• flag+612 8091 5708
  • flag+1 646 583 2752
  • flag+64 21 1216268
  • flag+44 20 3289 1849

Daily Currency Movements and Trading Videos

#215: How Leverage Can Help You Achieve Your Trading Goals

Listen Now
Play

Podcast:
Play

How Leverage Can Help You Achieve Your Trading Goals weekly video

In this weekly video:
00:31 – We all use leverage to achieve things quicker and easier
01:00 – The problem with using leverage if you don’t know what you are doing
01:13 – I use leverage to help traders Worldwide
02:22 – Managed Forex Accounts using www.JASFunds.com
03:33 – Create Passive Income and a Diversified Investment

In this video and podcast, I want to talk about how leverage can really assist you achieve your trading goals. So, let's get into that right now.

Hi traders, it's Andrew Mitchem here. This is video and podcast number 215 and I want to talk about leverage, how leverage can help you and assist you to achieve your trading goals. Let's get into it.

We all use leverage to achieve things quicker and easier

Well, leverage, we use it everyday in so many ways to help us, to help us achieve things better, quicker, easier. When it comes to trading, it's no different. You see, you could go to a bank and use leverage by using a mortgage. In trading, I use leverage by using my broker's money. It's a great way if you know what you're doing.

The problem with using leverage if you don’t know what you are doing

But, the trouble is with leverage and the problem with leverage is it's a double-edged sword. If you don't know what you're doing, it can easily damage you. I've got something that can help you, two options really.

I use leverage to help traders Worldwide

Number one, with my Forex coaching course, I use leverage. I've taught over 1600 traders from all around the world. How to make money from trading but they're leveraging me.

They're leveraging my years of knowledge and experience, my ongoing support that I give people with daily, trading information. Which by the way, rough over 3% so far this week. We hold webinars. We can use leverage through webinars.

It reduces the cost. I don't need to travel to see people because the power of leverage in webinars, we all come together online. It's the same with the membership site in terms of we're using leverage for I write the post to people all around the world can get to see what I'm writing and suggesting to them on daily basis.

We're using leverage, we're using the power of the internet and we're using leverage. As in I can help so many people globally and they can tap into my knowledge and experience. That becomes leverage in terms of coaching and in terms of trading.

Managed Forex Accounts using www.JASFunds.com

Now, if the actual learning how to trade for yourself is something that either doesn't interest you. You don't have the time, you don't think you have the computer skills, whatever it might be, then I've got another option that uses leverage. It's called JAS Funds. IJ-A-S-F-U-N-D-S dot com.

www.jasfunds.com, JAS Funds. JAS Funds is a new company that I've started recently with two colleagues of mine and JAS Funds is a Forex management company. We are managing Forex accounts on behalf of individuals.

Now, there are some criteria and to qualify, you need be called what's called a “Wholesale Investor” in your own country. To find out what a wholesale investor is, visit our website and I'll put a link below this video. Also, it's JAS Funds, www.jasfunds.com. JAS Funds, you can use leverage because you can use our experience. Our trading knowledge and experience and we can do the trading for you.

Create Passive Income and a Diversified Investment

Again, it's a great way of using leverage. You can have passive income, you can use Forex as an alternative type of investment to the traditional investments. It's really quite independent to most other markets out there. If you're looking to diversify your portfolio or expand into new markets.

Then either learning how to trade yourself is one option or letting us do the trading for you is another option. So many ways you can use leverage out there within your trading and to help you overall within life.

I hope that helps. If you'd like to know more about JAS Funds, click on the link below this video.

This is Andrew Mitchem, the Forex trading coach. Have a fantastic day, great weekend. I'll see you this time, next week.

Click here to visit JASFunds.com

Play

#214: Why You Should Trade a Variety of Time Frame Forex Charts

Listen Now
Play

Podcast:
Play

Why You Should Trade a Variety of Time Frame Forex Chartsweekly video

In this weekly video:
00:28 – Trading a variety of time frame charts
00:53 – Look to trade 2 or 3 different time frame charts
01:15 – Successful Forex Trader examples
02:25 – Different charts suit different trading conditions
03:00 – It does not mean more chart time
03:50 – A smooth equity curve by trading various charts
04:50 – Consistency and high reward:risk trades
05:12 – Free webinars and free course

I believe it helps you as a Forex trader, if you trade a variety of different time frame charts. So let's talk about that, and more, right now.

