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Daily Currency Movements and Trading Videos

#242: Learning To Trade Through Trial and Error

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Learning To Trade Through Trial and Error

In this weekly video:
00:30 – Why do people learn through trial and error?
01:30 – It seems and easy and low cost way learning
01:45 – The best way to learn how to trade
02:20 – Feedback from 2 clients – amazing trading results
03:23 – Those who invest in themselves have a high chance of being successful
04:50 – Contact me if you’d like more information

Are you learning to trade the Forex market through trial and error? If that's you, listen up; I've got some interesting news for you.

Hi Forex traders, Andrew Mitchem here, the Forex Trading Coach Video and Podcast Number 242. I want to talk about a subject that affects the vast majority of Forex traders.

Why do people learn through trial and error?

It's all about why do people learn through trial and error? Because to me, it's undoubtedly one of the best ways of losing money. Absolutely no question about it. We've all done, I've done it. I know exactly where you are and what your thought process is if you are going through various websites, forums, buying robots, buying trading systems, buying all sorts of different things, indicators et cetera. If you're constantly buying new things looking for that answer, you're constantly search for the next shiny object, the holy grail of trading.

If that's you right now, you are without doubt doing your best to waste your money and your time, and to get massive, massive frustration and likelihood you're not going to get to the result that you want. Why do people do it?

It seems and easy and low cost way learning

Well, I suppose people see it as it's easy, or it's a low-cost way of learning how to trade. What I can assure you is that the likelihood of you losing money, and quite a lot of money, is very very high.

The best way to learn how to trade

The flip side of that, the surest way of trying to become a profitable trader and to understand what's happening in the market to make money, is to seek a mentor. If you look at that cost of investing in a course or seeking a mentor as an investment in yourself to save you time in the long run, and to save you lots of money, and to make you money and to save all that frustration and headaches and heartache and likelihood of giving up. If you're trying to save all of that, then invest some time and some money into a good course. Because it really will help you.

Feedback from 2 clients – amazing trading results

I'd like to share with you two emails that I've received; one this morning and one yesterday. The one that I received this morning is from Branin, who lives in America. Branin said, “I wanted to let you know I'm now up 15% since I purchased your course.” Branin only started about a month ago, so 15% up already. The other email which was from John, who now lives in Katar. I think John's originally from Australia. He said that his results since he joined me, and he joined me in 2014, “live trading results in 2015 I made 31.6% return. 2016 I made 22.3% return. So far 2017 up until September,” and it's now the 15th of September today, “35.9% this year. It's been a really good one for me so far.” 31, 22, and almost 36%. Live trade results there.

Those who invest in themselves have a high chance of being successful

When you get feedback like that, it's really really good to see because what it's doing is it's showing that people who do invest … Yes some upfront money, yes they're investing some cash into a course, yes they're investing their time, but it really does work. There's no better way of learning a proven strategy from a mentor who's trading all the time. Just yesterday I had a live webinar for my clients. We were taking trades on there, there were people typing in trades that they've taken themselves. Some good, some not so good. That's trading. But we were learning from those trades and taking trades in real time. Every day of the week, I post specific trades based off the daily charts. At the beginning of the week, I post trades based off the weekly charts. Each beginning of the month, I post trades off the monthly charts for clients to see and follow in real time.

I have a forum site and we type in there … Myself and other people write in trades that we've taken, so people can learn again in real time and see the charts, see what's happening in the market right now, and learn from the right hand side of the chart. Not hindsight of what we did do and what we could have done and should have done, but this is what we're doing right now. Whether the trade makes money or it loses, this is what we are doing right now, and the reasons for doing that. That's how you learn how to become a successful Forex trader.

Contact me if you’d like more information

If you'd like more information, just drop me an email or go onto my website and go to the contact us form. Send me an email and I can send some information back to you that will help you to become a profitable and successful Forex trader. This is Andrew Mitchem, the Forex Trading Coach. Have a great weekend, I'll see you this time next week.

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#241: How Much Do You Want To Be A Good Trader?

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How Much Do You Want To Be A Good Trader?

In this weekly video:
00:22 – Are you committed to learn how to trade
00:50 – The instant fix and next shiny object
01:35 – You can research for years
02:00 – Freely available software, webinars and information
02:55 – Getting a coach to progress quickly
04:20 – Invest in a good instructor
04:39 – A new review on Forex Peace Army
05:43 – We all have the same amount of time

How much do you really want to be a good Forex Trader? Let's talk about that and more right now.

