Why Trading doesn’t need to be difficult
In this video:
00:26 – The cycle of a new trader
02:20 – Live trading webinar
02:50 – A +19.5% gain in 5 weeks of trading
03:10 – Finally understanding the charts
04:51 – Knowing how and where to enter a trade
05:28 – The KISS approach works
06:29 – Keep to the basics
You don't need to make your trading difficult. It doesn't need to be. Let me give you some great tips and information right now that will really help you. Let's get into it.
Hi, Forex traders, Andrew Mitchem here from the Forex Trading Coach with video and podcast number 331.
The cycle of a new trader
Now, I want to talk about the cycle that most people go through when they start trading and then how that changes and evolves. Now, most people start off by seeing trading as something quite simple. You've probably seen it online. You've seen some flashy ads, some way. You think, “This is great. This is something I can do. Piece of cake. Love it”. You get into it, you open a demo, you don't really know what you're doing. You're putting some huge, ridiculous lot sizes on there. You've got no idea about risk. You might add a couple of indicators because they look pretty cool and you have a few lucky trades and it's all magic. That's what I did.
The problem is when you go live, it's a completely different story, isn't it? It's real money. It's real emotions. You then start doubting the system that you don't really notice the system because you just kind of guessed a few things. You then look at some other systems. You look at adding some more indicators because they look really cool. They're on all the charts. They must need them because someone's created them. So, let's add some different combinations of indicators. Let's change the parameters of those indicators to something that no one else has ever done. And you try creating all these really cool strategies. That doesn't work. So, you then go onto a forum, you get completely confused and bullied by other people on forums who think they know everything about trading. So, you realise that that's not going to help you either. What else can do you do?
Well, you probably get spammed with some emails about some, you know, some indicator or something like that that's gonna make all your problems go away. You try that, you realise that doesn't work either. “Ah, not I tried news trading before. Let's give that a go because everybody says that's the way to trade fundamental. So let's go and do that”. And you have TV programmes going with CNBC, you're waiting for these news events, and realise that doesn't work either. So, you go into this big vicious cycle and realise that, “Actually, this trading's pretty difficult after all”.
Live trading webinar
Now, the reason I'm bringing up this subject is that last night I held a live two hour webinar with a lot of my clients on that. A lot of people on that webinar were new to the course and the strategy. They've been with me two or three weeks. The reason there's a lot of new people on there because a lot of people joined as a result of the 30 minute forex trader sale that I held in the beginning of August.
A +19.5% gain in 5 weeks of trading
That was as a result of me travelling through the UK and Europe during July and the three weeks I was away there and the two weeks- the week I was back in the week, we held the sell.
We made 19 and a half percent gain by risking just a quarter of 1% risk per trade, all published on the membership site. And I've shown you if you've seen my videos, all those actual trades. So, a lot of people jump on board and go, “this looks really good”.
Finally understanding the charts
But the comments that I had on the webinar last night were amazing and I've received a number of this morning also, and they are largely around the subject of, “Actually, not so much this is easy, but you've opened my eyes to something I didn't realise about trading. I now understand what I'm looking for. I now understand what the market's saying when I'm seeing candle shapes and patterns and the price move up and down. I'm understanding that and I understand what's happening behind the scenes. I'm understanding when to look for trade. Really important. I'm not sitting at the computer all day, I know with confidence now and we're probability on my side that this trade is likely to work”.
Not always gonna work. Of course it's not, but that's the comments that were coming through in only a few weeks of people joining. And of course you've got to have the strategy, you've got to have something that works, you've got to have the backup support that we offer, and the help and the mentorship, et cetera, like that, but the comments were absolutely amazing and it's just all around people actually realising that, look, trading's not simple, absolutely not simple, not easy. However, once you understand what you're looking for, it suddenly becomes a lot, lot easier and it's a lot less stressful. You don't feel the need to jump and change systems. You know what you're looking for in a chart. You can easily identify a setup. Is there a set up there? Yes or no? If it's yes, fantastic. You know exactly where to enter the trade, where you're going to exit the trade. You know those levels. You know exactly that and you know it's correlated to the volatility or lack of in the market at that particular time.
Knowing how and where to enter a trade
So, you also know your exact position size. You know your controlled risk. You know your reward to risk from the trade if it gets out- or as the trade at a for profit target. You know if the trade gets stopped at exactly what you're going to lose. All very, very controlled. You put the trade on and that's it. Walk away. If there's no trade, do the same thing. Walk away and you'd know when to come back and have a look again. You might be trading just once a day off daily charts. You might be looking at say 12 and six hour charts or four hour charts and you know exactly when to come and look at your charts and easily identify if there's a set up there.
The KISS approach works
So, as with most things in life, the KISS approach, the keep it simple, stupid approach, you know, it does work in trading as well.
You do not need to over complicate trading. Trading actually when you bring it back to basics is actually relatively simple. The price is gonna move up, down or sideways. It really can't do much else. And so having that understanding of why it's moving, where it's moving, why'd it bounce there, what level it probably will stop at, strength and weakness, all those types of things in conjunction with the things that we talk about all the time, the controlled risks, the high reward to risk trades, et cetera like that. Put that together. You have an easy picture to understand what's happening in the market. That was the overwhelming feedback that I received last night and this morning from so many new clients is absolutely thrilled that they're on board, really excited by it. They're understanding they're trading. They're, they're getting support. They've got software. They've got trades to follow. They've got webinars to follow.
All these things are suddenly changing their trading around really, really quickly.
Keep to the basics
So, I hope that helps. It just shows that coming back to basics really does matter. Don't over complicate things. Don't wait for the line A to across over line B and look at one minute charts and all those type of silly things, you know, because trading ultimately, can be simplified and can be very, very enjoyable and something that you can do with longevity as well. Very important there. So, I hope that helps.
This is Andrew Mitchem from the Forex Trading Coach. I'll see this time next week we're more trading tips and information and as always, if you have any subjects you'd like me to cover for you personally on any of these future videos and podcasts, send me an email. My contact details are on the website. See you next time.