Hi Forex traders. Andrew Mitchem here, the Forex Trading Coach. This is video and podcast number 215.

Trading a variety of time frame charts

I'm going to talk about a subject that not many people actually talk about, but it's a really, really important subject. It's about trading a variety of different time frame charts. Most people trade just, probably, one time frame. In fact, most traders and new traders generally trade too short a time frame. Most people would trade five minute charts or fifteen minute charts and it's generally too quick a time frame for most traders. But, that's a subject for another day.

Look to trade 2 or 3 different time frame charts

For today's conversation, and to help you, I strongly believe that if you can trade two or three different time frame charts, then that would definitely help you to basically smooth out your equity curve and to allow for different trading conditions.

Successful Forex Trader examples

To give you an example, I've got a fantastically successful client in the U.S. called Paul. Paul's been with me for a couple of years and he's just having successful trade after successful trade, doing extremely well. On my webinar that I hold for my clients … I hold them every two weeks. Two weeks ago, Paul was on the webinar discussing some of the trades that he'd taken in the two weeks previous to that. On that webinar, he had seven or eight trades that he had taken personally, himself, on the six hour chart time frames.

Yet, on the webinar that I held yesterday, he found only one trade on the six hour time frame charts in the two weeks since that previous webinar. Between four weeks and two weeks ago, he had seven or eight trades and in the last two weeks, he's found only one trade on the six hour charts. However, during that same last two weeks, he had eight trades that he shared on the webinar that he had taken himself on live accounts on the eight hours charts. Two of them were stop out and the other six for profitable trade. That's on the eight hour charts.

Different charts suit different trading conditions

The point I want to make is, because he's trading a variety of different time frame charts … If he had just the six hour charts only, and nothing else, he would have only found one trade in the last two weeks. Yet, because Paul is choosing to trade a variety of different time frame charts, he had only that one of the six hour charts, yet eight he saw on the eight hour charts. He also shared trades that he'd taken on the twelve hour charts, the four hour and the one hour. Of course, myself and almost all of my clients all trade the daily charts.

It does not mean more chart time

So, for me, it's really important to have a variety of different time frame charts. The good thing is it doesn't involve lots and lots of time at your computer and chart watching. The way that I trade is that I only look for a new trade at the completion of a candle or the completion of a bar. You know when that's happening.

The daily charts have just closed at 5:00 p.m. Eastern Standard Time. At the same time, I can go and look at the twelve hour charts, the eight hours charts, the six hour charts, the four hour charts and, if I really wanted to, the one hour charts. There's five different time frame charts there I can look at, all at the same time. It doesn't require lots and lots of chart watching or sitting watching your computer all day and night. Far from it. We want to get away from that.

A smooth equity curve by trading various charts

What we do want to do is give ourselves a smooth equity curve and you might find that say … As an example, the four hour charts are producing some, maybe, unsuccessful trades. At the same time, the twelve hour charts or the daily charts might be producing very successful trades, very good trades. What you're finding is that over time you get yourself a smoother equity curve rather than big ups and big downs, which is not great for anybody. That's a way to get around that.

On the longer time frame charts, personally, I only enter at retracement orders only, so using buy and sell limits. It means I don't have to even be there at the time the candle closes. Most of the time, I've got a lot of extra time before a retracement order actually fills. So, you don't have to be there at the same time. What is does so, is it allows you to plan your day and work around your trades.

Consistency and high reward:risk trades

I hope that helps. It's all about gaining consistent gains, high reward to risk trades. By looking at, maybe, two or three, or four or five … whatever it is you have time for or what you like to do … different time frame charts, it really does help you become a very successful Forex Trader. If you'd like to know more, drop me an email andrew@theforextradingcoach.com.

Free webinars and free course

Don't forget on my website, I've also got two webinars that I hold each week, one for new traders, one for experienced traders. You can also gain access to my free engulfing candle course via my website.