Hey traders, it's Andrew Mitchem here. The Forex Trading Coach video and podcast number 241.

Are you committed to learn how to trade

Today I want to talk about your commitment; how much do you really, really want it. I mean really want it. You see, I get asked all the time from people, “I want to become a good trader, Andrew. I'm going to join your course. I'm going to become one of your best students. I'm going to do this full time.” All these sort of promises that come all the time. I hear it all the time.

The instant fix and next shiny object

The problem is today, the world that we live in, everything is so accessible. You want a song, you download it. You want a movie, you search for it and you download it. Everything is instant. Everybody's very quick to move on to the next shiny object, the next thing that's going to be instant. No one is willing to put a bit of time and commitment and effort into something that's really good.

My question is how much do you really, really and I mean really want to become a good Forex trader? That's something that you really need to question yourself about seriously if you wish to continue in this market.

You can research for years

You can spend years and years and years doing all this research online following forums and different threads and different ideas and things like that and going alone. You can do that. But you have to think of what's your time worth if you like doing that? Because the likelihood is you're not going to get very far very quickly. Then you get the other side of the people like I mentioned at the beginning, people that come to me and say,

Freely available software, webinars and information

“Hey Andrew I'm going to do this and I'm going to commit and I'm going to be fantastic and I'm going to do everything that you say.”

I offer on my site, freely available to people, I offer advice if people email me. I offer free trading software, free calculators, free webinars. Even a free mini course. It's amazing when I go back and look at the number of people that join those, and I go and say to them a few weeks later or a month or so later, “Hey how's it going? Do you need anymore help?” And people go, “I'm not trading anymore,” or “I've moved on to someone else's ideas,” or “I've got some other software or other robots,” and things like that. Then it becomes, how much do you really want it? I'm giving you all this information here, and it's great valuable information. It comes down to your commitment.

Getting a coach to progress quickly

I'll give you an example. This year, I've taken up squash. I started around the end of January and we're now early September. I'm now committed to playing squash; I'm playing about three times a week. I've bought the equipment, a nice racket, good shoes. I've got myself fitter. It's helping with my fitness. I've joined a club, I've got the full membership, I've got practice membership. We're playing different competitions. Things like that. I'm also getting some coaching. Why? Because I've reached a level like after the first few months, and I thought to myself if I want to do this properly and enjoy it and get better and better, I can only get so far by myself. I now need to get some coaching from individuals, learn how to hit the ball properly, learn how to move around the court, watch the ball, read the opponent, all those type of things which I need to do to get better at squash. I don't want to be playing at the same level in two or three years time as I am today; I want to be way, way, way above where I am today. So for me, investing my time into some coaching is the obvious way of doing that. Otherwise I'm just going to stay stagnant. I might get a little bit better, I might lose interest, all those sort of things on the downside if you don't get dramatically better.

Invest in a good instructor

Forex is exactly the same. That's just my example away from trading. If you've been watching and following me for a number of years, you'll know I've done the same with the helicopter. You put that commitment in and that effort and that investment to get yourself a good teacher or good instructor as I did there. Forex is exactly the same.

It really comes down to your commitment to wanting to become a good trader.

A new review on Forex Peace Army

I'll give you an example; if you get a chance, have a look on Forex Peace Army. There's a review there in early September by a client called Tim, who lives in the UK. Have a look on there. As I'm recording, this is the most recent review on Forex Peace Army. It explains it perfectly. Tim said, “I was really cautious, really doubtful, didn't want to spend money on a course but I knew I had to do something. Finally took the plunge, took the commitment to join,” and now he's loving it. He's doing really well. He's attending all my webinars, he's committed to the course, he's loving what he's doing. It's working for him. There's no surprises there. If you put in the effort, if you put in the dedication and you commit to doing something, you will get reward from it if you choose this is the right thing for you. Whether it be squash, flying helicopters, or Forex trading or anything else that you do, if you're going to make a commitment to trade I really urge you to make a solid commitment. In the end, it's going to pay off so much in terms of the enjoyment of it.

We all have the same amount of time

People that say, “I don't have enough time, Andrew.” Well, you can have all the excuses you like under the sun. My watch has 24 hours in one day on it the same as your watch as 24 hours in one day. We all have the same time in a day. We all have the same number of days in the week. It's what you do with it that counts.

