What Prevents Traders From Being Successful?
In this weekly video:
00:27 – 4 Live Webinars helping traders
01:12 – The Top 3 problems that traders have – #1 No Strategy
01:51 – How to create a strategy that works for you
02:37 – #2 Not understanding Money Management
03:37 – #3 Lack of time to trade
04:26 – Look at the close of a candle
05:00 – Trading D1 and W1 charts when I travel
05:25 – 1 Day Cyber Monday Sale on Monday 27th November – Register using the link below
I'm going to explain the top three problems that are preventing Forex traders from being profitable. Let's get into it right now.
Hi traders, Andrew Mitchem here, the Forex Trading Coach. Video, and podcast number 251. I thought it's such a beautiful day here, I would come outside and make a video.
4 Live Webinars helping traders
What I wanted to talk about today was the feedback that I received from a survey that I sent out recently to 35,000 Forex traders all around the world. Had a lot of replies back, and as a result of that, I‘ve put together over the last two weeks, four live webinars. They're about one hour. Well, last night's one was about one and a half hours, because we had so much information to cover. I'll put a link to that last video below this video and podcast also, so you can go and watch that.
Also, on that webinar, I explained how I'd made a 3% gain, or just over a 3% gain in the last week on live account. I shared with the people on that webinar, some of the trades that I'd taken.
The Top 3 problems that traders have – #1 No Strategy
The important thing that I want to cover now, is to explain the top three problems that the people telling me that are preventing them being profitable.
Number one, was people do not have a strategy. As I said on the webinar, that's really concerning. There's all these thousands and thousands, hundreds of thousands of traders out there, small retail traders, putting hard earned cash into their Forex account, and most of you don't have a strategy that is proven that all of you even believe in yourself. That's really not good when you think about it.
How to create a strategy that works for you
I was explaining information about how to create a strategy that works for you, about how when I started trading, it took me four years of going around in circles before I really got somewhere. I stripped everything off my charts, I started with understanding candlesticks, and candle patterns. I mentioned that I just use five candle patterns right now in my trading today.
My trading style's not changed in the last 10 years, because it's profitable, and it works in all market conditions, or currency pairs, or time frames. It's really important that you have something like that as well, something that you know will work through all conditions. Very, very important. It's all well and good having something that works in trending markets, or range-bound markets, but you don't know when the market's going to do that. Understanding a strategy that works for you, is a vitally, vitally important.
#2 Not understanding Money Management
The second point that we talked about was the lack of understanding of money management position sizing. It's crucial, because you can have, as I explained in the webinar, a 90% winning system. A 90% win rate. I said to people, “Look, if you come to me with a 90% win rate, would you say you had a good system?” Most people were saying, “Yeah, of course. 90% is fantastic.” Winning nine trades out of 10.
The problem is a 90% win rate doesn't actually mean that much if you do not understand money management correctly, because the problem that a lot of people have is that one trade that loses every so often, will wipe out all the gains they've just made, plus more. Understanding money management for getting pips, understanding small risk per trade, and high reward to risk was really important, so we'd covered that as well.
#3 Lack of time to trade
The third issue that people say they have problems with is having a lack of time. Now, bad news is we all have the same time. We all have 24 hours in the day. Doesn't matter where you live. It's how you use that, and also when I ask the question of how much time people are spending on their charts trading, I had people on there saying, “Oh, four hours, six hours, eight hours a day.” It was like, “Really? That's just crazy. That is not sustainable. It's not enjoyable.” You have to have something that works sustainably, practically. Something that you're going to enjoy doing. Do you really want to spend four, six, eight hours a day, every day, looking at charts? Not me.
Now, I used to do that, of course, like a lot of people, so I understand that people love looking at charts, and when you're learning a strategy, or learning something, yes, but what I tried to explain to people.
Look at the close of a candle
Is if you look at the close of a candle, you can trade in 10, 20 minutes a day, and that's it. That's what I do. I look at the daily charts. At the same time that the daily charts close, I look at the four hours, the six hour, and the 12 hour charts at that same time. That's 5:00 PM New York time.
Then throughout the day, I might look at a four hour chart, or a six hour chart close every so often on the close of a candle, so a couple times in the day. Then I'll look at the 5:00 AM New York close of candle, and I can look at the one hour, the four hour, the six hour, and the 12 hour charts at that same time, and that's it.
Trading D1 and W1 charts when I travel
If I'm travelling, I just trade daily charts and weekly charts, and you don't need to trade anymore than that.
So three really important topics there. One was about strategy, two was about having an understanding of money management, and forgetting about pips, and number three was about lack of time to trade, and how you can practically trade as a full-time trader within only 10 to 20 minutes per day.
1 Day Cyber Monday Sale on Monday 27th November – Register using the link below
The other thing that came out of those webinars, is people said to me, “Look, Andrew, love what you do, love your course, or the sound of your course, but it's a bit expensive for me.”
What I've done, is I put together a sale that's going to go ahead on Monday, the 27th of November. It's for Cyber Monday. That's to explain, we don't really have Cyber Monday here in New Zealand, but obviously, a lot of you in Europe and America, Cyber Monday's a big deal. And me being online, it's something that I said, “Yup, look, I can do something for you.” Normally I only have a Christmas sale, so I've decided to go ahead, do a one-day sale only. It's Monday, the 27th of November. It starts at midnight New York time, so there will be a countdown clock to tell you what that is in your own time, but as a currency trader, as a Forex trader, you should probably know that already.
Have a look at the link below this video, register your interest, and then what I'll do, is I'll send you details about that sale. Monday the 27th of November. It's going to start at an exceptionally low price. It's going to be a dime sale, so the price will be increasing all the time, but it's going to start at a crazy, crazy low price. It's your opportunity to get on board with a successful trading system, at a heavily discounted rate.
Register your interest on the link below, and I look forward to helping you become a massively successful and profitable Forex trader.
This is Andrew Mitchem, the Forex Trading Coach, enjoying the outside. I'll see you this time next week.