This is Andrew Mitchem, the Forex Trading Coach. Have a great weekend. I look forward to catching up with you this time next week and I hope you have a successful trading week next week. Bye for now.

Play

#213: Splitting your trade positions

Listen Now
Play

Podcast:
Play

Splitting your trade positionsweekly video

In this weekly video:
00:34 – Most people enter at the market
01:00 – Trading the longer time frame charts – look to split your entry orders
02.33 – The keys to trading
03:13 – Taking a part of your position at the market and part at a retracement
04:30 – Entering on a retracement
05:20 – Use these lessons to help your trading

In today's video and podcast. I'm going to explain why I like to split my orders into two or more parts. Let's talk about that right now.

Hi Forex traders, Andrew Mitchem here, the owner of the Forex Trading Coach. This is video and podcast number 213. I'm going to be telling you and explaining. Why I prefer to split my positions up into two or more parts.

Most people enter at the market

You see, so many people tend to just see a trade, enter at the market, take the trade and that's it. For me, it's like well, that's okay but there's a better way of doing that. If it's a shorter timeframe chart, let's say it's a one hour chart and below where you want to ride the current momentum of the market, then fine, jumping in straight away at the market is a good idea.

Trading the longer time frame charts – look to split your entry orders

If you're trading a slightly longer timeframe chart, say a four hour chart or six or twelve or daily or weekly, whatever it might be, those longer timeframe charts where you do get retracements and you have a bigger stop loss there for you can allow for the upward and downward movements in the market, when you get those longer timeframe trades and charts that you're trading, they definitely a retracement entry is a great idea.

Well why? What I like about it, number one, you don't have to be at the chart when the candle closes. So if you're not taking a market order that you don't have to be there right at the time that four hour chart closes, let's say. You can come to charts a little bit later and still enter a trade.

The other thing is, if you're taking a retracement order using a sell limit or a buy limit, depending on whether it's a buy or sell trade, then the great thing is that you don't have to be there at your computer at the time that that price is hit because the limit order, the pending order, is stored on your broker's server. You don't even need to be there. I'll give you an example, if I'm trading say like a daily chart, then I'll enter and let's say it's a buy trade, I'll enter when the price gets lower first, but I'm not sitting there waiting for that to happen.

I‘m seeing the trade, I'm saying yeah, I like this trade, I'm entering a buy limit order so when the price retraces and gets lower, it's then filling my buy trade. It means I get in at a lot better price, like a lower price but it also means that my reward to risk on that trade is substantially increased.

The keys to trading

Don't forget that some of the keys to trading apart from low risk money management are high reward to risk trades. It's really important that you have that. You want to be making several times your risk.

When you get a profitable trade and it gets to your full profit target, you need to be making one and a half, two, three, four, sometimes even five to one reward to risk on that trade, depending on the setup of the trade. It's really important that you have the ability to take those high reward to risk trades and by entering part of your position at a better price using those limit orders and retracements is a way that you can really easily do that. Lots of benefits to that.
Taking a part of your position at the market and part at a retracement

I also do like to take part of my position straight away at the market on most trades that I take. Reason being, is let's say you're taking a buy trade and the candle closes near it's high and it just keeps continuing upwards without a retracement, and it can do that from time to time. When that happens, of course I don't want to miss out and I've got my order only at the retracement and it doesn't retrace enough to get it filled, but then it gets to my profit target. That can be slightly annoying when that happens and of course that's part of trading.

It also means that if I have a part of my overall position in at the market. Then at least I get profit on. Let's say half of that trade and the other half. Which is a the retracement doesn't get filled, that's fine but at least I get profit on the part that was in straight away. The ideal situation of course, is you get the retracement and then the price turns around at around that level that you get filled at, you have a very small draw down on that retracement order, it then goes back up again. If you're taking a buy trade, it gets obviously your buy limit in at the retracements, that's in great profit.

It then gets past your market order and that then starts to get into profit. And then fills both positions and takes that full profit on the both of them.

Entering on a retracement

That's the ideal situation and when you understand retracements and how to enter on retracements. I've got a really easy way of doing that. And of course, with all my trading I like to keep it really simple and an easy way to see the trade, take the trade, regardless of the timeframe, regardless of the currency pair. It's really important that you have the ability to do that. That's it. hope that helps.