If you need any Forex help, and you'd like me to help you further, drop me an email or contact me. My email address is [email protected] You can find a contact form on the website. If you do want to commit, have a look at those free webinars, calculator, and course available on my site.

Have a great weekend, think about what I just said. I'm here to help if you want to commit. This is Andrew Mitchem, the Forex Trading Coach. I'll see you this time next week.

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#240: How Bollinger Bands Help Me Trade

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How Bollinger Bands Help Me Trade

In this weekly video:
00:28 – Selecting profit targets
01:20 – I use Bollinger bands to help me trade
02:04 – Trade when the conditions are favourable
02:40 – Trading reversal patterns
03:54 – Trading Continuation trades
04:29 – Teaching the whole package
04:55 – Sell trade on the EUR/CAD off the middle Bollinger band
05:50 – Look for the Bollinger bands to be widening

We need to give the trade room to move. Let's talk about that and more right now.

Hi Forex Traders, it's Andrew Mitchem here with The Forex Trading Coach. Video and Podcast number 240. I want to talk about giving the trade room to move. What does that mean?

Selecting profit targets

Well, a lot of people are very quick to say, “I'm going to place a trade here and I've got my stop-loss here.” But a lot of people have difficulty with profit targets. What I like to see is I like to see the ability on the chart as a technical trader for the trade to get to its profit target with the least amount of support or resistance in the way of the trade depending on whether we're buying or selling. If we're buying, we want to see as few resistance levels like reasons why the trade's not going to hit a level and bounce. Why it will get to its profit target. If we're selling, we want to see as few support levels, like as few areas below where the price is right now where it might bounce. We want to see as few of those as possible. We want to give the trade room to move and allow it to get down to our profit target if we're selling with as few support areas in the way as possible.

I use Bollinger bands to help me trade

To do that, I like to use support and resistance levels but I also use Bollinger Bands. I'm going to talk about Bollinger Bands and how I use them. Bollinger Bands are quite fascinating if you can use them in the right way. They really do aid your trading. As a technical trader, I look at Bollinger Bands and I'm looking at how they're moving with the current price. If they're level, or they're flat, or they're coming together the upper or lower Bollinger Band, that tells me that there's very little price action, or there has been good price action and now it's over because the bands are getting tighter together or they're parallel. When that happens, trading conditions are not good right now. It's not a great time to be trading.

Trade when the conditions are favourable

What you need to do is to be able to trade when the price starts to move; when you get decent, active conditions in the market at the current time and the Bollinger Bands start to widen. What that means is that there is good price action right now. To give you a few examples of how I trade.

As you know, I like either reversal trades or continuation patterns, two quite different patterns. Continuation patterns are probably safer, reversal patterns look really good and really dramatic on your charts but a little bit high risk.

Trading reversal patterns

If I see a reversal pattern, and I'm seeing a bearish reversal pattern, I like to see that at or near the upper Bollinger Band. If I'm seeing a bullish reversal pattern, I like to see that at or near the bottom Bollinger Band. Then what I'm looking at doing is I'm looking … Let's say we're taking a buy trade. We're near the bottom Bollinger Band, I'm seeing a good pattern to go long, a reversal of the previous downtrend. What I'm looking at doing is I'm looking for my profit target to ideally be before we need to break through the middle Bollinger Band. The reason for that is the middle Bollinger Band is also the 20 period moving average, and a lot of people rightly or wrongly use moving averages as support and resistance levels. Because the 20 period moving average is the middle Bollinger Band, so a lot of people using that level.

If we're taking the buy trade, we don't want the price to be too close to that middle Bollinger Band, because the likelihood is the price may bounce up to that or head up towards that middle Bollinger Band and then bounce there. Then the overall downtrend may continue again. That's not great for our buy trade. I like to give the trade room to move and what I mean by that, I like to see a good amount of distance between the bottom Bollinger Band and the middle Bollinger Band. They're reversal trades.

Trading Continuation trades

For a continuation trade, what I love to do is see an uptrend and then a pullback, and that pullback stalling at and around the middle Bollinger Band. Then I like to take the buy trade heading upwards. Again, I like to make sure that my profit target is out of the trade, I'm out of the trade for full profit before we need to hit the upper Bollinger Band. Because quite often when the price hits the upper Bollinger Band in a buy trade, it will stall there and potentially reverse there.

