every two weeks, I hold and have done for eight years, live trading room sessions which are all two to two and a half hours long in the European session. They all get recorded if as a client you can't get there to watch it live, but these are real time trading webinars. Clients only, so everybody understands the system, the strategy, when they're on there. We're looking at taking trades in real time, we answer questions, we look at trades that were taken over the previous week since the last webinar, lots and lots of real time information. When we're looking at historical trades, we show trades that have worked, trades that haven't worked because you can learn from both.

Clients only Forum site to help and learn – building a trading community of like-minded traders

I have a forum site that's for clients only. It's not one of those silly arguing, everybody's trying to outdo each other forums like most of the forums out there in the general Forex world. It's clients only, talking only about the strategy that I trade and teach. Different timeframe charts, where I discuss, people are posting trades in real time. Some people post trades that they've taken, good and bad, in hindsight, after the trade's closed. But a lot of people on there posting trades in real time saying, “Hey, I'm liking the look of this set up and these are the reasons why,” but again, it's building a community.

There's hundreds and hundreds … Well, actually there's thousands of clients that have taken the course, but there's hundreds of clients on the forum sites all the time, interacting with each other. There's always information there to gain. You put all that together and you add to that trading software that helps identify set ups, it's not a robot system, it's not to say you have to rely on that software, but the software identifies key levels of support and resistance, helps identify candle patterns, different things like that that are included in the overall strategy. It just helps alert you to potential trade set ups.

You put all that together and you have a community, you have a proven system, you have real time help, real time coaching, access to myself, access to Paul, email access, support sites, forum sites, daily trades, the whole strategy, video courses, everything put together, that is what you need if you're serious about becoming a successful Forex trader.

Short cut the learning process

If you want to shortcut the whole learning process, if you want to save yourself headaches and tears and frustrations and giving up and losing money on accounts, if you want to save all of that, then take my course really is the best way to shortcut the learning process and becoming a successful Forex trader.

How do I know? Well, thousands of people have done the same thing over the last eight years and the success rate is remarkably and incredibly high. If you'd like to join us, it'd be great to have you on board.

This is Andrew Mitchem, the Forex Trading Coach. I'll see you this time next week.

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