I hope you also liked the background. Had some really positive comments and feedback from people with last week's video and podcast saying. “Hey Andrew, liking the look of summer there in New Zealand”. As you can see, more blue skies again this week. So we've had a really good time through January and February. And for those of you in the northern hemisphere where it's winter. Well I hope you're keeping warm, but for us this side of the world. This time, January, February, March is just a beautiful time of the year. Summertime, great time to be in that pool as well.

Use these lessons to help your trading

Take that lesson and let it help you with your reward to risk ratios. I just saw that, I'm pointing about the pool behind me. If you're listening on iTunes you probably have no idea what I'm talking about. But there's a swimming pool behind me. I'm going to go and enjoy that right now.

Enjoy your trading, have a great weekend. I'll see you this time next week.

Play

#212: The Daily Charts are great to trade

Listen Now
Play

Podcast:
Play

The Daily Charts are great to trade

weekly video

In this weekly video:
00:25 – I’ve traded the Daily charts for the last 12-13 years
00:36 – Trading to make money
01:35 – It doesn’t need to take all day at your computer to be a full time Forex trader
02:10 – Don’t worry about using a big stop loss
03:16 – Reliability increases with the Daily charts
04:46 – Trade less with higher probability trades

I'm going to explain why I love trading the daily charts. Let's get into that right now.

Hi, Forex traders, Andrew Mitchem here, The Forex Trading Coach. This is video and podcast #212.

I’ve traded the Daily charts for the last 12-13 years

I'm going to explain about the daily charts, why I‘ve traded them for the last 12, 13 years, why they're my favourite time frame charts, why I believe you should have a look at trading them also. Now, let's start with the obvious thing about trading.

Trading to make money

Why we're all trading? Well, I supposed the real reason we're trading is we're making money out of trading. We're looking at making money from our trading.

The aim of trading is not to spend all day trading. It's not an aim to be sat at your computer all day long because what's the point. It's not the end result. The end result is to make money. Now, if you can do that by say trading the daily charts just once a day and it might take you 10 minutes, 20 minutes once a day let's say, then why would you not do that? Why would you want to sit at charts trading say 1 minute or 5-minute time frame charts for hour upon hour upon hour because you got high stress situations.

To me, the aim of course is to make money and if you can do it by taking not a lot of time out of your day, then that helps even better.

It doesn’t need to take all day at your computer to be a full time Forex trader

Not everybody wants to be what you call full-time trading as in like sitting and trading all day. I'm a full-time trader but I don't sit trading all day. With the coaching, I'm helping people as well but the daily time frames allows that.

Whether you're doing other work, whether you're tired, whether you've got kids, whether you've got other work to do, whatever it might be, by having the ability to trade for say, just a shorter time frame, a short amount of time per day, then that really has to help and of course, it is profitable also then that really makes it worthwhile.

Don’t worry about using a big stop loss

You've got little time taken, great trades, low stress, high reward to risk trades. Don't worry about the stop loss. A lot of people come to me and they go, “Hey, Andrew, you keep talking about daily time frame charts, how can I trade daily time frames because I can't afford an 80 pip stop loss,” let's say. That's where you need to think differently. Everybody can afford an 80 pip stop loss or a 100 pip stop loss whatever it needs to be. It's just that you need to reduce your position size.

Don't just think I'm taking a 0.1 lot or a one standard lot because I do that on every trade and therefore, if I lose on a daily chart trade, it's a massive loss. It's not. Every trade that you take should have equal risks, equal percentage risks. For instance, the way I trade and the way I teach, if I have a losing trade, I lose half of 1% of my account. It doesn't matter whether it was daily chart trade or a weekly or a five-minute chart trade. It's the same. Half of 1% is still half of 1% regardless of the stop loss of the trade. It's just the position size that gets adjusted.

Reliability increases with the Daily charts

Reliability comes also with daily time frame charts. I'll give you an example. Say, today, I'm trading a short position on the British pound/Australian dollar. Why? Well, the British pound is looking really weak across everything and then the Australian dollar is looking very strong against everything. Let's put the two together, you would expect to get weakness in the pound/Australian dollar.