It's just another factor of probable stalling area. We just want to make sure that we're out of the trade before that area.

Teaching the whole package

Of course, things like round numbers and strength and weakness all come into as well and other candle patterns. That's why I teach the whole package as part of my coaching course. That's why our traders do so well, because we're putting the whole thing together. I'm just teaching you here and giving you some clues and some tips and information about one small part, which is the Bollinger Bands, and they are very very important. But so is everything else put together. That's why you need to jump onto the full course to get that information.

Sell trade on the EUR/CAD off the middle Bollinger band

To give you an example, I took a trade yesterday. Sell trade, Euro-Canadian dollar. Just after my webinar finished last night my time. Fantastic trade only on a 15 minute time frame chart. I was looking at 15 minute time frame charts on the webinar. I don't trade them much normally, but I happened to see a really good sell setup, jumped in straight at the market, off the middle Bollinger Band a continuation trade. I was out of the profit, out of the trade for full profit before the bottom Bollinger Band was hit, and had a fantastic trade. Made a lot of money in six minutes. It was a great trade because everything was there in the factor of the trade. The technical setup was there, the Bollinger Bands were there, the bounce off round number, the trend line break, all of it was put together and the overall daily strength and weakness. Great trade, six minutes. In, out, done, bank, profit. Thank you very much.

Look for the Bollinger bands to be widening

That's how you can use Bollinger Bands. Use them to your advantage. As I mentioned, look for the Bollinger Bands to be widening, the upper and the lower band to be widening, spreading apart. It means you've got good price action, great time to trade. Bollinger Bands getting tight, very narrow, horizontal, parallel; not a good time to trade. When that happens, move on to another currency pair or go and do something else other than trading, because that's telling you that the conditions are not great at that particular time.

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

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#239: Is Trading Forex The Same As Gambling

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Is Trading Forex The Same As Gambling

In this weekly video:
00:21 – Forex trading and gambling
00:53 – The blame game – it’s very easy to do
01:59 – Trading is definitely not gambling
02:45 – You must understand risk and probability in order to trade well
05:04 – I’ve been trading for 14 years but it takes time
05:50 – Trading FX is one of the best things you can do

Is trading Forex gambling? Let's talk about that and more right now.

Hi Forex traders, Andrew Mitchem here, The Forex Trading Coach, video and podcast number 239.

Forex trading and gambling

I want to talk about Forex trading and gambling. Are they the same thing? Well, I certainly don't think they are, but I've had a comment today. It's been on YouTube. A guy said, “Andrew, what you're doing is you're gambling. Trading's not real. It's a terrible thing to do. You're just a gambler.”

Well, a number of answers to that really. Thousands of people, hundreds of thousands of people around the world make their living from trading Forex, but there's more to it than just that.

The blame game – it’s very easy to do

You see, the problem is today, it's very easy to blame other people. Social media means that people can moan and groan and vent their anger and frustration very, very easily. You generally find that the people that are doing well and busy in life, and entrepreneurs, et cetera, they don't bother with this whinging and moaning and typing stuff everywhere, because they're too busy enjoying life and doing things and making money, and spending time with their family to worry about doing all this criticism stuff.

As a trader, it's very, very easy if things go wrong to blame everybody else, to blame the broker, to blame the platform, to blame the robot that you've bought, to blame all these different things, to blame the indicator, to blame your strategy, to blame your coach, whatever it might be. It's very, very easy to blame other people. Or in fact, for most people, the real reason that they don't do well is through lack of learning, lack of discipline, lack of focus, controlled risk, all those type of things.

Trading is definitely not gambling

For me personally, it is definitely not gambling. I am the most ungambling person, if that's a word, that I know. I have never betted on horses or dogs or anything like that. I've never bought a lotto ticket, ever. I've been to a casino probably three times in my entire life, and that's briefly. I'm not a casino person, I'm not a gambling person, and Forex trading is not gambling. You have to understand that if you want to become a trader, you have to have discipline, you have to understand the market, and you have to have focus. You have to have controlled risk. You have to understand probability, all these type of things.

