Why you need patience to trade Forex
In this weekly video:
00:26 – The key to being a successful trader
01:03 – The reality of trading
01:38 – Less is more
02:14 – Live webinar with clients
02:43 – Real trading example on the EUR/USD
03:44 – More trades selling the EUR/USD
I'm going to explain why you need to have patience in order to be a successful Forex trader. Let's talk about that a little more right now.
Hey traders, Andrew Mitchem here, the Forex trading coach with video and podcast number 298.
The key to being a successful trader
Now the key to being a successful Forex trader is having patience. Now many people get into trading thinking it's going to be fast, action paced, moving markets all the time, lots of screens with news channels and things coming through and high action pace, traders sat there, can't miss a single bit of news, they can't miss a single pip of movement. They're there taking trades within milliseconds, getting in and out of the market all the time, real fast action paced stuff.
Now that's the perception and the reality is or the reality should be if you are going to become a good trader and to last as a Forex trader.
The reality of trading
The important thing is that you need to do the exact opposite. The reality for me, it couldn't be farther from the truth. I don't have any news channels going, I don't look at any news feeds. I'm looking at the close of a candle and I'm displaying patience. You don't need to be sitting at your charts all day long, all day and night, in order to become a good trader.
Less is more
Think of the phrase ‘less is more'. It applies to trading absolutely perfectly. Why would you want to make, let's say 2% on your account in a week and you've taken 50 trades as opposed to maybe making 2% on your account in the week and you've maybe taken 5 trades? Which is going to be more enjoyable? Which is actually making you money? Which is more long term beneficial? Which is actually putting money into your account rather than your broker's account? Patience is the absolute key.
Live webinar with clients
Now just last night I held a live webinar with my clients and a very successful client typed in on the chat that we had saying, “Hey Andrew, I'm taking trades only on the currency pairs that have a certain direction showing on the monthly chart and that same direction showing on the weekly chart, and then I'm taking trades only on that pair in that direction for that week's worth of trading.”
I'll give you a great example, so today's Friday the 9th of November and we're just about getting close to the Thursday's daily handle closing at 5:00 PM New York time.
Real trading example on the EUR/USD
Now I'm just about to take a sell trade in and suggest to my clients we look at a sell trade on the daily chart on the Euro/US dollar. Now at the beginning of the month, beginning of November, I took a specific monthly chart Euro/US dollar sell trade.
On the weekly chart, I'm also looking for sell trades, and then today, being the last day of the week, so for the first four days of this week, there have been no suitable set ups on the Euro/US dollar on the daily charts, but today I'm going to take one very shortly. We have a specific way of entering and exiting, etc., but I'm takin a sell trade on the daily chart that happens to be in the monthly and the weekly direction.
When the daily is lining up and I've had a pull back and I've had some indecision, now I'm getting a confirmation candle, I'm going to be taking a sell trade.
More trades selling the EUR/USD
Now just on that webinar yesterday that I talked about, I also took a sell trade on the one hour chart also on the Euro/US dollar because I've got the monthly, I've got the weekly, I had the daily, and then on the one hour chart, I had a perfect sell trade and it made full profit.
The patience is the key. Don't go forcing trades. You don't have to have them all lining up, that's not part of this discussion, but it's to show you that the patience and the A grade high probability trade set ups are really what you should be waiting for. Like I said, don't need to be making 2% with 50 trades if you can make 2% with 5 trades or 1 or 2 trades. It's all about patience, waiting for the set ups to show you those A grade set ups. When you see them, then you take them with full confidence.
I hope that helps. This is Andrew Mitchem, the Forex trading coach. I'll see you this time next week.