Not only do I expect it on the charts, I see it. I see a lot of room for that to move further downwards and I've taken the position I took it around six hours ago. The trade is on. We're still in the Asian session or early part of the European session starting, so nothing has really happened yet. But I'd anticipate that as we get into the European session, that trade is going to make some good movements and I'm anticipating it's going to move down because all charts say so, strength and weakness says so. If that works and gets my profit target, I've got about a three and a half to one reward-to-risk trade that from something that I did six hours ago and took me 10 minutes absolute maximum to scan through all the charts.

If you are the sort of person that thinks, “Well, I can't fit the trading into my time frame. I'm too busy at work. I've got kids, family,” whatever it is that you're doing, you can and you can trade daily time frame charts by looking just once a day, longer time frames, more reliability, far better charts to trade.

Trade less with higher probability trades

Actually, it makes you trade less as well. One of the problems that most new traders do is they want to trade all the time. Not a good thing to do. Trade less, higher probability trades make more money, less stress. Win-win all around makes you a far better trader, makes you far more money, takes less time. I cannot see why everybody would not want to do it. I hope that helps.

If you have any questions that you like me to talk about or topics you like me to talk about on future videos and podcasts exactly like this, send me an email, andrew@theforextradingcoach.com.

As you can see, it's a wonderful day here. I'm outside because I don't want to be sitting on computers and trading one five-minute charts to weather like this. I'd much rather be outside having a bit of fun and a fresh air.

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

Play

#211: Why learning HOW to trade is so important

Listen Now
Play

Podcast:
Play

Why learning HOW to trade is so important

In this video:
00:24 – You need to learn HOW to trade first
00:56 – Getting squash lessons
02:52 – Investing in your yourself through training and coaching
04:05 – Long term investment in your future
04:28 – I’ve been teaching traders worldwide since 2009
05:06 – Three important letters “HOW”

Let's talk about why learning “HOW” to trade is so important. Let's get into that right now.

Hi Forex Traders! Andrew Mitchem here, The Forex Trading Coach. Today is video and podcast number 211.

You need to learn HOW to trade first

I'm going to talk about something really important. It's all about the importance of learning how to trade. It's that there's so many parts of trading, but unless you actually learn the how to bit, get that bit right, the how to trade. It's an important little word because if you get that right things will be great. If you get it wrong, then you can have all the systems, the accounts, everything, but it will not work for you. Let's explain a little bit more.

Getting squash lessons

To give you an example, just this week I've taken up learning how to play squash. I used to play about 20 years ago when I didn't have grey hair. I'm looking at something to do that's going to help keep me fit and something that I haven't done for awhile and I thought, “I'd love to get back into some squash.” What did I do? First thing I did is I went along to a club and I had a chat with them, worked out what the membership was going to cost me for the year.

Then I thought, “Actually, I need to get to be taught how to play.” Again, it's the “How To”. Get that bit right. The learning with a mentor, with a squash coach, is actually going to cost me more money than the annual membership of a really good local club. Some people might just think that's absolutely crazy and think that's ridiculous. Why would you just pay someone to do that when you can just get out there, and get a ball and a racket, and hit away, and off you go?

Yes, I could do that, but of course I'm probably not going to progress very far and I'm going to end up getting frustrated because my skill level will be just about the same. It may improve a bit. It may go backwards. Who knows, but it's not going to give me what I really want. To me, investing in someone to help teach me to look at what I'm doing right, what I'm doing wrong, a coach in squash is such a valuable investment because I'm investing in me. I'm investing in my overall enjoyment of the game. Probably going to get myself far better results. Therefore get high rankings, play against better people, progress. All those sort of things. That's what I'm after from it.

I'm trying to do it at the very beginning. I don't want to come in with lots of bad habits and then someone's gotta unfix all those bad habits and break all those habits that I've got into.

Investing in your yourself through training and coaching

To me, upfront, I'm looking at investing in training and coaching. Trading Forex is absolutely no different. You see people will come to me and they go, “Andrew, how long's it going to take me to pay off your course if I've got a thousand dollar account?” To me it's like, it's almost like it's not relevant. Don't take that the wrong way, but take it and think of it, don't get offended by that comment. Think of it a different way. Turn it right around.