You must understand risk and probability in order to trade well

So for me, as a trader, I understand risk. I never, ever risk more than half of 1% of my account per trade. Never. Most of the time it's a quarter of a percent, a quarter to a half percent. Very, very low, controlled risk. I understand probability, I understand price action, I understand patterns, I understand strength and weakness, I understand where price might bounce, round numbers, support and resistance levels, previous highs, previous lows, pivot points. I understand what happens when we have divergence, when you have the price going one way and an indicator heading the other way.

I understand I've bought oversold situations, I read the news, I'm not a news trader, but I have a look at what's happening in the news, the fundamentals. Any big news events. I trade longer timeframe charts where they have more probability, they have more information contained within a candle than a five minute chart, as an example. So, you put all that together with probability, you trade with the trend. If you take a reversal trade, you know it's a higher risk trade, so therefore you have more, you're watching the trades maybe slightly more.

But if you're trading with the trend, you're trading after pullbacks, you're trading so that you have maybe a round number to protect your stop loss. You trade so that you don't have to break a new high or a new low to get to your profit target. All these type of things adds probability to your trade and to your strategy. Now, if you do that, you put all that together, you have yourself a low risk, high probability trading approach. Therefore, when you start adding probability and you add reasons for a trade, and you have lots of reasons to protect the trade and your stop loss, and you have controlled risk, you're actually trading.

You're reading the market, you're trading. Not every trade will go well. Not every day, not every week, not even every month will go well, but as a trader, you accept that if you have discipline, you follow this methodology, you stick to the approach, you don't let your emotions get in the way, you don't start doing silly things, then you have a very good trading approach that will, over time, will work across all market conditions.

I’ve been trading for 14 years but it takes time

I know that, because I've been trading the same way for more than 10 years, probably about 11 years now of trading the same way.

I started trading 14 years ago, but it took me a number of years to get to where I could understand the market and have a strategy. Now, most people give up in that time or they start gambling, they take too big a position size. They start arguing with the market or the broker, or not placing stop losses, doing silly things, and then it's very easy to say, “It's gambling and it's the market's fault, it's everybody else's fault.” It's not, it's your fault. If you want to become a good trader, you have to understand that, you have to understand the realities of it, and if you can't understand that, you can't accept that, don't trade. Simple as that.

Trading FX is one of the best things you can do

If you do want to trade and you want to put some hard work and some effort and some dedication and some discipline into it, it is one of the best things you can do. I likened it on my reply on YouTube to flying a helicopter. Extremely hard thing to do. A lot of people will say, “I'll never go in a helicopter. It's far too dangerous” and all these things. It's not, it's rubbish.

If you seek good instructions, a good instructor, you're disciplined, you plan, you understand the weather, you understand where you're going, you understand the radio calls, maps, you understand the machine. You've done your homework, and you're disciplined in your approach to flying, it's such an enjoyable thing to do, and trading's exactly the same. Really, it comes down to you.

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

Click here to get my Trade Copier Service

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#238: How To Trade and Travel

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How To Trade and Travel

In this weekly video:
00:20 – Trading from Wanaka, New Zealand
01:18 – Made +1.55% in 2 days by trading and 20 minutes
02:10 – Trading and travelling – using Daily charts
03:33 – Make money and travelling without watching charts all day
04:43 – Learning how to trade by yourself
05:10 – Google “Dusky Sound, New Zealand”

Would you like to trade and travel at the same time? It's the ultimate goal for many traders. If that's you, you have to listen to this video, check it out.

Trading from Wanaka, New Zealand

Hi Forex traders, Andrew Mitchem here, The Forex Trading Coach video and podcast number 238, coming to you from the beautiful, absolutely stunning Wanaka in the South Island of New Zealand. Absolutely amazing place here. If you've not been here just check out the scenery behind me. Absolutely spectacular. Well why am I here? Well yesterday I was absolutely thrilled and honoured and privileged to be able to fly a friend's helicopter all the way to a place called Dusky Sound, which is absolute wilderness, completely remote part of New Zealand that very few people have been to.

Actually Captain Cook's first landing place in New Zealand. Absolutely wonderful place. I got to fly the helicopter in and back out again. We spent the day fishing, caught some amazing fish, blue cod, ate some of them, still have some to eat for today. Just absolutely incredible.

Made +1.55% in 2 days by trading and 20 minutes

Why am I telling you this? Well one, I want you to come to New Zealand and have a look at this, why wouldn't you? Number two, at the same time, and today's Wednesday, I usually make my videos and podcasts on a Friday, but I had to share with you this amazing scenery.

