What happens when the going gets tough?
In this weekly video:
00:29 – How do you react when trading gets tough
00:43 – I had a bad start to the week but ended up making +1.5% gain for the week
01:35 – I stuck to my plan and strategy
02:25 – Client makes +14.5% account gain in the last 30 days on a live account
03:22 – Trading your system not your account size
04:55 – Major news events so be careful
05:27 – My 8th Birthday Sale is live this week – register your interest using the link below
06:20 – A Global community of Forex traders – come and join us
What do you do when the going gets tough with your trading? Do you give up, or do you keep going? 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 224. I want to talk to about what do you do as a person and as a Forex trader when the going gets tough?
How do you react when trading gets tough
Because it's very easy to just throw everything out and go, “It's not working.” Blame the broker. Blame the system. Blame everything when things go tough.
I had a bad start to the week but ended up making +1.5% gain for the week
I'll give you an example, just this week I've had quite an average week with my own personal trading through Monday, Tuesday, and Wednesday. It was like “Oh” … I'm fine, I've been trading like 12 years, but I can see people go that stage, “This is not working” or “Do I start to tweak something.” “Do I change my method.” “Do I add something.” “Do I give up.” What do I do? It wasn't really bad it was just not a great start to the week.
Then, yesterday being Thursday, I had a tremendous day. Great profitable trades and it's made up for all those losses. Got me back to breakeven for the week and now into profit. Right now as I'm talking to you, we're on Friday, and I'm over one and a half percent gained for the week. It's gone from being a really pretty bad week through to a very good week.
I stuck to my plan and strategy
The reason it's done that is because I've stuck to my plan. I've stuck to my strategy. I haven't given up. I haven't thrown my toys out of the cot and gone “Oh, it doesn't work.” The problem is that so many people especially the newer traders do that too quickly.
You have to try and avoid doing that. You've got to control your emotions. Sure no one likes to have losing trades and losing periods of time, but everybody does. You need to be able to accept that and take it and continue because when you‘ve have good periods, as I did yesterday. Yes it's nice to celebrate that and go “Oh wow, didn't I do well.” But it's also about not getting that go to your head either and then doing stupid things on the next few days which go and blow all the good work. It's really important to have that balance.
Client makes +14.5% account gain in the last 30 days on a live account
Another example is a client of mine called Xavier who lives over in America. He posted a message on my forum site for clients, and he said, “Over the last 30 days, he's taken 120 trades in total.” Which is quite a number of trades but he is a very active Forex Trader. 89 of those trades have lost, and 31 of those trades have been profitable. You could look at that and go “That's not particularly high ratio.” A lot of people would say with those 89 losses they might have got fed up or stopped trading. But Xavier has said his up 14 and a half percent account gain, low risk, per trade, but it made 14 and a half percent on the last 30 days of trading. So it's tremendous account gain. You think about that 14 and a half percent in 30 days. You can't get that at too many banks or other ways of investing around the world, but Xavier's done that.
Trading your system not your account size
He made a great point here he said, “That you have to trade your system, not your account size.” He said, “It's all about trading the system, sticking to the system.” And what he's done with that high number of losses is he's controlled his risk, and his kept his loses very small. A number of those trades would be like breakeven trades or small losses, things like that. When he's had profitable trades, and the markets moved in the direction of the trade that he's looking for, he's had very high gains.
He posted a couple of trades on the forum site, and one of them had 3:1 reward risk. One had a five, and there was even one on his account that he posted that had a 7:1 reward risk on that one trade. What he's doing there? Is he's saying “Look I‘m controlling my risk if I take a loss? It's going to be a real small loss or controlled loss. Then what I'm also doing is when the market moves in my favour, I can move my stops up to protect the trade of guaranteed profit, close part trades, but also when the market is moving in my direction, I'm getting huge gains out of that.”
Once again 14 and a half percent in 30 days of trading. You've got to seriously look at that and go “Wow, this is some excellent trading going on here.” But as I said with the topic of it on podcast, when the trading gets tough, what do you do?
Major news events so be careful
Xavier keeps going because he knows the strategy that I've taught works. It's worked for him, and it continues to work. It's an important point there.
On the charts today, we've got the US non-fund employment change data, and at the weekend we've got the second round of the French election. Just be really careful when you see these big news announcements. You've noticed from a few weeks ago with the first round of that French election, huge gaps on a Monday morning, especially on the Europairs. We're likely to see that again this Monday coming. Of course, it could depend on the outcome of the results, but likely to see big movements, big gaps. Just be really careful when you see that.
My 8th Birthday Sale is live this week – register your interest using the link below
The other thing that I'll quickly let you know is that I'm sure you know already, is that Monday and Tuesday of next week. It will be 8th May if you're in America and Europe it's when it starts your time, but the 9th of May which is also my own birthday and its also the eight birthday of the Forex Training Coach. I've got an annual sale, great way of joining us and getting results like Xavier. At a drastically reduced fee. Now the Forex Trading Coach is eight years old next week. It's something I'm immensely proud of. I've taught and helped thousands and thousands of Forex traders all around the world. When I look back and look at the companies whether they be signal services, educators, brokers, whatever they maybe, from 8 years ago, not too many of us are still growing today. I'm really proud of that fact that it's helping people of what I do.
A Global community of Forex traders – come and join us
It's just creating a global community of Forex traders who are just making excellent gains from their trading. If you would like to be part of that jump onto that sale straight away next week. I'm also looking forward to the next eight years again. It's been a great first eight years, but we're looking forward to another eight years plus more of helping other traders around the world and just growing this fantastic group of Forex traders.
Once again this is Andrew Mitchem, The Forex Trading Coach. Have a great weekend. Be careful of those gaps on Monday, which are likely to occur, and I'll see you this time next week.
Thanks again, I'll see you this time next week.