You could have a million dollars in your trading account, but if you don't know how to trade, if you don't know what you're doing, you're going to lose some money on that account. Likewise, if you've got a thousand dollars in your account and you go, “Why would I want to go and spend fifteen hundred, two thousand dollars on a coaching course when I've only got a thousand dollars in my trading account? That's crazy.”

It's not really when you think about it because if you want to get into trading long term, don't just think about the thousand dollars that you have in your account today. Think about it long term. The learning how to do anything is the important thing. That's what you want to do if that's your longer term goal and achievement is to be a trader or be a squash player. Whatever it might be.

Long term investment in your future

Think about investing in yourself because long term, if you get some good coaching, some good Forex coaching from a professional who's doing this all the time, and what that will do is it will short cut your learning. It will make a far more enjoyable experience for you and it will give you that longer term investment and that growth in your account far quicker.

I’ve been teaching traders worldwide since 2009

How do I know that? I‘ve been teaching people since 2009 and I've seen so many people come to me in the early stages and then end up being good traders. I've also taught people who have been trading for 10 years or more and are just still in that frustrative stage. Those people are the people that you've gotta unpick all their bad habits and then almost make them start again. It certainly can be done.

It doesn't really matter rather you're brand new to trading, or you've been trading a little while, or been trading for years. If you need to learn how to trade properly, seek professional help. It really will pay for itself in many ways and many times over in the long run.

Three important letters “HOW”

That's today's lesson. It comes down to three little letters, “HOW”. Learn how to trade. Very, very important lesson. Get that right and your account size today will be irrelevant because in the future it will have such a good chance of growing far better than it will by just trying to fiddle around trying to do this yourself, looking online through forums, et cetera, getting frustrated.

I hope that helps. This is Andrew Mitchem The Forex Trading Coach. I look forward to talking to you this time next week.

Play

#210: The 7 Most Important Points To Becoming A Successful Forex Trader

Listen Now
Play

Podcast:
Play

The 7 Most Important Points To Becoming A Successful Forex Trader

In this video:
00:28 – My 7 top tips to be a successful Forex trader
00:43 – #1 – You must have a passion for trading Forex
01:26 – #2 – You must have a strategy that works for you
02:18 – #3 – A low risk money management trading approach
02:56 – #4 – Learn how to trade first
04:25 – #5 – Be level headed and be consistent
05:06 – #6 – Seek on-going support and mentorship – Keep improving yourself
06:07 – #7 – Don’t be fooled by lagging indicators
06:35 – Get all 7 points working and you’ll become a good Forex trader

Andrew Mitchem: In this video and podcast, I'm going to explain to you the seven really important points that you need to understand and have implemented in order to be a successful Forex trader. Let's get into it straight away.

Hi, Forex traders. Andrew Mitchem here, the owner of The Forex Trading Coach. Today is video and podcast number 210.

My 7 top tips to be a successful Forex trader

And this is a really, really important lesson for you to get, and to understand, and to implement in your trading. I'm going to give you my 7 top tips to be a successful Forex trader so let's get into it, shall we?

#1 – You must have a passion for trading Forex

Number one, you must regardless of all other things, you have to have a love of trading, a passion for it. I'd be trading for 13 years. I still have passion for it. Every morning I wake up, I want to go and have a look at my charts, see how the trades are going. A lot of people after that length of time in anything get quite bored. You see, most people of course get to Friday night, they can't wait for the weekend to come. For me, it's the opposite. I can't wait for Monday and the charts to open, the markets to open again so I can get trading again. You got to have a passion for it. There's no good in even if you're making money out of your trading if you hate doing it or you're really bored by it. You got to have a passion. It's a really important point number one regardless of what you do in life. Enjoy it and have a passion.