Today's Wednesday, so on Monday and Tuesday, I've just traded ten minutes on each day and that's it and already with half percent risk per trade I'm up 1.55 percent on my account. That's just 20 minutes so far this week, 1.55 percent. It's just crazy. If you wanted to say, risk one percent per trade you'd be up what's that, 3.1 percent in two days and it can be done just by trading daily charts once a day.

Trading and travelling – using Daily charts

If trading and travelling is your ultimate goal, then you need to jump on board with this, you need to start looking at these longer timeframe charts.

Now the trades that I've mentioned, they've all been posted on my website as well, for my clients, so every client would be up the same, just by copying. That's it, of course you can still take trades yourselves and exactly like I mentioned on last week's same video and podcast, go and check it out, number 237 (watch it here), about why would you trade the shorter timeframe charts? It kind of doesn't make sense because people who want to trade and travel, you see all these funny images online of these beautiful women sat there in a bikini on the beach on a deck chair with their laptop, pretending that they're trading.

Well, if I was sat on a beach, the last thing I'd want to do is think about trading. Number one, you're going to get sand in your laptop so that's the end of the laptop, but you know, more realistically why would you be sat there on a beach trading? That basically says to me that these people who are talking about doing this, they're selling this ideal image, they're promoting you sat there trading five and fifteen minute charts, which to me is just like crazy. Why would you?

Make money and travelling without watching charts all day

If you want to be able to realistically trade and travel at the same time, then you need to be able to go and do things like this. Just look at it, it's spectacular. You need to be able to go and see places that you want to see whilst you are travelling but having the realistic ability to trade, so trading once a day on a daily chart, it is realistic and it can be done and it does allow you to travel at the same time. If you've got that goal to trade and travel, try to jump on board with my course if you want that help. Like I said, the 1.55 percent so far this week has been, and we're only onto Wednesday, so it's only two days of trading, Monday and Tuesday. It's Wednesday morning here right now. That's spectacular figures when you consider two days, 20 minutes at the very most.

I mean, that's what it's taken me but if you just copied as a client it would have taken you probably ten minutes. You just got to copy, look through charts, but ultimately don't forget though, it's not just simply a copy service, what we're offering.

Learning how to trade by yourself

It's more about actually about getting people the ability to learn how to trade themselves. That's the main thing. Yes the 1.55 percent is great, but it's the having the ability to take these same trades for yourself and be able to educate yourself to be able to do this from anywhere, anytime.

I'm going to stop now, I can just hear the same helicopter that I flew yesterday is just coming over. I'm not sure if I can quite get it on, but you can probably hear it in the background, but yeah, looking at.

Google “Dusky Sound, New Zealand”

If you Google, Dusky Sound, we were fishing yesterday with dolphins around us, with seals on the rocks. If you're into fishing and I'm no fisherman, but if you're into fishing then we were dropping the line in and within 30 seconds we were catching fish, these amazing blue cod because it's a non-commercial fishing area, completely unspoiled.

If you want the opportunity to see places like this and to travel, jump onto those longer timeframe charts and ignore those silly pictures of people sat on the beach in their bikinis and laptops. It's not real, this is real. You can't argue, 1.55 percent in two days and you get to see places like this. I'm just going to pan around and see if my new gadget will follow me here. Excuse the very, very bright sunny conditions here, but it's a spectacular place. This is Andrew Mitchem, The Forex Trading Coach. I'll catch you this time next week.

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#237: Should you trade the short time frame charts?

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Should you trade the short time frame charts?

In this weekly video:
00:22 – Always getting asked this question – I cannot trade the main sessions
01:20 – Go to the longer time frame charts
01:54 – Getting affected by fundamentals and spread size
02:38 – How much time to you want to spend at the charts each day?
03:23 – Trade less and make more
03:52 – Trade analysis and a 55% gain per year

Should you look at trading short time frame charts? Let's talk about that and more right now.

Always getting asked this question – I cannot trade the main sessions

Hi Forex Traders. This is Andrew Mitchem here, The Forex Trading Coach. Video and podcast number 237.

Now, I get questions every week, and probably every day and people say to me, “Look Andrew. I can't trade the US session. I can't trade the European session. I'm at work. I've got family commitments. I'm asleep then,” all these kind of issues that people have and for some reason, people seem to think that they have to trade the European session, which of course if you live in America, that's no good because it's like two or 3:00 in the morning.

People think they need to trade the US session. Well, for me here in New Zealand, that's two or 3:00 in the morning. I had a guy just yesterday from New Zealand. He said to me, “I can't trade the European session because that's our night time.” He said, “I work nights so I can't trade in that European session, which I know is the most active time and it's the most profitable time to be a Forex trader. How do I get around it because I can only look in the daytime, which is the Asian session, and nothing happens most days in the Asian sessions so I can't trade. How do I work this, Andrew?”

Go to the longer time frame charts

Well, the simple answer is, go to the longer time frame charts. Go to the daily charts. You could trade five and 15 minute charts if you wanted to. My system works very nicely on those time frame charts. In all honesty, I don't trade them. It's just something that just doesn't suit my personality. I don't like sitting, watching the charts, watching the screen all the time, feeling like you have to be taking trades all the time. The shorter the timeframe you go, generally the less reliable the trading information, the technical information is.

Getting affected by fundamentals and spread size

You are more likely to get influenced by news events like fundamental events and widening spreads. Spreads actually become such a big part of your actual performance, because if you're trading and taking like a handful of pips maybe at like 10, 20 pips of profit, depending on the trade. You've paid two or three pips to get into that trade, all of a sudden, 10, 15% of your profit is being eaten up by the spread.

If you trade longer timeframe charts such as like daily charts and your profit target may be in 80 pips, 100, 150 whatever it might be depending on the trade again, and the volatility in the market at the time. I can handle paying two or three pips because it doesn't really make a great deal of difference.

How much time to you want to spend at the charts each day?

The other thing is also, how much time do you really want to spend at your charts? By trading the daily charts, it doesn't matter where you live in the world. I've got clients in 59 countries all around the world, all with different jobs, different set of commitments that they have in their life, and not a single person has a difficulty replacing my daily trades. Why? Well, I place retracement orders and then also I personally place part of my position at the market. I look at the 5pm close of New York day candle, and make my analysis from there. A daily chart has a lot of valuable information in it. The fundamental news that comes out within a day generally doesn't effect it too much, because you have bigger stop losses and you can allow for those swings within the market.

Trade less and make more

It also means a lot less stress. Why would you not want to trade less but be more consistent and make more money? It just doesn't make sense why you'd want to go staring at charts all day watching five minute charts, be scared and watching every pip move up and down. It's crazy.

Really, to answer the question for those people, it doesn't matter where you live in the world. It doesn't matter whether you can trade the European session or the US session, because you don't need to be sitting there watching the charts at those times if you choose to trade the longer time frame charts.

Trade analysis and a 55% gain per year

Now, I've also done some analysis of my own results this year. Far and away above everything else, the best performing time frame chart for me personally this year, are trades from the daily charts. It's been a tougher year without a doubt. Up 13.4% on the daily charts this year with half percent risk. Last year I made 34% on the trades that I recommended on a daily basis to my clients. Clients could have just copied half percent risk, total per trade spin into two positions, half of the retracement, half at the market order, and made 34% without any compounding just last year, copying once a day.

Of course, you can still take trades on other timeframe charts and I recommend people look at things like for, six, eight, 12 hour charts. I also post trades for my clients on weekly and monthly trades as well.

For me personally, daily charts, definitely sort of the optimum time frame to trade. If you're trading daily charts only, you need 10 minutes once a day and that's it to analyse the market. I've also done some analysis on my daily trade suggestions that I've posted every day, of the day, every day throughout the last seven years, since 2011.

Now, if you had $100,000 in 2011, and you did nothing else than copied my daily trade suggestions right through to now, through to the beginning of August 2017, in that six and a half years, you would have made an average of 55% per year including compounding. $100,000 back at 2011, January 2011 today would be up over $460,000. That's a 360,000, sorry, 360% gain on your original account with compounding in those six and a half years. That's doing nothing else than just copying what I suggest once a day for maybe take you to copy two or three minutes. I takes me 10 minutes to analyse the market. Of course I write up information for clients and it takes a lot longer to write it all and post everything. For you as the trader, to analyse yourself, 10 minutes once a day, as a client to copy what I say, and post it and place it on your account, a couple minutes once a day. That's it.

At 55% gain on our account on average per year, with compounding for six and a half years, not bad is it? When you look at that, why would you want to stare at five minute charts all day. I’ll leave that with you.

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

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