#2 – You must have a strategy that works for you

Number two, you have to of course have a strategy that works for you, something that suits you. It doesn't matter whether you're a technical trader, or a fundamental trader, or a combination of both. Whatever it is, have something that works for you, something that doesn't take all day and night to do. What's the point in having a really good system that's making you a lot of money but you're sitting there for 12, 14 hours a day glued to your charts? That's just no fun at all. Life is far too important and you need to have too much You should be having lots of fun and not spending too much time at your charts. For me, it's important to have something that I can trade for only a short amount of time per day but does very, very well, and I think that's important for longevity and enjoyment out of your trading. Make sure you find out what works for you, what suits your style and your personality as a person and as a trader.

#3 – A low risk money management trading approach

The third thing you need to use and to understand correctly is a low risk money management approach. You see, you can have the best trading system on the planet but if you don't have low risk in your approach and high rewards risk trades, then what you generally do is lose money. You can have a 90% winning system but still lose money. You can also get heavily influenced by emotions, and greed, and fear, et cetera if you're risking too much on a trade. That takes you away from your trading plan. Keep your risk really low for trade. I suggest no more than half of 1% the trade.

#4 – Learn how to trade first

The fourth thing. You must learn how to trade first. Get that right first. Too many people come to me and they say, “Hey, Andrew. I want to be a full-time trader. I never traded before but I want to be a full-time trader,” or, “I can't stand my job. I want to make Forex work for me.” It really is not the way to be successful.

Also, when you're trading, forget about how much money you're making. People say to me, “Look, how on earth can I make a profit? You're telling me to risk half of 1% and I've got a $10,000 account. That's risking $50 a month. I'm making a hundred, $150 on a 10 grand account. I can't live on that.” On a 10 grand account, you're not going to live on that. It's just pointless trying to think that you are. The important thing is to do is to get away from the monetary gains or losses for now. Worry about the percentages.

The reason I say that is that if you can make let's say Pick a figure. 50% return in a year, let's say, on a 10 grand account. You can do that on a hundred thousand. You can do that on 500,000, whatever it is later down the track. It really doesn't matter how much money you have in your account right now. The important thing is to learn how to trade, really, really important to do that first. If you do that right, then the money will follow. Absolutely no doubt about it. You can have a million dollar account today and still be a bad trader and lose money. The actual size of your account, how much you're making or losing today doesn't matter. Learn how to trade properly first. Really important point.

#5 – Be level headed and be consistent

Number five, be levelheaded, be consistent, be confident. Don't go off on a tangent. What I mean by that is you have to be consistent in how you trade. These people that say to me, “Look, I can't be bothered to trade today. This is silly.” People that say, “I took twice the amount of risk that I normally took on trade because it'll probably look pretty good.” That's inconsistency. You have to have consistency. You have to be repetitive, see the trade, take the trade. Keep repeating it. People who get very flighty, very emotional, generally don't make good traders. You got to keep your emotions under control. Again, it comes back to that low risk approach.

#6 – Seek on-going support and mentorship – Keep improving yourself

Point number six, you must seek ongoing help, support, mentorship, whatever you want to call it in anything that you do. Now, I'm not just saying that because I sell an online course. I'm saying that because it honestly is the best thing to do. You have to keep bettering yourself, educating yourself. I have a personal mentor. When I go to karate, I have a mentor, a sensei who teaches me although I can teach other people. You got to have someone that's always teaching you. When I'm flying, I get consistently doing more lessons to try and get better and trading is no different. You have to have people that you can talk to. You have to have people who understand what you're doing. Having education, and help, and ongoing betterment of yourself is really important. I strongly believe that. You can't just sit there at home and hide yourself away locked in a little dark room with you and your laptop. I expect to be a great trader without getting outside help. That's really important.

#7 – Don’t be fooled by lagging indicators

Number seven, don't be fooled by lagging indicators. So many people start off by seeing flashy systems, flashy indicators, flashy robots, whatever it might be, lots of stars, and charts, and lines, and arrows all over their charts. It generally doesn't mean very much. You have to be able to trade yourself and understand what's happening in the market. Again, that comes back to the previous comment in the back seeking good education.

Get all 7 points working and you’ll become a good Forex trader

Finally, get all those seven working. Your trading will work for you. I hope that really helps you. Remember the seven very important keys there.

Once again, this is Andrew Mitchem, The Forex Trading Coach. Have a great weekend. I look forward to catching you this time next week. Good luck with your trading.

Play

News

 

weekly video